This article was requested by Emily one of my old college buddies:

Could you point me in the right direction, I'm getting a lot of mixed reviews.  Can I start my own web design agency with little or no start-up?  How did you do it?

Thanks,

First off, I did not start my own agency in a literal sense; I often refer to The Talently as an agency but I am just a freelance designer who is good at what I do.  I also happen to be married to programmer and eCommerce guru; so you can say I have an advantage and did I mention my brother is a Graphic Designer... ??

Anywho - Starting an agency is like starting a business there are going to be some upfront cost and it's better to invest the money now instead of paying for it in the future.  Cutting corners never works when it comes to small business, so with that in mind let's talk about freelancing.

Freelancing is easier to get into because you can maintain a full-time job and moonlight as a freelancer in the evenings and weekends.  You can choose what projects you take on, control your working environment and schedule. It takes commitment and some cost, even if it's just your time and energy for every input there is an output. Once you develop and maintain a steady client base a freelancer you can start thinking about start an agency.  Consider only working a part-time job so you can dedicate more time to your agency and this is where cost comes into play.  As a freelancer you made minimal investments like software and subscriptions but most of those cost were deferred to clients thru your billing structure. Now you are investing your time and resources to get this thing off the ground and the cost is the risk that you will not financially pull thru and according to statistic you have an uphill battle.

So the answer to the question is yes; you can start freelancing at little cost to prepare you to launch your agency.  Freelancing, in my eyes, is the start of starting your agency.  You have to develop a client base, generating income and have the capabilities to scale your business for success.  There are licensing and IRS requirements once established and earning a certain amount per year, so be sure to check your local SBA.

Interns, interns, interns

Hiring interns makes things easy and less expensive.  A non-paid intern can gain the experience and build up their portfolio so it is a mutually beneficial partnership. Often times agencies hire their interns because they learn the business and are easily molded into the perfect employee and are eager to learn!

So what other cost to consider once you cross all the legal and tax paperwork?  Well, will you rent an office or can you work out of your home? Do you have contracts and service agreements made out? Have they been reviewed by an attorney?  Do you have a set pricing structure i.e. charge by the hour, by project, or subscription fees?

Wrapping up

I started off freelancing and still am! I make enough money to continue doing what I love and maybe one day I will venture into the bug leagues but for now I am happily running my website and blog support my clientele as it is today.  Maybe in a few days, weeks or years an agency is on the horizon but for now, I'll stick to enjoying the day to day and questioning the box's existence.