6 Reasons why Web & Graphic Designers Need a Business Plan

Are you a web or graphic designer? Most likely you consider yourself an artist. A creative being. Sometimes you probably have to stop yourself from thinking only of the technical aspect to business.

For most, this includes: going in to work or the home office, completing a project, getting paid. It may become a cycle of how to find a client, then how many clients to acquire, then how to translate the clients to dollars. And the winning high: how many projects you can say you have completed.

The creative mind subconsciously thinks of the art. The end project. The business mind thinks of the business, the direction it is meant to take and how to stay on the right path to reach the right goal.

You need to find a way to incorporate both mindsets. Here are some reasons a web designer, developer, and/or graphic designer will need a business plan:

To estimate upfront costs. What I've found is that when starting the planning process, web designers usually underestimate development and project costs. Outsourcing costs is another thing not being properly estimated. As a result, the bottom line seems thinner. A great business plan will spell out costs and assist a design firm in establishing the right price points.

To have a start-up timeline. How much in cash can sustain you while you build a client base? Oftentimes, designers start out working in freelance mode. Their objective usually is to have a few prospects-turned-clients, then experiment to see who their ideal client may end up being. A business planning method will help you determine how much cash you need, and when you might be in danger of running out of money. It will help you create an exit plan from your full-time job.

To operate as a design firm and not only a designer. Too many web designers lack a business and sales structure. A good business planning process could help you answer these questions: What is your process: will you have your customers sign contracts? Establish timelines? Outline project objectives? Your payment methods? Your business vision and how each customer can help you get there? Which projects to take and which to turn down? What partnerships to form?

To know how your customers pay. This seems common but I've found that the business planning process reveals that many web designers are unsure of this topic. What is the psychographic of your target client? You brainstorm the answer during proper business planning. Some customers are in the habit of paying upfront, monthly, in set payment structures, via alternative payment plans, etc. Plan to establish how you will outline your payment structure.

Keys to Success. IBIS World, a leading industry market research platform, lists one key to success for this industry: "The ability to clearly specify requirements to suppliers/contractors to ensure correct work is carried out and costly mistakes are avoided". When you complete a business plan, you're forced to conduct market research. Research helps you uncover successful tactics and implement them. This key to success can be achieved by planning for it, and then establishing the proper systems to "make it easy" for the customer. Most design firms miss this very crucial step.

Value proposition. What makes your web design solutions better? Entrepreneurs in this field really need to plan to establish their value proposition; especially since there is so much competition in this industry. Other than the fact that you are "just good at what you do" your business planning process will help you define a niche area and present it to your clients.


About the Author: Cheryl Isaac is the writer of this blog and the Owner of Isaac Business Services, The Business Startup Company.