photo credit: foundphotoslj

As the economy continues to be a source of concern, an increasing number of people are turning to freelancing as a way to increase their income. It doesn’t matter what kind of work you decide to do, there are several things you should know about freelancing before you start (or at least before you find out the hard way!) in order to be successful with your freelance business.

Create a Budget

Yes, I know. I said the dreaded “B” word. Without a real budget though, you won’t have any idea how much money you need to make as a freelancer – or any other way to measure your degree of success.

If you’re working another job and freelancing on the side for additional income, you may know already that your “day job” covers your living expenses and debt repayments. For people who fall into this category, you can pick any income goal for your freelance work – maybe you hope to buy a car in the near future, and want to save $300 per month towards that purchase, or you hope to take the kids to Disneyland in 2009, and need to save $200 per month for 9 months before you can go. Just work out your income goals from your freelancing work based on your personal situation.

If you’re someone who either isn’t making enough money from your current job, or are planning to freelance as your only source of income, you’ll need to get more detailed with the creation of your budget to determine how much per day, per week or per month your freelance business must bring in.

Become a Master of Organization and Scheduling

Your mind will work better in an uncluttered environment. If your desk constantly has piles of papers on it, your brain is reserving a piece of it’s operating power for that “stuff” - and the result is less power for whatever it is you’re actually working on at the moment. If you no longer need a piece of paper – recycle it. Don’t let things pile up and clutter your space, because even if you don’t realize it, the clutter will affect your work.

You’ll also need to take control over your to-do list. Whether you’re working on a single task or a big project, prioritizing your tasks becomes essential to succeeding. The only way to prioritize everything that needs to be done is to know what each of your tasks are! There are a number of software and web based software programs online that can assist you with scheduling and prioritizing. Find one that works for you, and make it a habit to schedule and prioritize your tasks.

Setting and Keeping Deadlines

Meeting established deadlines as a freelancer is one of the most important aspects of running a freelance business; whether you are a part-timer or making a career out of it. You could even go as far as to say it’s better to turn something in that’s just “ok” on time, than it is to miss the deadline in order to make something “perfect”. With that being said, many freelancers require information from their clients in order to complete an assignment, so just be sure that your contract specifies that the work will be completed “X” number of days after information is supplied by your client (as opposed to specifying a date on the calendar).

Collect a Portion of Your Payment Upfront

In order to split the risk between you and the client, you should require a portion of each project’s payment upfront, and the remainder due by a specific date upon successful completion of the finished project/assignment.

Lead Generation / Marketing Must Be a Daily Task

Most freelancers experience “high” times and “low” times in terms of their businesses. During the low times, when there isn’t much work and the income isn’t coming in, freelancers spend a lot of time looking for new clients, marketing their services, and trying to attract new business.

During the “high” times, a freelancer is happily working on projects and collecting money – and most people hold off on the lead generating and marketing tasks. This is a mistake! Even when you’re so busy you couldn’t possibly take on another assignment, you must keep looking for new work and marketing your services.

Having more client leads gives you choices and helps you increase your income over time. You’ll stop accepting lower paid assignments in place of the higher paid assignments you’re being offered. Schedule lead generation and marketing tasks daily – even if it’s only an hour of concentrated time each work day.

* * * Debbie Dragon is a freelance writer and founder of the Make Money From Writing program, where she teaches people how to start successful freelance writing businesses.

photo credit: BlueSunFlower

There seems to be two opinions held by writers regarding freelancing bidding sites – one of downright hatred, or one of tolerance. Five years ago, when I first started on my online freelance writing journey, I discovered a few of the freelance bidding sites. I primarily stuck with Rentacoder.com and Getafreelancer.com. Not knowing any other way to get paid for writing on a regular basis, I ended every day with about an hour’s worth of “bidding” for work on these sites.

If you don’t know, freelance bidding sites are communities where individuals and businesses list work they need someone to do and where individuals and businesses can express their interest in doing that work, along with their price (the “bid”).

In theory, it’s a perfect solution. There are many reasons why a person or business would need to hire a contractor, whether they need articles or web content written, a website created, or a software program designed, and wouldn’t need to bring in an employee full or part time to complete the one-time project.

Using freelancers is a perfect solution for these instances and having a community like freelance bidding sites helps these clients find freelancers who are willing and able to do the work. On the other hand, writers and freelancers know they can hit a few of these freelance bidding sites and find several work listings in one place.

The reason many established writers turn up their noses at freelance bidding sites is because there is a tendency for people to list projects on these sites looking for an awful lot of work for very little money. It can be hard for American writers (or Australian, British, etc) to compete with service providers from lower-income countries if the buyer is only looking for the “lowest bid”.

I certainly can’t deny that this does happen on the freelance bidding sites and that the trend seems to be increasing – but there are still several projects listed regularly on many of these freelance bidding sites that are worth taking a look at. Not all buyers use the bidding sites just because they want the rock bottom bid; some post their projects there because they know they will receive a wide variety of service providers from which to choose from, and because it saves them time in searching for and requesting quotes from various writers (or other freelance service providers).

New writers may find it especially helpful to use a freelance bidding site, such as Rentacoder.com, for example, to find work they can do and for lowering their risk. Freelancers are exposed to a certain degree of risk, just like any other business owner, with the primary concern being that a freelancer completes the work as requested by the client, and then never receives payment.

This happens from time to time, and one of the benefits of using a freelance bidding site with an escrow service is that they literally collect the payment from the buyer at the start of the project; and ensure that if the freelancer completes the work as described in the project specifications, the freelancer receives his or her payment.

I would not expect writers or freelancers to attempt to find all of their projects through freelance bidding sites or to use them as their long term strategy for finding quality work to apply for. I have met some of my very best clients from freelance bidding sites; and we continue to work together several years later, so I don’t think you should avoid the sites completely if you don’t already have consistent income coming in from your freelancing.

Using the bidding sites as a stepping stone to gain experience and client references can go a long way in securing better contracts down the line; and completing projects successfully will also give a new freelance confidence to start applying for higher paying or more elaborate projects.

* * *
Debbie Dragon is the founder of MakeMoneyFromWriting.com, where she shares her strategies for creating consistent income from online writing with other freelance writers.

photo credit: Janesdead

The freelancing life fits me quite well. I’m an introvert by nature so I don’t miss the office noise, water cooler gossip, and the general “you stab my back, I stab yours” mentality.

But some days I get an uneasy feeling, like I need to be around other people to prove to myself that I can live and work among the rest of the world without freaking out.

The only problem is that I live in a small town that hasn’t upgraded their broadband infrastructure just yet. There’s a Starbucks on the main street thoroughfare but unlimited wireless access is steep $40 per month.

For those times when I do venture outside my home office comforts, I have to scout out the best places to get a little work done while being sociable.

How do you find such places? What’s the best place for you? The following are my criteria for evaluating a potential “home away from home” workplace.

Find the downtime periods

One major problem with the big coffee houses or bookstores is that everyone else wants to be there too. But, most every retail establishment has periods of downtime. Breakfast, lunch, and evenings are usually the busiest.

I like to scout out places right after the breakfast/coffee rush. The staff seems to be in the cleaning mode so everything is nice and fresh when I sit down.

Another good time is after lunch. But sometimes the staff is tired and uninterested after having dealt with two rounds of grouchy customers.

Find out of the way places

I try to stay out of main street locations. These places tend to attract not just the locals but anyone traveling through on business or vacation.

I’ve also found that many smaller, eclectic locations have to provide better service to compete with the chains. They are typically owned by people who are eager to gain repeat customers.

Look for semi-secluded seating

I like to hide out if I’m going to be hanging around for a few hours. In a booth against a back wall. At a two seat table next to a lightly traveled area.

One of the reasons I like to work outside the home is to change the atmosphere which can really ignite my creativity . But, there’s nothing worse than getting into a creative spurt only to realize someone at the table behind you is catching the occasional glimpse of your screen.

If no space is available when I’m ready to work, I may hang out for a few minutes until the crowds clear out. Sometimes I find another spot better than where I first intended to work.

Friendly owners are best

Even if a coffee shop, cafe, or bookstore has wireless access, it doesn’t necessarily mean the staff is open to having someone sit at a table for hours and work.

Most of the mom and pop stores don’t seem to mind as long as you don’t get in the way of rush hour consumers.

Of course, you may be different. You may need to the constant flow of conversation and kitchen noises. Or, maybe you don’t like to be out at all. Either way, you can mold your lifestyle to fit your needs and wants.

Her assertion is bold. You don’t need previous writing experience. No college degree. No published works. Nothing but a desire to succeed and a willingness to make it happen.

Like many moms, Debbie wanted to take care of her babies and be able to help with household bills. Through trial and error, she put together a system anyone can use to run a highly successful freelance writing business.

As her income grew, Debbie began to share her experiences with friends and other close acquaintences. She soon realized her system was very robust and worth sharing with more than friends.

I stumbled on Debbie’s site and was excited to do a review for her freelance writing mentoring program. It’s a set of weekly e-classes which guide even the most technical neophytes to build successful freelance writing businesses—full or part time.

Instead of setting up a typical affiliate pitch (disguised as a review), we came up with an alternative. I’m very interested in helping others find and start successful freelance businesses. Debbie is very interested in sharing her online freelance writing success secrets.

So, Debbie has graciously allowed me to review her mentoring program and post my thoughts here as I progress through her program. I’ve received the first week’s lesson and I’m already impressed!

My goal is to use Debbie’s techniques to generate $500 per month by writing content for others. I don’t have a specific time frame (though I should) but Debbie will show me how to get my first client in lesson three.

So, stay tuned for updates on my progress. After I’ve been able to digest a few lessons (and do the homework), we’ll do an official launch.

photo credit: Michelle Brea

Are you getting bored and tired in your current job? Are you looking for a change? Are you starting to wonder if there’s more to life than rushing from home to job to home again?

Don’t worry. I’d be willing to bet there are millions more just like you. Dreaming of moving away from the city—or the burbs—living a simple life and doing something that helps kick the commuting habit.

But, one person’s paradise may be another’s nightmare. Finding the right business for your own tastes and lifestyle doesn’t have to be hard. It just needs to be different.

That’s why I’m not a big fan of business opportunities or franchises. Because they force you into a system you may or may not be interested in pursuing for years to come. By the time this realization hits you, though, it might be too late.

What’s worse than being in a job you don’t like? Investing money and time into a business you don’t like. You’re tied down because of your investments.

So, what’s the one thing you should make sure of as you start your freelance business quest? Make darn sure the business fits you and you fit the business. Make sure you really are starting your “paradise” business.

I’ll be honest. Money covers many shortcomings. It can help you overlook a lot of nitpicky things that would otherwise drive you crazy. However, getting to that point can take a long time. If you can’t stand it long enough to make $500 per month, there’s no way you can stand it long enough to make $10,000 per month.

My wife is part of a direct selling company (MLM). It’s a great company. She’s been raising our three children at home the last six years while building this business.

You know what? It’s hard work. It’s a business. She’s absolutely dedicated to making it successful. And she is successful. Is she bringing in tens of thousands of dollars every month? No. But she pays a lot of bills, including our mortgage. It’s a great match for her. She’s willing to put in the time because she’s good at it.

The more your skill set matches the business you want to start and the more you are willing to learn about it, the more likely you’ll succeed.

Have you dreamed about designing Websites but your only experience is surfing Websites? It’s not impossible to start a Web design business but I can tell you the learning curve will be steep.

That’s why I recommend looking on the “inside” first. What are you good at now? What do you actually like to do? It can be something you currently do, even if you don’t like your job.

That’s how I got started with Web design. I purposely looked for opportunities to help with our office Intranet. Guess what? Nobody else wanted to do it. I gained immense design skills while on the job, guilt free.

Don’t be dismayed if it sounds impossible to find the “right” business. The right business is the one that you’ll be successful running. Not the one your mom or dad thinks is a good idea. Not the one your teacher, friend, or cat thinks you should start. Listening to your heart is the best medicine.

photo credit: velo_city

What is cash flow? Have you ever thought about how much your business brings in each month, how much goes out, and where the heck it all goes anyway?

Can a startup estimate cash flow with no historical data?

If you apply for a business loan, the bank wants to know your cash flow—startup or not. Lenders want to know that you can make the loan payment and still have something left over to pay your living expenses and mortgage.

But what if you don’t want or need a loan? A cash flow analysis can still help you get an excellent idea of how your business will progress.

One thing I like to do is envision what my business will look like when I reach certain income levels. At what point can I take a few weeks off and not have to worry about my entire business tanking?

The important point is to put some kind of “stick in the sand”. What this means is that it’s more important to get a starting number down and adjust from there. One good way to get that starting number is to determine your pricing structure.

In an earlier post, I discussed my startup worksheets. In that group of worksheets is a cash flow prediction calculator.

The purpose of this calculator is to help you put together realistic numbers to actually see how your business is going to “flow” from month to month. It forces you to think through critical issues like when you would be able to quit your job or maybe cut back on your regular work hours.

The important point is not to get an exact figure but to get a realistic figure. The mistake I make, more often than not, is being too optimistic.

Case in point. What if I don’t collect a dime of receivables one month? What about two months? Of course, you can’t account for all scenarios. Any business without consistent monthly cash flow will go down in flames sooner or later.

If you do download the worksheets, I’d appreciate any feedback!

Right now, I post 4 to 5 times per week. From this week forward, I will be posting 3 times per week—Mondays, Wednesdays, and Fridays. I take great pride in what I post but, due to time constraints, I just can’t put in the time for more than 3 posts per week.

Why the change? Let me start at the beginning. In December 2006, a gentleman approached myself and my brother-in-law about purchasing his business.

He came to us because he knew our father-in-law (we married sisters) well. When he mentioned that his business was up for sale, my father-in-law suggested he talk to us. No pressure, huh? There was only one catch though. He wanted to offer it to his son first.

Fast forward to spring 2008. After much foot dragging, his son decided he didn’t want the business. Luckily, he remembered me and is very eager to do the deal.

So, we’re in the process of putting together a final offer along with filling out 25 page bank loan applications. Total price tag? Somewhere in the low $700,000 range. It’s a great opportunity because he could sell it for more if he wanted. But he’s very concerned that the person (or persons) taking over doesn’t drive the business into the ground.

What’s the business? Manufacturing burners for the oil and gas industry. It involves machining tools (my brother-in-law’s expertise) and a lot of accounting (my expertise). If it sounds niche that’s because it is…very niche. He’s run it successfully since 1994 and wants to retire very soon. We’re hoping that we can finalize the deal by July 1st and be running it full-time in the same month.

Because it’s been run very well, I will still have time to dedicate to this blog. I’ll be pressed for time at first. But I’m hoping my experiences during this time will shed some light on the business buying process—which I’m sure they will.

If you have specific questions, please let me know. Whether it’s getting a loan, structuring a deal, or negotiating, feel free to fire away.

In the mean time, I will continue to offer my freelance advice and ideas—the good, the bad, and the ugly.

Thanks again for reading and taking the time to comment. I try very hard to make sure I respond the each and every response. Posting on this blog has far exceeded my expectations.

photo credit: only alice

Maybe you think about the morning coffee you’ll be able to savor—instead of choking down black tar.

Maybe you think of working your tail off for nine months and flipping to cruise control for the rest of the year.

Maybe you want to hire a staff and watch your baby grow into a multimillion dollar corporation.

Whatever your desires, there’s always a play between free time and bottom line. The crazy thing is that it can be hard to decide between the two. Why? Because it’s so easy to work on another project. Or to send out more marketing materials. Or tell a client you’ll be able to start a week earlier.

Money plays a larger part than anyone of us would like to admit. The more you work as a freelancer the more you make—usually. As an employee, working more may not necessarily put more cash in your pocket.

But as a freelancer working from home, sneaking in a few extra billable hours is immensely gratifying. You’re finally being compensated for the time you put in.

Are you ok working as a freelancer if it means less money but more freedom? Or does the thought of trimming your budget so you can quit a day job make you queasy?

I’ve started two separate freelance businesses. The first—wildy successful. The second? Good but nothing near my first venture money-wise. When the second business didn’t net me as good a bottom line, I felt unsuccessful, like I had failed.

But I measured my “failure” using a single metric—money. On the other hand, the freedom I gained was huge. I didn’t feel the pull to work more so I could make more.

I’m spending more time with my kids and enjoying it more. I’m much less stressed and much happier as a result.

For me, my scales are leaning towards “more free time”. What about you? Does making more money sound like a better deal?

photo credit: dan taylor

Besides the table of contents, where’s the first place you look to find more detailed information when reading a book? The index, of course.

Professional indexing is a cross between writing and editing. Between art, technique, and science. Painstaking accuracy and attention to detail are what set apart indexers from other literary types.

Indexing services are needed after a book is written but prior to official publication. From my own book experiences, the index is certainly something I take for granted.

In fact, for highly technical books, if the index isn’t as comprehensive as I’d like, I won’t buy the book. So, there’s obviously something about a good index that I truly enjoy.

A good place to start if you feel you might have the knack for this type of business is to join the American Society of Indexers (ASI). The Website offers a wide array of indexing information including a link for people interested in indexing as a profession. They even have a yearly conference.

Startup costs are small. All you need is a computer and special software to churn out a helpful index.

Typically, an indexer would approach large publishing houses for freelance work. But, the Internet has lowered that bar which—like many freelance areas—has brought with it good and bad consequences.

The self publishing industry has exploded in the last ten years. If I were a newbie indexer, I would approach small self publishing companies with my services. Another option is to approach ghostwriters, book packagers, and Internet Marketers. Anyone who publishes non-fiction information could use a qualified indexer.

The ASI also has a job hotline and—upon joining the society—allows you to be included in their large, for-hire database.

How do indexers price their services? According to the ASI,

“The two most common ways of quoting book index prices are per page and per entry. Different publishers prefer different methods, and indexes for different media (databases, periodicals, etc.) also are priced differently

…Beginning indexers would be well-advised to focus on the hourly fee when figuring their bids. This enables new indexers to decide what kinds of work are best for them, and to track improvements in skill, efficiency and income as they become experienced.”

The low initial investment makes this a great part-time to full-time freelance business. Turnaround times may be short but you can use this to your advantage. If you enjoy this type of detailed work, charge a higher rate for shorter deadlines

As your skills improve, your hourly rate will automatically increase giving you more income for the same amount of work. Sounds like a fabulous freelance idea to me!

This post doesn’t come close to doing justice for this freelance business idea. Check out the ASI’s frequently asked questions page for a more thorough analysis.

photo credit: dogseat

Unless you’re in an entirely new field, most of what you need to start a business sits in your house.

Because startup costs are usually low, most people bootstrap, or self-finance, their ventures using savings, credit cards, or home equity loans. Starting with a bigger budget may not make a startup more successful. In fact, it may do just the opposite.

Being heavily leveraged upfront can cause so much emotional strain the business owner can’t get the work done to make the payments.

Starting a business is similar to raising a child (or an animal if you don’t have kids). It has to grow—through your continual investment—before it can stand on its own. It can be a slow, sometimes never ending process. In short, it’s a lot of work!

Here are a few rules of thumb to help you finance your business without sending your financial life into a tailspin.

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