[jagbolanos]

We are currently bootstrapping our startup with some consulting work in iOS and Rails. This is the process that we follow:

1) We discuss the project with the client stating our hourly rates clearly from the beginning and that we also work in our startup so we won't be a "full-time" developer 2) We then make a clear estimation of time and deliverables for the project + time for testing/debugging/QA + time for calls + time to prepare for publication to the App Store. 3) If they accept we make a clear contract with several payments and deliverables. 4) We ask for 20% to 40% upfront payment and then the rest divided by time and deliverable completion. 5) The last payment is conditioned to App Store approval (in case it is iOS) 6) We only give the source code after the last payment is done 7) We keep sending weekly updates usually via TestFlight (when iOS) and use a Google Doc for any observations that they have 8) We have discovered that some clients also want time spent so we always use toggl as time tracking tool.

I know there are still risks but at least with the upfront payment and deliverable payments you always keep healthy cashflow, the clients feel they are protected and you feel protected too.

This way it's also easier to detect a red flag, in that case you can just stop your development until the payment is done (We actually did that once now and it worked really well).

[Kesty]

I completely agree.

That and a (very) detailed list of requirement and goals is the best way to go.