the principles that freelancers need to know
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The Principles That Freelancers Need to Know. Tonight I am assuming that everyone here has a/or understands … your Feature your Benefit your Value Proposition your Target Market and can Speak Effectively About Your Service. 2. Objectives. - PowerPoint PPT PresentationTRANSCRIPT
The Principles That Freelancers Need to Know
2
Tonight I am assuming that everyone here has a/or understands …
your Featureyour Benefityour Value
Propositionyour Target Market
andcan Speak
EffectivelyAbout Your Service
Objectives
1. Establish a baseline of information needed
2. Explain a practical method to introduce project management
3. Understand the impact of time and target on Cash Flow and identify problems and create solutions.
4. Encourage those thinking of starting a business to take the plunge.
Establishing A Baseline
Financial Preparations: Budget ChartAnnual Household Income
Monthly Income (Annual Income ÷ 12 months)
Monthly Expenses (estimate how much you spend per month)
Food
Housing
Transportation
Healthcare
Entertainment
Personal Items
Education
Other:
Other:
Other:
Credit Card payment (estimated)
Student loans (estimated)
Other debt (estimated)
Total Monthly Expenses
(add all expenses)
Financial Preparations: Start-up Cost Chart
Item Needed to Start Business Cost of Item
Equipment
Advertising
Computer
Internet Access
Rent
Transportation
Subscriptions
Total Start-up Costs
Financial Preparations: On Going Cost Chart
On-Going Costs (Monthly Expenses) Cost of Items
Equipment Lease
Advertising
Utilities
Internet Access
Rent
Transportation
Subscriptions
Total On-Going Costs (Monthly)
Time AssessmentActivity Time(00:00-00:00) Number of Hours
Sleep
Prepare for the Day
Work
Dinner
Errands
Other:
Other:
Other:
Other:
Total Hours in the Day 24
Total Hours in Your Day
Difference (Subtract Hours in Your Day From 24)
How Decisions Impact Project Management and Business Operations
Business Operations
Operations is about logistics. • Logistics is the planning, implementation and coordination of the
details of a business or other operations.
• The objective of logistics is to get your product to the customer.
That is the most important goal.
Business Operations
Effective Project Management and Operations requires 1 fundamental thing:
• Making Decisions
But why is this sometimes difficult?
When you make a choice, how
many decisions do you make?
Two
1. The decision to choose one path.
2. The decision not to choose the other.
Project Management Simplified
All tasks below the red line, require
decisions and a dollar
value.
Everything above the red line,
like planning, does not need a dollar value.
Where are you now?Where do you want to be?
By when?What is your GOAL?
How will you get to where you want to be?
What is your STRATEGY or PROCESS?
What will you do to
accomplish your
strategy? What steps and actions must you
take?
What will you do to
accomplish your
strategy? What steps and actions must you
take?
What will you do to
accomplish your
strategy? What steps and actions must you
take?
What will you do to
accomplish your
strategy? What steps and actions must you
take?
The Basic Process
Time AssessmentActivity Time(00:00-00:00) Number of Hours
Sleep
Prepare for the Day
Work
Dinner
Errands
Other:
Other:
Other:
Other:
Total Hours in the Day 24
Total Hours in Your Day
Difference (Subtract Hours in Your Day From 24)
Target Market Revisited
Goal: $5,000 Client 1 Client 2
Average Contract Size $50 $2,500
Number of Clients 100 2
Total Number of Contact Hrs 1000 20
Average Work Day 8 8
Total Days Needed 125 2.5
Months 4 0
Overhead Used: $8,000 0
It Takes Time To Sell a Product or Service:As a general rule you should use a ration of 10:1 to calculate the amount of time it will take you to close a contract or make a sale.So for every one Contract you close assume it will take ten 1 hour meeting to get to that point.
Cash Flow and the Variables Come Together
Cash Flow
Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Total
Bal Fwd
+$1,250 +$1,250 +$1,250 +$500 -$500 -$1,500 -$2,250 -$3,250 -$2,750 -$3,000 -$3,500
Ovhd $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $24,000
C1 $500 $500 $500 $1,500
C2 $250 $250 $250 $250 $1,000
C3 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $6,000
C4 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $9,000
C5 $1,000 $1,000
Ttl Ernd
$3,250 $3,250 $3,250 $2,500 $1,500 $1,000 $1,250 $1,000 $2,500 $1,750 $1,500 $0 $18,500
Bal +$1,250 +$1,250 +$1,250 +$500 -$500 -$1,500 -$2,250 -$3,250 -$2,750 -$3,000 -$3,500 -$5,500 $5,500
Steps for Starting a Business in Philadelphia
Make a Preliminary PlanChecklist: Preparing Yourself for Business
•Conduct a self-assessment for business readiness
•Research your industry, competition and target market
•Construct a brief outline of business goals and steps needed to reach that goal
•Create a preliminary list of business costs and a rough 3-year plan
Obtain a Business Privilege LicenseChecklist: Obtaining Your Business Privilege License
•Prepare Application for Business Privilege License (available at the Licenses & Inspections office and online at http://webapps.phila.gov/li/)
•Take application and check for $300 to the Department of Licenses & Inspections or mail your application and check to the Department of L&I using the address on the application.
•Your Business Privilege License will be issued to you, along with your Philadelphia Tax I.D. number.
Secure a Location or Set Up a Home OfficeChecklist: Finding a Location for Your Business
•Obtain Zoning Compliance
•If you are doing any major building, plumbing or electrical renovations, obtain Construction Permits
•Obtain a Certificate of Occupancy
•Obtain business insurance
•Obtain Health Department Inspections and Approvals if necessary
While some entrepreneurs will need to obtain property for their business, many small start-ups can operate successfully from home, allowing the owner to avoid complications that can occur when buying a property. When planning the future of your business, decide with care.
File a Fictitious NameChecklist: Filing a Fictitious Name
•Determine whether your business name is available for use by checking the PA Corporations Bureau website
•Prepare application for Registration of Fictitious Name (on PA Open for Business website at www.paopen4business.state.pa.us)
•Send an application to Pennsylvania Department of State Corporations Bureau with check for $70
A fictitious name is necessary if you choose a business name that is not the proprietor’s first or last name plus a description of the business (e.g. Smith’s Auto Tags).
Establish a Legal EntityChecklist: Establish a Legal Entity
•Read the overview of legal entities and obtain legal advice about choosing the right entity
•If you cannot afford legal assistance, contact Empowerment Group about applying for free legal assistance through Philadelphia LawWorks
•File appropriate paperwork
Choosing a business structure and establishing a legal entity for your business is one of the most important steps in beginning your business. Be sure to gather information from a variety of sources, including consultation with a small business lawyer.
Obtain Additional Licenses or Approvals
Some businesses require additional licenses for their business properties. These might include:
•Sign or Canopy License
•Flyer Distribution License
•Dumpster License
For more information on additional City of Philadelphia licenses, call the License Issuance Hotline at 215-686-2490.
For more information on PA Sales Tax License, call the PA Department of Revenue at 717-787-1064.
•Fire Safety Approval
•PA Sales Tax License
