Diary of a Start Up Part 2: Choosing the Right Technology Partner

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As you work through Diary of a Start Up Part 2, choosing the right technology partner to work with is of the utmost important and can be difficult. It’s often very hard to differentiate between organisations. So speaking to a person is a great way of obtaining the right advice. Be cautious of passing the responsibility [...]

As you work through Diary of a Start Up Part 2, choosing the right technology partner to work with is of the utmost important and can be difficult. It’s often very hard to differentiate between organisations. So speaking to a person is a great way of obtaining the right advice.

Be cautious of passing the responsibility of building your online store to “friends of a friend” without an agreement in place.   Otherwise, you may find yourself in a precarious situation if something goes wrong. Even though you may know the supplier of your services personally, get the commercial aspects of the business relationship in writing – and maybe save a friendship down the track.

Here are a few tips for choosing the right technology partner:

1. Always ask for a complete quote – it may include:

• Software (initial fees, annual fees, monthly fees), version.  Ask if there are upgrades and at what cost including implementation costs related to upgrades.
• Hosting (internet data, storage, back ups and service levels)
• Software implementation costs
• Website design and graphics
• Customisation for any special features (effort and deliverable)
• Website build (categories, email notifications, tax settings, payment and shipping etc)
• Content build (images, descriptions, prices, stock levels etc.)
• Search engine optimisation (submission to search engines, meta tags, titles, keyword research etc.)
• Search engine paid management (pay per click – Google Adwords etc.)
• Service level agreement
• Support costs
• Limitations – number of products, visitors, bandwidth etc.

2. Ask for a written statement of work, and a fixed price and timeframe for delivery.

3. Ask for some example customers in the same business as yours and references.

4. Ask for a free trial.

5. Ask for a copy of the terms and conditions.

6. Ask what the warranty period is.

7. If local, ask for a meeting.  If not local, hold a meeting over the phone.

You’ll be expected to commit to some commercial terms and these will vary from company to company. If there is no up-front setup or work being done, then it will most likely be a monthly fee-based package. Often you can get discounts for upfront payment and commitment to multiple years paid monthly. There are suppliers who will offer month-to-month plans with no agreement term, but be wary and read the terms and conditions carefully.

If there is setup, design or development work to be done, then you expect to pay a deposit of up to 50% and the balance on delivery. Again, terms may vary but always try to avoid paying everything in advance, especially if you are dealing with an overseas provider. In the case of the latter, my recommendation is to negotiate to pay only on delivery.

You have a choice between hosted solutions like eCorner and Open Source. Many web developers and companies push Open Source as free, but in reality it isn’t, and may end up being more expensive than proprietary hosted solutions. If you’re technically capable, Open Source can work for you but remember the focus should be on your business, and not on you becoming a web developer.

Article by John Debrincat

John Debrincat is the CEO of eCorner, an Australian specialist e-commerce solutions provider he founded in 2004. He has almost 40 years of experience in business and the Information Technology Industry in the Asia Pacific. With a strong partner network including Netregistry and Commonwealth Bank; and over 1,000 customers including Getprice.com.au, Dick Smith Electronics, brandsExclusive, Aegon Direct Marketing Services and Weight Watchers eCorner has developed to be a key e-commerce provider.