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| How Small Business can cut costs with Developers and Contractors < HostingKnowledge Main
How Small Business can cut costs with Developers and Contractors
The global economy, if used properly, can benefit many small businesses by providing a worldwide marketplace for their goods or services, and it can also be a resource for buying cheaper goods and services. Most companies focus the benefits of the internet on acquiring new customers and cheaper goods, but not services. Small businesses still look locally for graphic designers, media kits, marketing consultants, printing services, programmers, and all sorts of services that can be found through the internet with less cost and time and more control over the output. The internet is a great resource for services of all kinds. You can find graphic designers, programmers, administrative assistance, marketing consultants, etc. There are people skeptical of having a graphic designer or programmer do a job for them without speaking or meeting them directly. I have actually found that business is quicker and more efficient without face to face and phone conversations. Email and instant messaging are very effective forms of communications that create 2 benefits on the outsourcing world. First, in a meeting or conversation a lot of energy is spent with introductions and formalities. In an IM conversation most of the pleasantries are skipped and it is a very concise conversation. Directly to the point. The second benefit is clear project descriptions. When you outsource through the internet you are forced to describe exactly what you want. This forces you to thoroughly evaluate what you want and write it down in detail. This inevitably spurs decisions on many smaller details that are often brushed over in face to face business meetings. At first people see this as a hard task, but in reality it is very easy. I will show some examples later. Also, if you cannot describe it in an email are you sure that you know what you want? The also prevents miscommunications. In face to face and phone conversations we talk through ideas and options. A lot of times each party is left with a different impression of exactly what is wanted. Then when there is a difference in expectations there is no written record of what was discussed. By describing it in detail in an email there is no miscommunication on what is being requested or promised. The next response is how do I describe to a graphic artist what kind of a website design I want or marketing consultant what kind of Media kit I want? This is a lot easier then you think. Start with a high level description of the project and work your way down to the details. Include statements around color themes and overall impressions. Saying “I want a brochure that has a professional business look with a jazzy style and sunset colors”, gives a graphic artist a lot to work with and allows you to succinctly describe overall what you want. Next, work your way down the requirements. We need these bullets and prices; we want this description or photos used, etc. You will be impressed at how well a contractor can take a 5-6 line description and turn it into what you want. The next 2 questions people have are how do I find people and how do I know who is good? Let’s start with where to find resources. There are to main sources for resources besides word or mouth, which is usually the best resource possible if available. Otherwise, there are forum boards and freelancing websites. There are 1000’s of Forum boards on the internet concerning every topic you can image. If you find a large popular forum for the service you need you will find a group of workers waiting to fulfill your request. You can usually post your project or ask for help. Sometimes these communities are filled with ametuers and you should use some scrutiny in selecting someone. Another popular way to use forums is to create a Contest. Post the project as a contest and set a winning price. People will compete for your project. You will get multiple designs to choose from and can set the price you want to pay. I recently ran a contest for a professional Media Kit for an advertising campaign. We posted the project on one of our favorite forum boards for $200 and received 11 designs to choose from. We liked several but not one the best. We took the best of each and had the closest entry modify theirs accordingly. We received exactly what we wanted, for the price we wanted, and we had 11 designs to choose from. From writing-up the project description, to posting the contest, and reviewing the entries, I spent 2 hours on this effort. About the same time as the average business meeting including driving; Pretty efficient. We did the same the other day for a website project for a Pastor. The effort took me 2 hours total and we received 15 designs to choose from. It was also impressive to our client, when we show up with 15 custom designs to allow him to choose between. I bid this same job locally for reference and receive 5 quotes between $1500-$4000. No upfront designs and an hour spent on the phone just getting the price quotes. We ran the above contest for $200. The power of the internet and outsourcing this way is that it gives you the power. You define the project, the price, when you review the designs, etc. No meetings, no phone calls, and no trying to figure out which company is best. In today’s busy world just having the power to do the whole project on your terms and timing can be very valuable. Another popular way to keep projects resourced is through freelance websites. Elance.com is the major one, but there are a lot of others and some are specialized in certain areas. If you browse through Elance you will see projects all of different categories. Usually, when we bid a project on Elance we receive over 15 bids. In this method you pick a contractor based on their bid and reputation. You can read reviews of them, and view samples their work. The projects we have run through elance were very easy. We posted the last project and reviewed/selected a contractor within 1 business day and an hour work. The project was finished to complete satisfaction within 3 days. I find, in general, that I can complete a project through the internet with the same labor effort it usually takes to call around for quotes. I can also set my price. I determine upfront what it is worth to me and what the budget is. In some industries, if you price a job locally the prices all seem to be very similar. Sometimes competitors in an industry(especially one in need) set their price based on their competitors prices instead of the actual costs plus a percentage of profit. They are inflating their prices because of a tightness in supply instead of increased overhead costs. By bidding a project on the internet you set the price based on what you think is reasonable.
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