Become Freelance

Don’t Get Caught With Your Pants Down. We all know that it takes money to make money under most circumstances.  There are those rare situations where you may be able to begin with virtually nothing, but not without a plan.  Without money and a plan, you’ll be like a fish flopping all over the place just before he takes his last breath.  You will not be able to survive.

So really, the first thing you need to do is figure out just how much it will cost.  You have likely done most of the legwork on researching start-up costs with the inception of your business plan.  This will serve to guide you in accurately calculating just how much you will need to launch your Freelance career.

5 WAYS TO ACCURATELY ASSESS BUSINESS START-UP COSTS

1. WRITE DOWN EVERYTHING YOU NEED -  Make a checklist of every little thing you know you will need to get going.  This includes:

• Office Supplies – Postage, general materials needed.
• Equipment – such as computer, technology or software applications.
• Legal Fees – such as licensing, attorney and accountant fees.
• Insurance – Don’t forget to look into business insurance, as well as health, life and equipment insurances.
• Salaries – including yours!
• Office space – if you need to rent an off-site location, or factor in the cost of setting up an office at your own home.

2. STICK TO THE PLAN, MAN! –  Sometimes a tempting offer comes along to throw off your plans.  Once the word gets out that you want to be a Freelancer, let the spamming begin.  You’ll have plenty of offers from hungry entrepreneurs who want to recruit you for their businesses.  If this wasn’t your idea to do, then just ignore these offers.  They may promise to double your business in thirty days or less, but they could also wipe you out financially in the process.  Stick to what you know will work and don’t get sidetracked by a recruiter or outside sales rep for that “next big thing.”  You have your own thing going on and you don’t need them!

3. ESTIMATE YOUR TIME AND PRODUCTION COSTS PRECISELY -  How long does it take you to do what you do?  Or how much does it cost to produce the item you wish to sell?  All time and development costs must be accounted for.  Time yourself on how long it takes you to complete a project by giving yourself a couple of “self assignments”.  This will enable you to accurately bid on jobs without giving away your time or products for next to nothing.  Set an hourly rate, either in paper or in your head as a figure you would like to make.  Compare your figure to competitors to see if you’re in the ballpark.  Then, stick to it unless an exception presents itself, such as a client who wants to work with you on a regular basis that you may give a slightly lower rate to for the sake of knowing you will stay busy and prosperous.  If that happens, make sure the agreement is amenable to both parties.

4. BE FLEXIBLE WHEN NECESSARY –  Wait a minute.  Didn’t we just tell you to stick to the plan?  Now we’re telling you to be flexible.  Which is it?

Flexibility means that when the unforeseeable event occurs in your business, that you will be able to act immediately and decisively.  For example – in your business plan you may have indicated that you plan to offer an hourly rate of $50 per hour.  That’s a great goal to shoot for, but what if you find the demand will not allow for it?  You need to be able to adjust and either pull ahead or pull back when the occasion warrants action.  Don’t be so stuck in your ways that you lose opportunities that will benefit you in the long run.  I have arranged deals with clients in the past, knowing that a promise of future work will pay off when the client gets bigger.  In essence, you are helping your client to grow and they will remember and appreciate your willingness to work with them to make that happen.

I’m not suggesting you should undersell your services, either.  There is a fine line of fairness here that you must not budge on.  We will talk about pricing in another chapter, but for now just know that there will be times when you need to “go with the flow” and other times that you will need to “stand your ground”.

5. PRETEND YOU ARE STARTING AT GROUND ZERO –  Today you are on Day One of your new life.  Even if you’ve been moonlighting after hours for awhile, pretend this is your very first day in business and be realistic about how much it will cost.  With that in mind, here are some things you DON’T want to do on the first day of your new job working for the best boss ever – YOU!

• Don’t - Run up high credit card and cash advances to get your business started.
• Don’t - Finance your venture with a home equity line on your home unless the equity is of a substantial difference between what you owe and what you need.
• Don’t - Borrow more from anyone than you will be able to pay back.
• Don’t - Forget to include all facts and figures that you will need to start up so you will not shortchange yourself.