

Why our startup is selling services - netmau5
http://blog.davejafari.com/why-were-selling-services

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rmATinnovafy
I wish you would have expanded a bit more. Consulting does indeed bring in
some chashflow when its most needed (I do it, too (email on profile)). But
what are your reasons for consulting, aside from money?

Also, consulting brings a host of other problems. Managing time is a tough
one. Unless one is a circus juggler, switching between projects is almost
impossible. Plus people tend to push back their MVP to keep a client happy.

Anyhow, just write a bit more.

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netmau5
It sounds like your curious on how to manage both a client and an internal
project. I'll be happy to share our experiences doing so later. The simple
explanation is to have a good understanding of your development velocity,
treat each project the same in resource allocation, and set expectations for
both your team and your client.

In our case, we have more time-flexibility in our current client project as it
was done on a fixed-price bid. We're also at different stages of each project:
one is firmly in implementation and the other is in leaving initial research
and starting into business model iterations via customer development.

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rmATinnovafy
I've been doing consulting for a while. Not only on software, but on other
industries.

I'm curious about your whole experience. It seems that you are a bunch of
smart people cooking up an awesome startup. That's why I want to read more.

You mention doing a fixed-price bid project. Could you expand on that?

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netmau5
I don't really adhere to the fixed vs variable pricing schemes too strongly,
they are just trade-offs. In fixed-price, we're taking much of the
implementation risk onto ourselves. In exchange, we ask for a stringent
requirements phase and a little flexibility on delivery dates from our client.

Our sprints are basically at 2/3rds utilization and we've reserved the right
to take a couple off-weeks between sprints over the course of a 4 month
project. This gives us some strategic leverage in picking up attractive small
projects so we don't have to completely close up. It also gives us the
opportunity to do full sprints on our own product if our MVP tests, developed
during the 2/3rd sprints, look good.

That being said, flexibility does not mean half-assed. We're doing our best
work whether it be for our clients or our customers.

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Nate75Sanders
I like this article, but an important word that's missing from it is "demand".
Consulting allows you to keep an eye on what the market wants.

On the flip side, building a product allows you, potentially, to deliver
something that people don't even realize, yet, that they want.

Putting the two together: If you can abstract concepts from their material
demands while delivering their material demands, you get paid to produce
something that they want now and to learn what they might want that they don't
even realize.

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SatvikBeri
Exactly. The approach that my current employer used (that worked really well)
was to start with consulting, find out what customers valued the most, and
turn that into a product. This way they were profitable from day 1 and had
absolute proof that the product would be successful before writing a line of
code-pretty damn smart if you ask me.

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AdrianRossouw
i think it's great in theory, and it can work.

It just takes a lot more self control. It's too easy for the consulting side
to take over, and it requires an iron will to prioritize that doesn't pay over
work that does.

