7 Things You Need to Start Your Web Design Business
If you’ve decided to start your own website design business, you may find this to be one of the best decisions you’ve ever made for your career. However, it may feel overwhelming to set up everything properly from the start, but it’s integral for developing your business and enjoying smooth sailing in the long run.
There’s a lot to take care of, from securing a business license to setting up taxes to tracking expenses. So if you’re ready to take on the challenge of becoming a business owner, you must first understand the essentials of building a business from the ground up.
Note: The information in this guide is for informational purposes and should not be relied on for legal and tax advice. We suggest researching tax laws and business legislation in your area and consulting with your own advisors.
Advice for first-time business owners
Whether or not you’ve previously taken a business course or been an entrepreneur, you are qualified to start your web design business. Armed with a fascination with web design and the ability to manage multiple projects at the same time, you are more than ready to get started.
As you kick off your business, keep the following tips in mind:
1. Don’t overthink it
Action is better than inaction. You’ll want to avoid procrastination by planning and preparing, but try not to overwhelm yourself by getting too in the weeds.
2. Be aware of fear
Sure, it’s scary to venture into a new career, but don’t let the fear of failing or making mistakes stop you from pursuing this opportunity.
3. Overcome imposter syndrome
Despite your doubts, you are smart, ambitious, and competent enough to run a business. Remind yourself of this on your most trying days.
4. Set deadlines
Starting a website business is a new experience, so use deadlines as your guiding force to keep you on track with launching.
Starting a web design business can be an exciting and lucrative career move. Approach it systematically (and with confidence) to make it a successful, sustainable enterprise.
Learn more about starting your freelance career on Squarespace.
What to do before bringing on clients
When you’re first starting out, it may be tempting to announce your career change to the world and start taking on projects. However, it’s critical to set up your business correctly before bringing on your first client.
Use the following checklist as a guide to the things you need to do to successfully kick off a Squarespace website design business.
1. Strategize
Having a roadmap to follow can make you feel more confident as a business owner. Put together a basic strategy–you can always amend or add to it later as you gain new skills and insights.
Include the following in your initial strategy:
Target audience: Who is your target audience? What types of clients can benefit from your services?
Solution: What problem can you solve for clients? How can they benefit from working with you?
Services: What services and packages do you offer? What are your areas of expertise?
Team: Do you work solo or as part of a team? Do you envision hiring more people to scale your business?
Community: Who can you learn from? Your growth is predicated on community, so it’s important to surround yourself with people further along the journey than you who can act as mentors. Squarespace’s partner program, Circle, is valuable for both new and experienced entrepreneurs who are looking to connect, expand their skills, and seek advice from one another.
2. Choose a name
Your business’s name determines how people will refer to you and find you online. It anchors your brand identity and helps clients understand what you have to offer.
Follow these tips when you select a name.
Be creative
Use your creativity to brainstorm business names that aren’t overly cute, clever, or cliché. You’ll want to choose a name that you’ll be proud to share with clients– one that best represents your brand and offerings.
Search domains
Using a wide array of domain extensions, conduct a search to find a domain that’s available and fits your brand.
Research the name
Use search engines to see what appears when you search for your potential business name. From a search engine optimization (SEO) perspective, a name that’s too generic will be hard to rank, and a name that’s too long may be hard to remember. You’ll want to find the sweet spot in the middle.
Purchase the domain
Once you’ve checked everything out and you’re happy with your business name, buy the domain. Keep your domain name simple and straightforward so your clients can find you.
Pro tip: While you can use your own name as your business name, consider that as you grow and hire more people, you may feel the need to change your business name in the future. This is not a major challenge, but you may want to avoid having to go through this process more than once.
3. Define your legal structure (US)
By nature of the word “legal,” this step can feel intimidating at first, especially if you are a new business owner. In order to open a business bank account and operate under your chosen business name in the United States, you’ll need to define your legal structure.
There are two ways to do this:
Sole proprietor
Operating as a sole proprietor is a great option if you’re just starting out and don’t have many clients yet. You’ll need to secure a DBA (doing business as) and an EIN number (employer identification number) by filing with your state, county, or local agency. A DBA permits you to operate under your business name, which can benefit your overall branding and marketing strategy.
Limited liability company (LLC)
If you want to protect your business with liability protection and prepare yourself for future growth, set up an LLC with your new business name. Every state has different laws and policies around business filings, so be sure to review your state’s legislature before getting started. During this step, you’ll also want to secure an EIN number.
Pro tip: You may consider filing for a trademark with the US Patent and Trademark Office to protect your intellectual property. You can do this yourself or hire a business lawyer who can provide additional guidance.
4. Open a business bank account (US)
Whether you start as a sole proprietor or an LLC, it’s ideal to keep your personal and business bank accounts separate. Once you finalize the legal structure of your web design business, do the following:
1. Open a business bank account
Using your EIN or social security number, create a business bank account for all your business transactions. You may also need to provide your business's formation documents, ownership agreements, and, if applicable, business license.
2. Make a deposit
Activate the bank account by depositing money into it. Then, continue using the account for all your business-related income and expenses.
5. Receive payment and track expenses
Bookkeeping is a vital aspect of running your own business.
The following are some considerations to keep in mind when receiving payments and tracking expenses.
Invoicing tool
Find a tool that works well for you to send invoices, receive payments, and track expenses. Whether it’s an entire customer relationship management (CRM) system or a simple invoicing app, you’ll want to use something that can generate invoice links, accept all major credit cards and electronic fund transfers, and send automated email notifications and reminders.
Accounting Tool
Similarly, find a tool that tracks all your expenses for bookkeeping. This will help you manage your money, especially when it comes time to organize for tax season (US).
Pro tip: Whatever system you develop or tools you use, conduct a sample transaction to test that everything works properly before working with clients.
6. Build your website
Now that you know who you are and what your strategy is, and you have a name, domain, and business structure, you’re ready to build your business website.
Here are some pro tips:
Start simple. You’ll always have the chance to update your site later.
Set up online booking with Acuity Scheduling. The integrated tool is a robust appointment management system that automates the process of scheduling meetings and consultations with clients and leads.
Pro tip: To help you get started on building a beautiful, functional, and enticing website, review our guide on how to create a web design portfolio.
7. Buy equipment and software
You’ll need equipment and software that empowers you to do your job efficiently and streamlines your operations as a web designer. Invest in tools for proposals, workflow, communication, and automation. This will make your website design business more efficient and professional. Your business will naturally expand as you find ways to scale up at a comfortable pace and bring on new clients to maintain growth.
What’s next?
If you’d like to learn more about starting a website business on Squarespace, take the following next steps.
Review how to become a web designer.
Read up on how to use Squarespace as a web designer and the guide to getting started with Squarespace.
Study ways to promote your business and sell your services online.
Spread the word. After completing the seven steps to setting up your business, start telling people about it. Send emails, post on social media, and reach out to businesses that could benefit from your services.
Create successful client relationships from the very start and learn how to build trust during the first client interaction.
Set goals and benchmarks so you can confidently know when it’s time to raise your rates as you develop your business.
Want more?
Check out Squarespace Circle, Squarespace’s program for professional web designers, developers, digital entrepreneurs, and creatives. Along with exclusive content, discounts, and other perks, Circle brings professionals together from all across the globe to exchange advice while connecting with new clients and collaborators.
