May 5, 2008
First, I want to say thank you to all my loyal readers. Dedicating myself to this blog has been top priority since late January.
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.
Posted in Freelance Life 
1 Comment »
May 1, 2008
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?
Posted in Freelance Questions, Freelance Success 4 Comments »
April 30, 2008
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.
Posted in Freelance Business Ideas No Comments »
April 29, 2008
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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Posted in Business Planning, Freelance Life, Freelance Success 3 Comments »
April 28, 2008
photo credit: misskelly
Starting a business for the first time can be overwhelming. Part of the problem is that so many “experts” harp on ancillary, nonessential, startup tasks. It can be confusing and take the wind right out of your confidence.
Whether it’s explaining company structures—C Corp, S Corp, LLC—or business bank accounts, much of this stuff is just that—stuff.
While it’s important, most is not critical for a startup. Below are four activities you can ignore when you’re starting out…
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Posted in Business Planning, Freelance Success 4 Comments »
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