running a successful small creative firm or freelance business

Welcome to Running a Successful Small Firm

or Freelance Business

Who to blame:

Michael Courtney [email protected]

Larry [email protected]

Mike’s story

© michael courtney design, Inc. p. 5

Our ClientsHealth Care

Higher Education

Real Estate

Hospitality & Lifestyle

Technology

Cultural

Larry’s old story

Larry’s new story

Every birth that takes place at Swedish — and there have been more than 200,000 of them — is aremarkable event. But the 1935 arrival of David Ishii is quite another story.

Sadly, his mother died in childbirth, and David’s father was ill equipped to take care of a newborn. So, Mr. Ishii made arrangements with Swedish to care for his new son while he took his six other children to Japan where relatives could look after them.

What was supposed to be a brief absence turned into 31/2 years. So David grew up at Swedish with a whole team of mothers — all dressed in starched white uniforms.

To this day, David remembers accompanying Swedish’s founder, Dr. Nils Johanson, around the halls of the hospital. And he faintly recalls a birthday party the nurses threw for him.

It was and is the Swedish way to do whatever it takes to make patients feel at home — even if it actually is your home.

Watch 100 stories about Swedish’s 100 years at www.swedish.org/100years

Thousands of babieshave been born at Swedish.

But only one went on tolive there for 3 1/2 years.

And you are?

Please deliver your neighbor’s 2 minute elevator speech.

You need to be an expert.

Ted Leonhardttedleonhardt.com

David C. Bakerrecourses.com

Blair Ennswinwithoutpitching.com

Why be an expert?Why be an expert?

Why be an expert?

Orthopedics $413,000 Cardiology $351,000Radiology $340,000OB/Gyn $243,000Internal Medicine $188,000Pediatrics $181,000Family Medicine $176,000

Medscape Physician Compensation Report, 2014

Why be an expert?

$0.07 per ounce $1.19 per ounce

> Charge more> Win without pitching> Better solutions> Lower anxiety

The advantages of being an expert.

MCD Environmental graphicsWorker Bees Health careCDK Cobalt Automotive retailCognition Medical illustrationHammerquist Active sportsShaw+Scott Email marketingHacker Grp. Direct marketing

Who are some experts?

ExpertProject

The Circle of Life

Share

ExpertProject

The Circle of Life

BlogTweetWeb Site ArticleSpeech TeachAd DMSEMSEO

Network

Share

ExpertProject

The Circle of Life

Trade ShowAssociation Mtg. Disc. Board

Job ShiftingGrapevine

RFPResponse

Network

Share

ExpertProject

The Circle of Life

RFP request

fromProvidence

Healthcareprofs. follow competitors

Featured onWB website

SwedishProjects

The Circle of Life

Awaiting word after

pitch

Chris refers to El

Camino

Connect with Chris

Bevelo

HealthcareProjects

The Circle of Life

So what are you good at?Skills Interests Experience Mandatories Prospects

So what are you good at?

Skills Interests Experience Mandatories Prospects

What you’re good at professionally

Stuff from your life that you like, not necessarily from your work

Types of companies and industries you’ve worked on

Must-haves for companies and clients you’d want to work for

Some companies that would be a good fit


Brand strategy New-era marketing

Healthcare Well-funded

Ad concepts Mac computing

Real Estate Oppty to travel

Copywriting Baseball Transportation Good taste in creative work

Project management

Cycling Financial Svcs. Stable

Creative direction

Travel Bureaucracies Progressive

Client relations History

Presentations Photography

Larry’s personal inventory


Brand strategy New-era marketing

Healthcare Well-funded More Prov H&S

Ad concepts Mac computing

Real Estate Oppty to travel Proliance

Copywriting Baseball Transportation Good taste in creative work

Polyclinic

Project management

Cycling Financial Svcs. Stable Sutter Health

Creative direction

Travel Bureaucracies Progressive John Muir Health

Client relations History Prime Health Care

Presentations Photography St. Alphonsus Boise

Larry’s personal inventory

Mike’s personal inventory


Environmental Graphics

Business of Design


Good Budgets

Design Concepts

Outdoor sports Healthcare ‘Gets’ what we can do

Brand Strategy Family & Friends

Integrated Design Prog.

Values User Experience

Client Relations

Baseball Culture and the Arts

Forward looking

Presentations Cooking Fortune 500 companies

Senior Management

Seeing NB connections

Making & building

Higher Ed Good taste in creative work

Collaborations Travel Real Estate



Business of Design


Good Budgets

Design Concepts





Client Relations


Forward looking


Senior Management


Making & building


Collaborations Travel Real Estate




Business of Design


Good Budgets Park City, Snowbird

Design Concepts


University Hospital(s)




University Campuses

Client Relations


Forward looking

Seattle Waterfront


Senior Management

Starbucks


Making & building


M’s, Storm, Seahawks

Collaborations Travel Real Estate Hyatt



Let’s do yours

Who wants to make money?

How much to charge per hour

52 weeks x 40 hours 2,080Less 2 weeks vacation 2,000Less 30% non-billable 1,400

Your salary target $_______Divide by billable hours 1,400Target hourly rate $____/hr.

Take your salary, divide by avail. hours

52 weeks x 40 hours 2,080Less 2 weeks vacation 2,000Less 30% non-billable 1,400

Your salary target $80,000Divide by billable hours 1,400Target hourly rate $57/hr.

Expense Assumption Cost % of Total

Salary 80,000 64.8%

Payroll Taxes Typically 7% of salary 5,600 4.5%

Office Rent $600/month Pioneer Square 12,000 9.7%

Health Insurance Premera 35-39, $530/month 6,360 5.2%

Cell Phone & Internet AT&T Wireless & Comcast 1,500 1.2%

Promotion Expense Website, travel to 3 conferences 8,000 6.5%

Professional Services Attorney and Accountant 4,000 3.2%

Office Expenses Postage, supplies, toner, etc. 3,000 2.4%

Travel & Entertainment Parking, client lunches, etc. 1,000 0.8%

Taxes B&O and Federal payroll taxes 2,000 1.6%

Total 123,460 100.0%

Typical freelance expenses

Salary + Expenses + Profit

Your salary target $80,000Plus other expenses 43,460Total expenses $123,460

Plus 15% profit target $18,519

Total income target $141,979Divide by billable hours 1,400Target hourly rate $ 101/hr

Expense Assumption Cost % of TotalSalary

Payroll Taxes

Office Rent

Health Insurance

Cell Phone & Internet

Promotion Expense

Professional Services

Office Expenses

Travel & Entertainment

Taxes

Other

Other

Total

Your expense profile

Expense Assumption Amount

Target Salary $75,000

Total Available Hours Less 2 weeks vacation 2,000

Billable Percentage 65% billable, 35% chargeable 65%

Total Billable Hours 1,300

Total Expense Bring forward from expense profile $115,000

Profit Target 20% is on the high side $23,000

Total Expense + Profit $138,000

Optimal Hourly Rate Expense + Profit divided by 1,300 $106/hr

Your income profile


Target Salary

Total Available Hours

Billable Percentage

Total Billable Hours

Total Expense

Profit Target

Total Expense + Profit

Optimal Hourly Rate

Your income profile

Where will $141,979 come from?

That’s nearly $12,000 per month

Hourly

The usual

Hourly Retainer

The usual Unlikely

Hourly

Project

Retainer

The usual Unlikely

Best choice

Hourly

Project

Retainer

Markups

The usual Unlikely

Best choice Yes, if you can

Sorry. You’re going to have to track time.

Other time-tracking options

FastTrack Schedule 10 for MacFunction FoxProWorkFlowFunction PointStreamtimeWorkgroup 2011StudiometryIntervalsTimex + Ticonderoga No. 2

Let’s eat.Because you don’t want to do

financial forecasting on an empty stomach.

Let’s recap the money stuff.

Expense Assumption Cost % of TotalSalary

Payroll Taxes

Office Rent

Health Insurance

Cell Phone & Internet

Promotion Expense

Professional Services

Office Expenses

Travel & Entertainment

Taxes

Other

Other

Total

Your expense profile


Target Salary

Total Available Hours

Billable Percentage

Total Billable Hours

Total Expense

Profit Target

Total Expense + Profit

Optimal Hourly Rate

Your income profile

Fill in the blanks.

http://bit.ly/1xcMrOI



Essentials of Pricing & Negotiation

1. Seek clients who get it

2. Help them get it

3. Sell a skill, not a thing

4. Document fees

Educating your client

Clients who push back

Write a tight contract

1. Define exactly what you’re working on

2. Include the schedule

3. Define number of meetings and locations

4. How change orders will be handled

Write a tight contract

Keeping complex work in scope

What if the budget is inadequate?

1. Reduce the scope

2. Opt for time+materials

3. Phase the project

How to handle change orders

How to avoid getting stung

Good documentation makes money

1. A written contract

2. Before-the-fact estimates

3. Clear, regular invoices

CLIENT: Swedish Medical Center

DATE: July 19, 2010 v.1.

JOB TITLE: Ballard OB Outdoor Boards

JOB NUMBER: 6000-365

DESCRIPTION:

Creative Services

875

1,050

TBDElectronic Production/Digital Studio TBDProduction Management - Development Phase 350Production Management - Production Phase TBD

350

TBDSub-Total Creative Services $2,625

Outside Services

TBD

Prepress/Printing TBD

Sub-Total Outside Services 0

TOTAL Estimate $2,625

Client Acceptance: Date:

Project Management - Development Phase

D E V E L O P M E N T E S T I M A T E

Creative development of outdoor boards promoting Ballard OB. Estimate does not include

stock photography, media, or outside production costs.

Concept Development

Art Direction - Layout

Note: Prices quoted in this estimate are for budget purposes only and are as of the date given. Unless specifically noted, these prices are subject to

revision based on cost increases from suppliers, substantial changes in the scope of the project or major client revisions. Concepts shall remain the

property of Worker Bees, Inc. until charges are paid in full.

Art Direction - Production Phase

Project Management - Production Phase

Stock/Original Photography

XXXXXXTBDTBDXXXTBDXXXTBD

$ XXXX

$ XXXX

CLIENT: Swedish Medical CenterDATE: September 7, 2010 v3JOB TITLE: Ballard OB Outdoor BoardsJOB NUMBER: 6000-365DESCRIPTION:

Creative Services875

1,0502,450

Electronic Production/Digital Studio 1,215Proofreading 100Photo sourcing/Parent coordination 875Production Management - Development Phase 350Production Management - Production Phase 875

350700

Sub-Total Creative Services $8,840

Outside Services1,190

Sub-Total Outside Services $1,190

TOTAL Estimate $10,030

Client Acceptance: Date:

Art Direction - Production Phase

Project Management - Production Phase

Printing and Posting

Project Management - Development Phase

P R O D U C T I O N E S T I M A T E

Creative development and production costs of 9 outdoor boards promoting Ballard OB.

Concept DevelopmentArt Direction - Layout Phase

Note: Prices quoted in this estimate are for budget purposes only and are as of the date given. Unless specifically noted, these prices are subject to revision based on cost increases from suppliers, substantial changes in the scope of the project or major client revisions. Concepts shall remain the property of Worker Bees, Inc. until charges are paid in full.

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX $ XXXX

$ XXXX

$ XXXX

XXX

D E S C R I P T I O N A M O U N T

Art Direction/Production Phase 750.00Electronic Production/Digital Studio 750.00Production Management/Photo Phase 780.00Project Management/Production Phase 800.00

Steve Schneider Photo, Photos, #69550, 3/7/11 941.20Steve Schnieder Photo, Photo Shoot, #69575, 3/28/11 352.95Total Reimbursable Expenses 1,294.15

Previously Billed $4,025.00 Total to Date $8,399.15Estimated Amount $9,795.00 Over/(Under) Estimate ($1,395.85)

D A T E

04/05/11

I N V O I C E

311008

J O B T I T L E

6000-425 Leapfrog Ad

T O T A L

I N V O I C E

500 Aurora Avenue North, Suite 105 ! Seattle, WA 98109 ! Tel 206.930.3417 ! Fax 888.930.3417 ! [email protected]

B I L L T O Melissa TizonSwedish Medical CenterMarketing Communications747 BroadwaySeattle, WA 98122

$4,374.15

Client NameCompanyDepartmentAddressCity, State Zip

XXXX-XXX Job Title

Q: What have you learned from failure?

A: I had to stop going to auditions thinking, “Oh, I hope they like me.”

I had to go in thinking I was the answer to their problem.

You could feel the difference in the room immediately.

The greatest lesson I learned was that sometimes you have to fake it. And you have to be willing to fail.

Marketing your business

If you know how to market your

clients’ products and services,

you should be able to do your own.

What marketing will do for you:> Keep you booked

> Give you options

> Know the market’s price threshholds

> Turn down unprofitable work

> Know what’s coming

> Develop new clients, reconnect with old ones

> Turn cold calls into warm calls

Who is your audience?

Peers vs. Prospects

What is your message?

Remember 76 slides ago?

What’s the best way to reach prospects?

If no obvious ones come to mind, you may have chosen a field that

has no viable, vital network.

Remember: Marketing starts with your expertise

http://www.hammerquist.net




A model we could all stand to follow

http://www.thinkinterval.com/arrogant-healthcare-marketing-bastards/this-tiny-hole/






Channel What’s Needed? Who Will Do? How Much? Due When?

Website

Facebook

Twitter

LinkedIn

Blog

Publications

Speaking

Associations

DM/Ads

Portfolio

Getting the word out.


Website Launch new site Larry $0 Done

Facebook Launch WB company page Larry $0 Jan. 1

Twitter Hit 300 followers Larry $0 Jan. 1

LinkedIn

Blog

Publications

Speaking 1 Speaking Engmt. Per Quarter

Larry $0 On-Going

Associations -- -- -- --

Direct Mail/Ad -- -- -- --

Portfolio -- -- -- --

Getting the word out.

Do what you can do.

> Don’t try to do everything

> Keep it simple (so you’ll do it)

> Consistency is king

> Aim mostly at prospects, not peers


Website

Facebook

Twitter

LinkedIn

Blog

Publications

Speaking

Associations

DM/Ads

Portfolio

Let’s try it

Some (hopefully) useful resources

Let’s evaluate

Thanks so much for coming

Slide Deck:slideshare.net/svcseattle

Email:[email protected]@workerbees.com

Twitter: @WorkerbeesMC@MCourtney1211

Facebook Discussion Group:facebook.com/groups/seattlecreativebusiness/

mailto:[email protected]

mailto:[email protected]