5 Startup Tips you should learn “NOT” in the hard way

1. Brand with a single purpose.

From day one, we branded Fueled as mobile first and only, and we’ve ridden the wave of mobile’s dominance ever since. We’re grateful to receive the bulk of our new business through client referrals and friends. We do more than mobile apps — website design, branding, SEO, community building — but it’s our mobile brand and expertise that gets people in the door.

2. Fire fast.

If someone on your team is not working out, part ways now. It might leave the team crunched and you might have to work on Saturday and Sunday. Suck it up and do it. You’ll thank us later.

When we hire someone, we tell them up front that it’s for a three-month trial period. At two months, we have a check-in and assess the relationship from both sides. This gives them a month to improve or keep on keeping on. If major issues remain unsolved by the end of that three months, we say goodbye. When something is not working out, it’s a mutual feeling more often than not.

3. Only charge flat fees for very discrete deliverables.

Hourly rates or project fees? We finally found the perfect balance: charge flat fees for a series of well-defined, discrete deliverables with clear, inelastic boundaries.

Once a project is rolling, we move to a structure with a flat fee for a set amount of work. For us, that usually means a build of an app with a certain set of features. Clients know what they’re paying, and we know what we’re delivering. If the client adds features, we layer on more deliverables and flat fees.

4. Get paid up front.

Don’t start working until you get paid up front. Seriously, stop. Do something else until you get the money.

It may feel cheeky, but there’s no faster way for an agency to fold than to carry the debt of your clients’ unpaid bills. We ask our clients to pay in advance for each two-week period of work. If they don’t pay, we don’t work.

5. Avoid cheap clients.

If a potential new client tries to lowball you or asks for deep discounts, shut the door.

It’s this weird, inverted ratio: the law of discounting. The deeper the discount or the more generous the favor we give, the more unrealistic clients’ demands will be. For some reason, the clients who demand discounts will never be happy with your work, and they’re hardly worth your time and aggravation.

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