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What to do?

yveskleinsky

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I just got backfrom meeting with our software/computer guy and I am frustrated. He wants $4,000- $4,500 to write what we are looking for. It is not cost effective for us to do this now on the surface, but having these systems in place would allow us to potentially grow faster- thus it would pay for itself a lot sooner. He is willing to do flexible payments ($100/wk) but still it would eat most of our cash flow from our budding business. What to do? ...I do think his price is fair as we are asking him to automate a process that has a lot of variables. What would you do and why? I keep trying to focus on how we can afford this, as I think that may be a better question to ask. When my partner and I ask that question, we come up with the idea of trading nights at the cabins for time. The guy said he'd be willing to accept 7 nights- that's it. Any thoughts on how to make this work?
 
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Peter2

Fastane Legend. RIP.
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Aug 2, 2007
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Post your job on www.elance.com
I'm sure there are plenty of qualified people that can do the job for less.
 

Russ H

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Peter beat me to it.

Important things to consider when getting bids from elance:

1. You need to sort out the real doers from the fakes (not easy, esp if you're not an IT person).

2. You need to accurately and effectively communicate EXACTLY what it is you want to do-- otherwise, you will pay a great price for something that only does *part* of what you want (or, worst case, doesn't work for you at all)-- only b/c there was a loss in translation (bear in mind that you will be outsourcing your work globally-- and could likely wind up with a *very* talented code writer in India, who will happily do anything and everything you ask-- but they need to understand exactly what it is you want).

Did I mention that you need to specify exactly what it is you want? :beatdeadhorse5:

3. You need to keep deadlines-- and before you hire anyone, talk to at least 5 other clients of theirs who said they got the jobs in ON TIME and ON BUDGET.

Trying to figure out that you're really talking to a businessperson and not some of their hacker friends is a challenge, but it can be done.

As with most things, it's all about due diligence. :)

Good luck!

-Russ H.
 

Allthingznew

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Aug 26, 2007
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Assuming you are sold on this particular computer guy and your only question is to do it or not, what happens if you do it? What happens if you don't? You state you are trying to find a way to afford it, but can you afford not to?

If you do it, your question becomes how to finance it. You've already indicated some trading is possible, can you find out what this guy really wants? Maybe he desperately needs money and now, but what if he doesn't, what if he would be open to a creative payment plan. You said he would do payments of $100/week, that would mean he wouldn't be paid in full for almost a year. Can you recoupe your costs in that time? Can you negotiate an alternative based on your "faster growth" over the first year after he does the work the bulk to be paid at the end of the year? (He could end up with more than what he is asking, but if it works for you...)

Try to answer your question from the standpoint of what does he need/want instead of what can you afford to do. He may want something that is easier than you think. Here's an example of what I mean:

Joe wants to buy George's property, but George doesn't want sell and if he did, it would be for much more than Joe wants to pay.

Joe finds out George is dying. What on earth could be important to George to motivate him to sell? Joe also finds out George wants the property to make sure his granddaughter gets to go to college.

Joe structures a deal appealing to George's mortality, he offers to put a monument on the property in George's name, memorializing him for years, and he writes the deal to pay the daughters tuition each semester for the length of her educational needs. George sells Joe the property for the price Joe wanted.

Why? Because Joe found out what really motivated George and gave it to him, getting what he wanted in return.
 
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AJGlobal

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Aug 14, 2007
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I just got backfrom meeting with our software/computer guy and I am frustrated. He wants $4,000- $4,500 to write what we are looking for. It is not cost effective for us to do this now on the surface, but having these systems in place would allow us to potentially grow faster- thus it would pay for itself a lot sooner. He is willing to do flexible payments ($100/wk) but still it would eat most of our cash flow from our budding business. What to do? ...I do think his price is fair as we are asking him to automate a process that has a lot of variables. What would you do and why? I keep trying to focus on how we can afford this, as I think that may be a better question to ask. When my partner and I ask that question, we come up with the idea of trading nights at the cabins for time. The guy said he'd be willing to accept 7 nights- that's it. Any thoughts on how to make this work?

I just spent close to $12k on a new server and back up hardware/software. I on the other hand have positive cash flow coming in so it was not an issue for me even though I was not happy to spend that kind of money. I do have some IT experience so I knew enough not to get taken to the cleaners. I was fortunate enough that I found someone trustworthy and who is on his own and also had many positive and current up to date references here in town so my cost was about average but the service is priceless. I would do whatever you can to make it work. If it does anything for you like it has done for me you'll look back and be glad you spent the money as its made my life so much easier and convenient and allowed me to make money more efficiently.
 

nomadjanet

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Aug 28, 2007
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Will the new software procude an additional 100.00 per week in revenue? If so the software will pay for itself. I would do the cabin trade for the begining payments, this gives you time to get the system up and start seeing some return on it. Then begin the cash payments. If you are not seeing the return on the investment it will also give you some leverage with the IT guy. Having him buy into what the software is supposed to do for you so that it is not just a code writing job but a real challenge and he is interested in the end result would be the best situation. Sell that deal to the IT guy & you both win. You get what you want and he gets to be the big shot star & you sell his next 10 jobs for him.
 

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