How to start a Web Development Business in 7 Steps

Technology today has proved that imagination is more important than knowledge. So, if you want to learn how to start a web development business, you got us at the right time.

 

7 Steps to start a Web Development Business

 

Step 1: Make a Business Plan

 

The first step to start this race is to map a clear business plan. 

 

For example, it should state all the points from the name to the idea, mission and vision, investments, profit margin, target audience, operation expenses, market research etc.

 

Step 2: Register your company

 

After making a business plan, go for Company Registration Online.

 

In fact, you can get your business registered in 4 steps:

-Fill the form 

-Make the payment

-Mail the documents

-Sit back and relax

 

In order to do this, you can choose from following business structures:

• Pvt Ltd Company
• Sole Proprietorship
• Limited Liability Company 
• Partnership
• One Person Company (OPC)

 

It is crucial for operating legally to avoid any disputes. 

 

Step 3: Get the Licenses 

 

The business licenses required for a web development company are:

• GST Registration
• Shop and Establishment License (If setting up an office)

 

Therefore, to avoid any penalties, you must obtain the necessary licenses.

 

Step 4: Open a Business Bank Account

 

Whenever you start any business, always open a separate bank account for it. As a result, it helps in managing the expenses and estimating the actual profits. Further, it protects your assets in case of any debts.

 

For this purpose, you should open a current account and also apply for a credit card. Having a good credit score helps you in getting business loans and fundings with ease.

 

Here is a list of best banks for a business current account:

• HDFC Bank
• ICICI Bank
• Axis Bank
• Yes Bank
• Kotak Mahindra Bank
• State Bank of India

 

Step 5: Set up Business Accounts

 

It is crucial to keep a record of all the expenses and earnings. As it benefits you in tax filing and knowing the financial review of your company.

 

With this in mind, hire a professional CA to manage your business accounts and compliances. 

 

We at StartEazy also provide you with annual packages to manage all your business compliances.

 

Also, you can consult our experts directly, to know how to start a web development business.

 

Step 6: Build your Squad

 

Hire the support backup team. Even if you want to work alone, there are certain things that you cannot do. 

 

Therefore, look for freelancing or part-timers who can work for you on Sundays. It is a budget-friendly option for startups. Also, you do not need them regularly.

 

Accordingly, you may need support from IT professionals, SEOs (Search Engine Optimizers), Online Advertisers, Social Media Marketers and photographers.

 

If you do not know the coding language, you will need a full stack developer.

 

A developer with a 1-4 year experience may charge Rs. 5,00,000 per annum.

 

Step 7: Create your Website

 

It is time to showcase your work to the world by creating your online website. Besides, it is crucial for developing marketing strategies.

 

You do not need to have a complex site. Include the basic information:

• About us
• Portfolio
• Services you Offer
• Contact Details
• Testimonials/Success Stories/Achievements
• Additionally, offer a free download so you can get contacts for your mailing list.

 

Also, go social and make connections with your potential customers and target audience. 

 

Now you know how to start a web development business that is good to launch. 

 

5 things you should know to start a web development business

 

Fortunately, I have done some research about few crucial questions you may have when starting a web development company:

 

• How much investment do you need?

Well, the investments depend on your scale of work. For example, you do not need any investments if you are starting as a freelancer. On the other hand, you can also hire a team and rent an office. You may need to invest around Rs.5 lacs - Rs. 15 lacs. 

 

• How will you find clients for your business?

You have numerous potential clients. All you have to do is find them. The best way to get clients is by collaborating on various projects and meetups with your existing network. 

 

• How will you charge your customers?

On average, you can charge around Rs. 1500/- to Rs. 7000/- per hour from your clients. The price also depends on your experience. Therefore, it is advisable to start from the minimum to set up a client base.

 

• What is the ongoing expense?

Ongoing expenses for a web development company are low. They have to pay mainly office utility bills, cloud storage, time tracker software, project managing software etc. Also, the costs highly depend on your needs.

 

• What are the current trends?

The current trend among the web development companies that you must know is the voice search, single-page applications, PWA (progressive web applications), cybersecurity and Motion UI Design. Accordingly, go for a certification in these courses to build a brighter future.

 

• Is web development business profitable?

According to IBEF, the domestic revenue from the IT industry estimates to be US $45 billion in FY21. Moreover, it expects to reach $100 billion by 2025. Interestingly, it majorly covers the web development sector. 

 

A regular day in a Web Development Business

 

Coding the websites, invoicing clients, training the coders and freelancers, replying to mails, meetings, and conference calls with clients is a regular day in a web development company.