Business Overview

Web development companies differ significantly from web design businesses, in that a web design company creates layouts and visuals for a website owner. The web designer is more concerned with user interface and design, while a web developer creates software and applications that power the website using basic and advanced coding.

However, some developers offer both design and development services. Web developers usually start as freelancers and enlist the help of other developers. Other developers can be contractors or in-house employees, depending on the size of your business.

Who is this business right for?

This business is ideal for people who love problem-solving. Because the work entails a fair amount of computer screen time, business owners need to be comfortable with using computers, typing, and manipulating computer code.

While the business might require long hours, it’s not absolutely required that owners work weekends and holidays.

Attention to detail is very important in this line of work, as is the ability to meet deadlines.

What happens during a typical day at a web development company?

Day-to-day activities include coding and invoicing clients. Most web development companies also spend considerable time training coders and freelancers for on-spec work. A lot of time is spent reading and replying to emails, analyzing reports, attending meetings, and doing phone conferences with clients. You may also spend significant time face-to-face with clients.

Some clients and projects require you to be on-site to complete the work. This includes planning the backend design of the site, or how the content, words, pictures, animations, and videos are structured. It may also include coding of applications into the site to allow for flash presentations, custom apps like calculators or slideshows, and tracking software.

Sites need to be tested extensively for bugs. This is especially important on larger commercial sites that receive a lot of traffic. The site needs to be secure as possible. Revisions may need to be made, checked and rechecked.

What is the target market?

Ideal clients are corporate clients that have a need for extensive coding and application deployment. Most web design companies try to avoid small projects or projects which have a high overhead and low profit margin.

How does a web development company make money?

Web development companies make money by charging clients an hourly or flat fee for coding websites.

What is the growth potential for a web development company?

Growth potential for a web development company is unlimited. They can be operated as a one-person business or bloom into a large company with thousands of employees. Small companies tend to work with small business owners. Larger companies can handle corporate accounts and the unique needs of those types of companies.