Let’s be very honest. Business skills are not the forte of creative people. I am not saying that you should be a seasoned business professional to succeed as a web designer but you should atleast have some basic business knowledge to keep things in check. To help web designers keep a close eye on their business, here is how web designer can be more business-savvy without losing their creative touch.
Manage Your Cash flows Intelligently
Balancing your cashflows might not be your priority especially when you are in the middle of a design project but it is surely important to keep your business growing. Analyze your cashflows and forecast for the next three or six months and you will get a clear picture that shows where your business will stand. With accounting tools such as Less accounting and Xero that will not be a problem anymore even for a designer who don’t know much about accounting.
Read Contracts Carefully
Another common mistake that most web designers make is that they sign contracts without thoroughly reading it. Due to this, they end up missing some finer points that sometimes also land them into trouble. Web design company Dubai understand this very well and asks clients to read the contracts carefully before signing on the dotted line.
Just like balancing the books, nobody likes to deal with taxes but unfortunately, you do not have any choice either. Whether you are a freelancer, small business or large size design agency, you have to pay taxes. Dedicate a portion of your profits to pay taxes. Depending on the country you are operating in, taxes do vary. Mostly digital designers will have to pay income and corporation taxes. It is much better to invest in an accountant that can take care of taxes on your part instead of landing into trouble due to non-payment of taxes.
Stay on Safe Side
Although, it is quite common to get insurance for property damage, employer’s liability or commercial legal protection but you should research what applies to you. According to “warranties and indemnities”, you will have to deliver original work. Any violation on that part will give clients an opportunity to start a legal battle. Make sure you ask clients about their visuals and reference materials that you have to use in the project.
Stay On Top of Invoicing
For a digital designer who is working on a fixed cost model, it is better to take a particular percentage of payment in advance. This puts you in the safe zone and is a great way to deal with slow paying clients and large design projects. Managing finances of multiple projects can get a little tricky if you are working on many projects at the same time. With the help of finance tools, digital designers can easily stay on top of their finance and let you send software generated invoice. If you do not invoice, you will not get paid therefore, invoicing is critical for keep the cash flowing.
How do you manage your finances of your web design business? Feel free to share it with us in the comments section below.