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Your questions for Matt Weinberg


If schedules work out, we’ll have Matt Weinberg as a guest on the show next week.

Matt is the co-founder of Vector Media Group, a web design/development agency he started when he was just a teenager (many years back), and bootstrapped to a successful company of 30+ full-time employees. Vector consistently appears on the Inc. list of fastest growing companies.

I’m excited to get the chance to ask Matt some questions, particularly on the topic of growing a consultancy from a one-person freelancer shop to a larger agency.

If anyone has any questions for Matt, or would like us to explore certain topics during our conversation, please leave a comment on this thread before Tuesday, July 12th.



As someone who runs a very small consultancy (myself the only developer with some sub-contracting services), I have a bunch of questions.

  • Hiring - In the early days, how much salary buffer did you aim for with your first few hires?
  • Revenue Sources - For us a significant (but far from a majority) amount of revenue is recurring “support” revenue for custom software we built that provide ongoing value to customers and need to be supported (business critical, 24/7 operation, things like that). Is this a big source of revenue for your consultancy or is it mostly coming from consistently completing and closing out projects? Can you tell us a rough split?
  • Utilization - What utilization do you aim for with employees? That is, what percentage of time for non-overhead positions do you aim to work on billed projects? Put it another way, are you generally billing out 2080 hours/year for every salaried non-overhead employee? How has this changed over time?
  • Project Size - billed hour / cost wise, how large are your projects and how has that size changed over time? For example, we build a lot of 100-200 hour projects. I generally avoid anything less than 40 hours of effort, unless I see a lot of opportunity with the client down the road.
  • Billing - Do you bill by the hour? By the week? How has this changed for you over time?
  • Contract structure - Do you generally write large contracts representing entire projects, and bill in lump sums (milestones, goals, whatever), or do you aim to establish a more loose Time&Materials type arrangement?
  • Emotion - Was there a point where running a consultancy stopped feeling like filling up a leaky bucket? If so, when did that happen for you and what changed?

That’s a lot of questions, but they are all interesting to me, and many of them may be valuable to others.


How does Matt deal with the stress of having this many employees?


Lead generation: - how did you generate new projects/leads while you were still a small agency ie. 1-3 people, and is the approach different now with 30+ employees?


Was there a tipping point moment from handling small jobs (< 50k) to getting bigger jobs (100k +) or has it been a case of scaling up on handling the smaller jobs.

From experience my consultancy (no longer a shareholder) attracted much bigger jobs once we’d got that first 100k+ contract.

If there was a tipping point what was it and how didi it come about?


Thanks guys! I think we got to all of your questions during the conversation. The episode should be up soon.