How do I check a web development studio’s project pipeline before buying?

Ask for a list of every active and expected project with its status, the client, the agreed scope and the date it was agreed. Ask for the signed agreement or proposal for each. Put them in three piles: signed, proposed, and talked about. Only the first pile is firm, and even signed work can be paused by a client.

Then ask where each project came from. Work that arrived through the owner’s friendships, a single referral partner or one large client carries a different risk from work won through a steady stream of enquiries. Ask the seller how many past clients came back, and look for the follow-on projects in the records, not only in the story.

Finally, test capacity. Compare the pipeline to the number of developers and designers in place, and ask who sold and managed each project. If the owner does both, ask how projects will be sold after the transition. Speak directly with a few clients, with the seller’s consent, and ask what they expect next. Note which clients pay on time, since late payers affect cash as much as lost projects.

Key takeaways

• Sort the pipeline into signed, proposed and verbal.
• Find out who originated each project and whether it follows the owner.
• Talk to a few clients, with permission, about what comes next.
• Check which clients pay on time as well as which projects are lined up.