Even though some of my friends thing I am into technology I am really not that tech savvy and for sure I am not a web designer. That is why the decision of outsourcing the web site creation and maintenance was obvious. My believe is that a business can outsource everything except strategic functions – basis for the competitive advantage. In my business competitive advantage is created through creation if unique content, marketing of the media channel to bring visitors and sales relationships with advertisers. I strongly believe that everything else can be and should be outsourced for lean operations.

I am writing a detailed business plan these days (if you still didn’t participate in the survey I sent you – do it right now, that is a part of marketing research) and needed to understand how much the website will costs. I also wanted a break down of how much each feature I want takes time and costs associated with it. My plan is not only to outsource web site development but also to offshore it. I have connections in both Russia and Israel where the website can be created on the same level as in North America, but for the fraction of the cost.

My first step in getting quotes is to use Elance.com it is a great tool to upload some of the simple projects to someone else. I used it to find a designer Steve Sotto to build a logo for the website.

After posting a brief description of what I need “Entertainment Portal based on CMS” I received more that 40 private messages, some firms even quoted me on a project right away varying from $1000 to $20,000. The experience made me write this post dedicated to anyone who sends quotes or proposals for web development and pretty much for any business. I have to provide a disclaimer that I think in my professional life I provided a top notch service to my clients and that is why when I am a buyer I am very picky. So here are my rules:

• Don’t quote on a project till you know the scope of it - Everyone who quoted without even looking into what I need and furthermore wanted to push me into making a purchase decision were eliminated from the list. It is simple as that: if you don’t have time to make sure you have what I need – I am not willing to work with you daily for 2-3 month in creating my baby.
• Remember who you quoted – a guy wrote me an email that he would be “delighted to go over the project details” with me over the phone and that I can call at my earliest convenience. I did call after 15 minutes of receiving his email. To my surprise he didn’t know who I was or what project I am talking about. It took him five minutes to figure it. I even felt that he unhappy that I interrupted whatever he was doing with my phone call. Gone.
• Read what client wrote -after talking to a couple of firms I understood that I have to write a detailed feature by feature description of what I need. It took me almost a day of writing and making schemes in order to try to translate my vision into paper (even though I thought it is plain clear – apparently it is not). I provided pretty detailed explanation of every feature I need along with examples from different websites that use these features right now. I also included executive summary. Sure enough some fast readers read executive summary and didn’t read the explanations. I got bunch of questions I already answered in the original document I sent. Again it mean a disrespect to my work and project. I felt that people just want to get the project as fast as possible without making sure that they are actually right people for the job. All of those guys – gone.
• Send formal proposal - if you expect me to send you a detailed feature by feature request and schemes of the pages, be kind enough to elaborate on your quote as well. Some people answered with once sentence ” You project will cost $12,000 and will take around 60 days. We can iron details as move along. Looking forward to getting started on your project.” I am sorry that just won’t cut it. I need to know what features take the longest time, your maintenance suggestions and what can be done better. All one liners – gone.
• Don’t quote too low – some people quoted me way bellow average like $1500 dollars. This make me suspicious – too good to be true. If everywhere else it costs $5000 and I get it for $4000 that is a deal, if I get for $1000 – it is a scam.
  
• Don’t slam down the competition – I don’t want to hear why other guys are bad. I want to hear why you are good. Concentrate on yourself and what value you bring to me.
• Do what you tell me you will – if you tell a client that you will send an email by the end of today – do it. Don’t send it after 3 days without even apologies – gone.

I am glad to say that 3 businesses passed all my picky tests and moved up to the next level of competition. My next step in weeding out who is gone it is to look more carefully on the previous work done and their expertise. I am not just going to look on their portfolio, but also to contact their previous clients and see if they would recommend them as suppliers. I will then look on who is “getting it” my vision I meant and with whom I would like to work together for at least all of the next year.

So here it is, I am picky – but I apply  same standards to my suppliers that I apply to my own business.

p.s. I am going to also look on a local level and compare the cost savings
p.p.s. my next post will explain exactly on how long it will take to make the website and what features are the most time consuming

Time is money, so let’s just jump right into my updates. I am back in Toronto for two weeks already, but didn’t get to do a lot of businesses related work till today. Firstly, I was fighting jetleg (usually I am better at it, but I guess it is been awhile since I have been for a whole month overseas) and then I was organizing, decluttering and building my home office. I wanted to start from a completely clean slate where everything is functional and has its place.

Today is a first day when I have a whole list of activities related to the business along with bunch of other non-business related tasks (my family is coming over for a month in August). My first task is to incorporate. Not sure how smart it is, but I decided I will fill out all the paper work myself. I figured that if I have a degree in two business majors from a university I should be able to do it myself. I will keep you updated on how the incorporation process works in Ontario.

Here is what I learned in my short career of being a business owner/unemployed:

New freedom takes a discipline:
When you have to go to work everyday and your day is so full with appointments it is very hard to be lazy. Now, when you don’t have to wake up at 7 or even 9 that is totally different story. It is very easy to slip in the mode ” I will do it tomorrow,” and become a couch potato. I am waking up everyday at 8 o’clock these day which is the same time I used to wake up for work. The difference is that it is my choice now to wake up early, so I can do my stuff for myself. I actually feel pumped up to wake up in the morning and get some stuff done. I know that anything I do is to helping my dear self. I also know that if I don’t do it – nobody is going to do it either.

The vacuum from not having to work is quickly filled up by people who think you are relaxing all day long.
It is really hard to explain to others who never done it what it takes to start a business. The worry and uncertainty everyday brings. Really, I work more now that when I was working for a corporation. Yet some people around me actually think that I have an unlimited amount of free time now, so they can just pour everything on me. Nah Nah I don’t have lots of free time – what I do have is a flexible scheduale.

Stuff doesn’t resolve by itself
While in corporate world a person can procrastinate for months and not take an actual action due to bureaucracy – this is an impossible luxury for an entrepreneur. You have to get it done, done right and done right now. It is now going to dissolve itself like it does sometimes in corporate world.


Overall, I am feeling exited and full of energy. I knew a lot of theory about what an entrepreneur feels like, but knowing it a feeling are two different things. I think with a time I will understand more whiy majority of people settle for working for someone.

This is an update folks. I am going to post more summarized info about incorporation in Ontario soon.

Have a great week everyone!