It’s National Small Business Week! That got me thinking about the friends, colleagues, and random folks who ask me questions about running a freelance biz. So here they are, in no particular order.
Is it hard to start a business?
Yes and no. You can make it as easy or complicated as you want. If it’s just you and you’re working out of your home office, it’s pretty straightforward. If you’re going to be setting up a remote office, doing tons of promotion, etc. you’re taking on more at the get-go. But you will need to do the essentials, like a DBA (if you’re naming your business), a business license, biz cards (yes, I still have one and I use it), any necessary office equipment, a simple website, and an accounting and expenses program. I also recommend that you put aside a healthy chunk of money in the bank before go out on your own. When I started out in 1999, I cashed out stock at my prior company, which helped with startup costs and slower times. Which leads me to the second question I get.
Don’t you worry about getting business?
Fact: If you’re not concerned where you’re next job is coming from, you shouldn’t be in business for yourself. Even when I have the steadiest of gigs, jobs can end ANYTIME and sometimes do. Or last for years. Change of personnel, budget cuts, and other factors can turn on a dime. There’s always an element of risk. Some months I’ll have tons of work and leads, and others can be dry as a bone. There is also the investment of time to get a contract and it doesn’t always pan out. That’s why it’s critical to stay sharp, focused, and consistently be on the hunt for your next gig. I attend networking events, actively search on Linkedin and job lists, and put out the word to my network. It’s a constant cycle and requires a certain tolerance for risk. This is the beauty and the beast of having your own business. Embrace it or stick with 9 to 5.
How do you decide how much to charge?
That is the $64,000 question and an enigma wrapped in a quagmire. There are standard industry rates for many freelancer roles, but other factors go into deciding how much to charge. Here are some criteria I take into consideration that can push a rate up or down: Is it long-term or short-term opportunity? Is it with a cool company I want to get on my resume? Is it a startup that doesn’t have a lot of cash, through an agency, or a big corporation? Is it on a really interesting project that I’ve never done before and can use as a new type of work sample? Ultimately, I have to feel that what I’m being paid is fair, otherwise it will cause resentment on the job. Know your market worth and it will make saying yes and no a lot easier (remember to stash some cash too!).
What time do you get up?
This is the most annoying question I get. There is this persistent image of the freelancer waking up at 10am grabbing some coffee, watching daytime talk shows or binging Netflix, and then eventually working for an hour in the afternoon. This is only on Fridays. Kidding. Truth is we don’t get paid unless we work, so there is high motivation to sit at the desk, co-working space, or couch and get sh*t done. We can make our own schedule since we know the deadlines, but many of us work strange hours, or weekends. Conversely, we’ll also have those slower times regular employees don’t. That’s when we can grocery store or run errands or schedule lunches during the day — but sorry to burst your bubble — a life of luxurious relaxation this is not.
Would you ever go back to a full-time job?
I tried that once in 19 years and not long after, I was back in the freelancer’s chair. Once I had a taste of that freedom, I didn’t want to go back. Sure it’s nice to get a regular paycheck, benefits, etc. but there’s another price to pay, and for me, it’s a lifestyle choice. I love picking and choosing the jobs that I want, meeting new and interesting clients, and learning new products. And if the the gig turns out to be a disaster, I can walk away, relatively unscathed. Of course I still do my fair share of griping about the contracting lifestyle, but in the end, I’m in the fly solo zone — and that’s exactly where I want to stay.
What other questions do you wonder about? Freelancers: what are some of the common questions you get? What did I miss?