Becoming business-minded
Before I became a full-time freelancer, I did sort of think about the business side of things, but to be honest only in a round-about, playing-shop kind of way. My focus was on the writing and I presumed the rest would fall into place. In some respects it’s been the other way around.
It’s only now that I have got going that I really understand why it’s so important to be business-minded about being a freelancer. I’ve learned that freelancing is about a lot more than being a talented writer, designer, PR consultant or whatever it is you do. Most freelancers are great at the services they offer, but, having never run a business before, can come unstuck with that that side of things. I didn’t come unstuck exactly, but it has been a pretty steep learning curve.
Sometimes, I have to actively remind myself to think about things from a business point of view, and here’s why:
Awkward chats
Perhaps not the most positive note to start on, but anyway…it really helps if I need to have an awkward conversation with a client. It doesn’t happen often, thank God, but occasionally you might need to have conversations that you’d prefer not to have. For example, you might need to ask for more money or point out that a contract is not being met in some way. The prospect of sending the email or making the call (and always, for wimps like me, in that order) can be pretty grim. In these rare situations I have started to remind myself that it’s a business discussion and it really helps me a massive amount. They’re running a business, I’m running a business – it’s not personal and it happens everyday, otherwise nobody would ever make any money.
Money
As above, even if it’s not a particularly awkward conversation, being business-minded also helps when it comes to quoting, pricing and talking about money. When you first start out, especially, it can be tempting to really under-price yourself to get the work. Have some faith that you are offering a valuable service and remember that, if you’re not a hobbyist, you are doing it to make money to get by in the world. The fact that you enjoy the work is also good but irrelevant and (I have to give myself a mental slap about this regularly) doesn’t need to be reflected in what you charge. Under-charging is just a bad business decision and even if you’re kept busy in the short-term, you could be missing out on more profitable work and causing yourself long-term money worries.
Asking for what you want
Sometimes, when I ask for something like half a project fee upfront, for a client to provide or sign a contract, or for more favourable terms and conditions, I worry that I’ll seem pernickety or demanding, or that I’m risking losing the work by being a pain. However, I’ve started to ask myself recently whether it bothers me when I am asked to agree to certain terms and conditions or to sign a reasonable contract. The answer is no because I know that businesses have to protect themselves in this way and that it’s normal. So, surely as a business I actually look more unprofessional if I’m not doing these things?
Marketing
Thinking about things more from a business point of view cured me of my cynicism about marketing. The idea of marketing myself, using business cards and networking made me squirm a bit initially. However, I quickly realised that if I was going to make freelance writing work as a business, I would have to get real. In actual fact marketing hasn’t been half as bad as I feared it would be. I don’t love it but I accept that it’s a part of running any business. I’ve also learned that all (successful) businesses do it, even some that I admire and that it doesn’t have to be cheesy.
The books
One final area where you will almost certainly become royally unstuck if you’re not business-minded about freelancing is with paperwork. If you were in an office and kept receipts and important documents here, there and everywhere there would be hell to pay. I now have to be this strict with myself about the paperwork side of my business. When I first started out, my paperwork was a little, let’s say, haphazard, and after just a few months and my first small tax return to fill in, I had a terrifying flash-forward of how the situation could develop – it wasn’t pretty. I now try to keep on top of invoicing, filing and book-keeping on a monthly, if not weekly basis.
So, over to you. Do you struggle with the business side of freelancing? Do you have any business tips for other freelancers? See you on the forum.
Mar 11, 2009
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