the freelance primer: your first year as a freelancer

The Freelance Primer With the Right Setup, Anyone Can Kick Ass

@justlikeair

Hi, I’m Shane & I run a driven agency.  100% Freelance

(some people call them clients) A FEW OF OUR FRIENDS

BEING A FREELANCER REQUIRES

1.  The Right Reasons 2.  The Proper Setup 3.  Working for Yourself 4.  Your First Customer(s) 5.  Conclusion

BEING A FREELANCER REQUIRES

A UNIQUE APPROACH

1.  What to Charge (come see our panel)

2.  Basics of Marketing (that is a whole talk & there are 4)

3.  Service Specifics (you be the expert) 4.  Subcontracting (don’t worry, you’ll get there)

5.  Commoditizing By-Products (buy me a beer)

There are Focused Sessions On The Following

So, I WILL NOT COVER

A person who offers their time and skill over a limited engagement in exchange for compensation.

Freelancer / Independent Contractor

1. THE ORIGIN STORY: THE RIGHT REASONS

YOUR BUSINESS IS A VEHICLE The most awesome car in the world still can’t get you to Hawaii.

How To Define

Friends ° Family ° Fitness ° Finance ° Faith ° Fun

SUCCESS

Have, Do & Become

_________________  

_________________  ________  

_________________  _________________  

_________________  

Find someone living the right life

(As long as its Legal, Moral & Ethical)

& GRAB ON

Great According to the U.S. Department of Labor, approximately 15.3 million workers

in the U.S. (10.9% of the U.S. workforce) are independent contractors.

http://www.bls.gov/opub/mlr/2010/09/art2exc.htm

There are a TON of freelancers who can help.  

REVIEW: THE WHY •  Business is a vehicle •  Defining success •  Make your list •  Find a mentor •  You are not alone

2. TRANSFORMATION: THE SETUP

All right, Step 1:

While your business entity type is important, don’t over stress it. I went from Sole Proprietor, to General Partnership, to S-Corp in

the last 10 years.

Flight or Invisibility?

Pick Your Business Entity based upon

TEAM SIZE

Different entities limit the number of owners.

COST

A Sole Prop is cheap. Corps can be expensive.

Gentleman,  we  can  rebuild  him.  We  have  the  technology.  The  capability  to  build  the  world’s  first  bionic  man.  Better  Stronger,  Faster.    

REVENUE / TAX

There are financial advantages to certain vehicles as your revenue grows.

RISK

What do you have to loose? As personal wealth & business risk increases, consider incorporating.

Time for Step 2:

The paperwork you need depends on where your business is located. Personally, I got the following:

Crusader’s Permit

BUSINESS LICENSE Required in many cities & counties.

FICTITIOUS BUSINESS NAME Totally Optional: It’s your “secret” identity.

EMPLOYER IDENTIFICATION NUMBER Required (although use your SS# for sole props): Your federal ID

LOCAL PERMITS In 2002 my city required a home business permit. #boo

Ready for Step 3?

Even Aloof and Independent Batman had Alfred.

Get a Sidekick

not abdicate Delegate

No one knows as much about your business as you.

SBDC & SCORE real heroes hard at work  

hiring an accountant earned me an instant

$10,000 The right partners are worth finding.

Question to ask an accountant: bit.ly/accountantquestions

THE ANSWER IS IN THE QUESTIONS Too many lawyers tried to “Sell” me an LLC instead of listening.

and finally, Step 4:

Paying the Price

please, please, please

Fastest way to get SPANKED by the IRS: Mixing your personal and business dollars in the same accounts. Get a

business checking & credit card.

Separate Your Accounts

Or everything you saved might float away YOU MUST PAY TAXES

Its as important as brushing your teeth TRACK YOUR PENNIES

Deductions The sooner you can figure out what you can and can’t deduct, the richer you will become. The ability to deduct LEGITIMATE business expenses is

one of the most powerful tools in your utility belt.

REVIEW: THE SETUP •  Pick a business entity: size, taxes, risk & cost •  Paperwork: fictitious name, business license, EIN… •  Delegate NOT abdicate •  Your tax dollars at work: SBDC & SCORE •  Get an accountant & (maybe) lawyer •  Separate your business and personal accounts •  Track your expenses and income •  Save for taxes •  Track your deductions

3. WORKING FOR YOURSELF

I can predict the long-term outcome of your success if you show me your daily habits. John Maxwell

“

trumps talent ACCOUNTABILITY

The art of setting (& re-setting) expectations is the secret to a happy life. The cult of the genius is BS.

No one likes a super hero who is consistently 30 minutes too late.

IT’S NOT OUT OF SIGHT if it’s in your calendar!

is contingent on availability within communication patterns.

FLEX TIME

OPEN DOOR OFFICE HOURS

OR

Your time is the most valuable asset your business has to offer. Track it as carefully as you do your money.

CLOCK

Set a goal for a daily billable amount THE DAILY MINIMUM

Trying is good. Saving the world is better. MEASURE PERFOMANCE

WORK COMFORTABLY

Adium

WORK COMFORTABLY One Duck to rule them all.

Email   RSS   Web   API   Mobile  

You MUST have a project tracking system.

What happens when you can’t get a hold of a file from a key person?

BACK YOUR FILES UP

BAD Source  

GOOD

You  Team  

Client  

Mom  

You  

Mom  

Client  Team  

Team  

Bad Vs Good

Control the Source •  Dropbox / Google Drive •  SVN / GIT •  Shared drives •  Google Docs, Open Office •  Documentation (Wikis)

CONTROL THE SOURCE

THE HOME OFFICE

CO-WORKING: ALONE TOGTHER

IMPORTANT THE URGENT

What are three key things I can do today to achieve my goals?

VS

6 MONTHS OF SAVINGS

PEACE OF MIND is easily achieved with

REVIEW: THE PROCESS •  Your daily actions define your outcome •  Accountability is your competitive edge •  Use your calendar •  Flexible work hours requires communication strategies •  Set a daily minimum goal •  Clock ALL your time •  Measure performance •  Work Comfortably •  Back up consistently •  Separate the urgent from the important •  Peace of mind: 6 months of savings

4. YOUR FIRST CUSTOMER

Make a List of

Then call them and ask if they need your services or can refer you to someone who does. You must be able to

describe your offering in a sentence (this is often hard).

EVERYONE YOU KNOW

Leaving The Perfect

“Hi Julie, this is Shane. I have a question for you! Can you give me a call at 555-555-5555?

Then you HANG UP.

90% return call success rate. Guess what they ask you when they call?

Exactly, so have the question ready!

VOICEMAIL

BE PROFESSIONAL Don’t work in your PJs or ignore basic grooming; Don’t email clients from “madmanmufasa94@mail.com”; Don’t use Clip Art in your invoices; Don’t refuse to turn on video if they request a “face to face”; Don’t say stupid sh*t on Facebook / Twitter;

Presentation Matters

WE vs I Unless you are The Hulk, don’t use the wrong pronoun! Be transparent.

TRY SUBCONTRACTING [HINT] Agencies have clients and often need talent. Ping us at hr@tri.be !

Sell When You

Sales takes time. If you wait until you are hungry to plant your garden, you will starve.

NEED IT LEAST

WHAT’S IN A CONTRACT? Scope ° Time ° Budget ° Terms

FIXED SCOPE There is no such thing as a

I have yet to have a project that does not change as we work on it. This has proven true in construction projects in real estate as well as software & hardware. The act of creation is the act of exploration.

GET IT IN WRITING A handshake is a contract. Odds are, though, that you just shook

on two different things. The effort of writing a contract encourages clarity.

It doesn’t matter what it says, if they don’t

Legalese is for lawyers, not people. Write plain English contracts. The best way to avoid problems down the line is clarity up front.

UNDERSTAND

GET A DOWN-PAYMENT Nothing is lamer than risking your life to save the princess, only to find out she won’t pay up.

Contract Templates Client Contract: http://bit.ly/sp-customer-contract Master Services Agreement: http://bit.ly/sp-master-services-agreement

REVIEW: YOUR FIRST CLIENT •  Make a list of everyone you know •  Talk to them (an email is not enough) •  Act like you actually own a business •  Using WE vs I •  Subcontracting works •  Sell early and often •  What goes into a contract: scope, time, budget &

terms •  Fixed scope are like unicorns •  Get it in plain english with a deposit

You can do this The life that freelancing can offer is worth the hustle. A lot of us have

succeeded and laid out clean patterns for success.

Pay attention to patterns Identify and focus on those work habits & business models

which get your closer to your goals.

You are going to have to work This is your baby. Prepare yourself to engage actively.

You are in business. Act like it!

Freelancing is business. You are now more than just a technician. Finances, strategic planning, sales are fundamental to your success.

Set yourself up to win Find the environment, support and consistency

you will need to succeed fabulously.

Be On Scope, Budget & Time If you could achieve one thing, seek to

And in the famous words of Bobby McFerrin

Don’t Worry, Be Happy

Are you a FULL TIME freelance web or mobile designer / developer < hr@tri.be >

Shane Pearlman

@justlikeair   shanepearlman.com