The web design business has some of the lowest monthly costs of possible business choices for an entrepreneur, especially since the business can be conducted from home. An individual who already possesses computer coding skills is already on the right track to work as an independent developer, without need for additional employees. Many web developers starting out on their own will both design and code the website, though these are often treated as separate, specialized skills. A developer may prefer to delegate the coding or design specializations, depending on skill level and business strategy. While deep coding skills may be desirable, there are several packages and platforms that simplify the website creation process such that coding and design skills are minimized or eliminated. A motivated entrepreneur can successfully implement this business with enough time devoted to learning or applying web development skills, with the primary cost being the value of the time consumed.
The tables below depict the common issues and costs associated with a web developer business.
Political | No major political concerns noted | |
Economic | Small business growth indicates demand for websites; a shrinking market might indicate shrinking demand | |
Demand for website development versus substitutes (social media) | ||
Social | Trends affecting web design – style | |
Technological | Coding; best practices using different types of code | |
Servers (if applicable), maintenance | ||
Integrations/APIs | ||
Use of pre-existing templates on hosted platforms | ||
Handling money and processing payments | ||
Advertising online and using social media | ||
Environmental | No environmental concerns noted | |
Legal | Copyright issues when using different types of content | |
Critical Success Factors | Ability to implement websites on multiple platforms | |
Major Activities | Associated Costs | Cost Driver |
Coding websites | The value of your time | Number of hours to meet requirements |
Designing websites | The value of your time | Number of hours to meet requirements |
Optimizing websites for multiple platforms or browsers | The value of your time | Number of hours to meet requirements |
Projected Expenses | |
Employee Costs including benefits | Year One Cost per month |
Owner | $ 3,500 |
Book Keeper – Outsourced | $ 800 |
Legal – Outsourced | $ 800 |
Tech Support – Outsourced | $ 400 |
Wages Subtotal | $ 5,500 |
Taxes, Fees | $ 825 |
Subtotal | $ 6,325 |
Office/Facility | |
Facility Expense (deductible part of home) | $ 250 |
Electric | $ 25 |
Internet/Telephone | $ 100 |
Office supplies | $ 25 |
Computers/Hardware | $ 250 |
Subtotal | $ 650 |
Marketing Costs | |
Web site hosting and advertising | $ 200 |
Business Cards, Pens, Swag | $ 50 |
Subtotal | $ 250 |
Total | $ 7,225 |