Untitled

Company Overview
Founded in 1999
Provides software products that are focused on continuous
protection of sensitive information shared and stored digitally
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SecurMedia (CD/DVD protection) – Released May 2000
SecurDataNet (Email protection) – Released October 2002
SecurWebCD (HTML content protection) – Released November 2002
SecurDataStor Version 6 (PC/Server protection) – January 2004
Over 15,000 users
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Customers
IBM
ADP
Sloan-Kettering Medical Centers
Iomega
Department of Justice
States of Georgia, New York
Contractor Model
50%+ of encryptX staff started as contractors
Rationale
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Try before you buy
Cost of benefits
Ability to assess individual fit within company culture
Start up costs for new employee (PCs, office space, etc.)
On average each individual was a contractor for 90 days
before becoming an employee
Today = 20 employees and 8 contractors
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5 - offshore development
1 - online marketing
1 – professional services
Our model is no more than 1/3 are contractors
Contractor
Decision making on contractors
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Do we need the expertise in house – at this time?
If expertise is needed, is it a one time event, or will it
repeat?
What is the frequency of repetition (e.g. twice a year)?
Can the activity be specified as a standalone project?
Can the project be run in a relatively standalone
model?
Does not require continuous interaction
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Do we need to purchase unique equipment and
software that we have minimal need to reuse?
Legal Litmus Test
Is the individual required to work in the office to
complete his/her tasks?
Does it matter what hours the individual works in
order to complete the tasks?
Do we need to provide equipment and software
to the individual to complete the work?
Will the work be performed on a time and
materials basis?
IF THE ANSWER IS NO TO THESE QUESTIONS THEN
OK TO ESTABLISH AS A CONTRACTOR
How Do We Find Contractors
#1 - Word of mouth
#2 – Trusted advisory groups
CTEK, Boulder Software Club, Denver Software Club
#3 – Google Search
“Technical writer AND Colorado”
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Boulder Writers Alliance is listed on 1st page
Paid advertisement “Technical Writing Pros”
ImpactontheNet.com
#4 – Professional Contractor sites
Prosavvy.com
Elance.com
Developing Prospects
Allocate 8-16 hours per month for prospecting
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Bake this time in to all your client schedule estimates
If your clients don’t understand that you have to do this – they shouldn’t be
clients
Send a letter, with a follow up phone call once a quarter to your top
prospects
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Stay in the consideration set with your prospects
Occasionally send an article or useful website information on key
key trends in your field
Be the expert!
Align to local groups/companies that can provide aggregated prospect
demand for you:
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Tech Writers – Build relationships with local Software Test Companies (SysTest
Labs, Percept Technologies) – offer to help them by editing a test report for free
– see if they will refer you to companies that have help system, user guide and
usability problems
Marketing Writers – Join the Direct Marketing Association, Business Marketing
Association, build relationships with local PR and Ad agencies (Leopard
Communications, Metzger, VisiTech)
General – Sign on as a CTEK (Colorado Technology Incubator www.ctek.biz)
advisor – review business plans, offer to help companies that clearly need writing
help. Join Boulder Software Club and Denver Software Club
Key Evaluation Criteria
Expertise – proven track record in related tasks
within our industry
Speed – ability to come up to speed quickly
Process – ability to show a well documented
process and methodology to deliver the tasks on
time and within budget
Pre-wiring – set expectations up front,
throughout the process so there are no surprises
References – current, relevant references
Financial Justification
Technical Writer
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Base salary = $60,000 a year
Benefits = $13,800 per year
23% of salary
(includes our employer tax portion, health insurance, etc.)
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Equipment and Software = $5000
PC = $2500
Software = $2500
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(MS Office, Exchange, RoboHelp, FrameMaker, Photoshop)
Misc Office Supplies, Internet, Telephone = $1200 per year
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Total Cost = $80,000
Financial Justification
Two software product releases per year
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User Guide
Quick Start Manual
Help System
ReadMe
Administrator Manual
Technical Writing cost per release = $40k
Average estimate from contractor = $20-25k per release
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Result = Net savings of $30k - $40k per year
Financial based decision = Contractor if 2 or less
software releases per year
Financial Justification
Three software product releases per year
Cost per release for contractor at $25k per
year
Result = $75k per year total contract cost
Financial based decision = Either
contractor or employee at three releases
At four releases or more, definite decision
to hire
Other Considerations
Development Methodology
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Spiral or XP – Best fit is employee due to frequent
and continuous interaction
SDLC or Waterfall – Contractor if work can be
accurately specified
Leadership Competency
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Should we differentiate ourselves from the
competition based on that function
Product features, ease of use, account management, etc.
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Is that differentiation meaningful?
Will that differentiation be part of the decision making
process?
If yes, function should be employee not contractor based
Proposal Review
Comprehensive – shows understanding of work
Methodology – shows the process used to create
deliverable and manage expectations
Expertise - Shows prior experience and how applicable
to our needs
Pricing – not open ended, fixed price per deliverable
(change order mechanism is expected)
Payment terms – 20% is reasonable in advance, the rest
is paid on key milestones
References included in proposal
Availability – Show that you have the resources to do the
job on time
Summary
Pricing – keep it simple, competitive and project
based
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Show willingness to take a risk (not unlimited hourly
rates)
Process – show you have one, and then follow it
to manage expectations
Proven customers
n Keep your reference accounts happy and
motivated to help you
Self-Reliance – be able to show you have the
equipment, resources and skills to do the work