A lighthearted look at life as a freelancer, with some valuable tips for anyone running, or thinking of running a solo business. Information includes:
- top tips for running a solo business
- simple marketing tips for freelancers
- easy ways to keep yourself organised
- how to keep your sanity!
A lighthearted look at life as a freelancer, with some valuable tips for anyone running, or thinking of running a solo business. Information includes:
- top tips for running a solo business
- simple marketing tips for freelancers
- easy ways to keep yourself organised
- how to keep your sanity!
A lighthearted look at life as a freelancer, with some valuable tips for anyone running, or thinking of running a solo business. Information includes:
- top tips for running a solo business
- simple marketing tips for freelancers
- easy ways to keep yourself organised
- how to keep your sanity!
BY: JACKIE HARRIS Jackie Harris. Working in Pyjamas Limited 2014. All Rights Reserved. No part of this work may be reproduced or transmitted in any form without the written permission of the author, except for the inclusion of brief quotations in a review. This work is for personal use only. Disclaimer This guide has been written to provide information to help you run your freelance business. Every effort has been made to make this work as complete and accurate as possible. However, there may be mistakes in typography or content, and some of the sources of information could change or disappear without warning. The purpose of this work is to educate and share the authors experiences in a light hearted way. The author and publisher does not warrant that the information contained in this guide is fully complete and shall not be responsible for any errors or omissions. The author and publisher shall have neither liability nor responsibility to any person or entity with respect to any loss or damage caused or alleged to be caused directly or indirectly by this guide. Material Connection Disclosure You should assume that the author and publisher have an afliate relationship and/or another material connection to the providers of goods and services mentioned in this guide and may be compensated when you purchase from a provider. You should always perform due diligence before buying goods or services from anyone via the Internet or ofine. DISCLAIMERS & COPYRIGHTS i FOR MY FELLOW FREELANCERS, WHEREVER YOU ARE... I dedicate this little book to the brave and crazy souls all over the world who have given up the day job to take the plunge into self-employment. Were self-motivated, determined and focused; and we take risks every day. Yet when someone utters the word entrepreneur, our rst instinct is to think of Richard Branson or Mark Zuckerberg. I say that anyone who turns their back on convention and creates a business, no matter how small, on their own terms - is a true entrepreneur WERE A COLLECTIVE FORCE TO BE RECKONED WITH. Many of us are not rich, powerful or inuential which means our contributions are often overlooked. But collectively were a serious force to be reckoned with. In the UK alone there are approximately 1.4 million freelancers. In the USA, around 26% of the workforce is made up from freelance operators. Due to challenges in the economy, its predicted that this number will grow to 50% by 2020. 20 YEARS OF FREELANCE LIFE AND IM STILL HERE I started my freelance marketing business around 20 years ago. There have been some highs, and lows along the way, but ultimately nothing would ever convince me to get a job again. I pulled together some advice and suggestions on all things I think every freelancer needs to know. I hope you nd something of use for your own solo business journey. Best wishes Jackie September 2014 PREFACE ii I havent had what my parents would call a proper job for over 20 years... One day I was a sensible woman working in corporate PR with a posh car, fat salary, power suits with big shoulder pads (cringe) and a team of people to delegate to. And the next day it was all gone. Nobody red me, or made me redundant; it was simply a moment of madness that made me decide that I needed my life to be different. 1 A MOMENT OF MADNESS... CHANGE WAS THE CATALYST The PR rm I was working for at the time was acquired by a much bigger management consultancy organisation. The truth was, I was used to running my own division my way. Suddenly there was a larger corporate entity laying down new rules and I knew almost right away that this was not the kind of working life I wanted. I hated it and knew that corporate soldiering was not for me. Fortunately at the time I had a bit of money in the bank. Not a fortune, but just about enough to buy me a computer, printer, and fax machine (this was early 90s remember). I called in a favour from a graphic designer I had given loads of work to in my PR agency days and I got some letterhead, business cards, compliment slips and some natty postcards to use as an introductory mailshot. Gordon Gekko mobile phones were all the rage back then I had to return my company car and bought myself an old banger to run around in. A mobile phone was also an important purchase. When I say mobile phone, Im using the term loosely. In those days Apple was still making beige boxes, and mobile phones cost a Kings ransom. For those of you who have seen the movie Wall Street, you may remember the iconic scene when the lead character Gordon Gekko is walking on the beach at sunrise, speaking on his mobile phone; which was in effect something the size of a breeze block. My rst mobile phone wasnt quite as large as that, but it was at least 5 times the size of an iPhone and had this annoying rubber antenna which kept poking me in the eye. 4 A LITTLE PERSPECTIVE FOR LIFE IN 1991 A desktop computer cost around 2500 and it had less than a 10th of the memory and functionality of a 2014 Dell laptop costing 300. There was no internet (not for individuals) and few people had email. No-one had a website. The economy moved from boom to bust and interest rates soared, reaching 16%. The first Gulf war was in play. If youre thinking to taking the plunge and going freelance, then start your rainy day fund NOW! I would strongly recommend that anyone considering a freelance life should have a rainy day fund if possible; particularly nowadays when clients take so long to pay their bills, cash ow can be dire. So with my new ofce kitted out, I was ready to take my rst steps as a freelance PR woman. 5 Freelancing was a bit of a dirty word... When I first started out, being a freelancer was not considered very glamorous. It was a euphemism for cant get a proper job. 2 MY FAMILY AND FRIENDS THOUGHT ID GONE BARKING MAD Id go further and say that someone whod quit their nice cushy position to choose an independent path was viewed with some suspicion and cynicism. Indeed my parents and many friends thought Id gone barking mad. PEOPLE KEPT TRYING TO PERSUADE ME TO ACCEPT ANOTHER JOB During my rst year one of the most bizarre and unexpected things to happen was a constant barrage of calls from recruitment rms trying to convince me to take another agency role. I had this idea that if I went to a few appointments I might be able to persuade these PR companies to use me for some freelance projects; maybe a few days a month while I built my own client base. No one was interested in that at all; it was 'join us and make a long-term commitment or forget it'. Interestingly though, a few years later, most of the large PR rms in London were using freelance people on a regular basis. Clearly I was ahead of my time. Youll be pleased do know that I have a business plan now... If I had to do things again, I would certainly have a proper business plan. That doesnt mean you have to write some boring, weighty tome that will never be read. Im talking about sitting down and creating a roadmap for your business so you know where youre headed. I have a business plan template as part of my Working in Pyjamas membership (www.workinginpjs.co.uk ). Its a good one too, if I say so myself. However, you can get a good template from most high street banks, your local Chamber of Commerce or organisations like the Federation for Small Business. I STARTED MY BUSINESS WITHOUT A PROPER BUSINESS PLAN. I CRINGE NOW WHEN I THINK ABOUT IT - I MEAN, WHO IN THEIR RIGHT MIND WOULD DO SUCH A CRAZY THING? HOWEVER, I DO THINK YOU SHOULD DO ONE IF YOU HAVENT DONE SO ALREADY. 7 1 2 3 4 5 CASH FLOW SPREADSHEET (SOUNDS DULL BUT IT WILL MAKE SURE YOU SLEEP SOUNDLY AT NIGHT) I create a month-by-month spreadsheet that shows whats coming in and whats going out. This also includes any big purchases I need to make e.g. Advertising or promotional stuff, or new equipment such as a new computer or printer. SHOW ME THE MONEY (AS JERRY MCGUIRE SAID...) At the beginning of each nancial year, I work out how much I want to earn that year, and then work out what I need to do to meet that target. This may mean introducing new services or package deals - or junking ideas from the previous year that didnt really work that well. In other words, get rid of the stinkers. MARKETING PLAN I work out how to reach the people I want to target against how much money I need to spend. I then create a tactical marketing calendar so I know what things I need to do each month to market my business. HIT LIST (NOT A LIST OF PEOPLE I WANT TO KILL, BUT THEN AGAIN...) This is a list of companies or individuals that Id like to work with. Then I work out what I need to do to get a meeting with them. For example, I attend a regular networking group. The facilitator will happily broker an introduction with anyone Id like to meet thats part of her network of contacts. MARKET INTELLIGENCE I make sure I take stock each year on key changes in the business world. Whats the current mood? Are people spending money? What are the trends in marketing spending? What are my potential customers worried about? This information makes sure my sales and marketing messages are right on the money. THE NUTS & BOLTS OF MY BUSINESS PLAN... This is the approach that works well for me in my business. Its an informal kit really rather than one big formal plan. However, if you are looking for business finance from a bank or youre applying for some kind of grant funding, youll need something more formal. IMAGINE NEVER HAVING TO COMMUTE AGAIN. I SPENT YEARS OF MY LIFE TRAVELING ON THE LONDON UNDERGROUND DURING RUSH HOUR. BELIEVE ME, BEING CRAMMED INTO A CROWDED TRAIN WITH YOUR FACE SHOVED INTO THE SWEATY ARMPIT OF A TOTAL STRANGER IS NO FUN! 3 LIVING LIFE ON MY OWN TERMS So what were the attractions of going it alone? I was never a good corporate soldier. I was rubbish at ofce politics and loathed the game playing and manipulation. There are people who just instinctively know how to work the system and make it work to their advantage. Im sure youve all known someone where you work (or have worked) who just breezes through the ranks and gets to the top. Well, I wasnt one of them. I was cursed with opinions and an uncontrollable urge to voice them Early in my career, I was the press ofcer for a large American software rm based in Windsor. The big cheese who ran the UK ofce liked a certain pub that was close to the ofce. Almost every night after work, he and his cronies went to the pub and discussed policies shared ideas and made important decisions. If you werent there at least 4 nights a week, you were not considered to be a player. I dont know about you, but I cant stand all that. In my view cronyism is dangerous and counterproductive to the creation of a successful company. It means that the wrong people get all the power, and those who are clever and talented, but who choose to go home to their families at the end of a long work day, often dont get the recognition they deserve. Anyway, that whole vibe just wasnt for me and I needed to change things. Freelancing doesnt suit everyone Of course freelance life doesnt suit everyone. You need to be self- disciplined and motivated to get up and at your desk every morning. Ive met numerous freelance people along the way who just cant cope without the structure of an ofce and a boss. But you do need the ability to create some kind of structure for yourself or you will never get anything done. There are also other realities that need to be faced. Theres no holiday pay, sick pay, no guaranteed income or benets package. In theory anyone freelancing would know this before they start. But youd be amazed how many budding entrepreneurs dont think this through properly and end up going back into full-time employment with their tail between their legs. IF IM BRUTALLY HONEST, I HAVE TO WORK FOR MYSELF, BECAUSE NO-ONE WOULD EVER HIRE ME NOW... 10 For others its the loss of status they dont like. As a freelancer you dont really have any. Let me explain what I mean. I went from having a top of the range BMW as a company car to driving a rust-bucket ve-year-old Citron AX. For many people this would be a total deal breaker. I realise this sounds nuts; but remember I rst started in 1991 when material acquisitions were more highly prized than they are in 2012. Some of my old colleagues would look at me with pity in their eyes when I turned up in my French roller skate as it became known. But I didnt care. I gured that an old car that I could pay for in cash was better than blowing all my savings on a status car or getting locked into nance payments. The freedom and exibility of working for myself far outweighed anything else. I get to choose my working hours and state what I will and wont do. Im not rich or powerful or inuential. But I live a clean and honest life on my own terms. FOR ME, THE FREEDOM AND FLEXIBILITY OF WORKING FOR MYSELF FAR OUTWEIGH ANY OF THE PITFALLS. I LIVE A CLEAN AND HONEST LIFE ON MY OWN TERMS. HOW MANY PEOPLE CAN REALLY SAY THAT? 11 1 2 3 4 5 NO OFFICE POLITICS You get to do all the stuff you love doing and can leave behind all the game playing and manipulation. YOU CALL THE SHOTS You can say no to anything you dont want to do. If you decide not to work on Fridays - then hurrah! Its your business, you can run it however you want. NO MORE RUSH HOUR I refer to my earlier comment about sweaty armpits (and dont get me started on the halitosis). YOU DONT HAVE TO WEAR SUITS TO WORK Comfort aside, it was the dry cleaning bills that killed me. Obviously I still have to pull out the best bib & tucker for special meetings, but most of the time its glorious comfort! FLEXIBILITY I love that I can work anywhere, anytime. A freelance graphic designer friend of mine spends her days with her children, and then works while they are asleep in bed at night. MY TOP FIVE BENEFITS OF BEING A SOLO BUSINESS... Seriously, dont be tempted to wing it. You need to do some background work before you jump off that top diving board. 4 DO YOUR HOMEWORK! SO, WHAT KIND OF HOMEWORK ARE WE TALKING ABOUT? Obviously doing a proper business plan is important:and theres tons of advice and free templates out there (e.g. Banks, your local Chamber of Commerce etc.) Looking at things very simply, here are the main questions I think you should ask yourself before you quit your job and put your life savings on the line. 1 2 3 4 5 6 WHAT ARE YOU TRYING TO ACHIEVE? Is this a lifestyle choice? Or do you want to build a business that could change the world? WHATS YOUR MOTIVATION? Do you want to create a company that you can sell? Are you creating a legacy for future generations? Do you just want to do your own thang? Are you passionate about fullling a need in the marketplace? DOES ANYONE WANT TO BUY WHAT YOURE SELLING? This is not as stupid as it sounds. Ive met countless new business owners who have invested thousands of pounds in a venture just because they think its a good idea and all their friends and family tell them its great. WHY DO YOU THINK YOUR BUSINESS WILL SUCCEED? I know if I mention the phrase unique selling point youll want to run screaming into the wilderness. But seriously, what makes your business special? HOW MUCH MONEY DO YOU NEED TO MAKE? You need a good prot plan and a clear indication on how youre going to earn a living from this venture. WHO ARE YOUR COMPETITORS? Have you considered both direct and indirect competitors to your venture? How crowded is the market youre planning to enter? In short, is there any room for your offering? More on the next page... 7 8 9 10 11 WHAT ARE YOUR BARRIERS TO SUCCESS? Is it money or cash ow? Is it time or commitment? Or could it be lack of support from family or friends? The point is that if you know what your barriers are, you can work out a strategy for coping or managing them. MARKET INTELLIGENCE Are you happy that youve really gotten under the skin of your market sector? What are the key issues and how does your business/product/offering t into that? What plans do you have in place to make sure you keep your offering current and in tune with popular opinion? UNDERSTAND YOUR CUSTOMERS Please dont be tempted to gloss over this.The more you can drill down into your target customer - their life, their work, their needs - the easier it is to sell to them. All markets are crowded these days - so you have to adapt your offering and key messages to t you customer. YOUR BRAND - BUSINESS OR PERSONAL? As a freelance business, you need to carefully weigh up the pros and cons of creating a personal brand i.e. Using your name and reputation e.g. Joe Smith Photography. Or whether you want to create a business brand e.g. Brightspark Marketing. It all depends on how you think your customers will engage with you. Its worth taking time to consider this carefully. ROUTES TO MARKET How are you going to get your product or service to your target customers? In general terms (and obviously depending on what kind of business youre running) typical routes to market include: Direct - from you direct to a customer. Online - via an ecommerce website Through a third party e.g. Retail outlet, distributors etc. Via joint ventures and partnerships - e.g. If youre a wedding photographer, you could chum up with say, a wedding planner or caterer and offer package deals. MAKE THE TIME AND DONT CUT CORNERS Theres a lot of work involved in this and I would urge you to make the time to consider these points carefully. A CAUTIONARY TALE I recently met a potential client who spent over 100,000 developing a product for the baby market. He took almost four years developing, testing and working out the manufacturing process. He spent no time whatsoever considering how he was going to get the product to market. His only market research was among 24 mothers with babies. And of that group, 60% reacted favourably to his product. The assumption was that all he had to do was contact buyers of the leading supermarket chains and they would bite his hand off to get his product onto their shelves. THERE WAS NO PLAN B Guess what? That didnt happen. The buyers across all major retail outlets said: Were not taking any more products in the baby market for the next 24 months. Needless to say this came as a considerable shock to the inventor. He had no back-up plan. No website, no contacts with distributors, and no budget to market and promote the product. He had a further shock when I told him hed need a minimum of around 100k to launch a brand new mainstream consumer product onto the already crowded and highly competitive mother and baby sector. I also told him that the market leaders spent in excess of 1m a year on marketing. CONSIDER YOUR ROUTES TO MARKET CAREFULLY My key point here is to highlight that this company owner should have considered his route to market options long before he found himself with a warehouse crammed full of product he couldnt sell. At the time of writing this, our inventor was frantically trying to raise grant and investment money to allow him to get his product launched. I wish him well. 16 Last year I was doing a workshop for small business owners at my local university business school. I asked the group how many allocated time to keeping up with what their competitors were doing. Not surprisingly, less than 10% said they felt it was something they allocated planned time for. Then one woman piped up from the back that she took it very seriously indeed. I asked her if she would mind sharing with the group how she went about her competitor analysis. She told us how she noticed that one of her main competitors was looking for new staff. So she decided to apply for a job there. The competitor company was so impressed by her knowledge of the market sector and her enthusiastic questions about their upcoming marketing plans and product development, that they offered her the job on the spot. As you can imagine the entire class was howling with laughter and completely aghast at her nerve. Its probably one of the most extreme stories of competitor analysis Ive heard, and it was clearly effective. Not sure if I would recommend going that far, but I loved her spirit and the very idea of it. AT WHAT POINT DOES A KEEN INTEREST IN YOUR COMPETITORS BECOME STALKING? 17 When it comes to business, the people closest to you are not always your best allies. 5 FAMILY AND FRIENDS DONT ALWAYS KNOW BEST... A LITTLE OBJECTIVITY GOES A LONG WAY... Ive met countless small business owners and freelancers who tell me that they only consulted family and friends when developing their business idea. In my case, many members of my family and friends all told me I was insane to give up a well-paid job to go it alone, and offered almost no support at all. This meant I had to rely on my own steely resolve to get me going. At the other end of the scale, many people starting businesses have families and friends who tell them exactly what they want to hear; which is just as bad. (Think of the X-Factor TV show where parents convince their tuneless, tone-deaf offspring that they have what it takes to be the next Adele.) You need some objectivity in your game plan, so make sure you do some road-testing of your product or service with people who can give you some realistic feedback.Theres lots of easy and low cost ways to do this. 19 1. Attend some local business networking groups Ask for volunteers to test and try your product or service. Networking groups have boomed over the past few years and youll nd them all over the UK and USA. They love having guests, so its fairly easy to get yourself an invite. 2. Run a series of small focus groups This can be done cheaply and the results can be very useful. Every time Ive helped a client run one of these sessions they have been amazed at how much useful feedback and information theyve acquired. Ive put a guide on how to run cheap focus groups at the end of this section. 3. Social media and technology tools If youve got a Facebook page you can ask your followers to comment or vote on any new ideas you have, designs you have created, or gain feedback on your prices. Facebook and Linked-in groups can also yield excellent results. Just pick a group thats made up from the kind of people you want to target. Ive also had some great comments from Twitter. 4. VOX POP surveys This is where you prepare say, 10 questions and go out on the street to canvass opinion. Ive used this technique to great effect at trade shows. You can get some excellent sound bites from people when asking open-ended questions, which is in essence qualitative data. Plus you can get good quality data by asking multiple-choice or simple yes or no questions. 5. SurveyMonkey If you want something more scientic, I like www.surveymonkey.com - its quick, cheap and easy to use. Plus it does all the analysis for you. I remember when I was a junior account executive in an advertising agency, all survey questionnaires had to be analysed manually. I spent hours going through piles of papers, making tally marks and then having to work out percentages. SurveyMonkey does it all for you. There are of course other survey tools out there, this is just the one I like. YOU CAN INCREASE YOUR CHANCES OF BUSINESS SUCCESS BY TAKING SOME TIME TO ROAD TEST YOUR OFFERING AND MAKING SURE YOU GET SOME OBJECTIVE FEEDBACK. 20 THINGS TO REMEMBER LISTEN TO FAMILY AND FRIENDS, BUT MAKE SURE YOU SEEK OTHER POINTS OF VIEW TOO. DONT BE HURT OR UPSET IF YOU GET SOME NEGATIVE COMMENTS. ALL FEEDBACK IS VALUABLE - MAKE THAT YOUR NEW MANTRA. DO TRY THE MINI FOCUS GROUP IDEA ON THE NEXT DAY - IT REALLY WORKS A TREAT. 21 A focus group is where you pull together a group of people that you believe could be your target audience. The goal is to let them touch, sniff, taste, experience, discuss and query your offering. Ask around for volunteers - invite people to take part in a two-hour session at a nice local caf, or borrow someones ofce board room (I dont recommend doing it in your home). You can do this by social media platforms, a small advertisement in your local paper or posters in shop windows. Parish magazines and noticeboards can work well too. Offer an incentive to come this could be a goodie bag lled with locally made produce, or 20.00 voucher for a well-known retailer. In some cases cash can work I once went to a focus group run by a local radio station who gave everyone who came a crisp 20.00 note as soon as they arrived. Offer some refreshments - Pizza and beer works well. Tea and cakes also works well. The more pleasant and relaxing you can make the setting, the more likely people will be to open up and be honest. Prepare a list of questions in advance work out what you want to know from people. Let the conversation ow if people get chatty, let it ow. Ive picked up some valuable information by sitting back and listening. Get people involved in the experience of your product or service if they can touch, feel, taste, see or hear the product/service then let them experience it. Record the session if youre a dab hand with a video camera, then that always works. Personally I always just do audio. If neither of those options appeals, then co-opt a good friend to take notes for you. Its important that you get involved in leading the discussion. Write a thank you note a card or letter to everyone after the event. This sounds a bit rough and ready and it is. Large market research firms would laugh at it. If you dont have around 100,000 to spend with a big research firm, this can yield some good results and can make a big contribution to how to develop your offering. Ive used this approach many times and it has never disappointed. You could get some fantastic feedback for under 100.00. 22 TOP TIPS FOR A CHEAP AND QUICK FOCUS GROUP... You need some serious resolve to be a solo business owner. You have to stay focused and keep the faith that youre doing the right thing and have something fabulous to offer. 6 BELIEVE IN YOURSELF Have the courage of your convictions You need to believe in your project, venture or business. If you dont, you cant reasonably expect anyone else to either. In short if youre not sure, dont jump off the cliff until you are. This is where the bit about making a plan comes into play. The clearer your vision, the more you can believe in yourself. My navety gave me the self-belief I needed to get started For me it was navety that gave me the conviction it never occurred to me for a second that it wouldnt succeed. Theres a lot to be said for that kind of blind faith and the folly of youth. Look at Mark Zukerberg and the whole Facebook phenomenon. Whod have thought? But older and wiser, I can see how important it is to really have the courage of your convictions and get behind your idea, concept or product. Dont let the naysayers get you down. Sadly Ive met many people on my freelance journey who took the opportunity to crush my ideas and give me all the reasons why I was doing something ridiculous. The main one, particularly during the 90s was who do you think you are? Ive met several disgruntled employees in marketing departments who resented my presence as a freelance specialist working with their team, and there have been a few instances of sabotage and using me as the scapegoat. It goes with the territory and you just have to shake it off and move on. As time has gone on, becoming a freelancer has become more mainstream and its no longer a barrier to working with some big rms. In fact if you are a freelance electrician, plumber, IT specialist, graphic designer or photographer, you can offer great value for money by under cutting larger rms. You can be a lot more exible in your work and what you offer to the client. (Apologies if you are reading this as the owner of a large rm and nd yourself being undercut by damn freelancers - but we all have to play to our strengths.) Anyway, my point here is this: Give yourself permission to be condent about yourself, your abilities and your experience. And tell the prophets of doom around you to shut up and get out the way and let you get on with it. Sometimes, when going through a dark and gloomy patch, I look at people in safe jobs and, and for a eeting moment I think I need to get out of this and get a job. Fortunately these moments dont last long and I quickly get back in the saddle. Theres a couple of points Id like to make here. Nowadays almost no job is safe. I think there are a lot of nervous and vulnerable people out there right now. People who do work in nice safe jobs have no idea how brave and courageous you have to be to go it alone. So...be brave and if youve not started yet have a go, and if youre already going, dont give up. 24 THINGS TO REMEMBER... IF YOU DONT BELIEVE IN YOUR PROJECT, NO- ONE ELSE WILL EITHER. TELL THE NAYSAYERS AND PROPHETS OF DOOM TO BUGGER-OFF AND LEAVE YOU TO GET ON WITH IT. SURROUND YOURSELF WITH FIENDS AND COLLEAGUES WHO ARE SUPPORTIVE. 25 Striving for perfection is great, but sometimes you just need to push the button. 7 JUST GET IT DONE! ALL BUSINESSES ARE A WORK IN PROGRESS A long time ago I was at a marketing conference and one of the key speakers said something that has stayed with me ever since; Making the wrong decision on a Monday, is better than the right decision on the Friday At the time, my initial response was probably a bit like yours; what on earth are you talking about? Think about it. The decision made on a Monday is a decision made. Its action. Its getting something done. That rst decision will almost certainly lead to further decisions along the way. So by the time Friday comes, its irrelevant whether that rst decision was right or wrong. When I was in my early twenties, I worked on the PR team of a large market leading software company (yes that one). A product was due for launch, but there were some bugs that just wouldnt be solved. So the question was, should we postpone the launch? The CEO said: No, F*** it. Ship it. Well do a free x later. Im not saying its a good idea to launch a bad product, but sometimes theres a strong case for pressing the button, or turning the sign on the door to open. All businesses are a work in progress they will never be nished. Theres nothing wrong with striving for perfection, but sometimes youve just got to say: F*** it. Ship it, and get it done. THE DIGITAL AGE MEANS THINGS CAN BE CHANGED AND EDITED AT ANY TIME. PROCRASTINATION IS THE THIEF OF TIME (IVE NO IDEA WHO SAID THAT). 27 They want your undivided attention and dont want to know that you have other clients to deal with. 8 CLIENTS ARE LIKE JEALOUS LOVERS CLIENTS WANT TO FEEL THEY ARE THE MOST IMPORTANT PERSON IN YOUR LIFE AT THEIR EXACT MOMENT OF NEED It doesnt matter if you are running a restaurant, a shop or professional services business. Clients know that you have other customers; they just dont want to know about them. They want their needs dealt with rst and they want to feel that they are the most important person in your life at that moment. So I never say to a client, sorry, cant make that appointment because Im busy with another client that day I just point out that Im unavailable, and suggest other dates when I can see them. They know Ill be with another client. And I know they know. But they just dont want to have their nose rubbed in it. Say youre at the hairdresser getting a haircut and the stylist whos supposed to be cutting your hair has abandoned you (hair dripping wet with one of those nasty towel turbans on your head) while they fawn over another client. How do you feel? In that situation all the stylist has to say is Im so sorry to keep you waiting. Ill be with you as soon as I can. Showing a little love to your clients, customers, patients (whatever you call them), goes a long way. If you can make every customer or client feel important, loved and appreciated, theyll come back time and time again. Management gurus often talk about the importance of building relationships with clients and that nding new customers costs around 10 times more than continued selling to those you already have. This is actually true. Once people like what you offer theyll keep coming back. Every customer is precious (except the horrible ones obviously which are mercifully rare). Most of my work comes via word of mouth and I think thats probably the best any of us can hope for. This is obvious right? Well Id like to think so. Sadly however it simply isnt true. It seems to me that the world is full of rubbish service and establishments that dont value my custom or recognise that I have choices. Interestingly Ive noticed that its many of the online brands that really seem to be getting this right, while many traditional retail outlets are getting worse and worse. Customers vote with their feet and fingers. Online reviews, sites like Trip Adviser and the world of social media means that stories of bad service can go viral in minutes. This means that we all have to pull our socks up and make sure we take nothing for granted. 29 SHOP ASSISTANTS ON THEIR MOBILE PHONE, CHATTING TO THEIR FRIENDS WHILE IM WAITING. PLUMBERS, ELECTRICIANS AND OTHER TRADESPEOPLE WHO PROMISE TO COME ROUND AND DONT SHOW UP. SUPERMARKETS WHO MAKE YOU USE A 1 COIN BEFORE YOU CAN GET A TROLLEY (WHY NOT JUST PUT A SIGN UP SAYING: WE THINK ALL OUR CUSTOMERS ARE LOW-LIFE, THIEVING SCUM). BRITISH AIRWAYS - DONT GET ME STARTED! HIGH PRICES AND LOW SERVICE IS NOT A GREAT COMBINATION. BANKS - WELL THEYRE JUST ALL BASTARDS. AND FINALLY (DRUM ROLL PLEASE), THE RESTAURANT WHO STARTED VACUUMING WHILE MY HUSBAND AND I WERE STILL EATING (YES REALLY!). MY LIST OF CUSTOMER SERVICE HATES... 30 9 DONT ASSUME THE LOVE YOU GIVE YOUR CUSTOMERS WILL BE RETURNED... CLIENTS CAN BE FICKLE, SO DONT ASSUME A HAPPY EVER AFTER ENDING When you work with the same client regularly for a long time, the relationship can often take on some very rewarding dimensions. You can become a condante, a trusted adviser, and a sounding board for key decisions and new ideas. This is a wonderful place to be and leads to all sorts of possibilities for selling more projects, services or products. Once you gain the clients trust, its natural that they should come to you when they need further assistance. In addition, you may nd yourself invited to social and business events run by your client. I work for a business consulting rm who kindly include me in all their events, corporate dinners and seminars. Its very nice when a client treats you as one of their guests. Sometimes things change and theres nothing you can do about it However, no matter how friendly and close that working relationship becomes, never forget that it can change within a blink of an eye. We are just suppliers at the end of the day. There are lines that should never be crossed (you know what Im saying right?) No matter how close your working relationship with your customers, you need to bear in mind that nothing remains the same forever. Customers and clients can be ckle. They nd alternative suppliers, or prefer the taste of a new brand. The trick is to watch trends in purchasing if youre selling products, or trends in behaviour if youre selling services. Heres a list of things that could signal change is on the horizon; A new senior manager or director - people taking up new senior positions will often want to bring in their own people. So if you are in professional services, you could be usurped through no fault of your own. Disharmony among the clients directors - this has happened to me a couple of times. Medium sized businesses where two or more of the directors have a massive difference of opinion about the companys direction. If youre not careful you can end up being expected to take sides. You could become what I call collateral damage.' Mergers and acquisitions - this can go either way. You get dramatically more business, or you lose it all. The client suddenly loses a major customer - the knee-jerk reaction will always be to cut costs right away. This could mean you. A line is crossed - I refer to the infamous story of the PR man who went to visit his clients headquarters in Germany. He and the client went out for dinner and then on to a nightclub. Well, to cut a long story short, too much alcohol 32 was consumed and there were rumours of a pair of missing trousers. Our PR man overslept and missed the scheduled meeting. Shortly afterwards, the agency was given notice. Its OK to have a good time with your client, but no matter how much you drink, or how much bad behaviour goes on, you still need to make it to the meeting and do your job without missing a beat. I guess what Im trying to say, is that as suppliers we are disposable. Ive fallen down on this point a few times - Ive felt I was on the inside track, and then something happens and I discover I dont even have a ticket to the stadium. DONT TAKE THINGS FOR GRANTED. WHOEVER SAID, NO- ONE IS INDISPENSABLE WAS RIGHT. REMEMBER: KNOW THE DIFFERENCE BETWEEN A FRIENDLY RELATIONSHIP AND TREATING YOUR CLIENTS AS FRIENDS. WERE NOT ALWAYS AS IMPORTANT TO OUR CLIENTS AS WE THINK WE ARE. IF IT ALL GOES WRONG, JUST SHRUG IT OFF AND MOVE ON. 33 If you dont know what your customers want, how can you give it to them? 10 UNDERSTAND WHAT MAKES YOUR CUSTOMERS TICK How well do you really understand your customers and their needs? Who are these people? Where are they? What do they like, what dont they like? What do they eat, drink, and drive? How old are they? Where do they go on holiday? What do they worry about? Before you think Ive gone mad, the simple fact is, the more detail you can have about your target customer, the better chance you have of selling to them. An exercise I often do with my clients is to get an empty chair brought into the meeting room and I ask them to imagine their ideal customer sat in that chair. I ask them to describe them in detail. Create client characters that you can really get to know... When I worked for a large PR agency we used to create composite characters for each clients ideal customer. We gave them names, worked out where they lived, how many children they had, where they worked, how much money they earned etc. From here we could work out marketing messages and creative ideas that were very effective. It helps you understand what your potential customers want from you. In short its a neat method for understanding your customers problems and then working out how you are going to solve them. By the way, you dont have to have just one character. You may have several to t different products and services in your business. The point here is simple. You are trying to work out where things hurt. Wheres the pain? Wheres the problem? When you can answer that, you come in on your white steed and with the solution to that problem. My business sells marketing services. I rarely sell directly to consumers, it's all B2B. I can prole my target customers as follows: Age: Between 35-55. Gender: Normally male, sometimes female. Personality: Driven, A-type personalities that thrive on stress. Business: Normally professional services, or a manufacturer. Sectors: IT, professional services (legal, accountancy), engineering or renewable energy. Size: fewer than 20 employees. Pain: Some game-changing technology or legislative change is about to make a massive impact on their business and they have no idea how to leverage it. Barriers: Lack of time, small budgets. Often they have been ripped off or have been given bad marketing advice in the past. Need: They are looking for a way to get new customers without having to sell their rstborn child. So when Im at a conference, network event or other place where I meet business people, I know exactly what Im looking for. This knowledge and understanding gives me a high conversation rate on any proposal I put forward. If you dont take the time to understand your customer, your marketing will be generic and 35 ineffective and youll attract the wrong kind of people. For example a company with a luxury product or service nds they are only attracting people with no money. In recent times services like Groupon have started to appear. Special discount campaigns used by say, 4-star hotels to keep bedrooms full during the low-season often nd that the person that books with the discount voucher almost never converts to a full price customer during the high season. The reason for this is simple; the Groupon campaign will almost always target the wrong kind of customer for your business. The best advice I can give on this matter is as follows: Stop thinking like you and start thinking like your ideal customer. Speak their language not yours. Focus on their needs and desires not yours. When you know what people want from you make sure you give it to them. 36 11 DONT TRY TO BE ALL THINGS TO ALL PEOPLE The more specific you can be, the more money you can make. I meet many small businesses who tell me: We can do large, but we can also do small. We can sell worldwide but were also local... Does that sound like you? For some reason many freelancers and micro business owners believe that broadening out their offering is better. They think the more all-encompassing they can be, the better. Lets think about this for a minute. Manufacturers of FMCG products (fast moving consumer goods) can get away with mass marketing one key message to everyone. We are all potential customers for Heinz Ketchup, or peanut butter, or chocolate. But, within those mass brands, there will always be some degree of segmentation. Cereal companies target kids. Persil targets mothers. Car brands target men - even though we are all potential customers for cars, cereal and soap powder. It all boils down to targeted messaging. The more specic your message, the better results you get. And if you have a limited budget, it does help make it go further. It doesnt mean you have to limit yourself to one particular niche, Im just saying tiny businesses will struggle to get decent results from a small budget by using an all things to all people approach. 38 Even now I do my best to stay focused on certain areas. For example I know that Im better suited to Business-to-Business (B2B) projects. In my proper job I had experience of working with large corporate IT rms. So when I went freelance, I chose to focus on the IT industry, targeting smaller IT rms who could be interested in working with someone who knew how the big players were doing their marketing. Ive moved on to other sectors since, but focusing on a very specic market at the beginning gave me leverage and allowed me to develop a good client base and track record. Even now I do my best to stay focused on certain areas. For example I know that Im better suited to Business-to-Business (B2B) projects. I live in an area where there are tons of hotels, guest houses and tourist attractions. But I dont go near them. There are so many hospitality- marketing specialists in the area so it doesnt make sense for me to go after that market. Instead, Ive set out my store as the B2B gal. Technology, engineering, construction, commercial law - terric I love it. And that B2B focus is what my reputation is based on. The other bonus is that all the consumer-marketing folks are happy to pass any B2B leads to me, and I do the same for them. Everyones a winner, happy days. 39 NO FREELANCER CAN BE AN ISLAND 12 DEVELOP A NETWORK OF LIKE MINDED PEOPLE Starting out on your own can be a lonely business. Even the most driven individuals have days when its hard to keep going. So Id recommend developing a network of like-minded individuals that offer complementary products and services. This is an approach that has worked well for me. I never had ambitions of setting up my own marketing agency. I couldnt see the point of trying to re-create a format that Id made the decision to leave behind me. However, I am just a one-person band, and there are situations where I need to involve people with complementary skills to add value to my clients. The easiest thing to do is chum up with people you like, and more importantly, know you can work with as part of a virtual team. Its a question of getting things organised when you are supplying services to the client. Theres two main ways of looking at this. One point of contact for the client - sometimes, in my experience, the client says I only want one point of contact - its up to you how you get it done. In this situation I will act as the lead. All contractors bill me, and I bill the client. This can be risky, all your small contractors will want paying promptly, and if the client takes a long time to pay (which is becoming more of a problem these days), it can cause a great deal of stress. I try to avoid this one. Even if I make a mark up of say 20% on all the other services, its often not worth it when you have to manage the whole thing. Multiple points of contact for the client - I tend to favour this approach these days. I organise all the suppliers - in my case it will be printers, designers, web people, photographers etc., and then get them all to bill the client direct. I then charge a management fee to the client for pulling it all together. It means I dont have the risk involved in carrying large supplier bills, and the client feels they are getting a good deal because they see the supplier invoices directly without any markups. In reality, I nd that the management fee I agree with clients is often more than I would make going down the mark-up route. Its also clean, and offers the client total transparency. So what about when you act as the subcontractor for someone else? This happens to me when say, a designer or web company asks me to provide copywriting services. I bill the design or web agency, and they bill the client. Just a word to the wise here. Unless I agree in advance with the design agency (in writing) that they pay me when the client pays them; my contract is with the agency, not their client. So even if the client doesnt pay them, the design agency is still liable to pay me. Ive seen a few freelancers get themselves into a mess over this - which is why I always prefer direct billing where possible. Your network is also a great social base. In my gang as well as referring work to each other, we regularly meet up for a drink and chat to exchange stories, commiserate, celebrate, and sometimes just have a good bitch. It helps keep you sane, and stops you feeling isolated. As a solo operator you dont get an ofce Christmas party - so its nice to have some like-minded folks to pull a cracker with over a festive lunch. 41 IF YOU NEED A DUVET DAY, TAKE IT 13 GIVE YOURSELF PERMISSION TO HAVE OFF DAYS Inevitably there will be days where you nd you just cant motivate yourself to get going. There are all kinds of tricks and tips people have to stop procrastinating and get things done. Thats not what Im talking about here. This is when you just need some time to breathe, regroup and recharge your batteries. Youre the boss so its OK If you want to spend an afternoon going to the movies, then do it. If you need a long walk in the sunshine, go for it. Remember, one of the perks of working for yourself is that you set the rules. I recall once in my rst year as a freelancer, a friend called me one morning saying she had some last minute tickets for Wimbledon that day and would I go with her. I was too scared to go out in case a client called and I wasnt there. And of course, I just waited in, and no one important called A bit of time for yourself, guilt free, is liberating and energising. So if you need it, do it. 43 LIFE IS SO MUCH BETTER WHEN YOU LIKE WHAT YOU DO. 14 DONT TAKE ON JOBS THAT YOU DONT REALLY WANT TO DO. I wish I had cottoned on to this one earlier. I like what I do, but there are things across the gamut of marketing and PR that I loathe. In the early years of freelancing there was always the fear that if I said no to a client, they would nd someone else who would say yes. Theres more than one way to skin a cat. For example; I loathe exhibitions and events. Wild horses couldnt get me to commit to getting bums on seats for an event. Yet in those early years, I would soldier on and run a competent and good event. But my heart was never in it. This is where your network of like-minded professionals comes into play. These days, if someone wants a kick-ass event doing, Id recommend to the client that we work with a colleague who loves events, and does a fantastic job. This way, Im still in the driving seat, the client gets what they want, and I get to focus on the work I like. I know this sounds obvious, but it took me a while to gure this one out. In short, youve got to like what you do. Theres a swathe of modern business books out there at the moment who all talk about this. Lets not forget that one of the perks of working for yourself is that you can say no. If you need the money and decide to do it anyway, it was still your decision. I was recently in this situation when I was I asked to pitch for a piece of work that included helping the client with a rebrand. I was a bit broke that month, so I thought Id chum up with a good graphic designer and between us we could offer a pretty good package. But there was a little niggle in the back of my mind that told me this project would be a bit of a nightmare, and branding is not an area of specialism for me. So I wrote a polite email to the client, thanking them for thinking of me but declining the invitation to pitch. Instead I gave some recommendations on who could do the job better than me, and left it at that. A few days later I got a note back thanking me for my honesty and that they would love to work with me in another capacity very soon. I got brownie points for my honesty and a new client who were keen to involve me in work I like doing, and a local design agency got a job they werent expecting. Good news all round. 45 A LITTLE MARKET INTELLIGENCE GOES A LONG WAY. 15 KEEP UP WITH TRENDS IN YOUR MARKET SECTOR This one is a no-brainer for me. How can you work in any sector of business and not show an interest in keeping up with the latest trends and developments? If you dont keep up, read, engage and nd out about your own market, how can you continue to be competitive and offer the best products or services to your customers? The poster boy for keeping up with industry trends is my lovely husband Darren. He has a sports injuries and Rolng practice and permanently has a waiting list of people desperate to get an appointment with him. Whenever I meet his patients, they all say the same thing. No-one else can explain whats going on in my body like Darren can. Hes so knowledgeable. The reason for this is because he reads all the journals, blogs and websites related to the bodywork world. When we were on holiday in Colorado, he made email contact with Rolng gurus in Boulder and drove to see them just to chat, share experiences and learn more about how they ran their practices in the USA. He even went to Brazil to study with a renowned teacher. It pays off. Even during the recession, his appointment book was always full when other therapists were very quiet. As for me, If I hadnt made a conscious effort to keep up with my industry and continually renew my own skills, my business would be in the toilet. That said, Im continually amazed at how many small business owners I meet that dont read trade journals or blogs about their market sector. If youre not keeping up-to-date you could miss something important that could mean you lose customers overnight. If youre not doing it, your competitors will be. How can you work in any sector of business and not show an interest in keeping up with the latest trends and developments? If you dont keep up, read, engage and find out about your own market, how can you continue to be competitive and offer the best products or services to your customers? 47 EASY WAYS TO KEEP UP WITH YOUR MARKET. 1. Visit the major trade shows, conferences or seminars at least a couple of times a year. 2. Find the movers and shakers in the blog world: follow them and read their stuff. Also subscribe to the main trade papers and magazines. 3. Follow key inuencers and thought leaders in your sector on Twitter. Read, engage, and follow other people who are involved in the conversation. 4. Network; attend networking events, talk to people. 5. Survey your customers; nd out what they want from you. Wheres the pain? It will help you continually tweak and upgrade your offering. 6. Talk to your own supplier network and your friends in the same industry; you can pick up a lot from each other. 7. For a big picture view of your industry, I always nd that FT.com is a great place to start, and it provides me with clues on where else I need to look. 48 Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do tempor incididunt ut labore et dolore magna aliqua. 49 THINK ABOUT HOW CUSTOMERS PERCEIVE YOU. THERE ARE LOTS OF WAYS TO SAVE MONEY WHEN RUNNING A BUSINESS, BUT WHEN IT COMES TO YOUR CUSTOMER FACING PERSONA, DONT BE CHEAP. 16 DO THINGS RIGHT Obviously being a marketing and PR business, Im slightly biased on this point. But it does make a difference to how people perceive you. Heres my list of the essentials: 1. Your own domain name. Im always suspicious of businesses using yahoo or gmail as their business email address. 2. A website. I made mine using www.squarespace.com. It costs me $18.00 per month. Anyone who can use a computer can create a site.company name in a typeface and colour that you like, and use it consistently throughout your marketing. 3. A simple logo. If you have an Apple computer, theres a great little app called Logoist with which you can create a decent logo that will tide you over until you can afford a graphic designer. If youre not on Mac, then you can create something nice using Google Fonts. 4. A business card. I get mine from www.moo.com Its low cost, much better quality than VisaPrint (in my opinion), and you can get small quantities. To be honest, thats all you really need these days to get you started. For my Brightspark Marketing business I have a website and some good quality business cards. I also have one of those pop-up banners and some postcards with a few simple messages. I get asked to do some guest lectures from time to time; my pop-up banner and postcards are a sort of instant kit that presents my business in a professional light. Little things like not having a website or a proper domain name on your email sends a message that youre a small entity and not professional. I dont know about you, but Im always a little bit suspicious of businesses that use Gmail or Yahoo email addresses. 51 LEARN TO READ A BALANCE SHEET AND MANAGE CASH FLOW. MONEY MATTERS, PARTICULARLY WHEN THE TAX AND VAT MAN COME CALLING. 17 SORT OUT YOUR MONEY Learn to manage cash ow and read a balance sheet You can quickly get yourself in a whole heap of trouble if you dont get a grip on some good basic accounting things. Im not saying you need to be a qualied chartered accountant, I just recommend that you make it a priority to understand all the nances in your business. I must confess that numbers are a real weakness in my brain. I tried every accounting software package there is, and put up with an accountant who spoke gobbledegook for years. As time went on it became clear that this situation was not a good one. If you run your own business youve got to get a handle on whats happening and learn to understand a basic balance sheet. These days the big one to deal with is cash ow. I used to issue invoices at the end of every month. But now I send them immediately the job is complete. Also, when I start working with a new client, I always introduce myself to the person in charge of accounting. I ask what their preferred method of receiving invoices is; some like email, some prefer hard copies. I also ask if there is a cutoff point to get into payment runs. For example, for one client, I know I have to get my month-end invoices in before the 5th of the following month - then I get paid in 14 days. If my invoice gets there on say, the 6th of the month, Id have to wait 44 days for payment. Little things like this make a difference. TIPS FOR GETTING A GRIP ON YOUR MONEY 1. If your accountant speaks gibberish, nd one who can speak to you in plain English. I went through three to get to one I like. Its important you understand whats going on. Its not against the law to change accountant! 2. Find an accounts package you get on with. I know many people use Quick Books. Even that one was too much for my feeble brain. I use www.freeagentcentral.com. It costs around 18.00 per month and its a doddle to use. Plus you get an up to date state-of- play on everything to do with your money. Plus it saves me tons of time. 3. Go on a training course. HMRC does workshops around the UK. I went to one a few years ago and it was actually very good. Chambers of Commerce also run seminars and workshops. You can also get some useful information from the Federation of Small Business. www.fsb.org.uk 53 YOURE NEVER TOO OLD OR TOO CLEVER TO LEARN SOMETHING NEW. 18 LEARN NEW SKILLS It doesnt matter what market sector youre in, theres always something new you can learn. It could be learning to master a software package by means of an online learning programme, or updating your professional skills. Its up to us to make these decisions and choose what to learn. Some business sectors have compulsory continuing development schemes. For example: physiotherapists, dentists, lawyers, accountants etc. Knowing that your licence to practice can be taken away from you if you dont keep your skills up to date is a great motivator to keep on top of your development. But for the rest of us, its up to us to make these decisions and choose what to learn. Try to put some budget aside for your education. I always try to set some budget aside for my own education. It might be attendance at a conference, some books. e-learning or a subscription to an information service. It keeps your brain fresh. If you commit to something like this, it keeps your brain fresh and chances are youll be informed and up-to-date than most of your competitors. Oh, and its tax deductible too! Just a thought. TIPS FOR EDUCATION THAT DONT BREAK THE BANK 1 2 3 4 5 ONLINE COURSES Theres some fabulous online stuff for learning new skills. Recently Ive done some courses on www.udemy.com ADULT EDUCATION CENTRES Most towns have some adult education courses available. They are great, low cost ways to learn things like Excel. UNIVERSITY SHORT COURSES Most universities have short courses available - many result in credits which can be used towards a degree. CHAMBERS OF COMMERCE There are Chambers all over the UK who offer courses - many are free. Ive taught classes for my local chamber - so I know theyre good! SKILLS EXCHANGES You can organise your contact network and do swapsies. For example, you teach someone HTML, and they can teach you how to write press releases. 55 WE ALL DESERVE TO MAKE A LIVING WAGE FROM OUR EFFORTS. IF YOU DONT VALUE YOUR TIME, HOW CAN YOU EXPECT ANYONE ELSE TO? 19 VALUE YOUR TIME HOW MUCH SHOULD YOU CHARGE FOR YOUR TIME? When you run a business where you charge a daily or an hourly rate, this is a bit more straightforward. But what if you run a caf, or make cupcakes, or have an outline shop? Its easy to lose sight of your times value. Ages ago, I co-wrote a play with a small group of women. It was commissioned and broadcast by the BBC. It was amazingly exciting to be part of such a project and it gave all of us a fteen minutes of fame. However, when we sat and worked out how many hours we spent working on it in relation to the fee, we were working for about half the minimum wage. CREATIVE FULFILLMENT: 10/10. PROFIT: 0/10. The creative fulllment was fantastic - but the reality is, if I had to earn my living as a playwright, Id starve to death. I wouldnt have missed the experience for the world, but looking at it in the cold light of day, reality gave us all a hard bite on the bum. The thing to do is create some kind of spreadsheet (pen and paper will do) where you workout a basic forecast which looks at how much prot you are likely to make, and how many hours you need to put in to make it happen. Another way to look at it is to consider how much revenue you need to pay all your outgoings and pay yourself a living wage. Then work out how many days/hours a year you can work (or indeed want to work). That will give you a rate per hour. Is that achievable for your business as it stands? If not, what do you need to change to get there? If you could earn more an hour working at the local supermarket (not that theres anything wrong with working at a supermarket), then maybe you should reconsider your business - or at the very least, seriously revisit your pricing. Running any kind of business is hard work, so we all deserve to make a living wage from our efforts. I know people have different reasons for starting their business. Whether its a calling, a passion or simply a means to an end, we still have to make some money. 57 THE ONLY PERSON WHO GETS TO DECIDE WHAT SUCCESS REALLY MEANS IS YOU. 20 DEFINE SUCCESS ON YOUR OWN TERMS. This is a bit of a soapbox issue for me. So here goes. First, going it alone is a brave and courageous thing to do. Dont let anyone tell you otherwise. Second, theres only one person who gets to decide whether your venture is a success or failure. And thats you. It all boils to one simple question. What does success mean to you? Success can be dened in so many different ways. For some it will be money, wealth and everything that goes with that. Creating nancial freedom or having something to leave your children. For others it will be about doing something important and meaningful. I know someone who has started a natural green household cleaning products company. She is motivated by the idea of eliminating nasty chemicals from daily household products. I know another very driven woman who runs a small charity. She earns practically nothing, but her venture is an extraordinary success. There are artists who feel that freedom of artistic expression is the most important factor in their success. Not having to compromise. What about living life on your own terms? This is my thing. Ill never be wealthy, but I have a freedom and exibility in my life that I dont think I could ever put a price on. DONT LET ANYONE ELSE BELITTLE YOU BECAUSE YOUR RESULTS DONT FIT INTO THEIR OWN IDEALS. The important issue here is not to lose sight of what YOU think is important. Dont let anyone else belittle you because your results dont t into their own ideals. I normally nd its people in nice safe corporate jobs who scoff at my little business. Occasionally, when one of the scoffers has found themselves with a redundancy letter in their hands, its my brain they want to pick on how to set themselves up as a freelance consultant. You wait and see. If you havent experienced this already, you probably will. WHAT DOES SUCCESS LOOK LIKE TO YOU? 59 THE ONLY REAL FAILURE IN BUSINESS IS NEVER TRYING ANYTHING NEW. 21 SOME THINGS YOU TRY WILL FAIL - AND ITS OK. Not everything you do in your business will be a success. You will have some product or service ideas that just turn out to be duffers. Even world famous entrepreneurs make mistakes. Who remembers Virgin Cola? Or Virgin Personal Computers? Both sank without trace. What about Lord Sugar? Whatever happened to his horrible email phone contraption? Many of the largest and most successful brands get it horribly wrong. I bet every major company you can name has a ling cabinet crammed full of ideas that never got off the ground or products that just pained tanked. Not every idea you have will be a rip-roaring success. In 2004, I launched an e-commerce project called Rhubarb & Custard. The idea was to sell British Foods to expatriates living overseas. It got going and we got orders - but I made several mistakes based on some bum advice from people I thought were experts. By 2006, it became obvious that the business wasnt really viable in the long term, and I felt that the best course of action was to cut my losses and move on. At rst I was embarrassed and a little bit ashamed, particularly as so many of my regular clients had taken a keen interest in my progress. But actually, the experience turned out to be valuable. I could say to my clients venturing into e-commerce: Dont make the same mistakes I made. People were keen to hear my experiences on this and I could prevent some of my clients make costly errors. Every cloud has a silver lining as they say. In my view, the real failure is not trying new things. If it all goes pear-shaped think of what youve learned. Keep innovating. If it doesnt work, move on and try something else. THE IMPORTANCE OF INNOVATION Innovation is an important part of running any business. One of the most basic marketing concepts is understanding that every product or service has a life cycle that will, at some point, go into decline. Short life-cycles For technology rms for example, the life cycle is often very short. At one point in my PR career, I worked for a division of Sony that made CD ROM drives. It was in the days when they werent included in the build of a PC (how many of you remember that?). Anyway, part of my job as an account executive was to secure product reviews in mainstream consumer technical media. Editorial lead times for consumer magazines can be up to 6 months - think Christmas in July. This meant that wed pitch the products for review in say the May, and the story wouldnt appear in the press until around November. By which time, the products were often already obsolete. Long life-cycles Other products or services have a long life cycle - think of Mars Bars. The important thing is to know and understand your market, and what your customer wants, then you can start to predict the optimum length of you product/ service life cycle and introduce upgrades/new avours/new service offerings. 61 LIFE IS TOO SHORT TO ALLOW YOURSELF TO BE BADLY TREATED BY A CLIENT. 22 SOMETIMES THE ONLY OPTION IS TO FIRE THE CLIENT. I like to think of myself as a fairly even-tempered person. I normally nd a way to muddle through difcult situations with good grace. However, there have been a small handful of situations over the years where I was pushed to the edge and felt I had no option but to the sack the client. The rst was an odious character who was a director of his familys rm. And quite honestly he had to work for his father because no-one else would employ him. He was a spoilt brat who treated every supplier like dirt. I tolerated three months of his nonsense before I could take no more. I could only wish that his work ethic extended to the prompt payment of invoices. The second was a fast paced entrepreneur type who expected everyone around him to be on call 24/7. It wasnt unusual to be woken at 7am on a Sunday morning or after midnight during the week to discuss trivial matters. I could only wish that his work ethic extended to the prompt payment of invoices. He was taking longer and longer to pay while his phone calls became more intrusive. Enough is enough. Sometimes youve just got to dump them and move on. The point is, lifes too short to work with bad clients. Im sure you will have dumped a boyfriend or girlfriend at some point because the relationship just wasnt right. Well the same is true of clients. Sometimes youve just got to dump them and move on. When its your business you are in the driving seat ... And then theres the whole thing about making the most of the advantages of working for yourself. A boss can insist that you take on a task or a client that you loathe. When its your business you are in the driving seat, so you get to make the nal decision about who you will or wont work with. Learning to let it all go. Ive had many lengthy conversations with professional colleagues on this subject. The key point that everyones stories had in common was that once they let go they invariably found new projects to replace lost revenue in a very short time. YOU KNOW ITS TIME TO FIRE THE CLIENT WHEN... 1. You have to beg, plead or threaten to get every invoice paid. 2. The client behaves in an offensive or inappropriate way. 3. You feel your expertise or skills are not valued or appreciated. 63 THE LIFE OF THE SMALL BUSINESS OWNER CAN BE A BIT OF A ROLLER COASTER. SO HANG ON TIGHT AND ENJOY THE RIDE. 23 THERES ALWAYS LIGHT AT THE END OF THE TUNNEL. The most common issue we all have to deal with is the feast or famine scenario. It always seems like were in either one of those states. For those of you who have not quite taken the leap yet, Im talking about a pendulum that swings alternatively between being so maxed out with work that you can hardly eat, sleep or breath. Or, in the other direction, having so little work you cant imagine ever working again and start checking the job ads in your local paper. They worked 20 hours a day and lived on coffee, corn chips and chocolate biscuits. My sister and brother-in-law used to run a small business where they designed and formatted the foreign language documentation for a large software company. Their work involved coordinating translators in 18 different countries and making sure the manuals were ready for the launch date. Once the job order landed on their desk, it was all hands to the pump for about 8 weeks. They worked 20 hours a day and lived on coffee, corn chips and chocolate biscuits. The only fresh air or daylight they saw was when they walked the 200 yards from their house to the local petrol station to replenish their store of high-fat snacks. By the time the job nally shipped, they both had bags under their eyes and their skin had that greyish-green hue of people who have been locked in a dark basement for months. That my friend is the feast. The famine would hit with a vengeance. The famine would come when the job they expected in say the July didnt materialise until the middle of October. Thats a lot of thumb twiddling time. Now this is an extreme example (but true). But its fairly typical of freelance life. Weve all been there at some point or another. The question is, how do you keep your sanity? I dont have a foolproof formula for managing or indeed avoiding the feast/famine pendulum swing. All I can do is offer a few things that I do that might give you something to chew over. Dealing with the feast or famine is one of the most commonly cited reasons why many small business owners throw in the towel and go back to getting a job. You have to try and hang in there. 65 MANAGING THE FREELANCE FEASTS AND FAMINES 1 2 3 4 5 BE HONEST ABOUT WHAT YOU CAN AND CANT DO. Make it clear to your clients about when you can deliver their work. Theres no point in saying Ill try if you know full well that its not going to happen. Youre just setting everyone up for disappointment. If you are maxed out and busy - be honest about it. USE A PROJECT MANAGEMENT SYSTEM. It could a bit of paper with a grid drawn on it, or a spreadsheet. You could use one of the many great cloud tools such as Basecamp or Wrike. Seeing everything in black and white really helps. I like the mind map approach and love this little tool: www.mindjet.com USE YOUR FREE TIME TO DEVELOP NEW IDEAS. I realise this is easier said than done - because you will be worried about paying your bills next month. But, I had a lean patch around 18 months ago, which is how Working in Pyjamas came about. So try to use your down time well. CALL ROUND YOUR NETWORK. Dont be embarrassed to tell people that you have some spare capacity. its easy to get caught up in the Im so busy charade. Youd be amazed how many people lie about this. All you have to say is that Im just coming to the end of a project, and have some capacity from XX onwards. Ive used this many times and it works a treat. DONT STOP MARKETING. When you are really busy, its tempting to stop marketing. And its what people tend to do. Then when the feast is nished and you are moving into famine, youll wish youd continued with your marketing strategy. (P.S: DONT BE TEMPTED TO SPEND YOUR TAX OR VAT MONEY. JUST SAYIN) 66 THATS ALL IVE GOT FOR YOU RIGHT AT THE MOMENT. I HOPE YOU FOUND SOME INTERESTING THINGS HERE THAT RESONATE WITH YOU. 24 THATS IT FOLKS! Trust your own instincts and enjoy the journey. So thats my freelance journey. Yours will be different to mine, but I daresay there will be some similarities along the way. The world is full of experts, gurus, and people who want to give you a plethora of get rich quick schemes that invariably never deliver. The truth is there are no short cuts. DO THINGS RIGHT, AND TRUST YOUR GUTS. REMEMBER: Enjoy working for yourself. Live life on your terms. Keep trying new things. Dont let anyone put you down. Learn to understand your finances. Understand your customers. Make sure youre getting the rewards you deserve. Jackie Harris 2014: Working in Pyjamas | www.workinginpjs.co.uk 68 Jackie Harris 2014, Working in Pyjamas Limited. All Rights Reserved. lxix