What should I do? Input please!

[Jorge]

Well, it's 3am in here and I can't sleep.

I've setup an office with a friend/partner from a long time. We will divide the expenses and keep two separate "departments":

His will be devoted to 3D productions (renders, arch. visualization, etc.). He has a client base and a few employees

My problem is that I can't see clearly which way to go, I have two options:

1) Hire a few employees and try to expand my client base to provide Web Development services (that's what I've been doing till now).

2) Devote my resources (time, money) to develop several e-biz ideas that I have had for a long time now.

This is the pro's and con's that I see in each option:

1) Pro's:
-Positive cashflow almost for sure (I have several recurring clients)
-Keep clients so that they don't go looking for other web development providers

Con's:
-At the moment, really time consuming (I don't know if I could automate the business as I would like to)
-Payroll to keep
-Equipment to buy: computers, chairs, etc.
-Higher expenses

2) Pro's
-Less expenses
-More time to develop my e-biz ideas
-Possibility of exponential growth if any idea is successful :fastlane:

Con's
-Negative cashflow (office expenses)
-Loose my client base?

I would really thank advice on this one, specially from the fastlaners on the forum... I'm stuck! :bgh:

 

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[czach41]

My personal opinion: focus on #1 and expand, expand, expand! With #2, you may end up doing 60% of three ideas, as opposed to 100% of one idea. Just my .02. GL to you!

 

[JScott]

Figure out how much money you need to survive and keep from stressing out too much, and then devote however many hours to #1 to ensure that you make that much money.

Then, devote the rest of your time to #2.

Once you start making income from #2, decrease the amount of time you spend on #1.

Btw, for #1, keep the customers who you have the best relationship with, as they will likely be the most flexible with your future work schedule...

 

[Jorge]

Hey, Thanks for the input!

I forgot to mention that I already have a job.

It pays relatively well and can cover my expenses as well as the office expenses, that's why I don't know which way to go!

Thanks!

 

[JScott]

If you have a job that pays the bills already, spend your free time working on something that has big pay-off potential. You can always get consulting gigs later if you need/want to.

Just my $.02...

 

[Jorge]

Thanks

Anyone else has more insight?

 

[Jorge]

Come on fastlaners, you must have some advice! :hl:

 

[encsteph]

Jorge,

I can completely understand where you are at! As you mentioned in your response to my post we are in not too dissimilar situations.

I wish I had some advice for you but unfortunately I can't offer anything more then the other people have already posted.

Would hiring these other employees free you up from some of the coding and client handling? Would it be enough to free up time to develop the online ideas you have?

Eric

 

[Yankees338]

I guess I'm thinking something along the lines of encsteph. Would you be able to essentially be the manager of a development team, without doing the manual labor yourself, so that you could keep some profits from that and still have time to work on your other ventures? Good luck!

 

[Jorge]

That's the problem, I could never managed to do that. The clients keep calling, meetings with them, explaining the developers/designers the clients view and so on.
Time vs Cashflow is how I see this.

Thanks for the input

 

[Yankees338]

If you start working at it now, build up a good base of workers and can establish a system that works, then you can slowly ease yourself away from the business and take a more hands-off approach. Doing this would give you the ability to adapt to your plans at your own pace. Once you feel you are ready, you can slowly hand the reigns to someone else.

Of course, just an idea.

 

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[encsteph]

Jorge,

One thing I would definitely recommend if you are going to hire employees is to hire yourself a really, really good project manager or account manager. Somebody who can field all of those client calls and go to all those client meetings with you and/or instead of you.

If you can find somebody good, and I mean really good, your headaches will disappear very quickly. Then you only have to go to a fraction of the meetings and handle only the really bad/complex calls yourself.

Eric

 

[Jorge]

Jorge,

One thing I would definitely recommend if you are going to hire employees is to hire yourself a really, really good project manager or account manager. Somebody who can field all of those client calls and go to all those client meetings with you and/or instead of you.

If you can find somebody good, and I mean really good, your headaches will disappear very quickly. Then you only have to go to a fraction of the meetings and handle only the really bad/complex calls yourself.

Eric

I haven't thought of this :smx4:

BUT, my current client base / work flow wouldn't allow me to do this right now without putting my own money to pay the employees. That money would go off my savings account and/or salary.

Keep the input coming and thanks!!!!!

 

[encsteph]

Jorge,

I definitely don't suggest depleting your savings or salary just to hire other employees!

How about sub-contracting instead of hiring? Work something out where you pay them maybe 10% upfront and only pay them the balance once you get paid by the client?

This would allow you to offload some of the work without laying out your own money.

I would NOT suggest doing this with a project manager because it would be very easy for them to steal the client if they were dissatisfied with the financial arrangement.

Designers and developers are possibilities for this approach though, in my opinion.

Eric