Some newbie tips on finding and hiring good web design companies:
1. Shop around. Don't just go to the first directory you find and plump for the first design company you see. Be aware of web design directories too - the one's you usually see on the homepage are paid advertisers and not necessarily the best!
2. A portfolio is a must! Not all design companies publish a portfolio to their website's (although most do) so ask for examples if you don't see any!
3. Ask how long they've been in business. A company with at least 1-2 years experience who can provide references and examples are a much safer bet then a company who's only been around for a few months! Check out the whois records for the domain to double check.
4. Can you contact them by phone? If not, stay clear! The last thing you need is, should things go wrong, no real way of contacting someone for help!
5. Agree terms before you start work. Agree with your designer a time framework for the work to be completed in. Don't part with all the cash all at once! A professional will ask for a reasonable deposit followed by either payment on completion or a second payment after phase 2 is complete, a thrid after phase 3 is complete etc etc. Make sure everything is in writing before going ahead.
6. Don't go for the cheapest - that doesn't mean you should go for the most expensive either! There's always someone willing to do a website for just a few bucks, but the cheapest option is almost always the worst. In fact, it's best to always get a few quotes from different companies.
7. Make sure they can provide what you're looking for. Can they provide you with a database driven site? Do they know anything about PHP, ASP, Flash or whatever you had in mind? Make sure the company can deliver the goods in other words . . .
Hope that helps!
Chris 
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