Top 10 Reasons Why Many Freelance Designer’s & Fresh Start Up Design Firms Fail

Posted by Jon Bergan on the 6th January, 2009

Why Many Freelancers and Design Firms Fail

I was reading an article written by Brian Hoff of The Design Cubicle titled Marketing Calendar for Beginner Freelance Designers and it got me thinking. Inspired designers are always popping on to the scene starting their own freelance business or creative design firm, but how many of them actually succeed? How many of these great individuals make one too many mistakes and are forced to close up shop before they’ve even had a chance to show the world what they’re capable of?

It is widely known that a huge percentage of start up businesses end up closing permanently within the first two to five years of operation, however I am a firm believer that if you have a high quality product/service, a nice dose of perseverance and some good old fashioned elbow grease, just about any idea can flourish into a successful and thriving organisation.

As designers though, we can often get caught up simply trying to find clients whilst burying ourselves knee deep in our Adobe applications, blogs and other creative outlets. This may be what we’re used to, however to run a successful design firm, you have to start thinking and treating your business idea seriously. This is your bread and butter after all and it’ll either put food on the table or will be the reason you’re working long hours for some other Company.

So, for all of our fresh freelance designers aspiring to start successful creative design firms, I have attempted to list a few common pitfalls many newbie designers make when they first hit the scene. Take heed and ensure you do not fall into any of the following categories!

1. They undercharge for the amount of work they’re completing
Under quoting is the bane of every service-based business and can either make or break the bank. Many design firms and other service providers are forced to throw in the towel simply from under quoting themselves over and over again. Start tracking your time for every bit of work you do and compare that to your quoted hours. You’ll quickly correct any discrepancies and will become far more accurate at quoting in the future.

2. They undercharge for the value of their work
If you’re a designer that has been around for awhile or you’ve positioned yourself in the market by producing some extremely high quality work, you need to realise this and charge appropriately for it. Clients will pay the difference if they believe you’re worth it and sometimes charging that little bit extra will actually ensure you attract the clients you want to attract and not the ones you don’t.

3. They do not charge for project variations
Are you often finding that your clients are asking for one thing but then expect another? Are you being a little too accommodating for these modifications? Don’t be. Deciding not to charge for variations to a project’s scope is a huge mistake and can potentially be the sole reason why your design firm is going down the gurgler. Charging for these variations not only shows your clients that you’re actually running a legitimate business but they will also take you more seriously.

4. They use website/logo/other templates as a basis for all designs
Templates definitely have their place in the design world, however if you’re charging premium rates and developing sites using templates then the only thing you’re doing is cheating your customers and ultimately cheating yourself. Your clients will pick up on this and as they say, bad rumours always spread faster than good ones.

5. They do not network enough
Business networking is a must for all start ups. It not only allows you to meet and greet with the local business community but it also allows you to start measuring what people think of the product/service you have to offer. Above all though, networking is definitely a great way to form strong long lasting relationships with other business owners and these will be the building blocks to a truly successful design firm.

6. They network with a view of making sales and not building relationships
Although some entrepreneurs understand the importance of networking, they unfortunately fail to see the real point of it. Business networking is not about making sales. It is about building solid relationships with the businesses around you. The networkers who are focused on simply making sales will find that they will actually have to work twice as hard to find the work they’re after as opposed to the others who understand the true reason for business networking.

7. They are far too competitive and do not understand the importance of working with competitors
Similar to building relationships at networking events, it’s also important that you build similar relationships with your competitors and other businesses in similar industries to you. Forming such alliances can actually open many doors to future work, new clients, new opportunities and more. Don’t be afraid to knock on your competitor’s door and ask them if they have any work they could send your way.

8. They do not understand the importance of an e-newsletter, a blog and other online marketing efforts
Marketing your business online not only exposes your products and services to a much larger audience but it can also streamline the way you stay in touch with your potential and existing clients. Using eNewsletters, blogs and social networking sites such as Facebook, LinkedIn and Twitter, you’ll quickly understand just how powerful these tools are to you and the success of your business.

9. They do not think outside the box when it comes to their branding
For some reason, many designers and business owners alike try and play it safe when it comes to their own branding and marketing vehicles/materials. They seem to be a little too concerned of the consequences of trying something a little different. Thinking outside of the box when it comes to your branding can often have a huge yet positive impact on your business and can position yourself exactly where you want to be in the market.

10. They do not provide adequate customer service
Last but not least is good quality customer service. This is the bottom line. There is no point in being able to draw really pretty pictures if you can’t follow through with some rock solid customer service. Clients want to feel important. They want to feel looked after. If they don’t feel warm and fuzzy after dealing with you, then you’re doing something wrong!

At the end of the day though, business owners will always make mistakes and will always learn from those mistakes. It is making these types of errors that allow us to grow and become better business owners. Hopefully by pointing out some of these common pitfalls, you won’t have to deal with these issues and can carry on doing the things you enjoy most – designing fabulous designs!

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This entry was posted on Tuesday, January 6th, 2009 at 11:33 am and is filed under Business. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

Jon Bergan

About Jon Bergan:

Jon is a passionate web and graphic designer and web developer from the Central Coast of New South Wales, Australia. He is also the owner and founder of a small creative design firm named Bergan Blue.

For more information on Jon, please see the About page on this blog. You can also follow @jonbergan on Twitter to keep tabs on him or subscribe to his blog via RSS or email.

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