4 Essential Elements of Freelance Business Planning

Posted December 7, 2011 in Getting Started[1], How-To[2]

Some freelancers strongly advocate the use of business plans[3] for freelancers. Other freelancers will tell you that you don’t really need a business plan[4] at all.

So, which advice is right? Do freelancers need a business plan or don’t they? In my opinion, both opinions are correct.

While not all freelancers need to have a formal business plan like the kinds that you would take to the bank or to investors, all freelancers do need to engage in some sort of business planning. That’s just part of running a business. (However, do keep in mind that if you do plan on going to bank for a business loan, selling your business, or going public with business–then a formal business plan will most likely be needed.)

In this post we’ll go over the four essential elements of business planning that freelancers can’t ignore (even if they choose not to use a formal business plan). My goal is to streamline the process and make it easy for most freelancers.

Element #1: Your Freelancing Vision

What is a business vision?

Simply put, it’s the difference between having a vague idea that you want to be a freelancer and knowing that you are starting a freelance web design business that specializes in creating customized WordPress themes. Vision gives your freelancing business a purpose and a direction.

Your freelancing vision should reflect your business and personal values as well as your dreams for the future of your business.

Now that we’ve explained the importance of having a vision as part of your freelance business plan it’s time to discuss the importance of goals.

Element #2: Your Freelancing Goals

Goals are the objectives that you are striving for as a freelancing business. They should flow naturally from your freelancing vision.

The best goals are:

  • Specific–Business goals are more specific than business visions. You should know exactly what it is that you want to do.
  • Measurable–To measure your goal, you need to identify a quantity that you are striving to reach. For example, “get five new clients” (the quantity is five) as opposed to the more vague goal of “get new clients.”
  • Achievable–A good business goal is achievable. Over time you should be able to predict what your freelancing business is able to achieve. At first, however, you may need to make an educated guess (and that’s okay).
  • Time-based–Your goals will change over time. In fact, your business environment will also change over time. For those reasons, it’s best to set a time limit on your goals.

An example of a good freelancing goal for the freelance web design business mentioned above would be: create two new WordPress Themes by February of 2012. That goal meets all the criteria: specific, measurable, achievable, and time-based.

Another element that is closely related to your freelancing goals is action steps.

Element #3: Action Steps

Action steps are the road map that allows you to achieve your freelancing goals. They are extremely specific and detailed.

Your action steps are your plan for how you are going to achieve your goals. You may find that you need to tweak your action steps fairly often to make them work more smoothly.

The final element of a good freelancing business plan is measurement.

Element #4: Measurement and Analysis

At the end of the time period that you specified you need to measure how successful you were at meeting your goals. While there are a number of professional tools designed for this purpose, most freelancers may want to use a less formal approach. A spreadsheet may be helpful.

The most important questions to consider when measuring and analyzing business goals are:

  • Did I meet my freelancing business goals for this time period?
  • Why (or why not)?
  • If my goals were off, how much were they off by?

Your goal measurements will help you determine how successful your freelancing business has been and guide you in planning and in setting future goals.

Final Freelance Business Planning Thoughts

In this explanation, I’ve tried to streamline and simplify the business planning process in a way that will meet the needs of most freelancers. If you own a more mature business or are considering selling your business or getting a loan, then you may need to use a more formal business planning process.

While many freelancers keep their informal business plan in their head, if you’re like me you’ll benefit the most from keeping a written copy of it. It doesn’t have to be formal document–just a list that you can glance at from time to time so that you stay on track. For me, it’s just too easy to lose track of goals that aren’t written down.

Your Turn

Do you have a freelancing business plan? Is it written down or in your head?

Share your answer in the comments.


4 Essential Elements of Freelance Business Planning

About the author: Laura Spencer is a freelance writer from North Central Texas with over 20 years of professional business writing experience. If you liked this post, then you may also enjoy Laura’s blog about her freelance writing experiences, WritingThoughts[5]. I'm also on Google+[6].



References

  1. ^ View all posts in Getting Started (freelancefolder.com)
  2. ^ View all posts in How-To (freelancefolder.com)
  3. ^ advocate the use of business plans (freelancefolder.com)
  4. ^ you don’t really need a business plan (freelancefolder.com)
  5. ^ WritingThoughts (www.writingthoughts.com)
  6. ^ Google+ (plus.google.com)

25 Tips for Avoiding Communication Problems


25 Tips for Avoiding Communication ProblemsMiscommunication is a huge obstacle to building a successful relationship. And, since freelancer/client trust is based on relationship–miscommunication can be a huge problem for freelancers.

Nearly every freelancer eventually faces a communication problem with a client. Even those of us who specialize in clear communication[3] sometimes have problems.

In this post, I’ll describe some steps that every freelancer can take to avoid miscommunication.

How to Avoid Communication Problems

Here are twenty-five ways that freelancers can dramatically reduce client communication problems:

  1. Be proactive–Research and learn everything you can about your client and your client’s business before you meet with them. Find out what some of the common problems are your client’s industry.
  2. Manage your expectations–Every client and every project is unique. While we can learn from past clients and projects, it’s important to understand that this client and this project may be different from what you’ve experienced in the past.
  3. Listen carefully–Pay close attention to what your client says. Take notes if you need to, especially during a long meeting or a confusing discussion.
  4. Pay attention to non-verbal signals like tone of voice or body language–Often words are not the only way that your client is communicating with you. Pay attention to their posture and facial expressions. If you are meeting by phone, listen carefully to your client’s voice for clues as to what they may be thinking.
  5. Ask questions–If you are unsure about something, ask. It is better to ask a question now than proceed based on an incorrect assumption.
  6. Repeat your understanding back to the client–It’s often a good idea to put what the client said into your own words and repeat it back to them. This can insure that you really understand what they mean.
  7. Don’t forget about cultural differences–Different cultures communicate differently and may have different ways of conducting business. If your client is from a culture that is different from your own, make sure that you learn about the cultural differences before you meet.
  8. Park your preconceptions at the door–It’s easy to jump to conclusions about a project or a person. Even if you suspect that this will be an easy project or this will be difficult person to work with, try to put those feelings aside until they can be confirmed. Preconceived notions can keep you from understanding what is really going on.
  9. Be open to new ideas–You’re probably an expert in your field. If you weren’t, you wouldn’t be as successful in your field as you are. But even experts can sometimes learn from their clients. Make sure that you are willing to learn new things.
  10. Avoid emotional words–Being a freelancer is a lot like being a diplomat. Some words are just too emotionally charged to have any place in a business conversation. Avoid those words.
  11. Be understanding, not critical–As a professional, sooner or later you’ll probably be called in to fix somebody else’s mistake. Whether it be something the client did wrong or the mistake of a previous freelancer, don’t immediately start criticizing it. After all, anyone could make a mistake.
  12. Don’t communicate when you’re upset–If you’re angry or hurt, then now is not a good time to talk with a client or send an email. Many freelancers have fired off an angry email, only to regret it later.
  13. Check for typos and grammatical errors–Grammar and typos can cause your client to misunderstand you. If you do believe me consider that there’s a huge difference in agreeing to do a job for $10.00 and agreeing to do it for $1000. A misplaced period CAN make a difference.
  14. Pay attention to your tone (especially online)–There’s something peculiar to online writing. You can type one thing and your client can perceive something that you did not intend. That’s why it’s important to check all emails to make sure your tone is appropriate. The best way to do this is to get someone else to read them before you send them.
  15. Get it in writing–While this is true for all freelancing projects, getting something in writing is especially important for long projects. When a project drags out it’s just too easy for you or your client to forget the details of your agreement.
  16. Better yet, get a contract–A great means of avoiding misunderstanding with a client is to get a signed contract that outlines the details. A signed contract also gives you some legal advantages if you have serious problems later on.
  17. Get a partial payment upfront–A client who pays upfront is usually more committed to a project’s success than one who hasn’t invested anything yet. A client who doesn’t make an upfront payment may try to cancel before the project is finished, while the client who made the advance payment will want to recoup his or her initial investment.
  18. Keep good records–Some miscommunication is due to sloppy recordkeeping. Don’t let this happen to you. Make sure that you document everything including: client meetings, original project scope, scope changes, and any other factors that affect the project.
  19. Stay in touch–This is especially important if you are working on a long deadline. Don’t let too much time pass without touching base with your client. Often, just a short status to let them know that the project is on track is enough to keep them from worrying.
  20. Be reachable by email or phone–You can’t be communicated with if you can’t be reached. Make sure that your client has a working email address and/or phone number that they can use to reach you.
  21. Don’t make it personal–If your client criticizes your project or complains, remember that it’s not about you. Don’t take negative comments personally. Rather, try to find out if the situation can be resolved.
  22. Share problems you are having–Too many freelancers wait until the last minute to let a client know that they are struggling or having problems. However, clients don’t like last-minute notification of problems (especially if it means the project will be delayed).
  23. Ask for feedback–Your communication with the client is not over when the project ends. Instead, ask the client for feedback on your work and on the process. You may able to learn something from this project to help you with your next project.
  24. Keep your materials (such as your website and marketing literature) up to date–Out-of-date marketing materials can also create miscommunication. If you’ve changed anything about how you do business, such as the rate you charge or the type of work that you do, make sure that your materials reflect those changes.
  25. If necessary, find a mediator–In the most extreme situations, when a large sum of money is involved, you may need to turn to a professional mediator or arbitrar to resolve your differences.

What About You?

How do you avoid client communication problems?

Share your answers in the comments.

Image by Clemson[4]


25 Tips for Avoiding Communication Problems

About the author: Laura Spencer is a freelance writer from North Central Texas with over 20 years of professional business writing experience. If you liked this post, then you may also enjoy Laura’s blog about her freelance writing experiences, WritingThoughts[5]. I'm also on Google+[6].



References

  1. ^ View all posts in How-To (freelancefolder.com)
  2. ^ View all posts in Managing Clients (freelancefolder.com)
  3. ^ clear communication (freelancefolder.com)
  4. ^ Clemson (www.flickr.com)
  5. ^ WritingThoughts (www.writingthoughts.com)
  6. ^ Google+ (plus.google.com)

5 Tips to Kick the Perfectionist Habit


5 Tips to Kick the Perfectionist HabitHello. My name is Mike. And I’m a recovering perfectionist.

For a long time, I believed that being a perfectionist was a good thing. I was proud of my compulsion to work and rework even the smallest assignment until it was faultless. What did it matter that it took me hours more than it probably should have? I was a perfectionist. All that mattered was that I nailed it.

When I became a freelancer, however, I realized that my perfectionism wasn’t the big pat-on-the-back that I thought it was. In fact, it was just the opposite. With my eye now always on the clock, I saw that my relentless quest for perfection was making me inefficient. More often than I care to confess, I undercharged clients because I didn’t want to admit the true amount of time it had taken me to complete the assignment. (Note: this is not a good way to run a business.)

Frustrated and anxious, I knew I had to beat the problem or kiss my career goodbye. But how? I was afraid that if I devoted any less time to my projects, I’d make some hideous mistake and ruin my career. I also afraid that being even a smidgen less meticulous might result a failure to meet–no, exceed–my client’s expectations. How could I alter my work habits without sacrificing my high standards?

Well, it didn’t happen overnight, but I did eventually come up with a workable strategy. If you suspect you might be a perfectionist too, consider these five tips to bring your obsessive tendencies under control.

Tip #1: Address the Real Problem

At its root, perfectionism isn’t really about a deep love of being meticulous. It’s about fear[2]. Fear of making a mistake. Fear of disappointing others. Fear of failure. Fear of success. Think about it. The next time you find yourself spinning in endless circles on an assignment, ask yourself what you’re afraid of–whether you feel consciously afraid or not–and dig deep for a response. You’ll be surprised at what comes up.

Now, once you’ve isolated that fear, confront it head-on. Anxious about working with a new client? Worried about tackling a new technique? Scared you’ll miss a deadline? Run through worst-case scenarios in your head. Keep ‘what if’-ing, worse and worse scenarios, until you can’t anymore. Often when you stare fear straight in the eye, it miraculously loses its power. And you’re left free to work productively.

Tip #2: Set Time Limits

Sometimes it’s hard to know when you’ve crossed the line from conscientious to compulsive. When you’re in the thick of an assignment, it’s easy to believe that you must spend so much time brainstorming, researching, writing, testing, revising or what-have-you. Often, it’s only after you’ve been working for hours on end that you realize that half the work you’ve been doing wasn’t actually necessary and that you’ve just wasted a lot of time.

Nip time-wasting in the bud by setting an objectively reasonable time limit to complete each task. If you run out of time, no matter the point you are at, stop and switch to a different task. This approach has two advantages. First, it serves as an alarm that your perfectionist tendencies may be taking over. Second, it forces you to take a breather and give your mind a chance to relax. When you return to the task, you’ll look at the project afresh–and be armed against letting your perfectionism get the best of you.

Tip #3: Trust in Yourself

Insecurity is a component of fear. And fear, as we know, is the driving force behind perfectionism. When insecurity prevents you from working productively, stop and take some time to reestablish trust in yourself. You can do this by reminding yourself of the clients who have responded favorably to your work in the past, naming them aloud, if necessary. Re-read any client testimonials you’ve received or review work that you’re particularly proud of. You might even want to say a simple affirmation along the lines of “I always produce excellent work.” Say it slowly at least ten times in a row, with feeling and while smiling.

Tip #4: Get a Freelance Buddy

In my view, freelancers are particularly susceptible to succumbing to perfectionism. We work in a highly competitive field and we often work entirely alone. It’s easy to lose perspective on the quality of our work in these circumstances. This problem can be solved by finding a freelance buddy: someone in your field with whom you can exchange ideas, drafts and tips. When you’re stuck in a perfectionist spiral, call on your buddy to help break you out.

Tip #5: Embrace the Value of Mistakes

Face it: as much as you’d like to be, you’re not perfect. Mistakes will be made in both your freelance career and life. Instead of fearing mistakes, remind yourself that there’s plenty to learn from them. If nothing else, you’ll learn that a mistake doesn’t mean the end of the world. In fact, it might be the beginning of a new one. Penicillin, pacemakers, microwave ovens, fireworks, and even chocolate chip cookies were created from projects that went awry. You just never know what amazing benefits an imperfect undertaking might yield.

Your Turn

Have you wrestled with perfectionism? Share your experiences in the comments.


5 Tips to Kick the Perfectionist Habit

About the author: This guest post is by Michael Law. Mike has extensive experience as a freelance journalist and online marketer, and has worked with leading Sydney immigration and compensation lawyers[3]. If you'd like to get in touch, you can send Mike an email[4].



References

  1. ^ View all posts in Inspiration (freelancefolder.com)
  2. ^ fear (freelancefolder.com)
  3. ^ compensation lawyers (www.lawpartners.com.au)
  4. ^ This e-mail address is being protected from spambots. You need JavaScript enabled to view it (freelancefolder.com)

Two Weeks to More Client Leads

Posted December 22, 2011 in Marketing[1]

Two Weeks to More Client Leads

Have you ever gotten desperate for clients? Maybe you don’t know how you’re going to pay next month’s rent. Maybe your car broke down and repairs will cost more than you have right now. Maybe a tree fell into your house and your insurance won’t cover it (that’s a true story, by the way).

Whatever the reason, you need clients. Right now. What’s a freelancer to do?

It’s time to step up your marketing game! Fortunately, there are tried and tested marketing strategies that have proven to be effective for freelancers. No need to reinvent the wheel.

Read the list below and choose two you can implement in the next two weeks.

5 Ideas to Get Leads Fast

1. Approach your existing network

The easiest way to get new leads fast is to approach your existing network. Reach out to family members, friends, former co-workers, and even former employers. Let them know what type of work you do and for whom, and to pass along your information to someone who may need your service.

It doesn’t matter if nobody in your network is a business owner. The idea is to somehow get the word out into their networks. After all, everyone knows someone who runs a business, or works in a business that hires freelancers.

Shoot them an email, call them, or set up a coffee date. Do whatever feels natural and comfortable to you.

(By the way, there’s no need to tell everyone about your emergency. That will only make you look desperate, which is not attractive. Promote yourself based on your merits as a skilled professional, not based on your needs.)

2. Tap your current/past clients

Your clients can be your best promoters. Assuming you’ve done a great job and they were happy with your work, they will effectively talk you up to people they know. Don’t be shy; ask for referrals.[2]

Write or call your clients to explore if they may have a need for your services again, or if they know someone who does. It never hurts to ask. The worst thing that could happen is they say “no.”

3. Get super active in one social networking platform

If you use any of the social networks[3], such as LinkedIn, Twitter, or Facebook, intensify your presence there in the next couple of weeks. Follow or connect with people who fit your Ideal Client profile, or who may know those who do.

Engage with them. Respond to their posts or updates. Add to the conversation with your own insights, or share additional resources they may find helpful.

If they express a need for anything and you know a solution, share it. Post links to useful articles, blog posts, or reports.

Occasionally, throw in a pitch for your services. Make it natural and non-hypey. Something as simple as, “If you or someone you know needs graphic design services, I have an opening in my schedule right now. Call or email me….”

4. Offer a steep discount to members of a forum/networking group

I don’t like this approach, because in general, I don’t like discounting on my services. However, in times of great need, this strategy works very well.

Go to an online forum or networking group you belong to and offer your services at a special rate — exclusive to the group’s members only.

Be very specific about which services are discounted, and when the offer must be taken. You wouldn’t want people taking up your offer months down the road when you’re already too busy with other clients.

5. Launch a direct mail campaign

Direct mailing to a targeted list of prospects is another effective way of getting leads fast. However, it takes more work than the other strategies discussed here.

Instead of offering your services directly through the mailing, offer a free piece of information or buzz piece instead. A special report or white paper is the most common buzz piece. If you have two weeks to pull this off, I suggest spending one whole week creating your buzz piece.

You want your buzz piece to be focused on one specific need or problem your Ideal Client is experiencing. You want it to be well written (yes, even if you’re not a writer) and provide extremely valuable information. You want it to be so good, you could charge money for it — and people would happily pay you.

After your buzz piece, you’ll need a letter to go along with it. The letter sells your buzz piece. It’s free, but you still need to convince the prospects that it’s more than worth the time and effort to go to your landing page (web page) and submit their contact information in order to get your buzz piece for free.

Don’t Despair

Even if things look dire to you right now, don’t despair. Times like these, you realize it’s actually a GOOD thing that you don’t have a fixed salary. You can make more or less money — it all depends on you.

The amount of projects you can get are no longer limited by your geographic location. Through the Internet, you can connect with prospects from any country in the world.

It’s up to you. Do as much or as little as you like to get the word out about your services and skills. Accept as much or as little work as you like.

But when time is running out, it’s wise to use high-impact marketing strategies that have been proven effective by freelancers who came before us.

If you were desperate to get more clients immediately, which of these strategies would you use? Have I missed high-impact strategies that should have been included in this list?

Do share your thoughts, experiences and questions in the comments below.

PS: Don’t wait for an emergency. Market your business consistently, even when you think you don’t need clients. That’s the only way to ensure you’re never desperate for clients.

Image by kelsey_lovefusionphoto[4]




References

  1. ^ View all posts in Marketing (freelancefolder.com)
  2. ^ How to Ask for a Referral (freelancefolder.com)
  3. ^ From Social Networking to Paying Clients (freelancefolder.com)
  4. ^ kelsey_lovefusionphoto (www.flickr.com)
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