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I have been my own boss for a while now, working on various client projects and also dealing with the different personalities that come with the job. Other businesses are very organized internally that working with them is a breeze, and some are so disorganized that you also almost lose yourself in their culture while working with them. As a freelancer, you are the business and it's workforce, meaning you are responsible for all your internal operations; Finance, Administration, Sales and Marketing, Client Service, and Production. Quite a challenging position as there's a lot to manage. Through my own journey, I have come to acknowledge 8 essential qualities and processes one needs to have in place for a smoother operation, and they are the following:
1. Documentation: Contracts and Process Templates
Before you can get started with any business, you need to draw up contracts for all your transactions which consists of comprehensive details of each transaction and clearly express all the terms and conditions of the agreement. If you are drawing up a service agreement, make sure that you clearly list exaclty what your responsibilities will be within the contract period.
In addition to contracts, it's also important you draw up details for each phase of the project which the client will have to sign for approval at each completed stage or additional suggested work. This helps to avoid undocumented scope changes (scope creeps) which might affect the deadline or direction of the project which in most cases gets blamed at the supplier (you).
Before you can get started with any business, you need to draw up contracts for all your transactions which consists of comprehensive details of each transaction and clearly express all the terms and conditions of the agreement. If you are drawing up a service agreement, make sure that you clearly list exaclty what your responsibilities will be within the contract period.
In addition to contracts, it's also important you draw up details for each phase of the project which the client will have to sign for approval at each completed stage or additional suggested work. This helps to avoid undocumented scope changes (scope creeps) which might affect the deadline or direction of the project which in most cases gets blamed at the supplier (you).
2. Separate Personal & Business Bank Account
Now when going out on your own, whether as a new company or a sole trader/freelancer, you are a business regardless. And it's very important to separate business funds from personal funds. That's why it's extremely important to open a separate account for your business activities, as a business becomes it's own dependent entity financially regardless of it's legal type. Banks do offer business accounts for all sorts of business types, as a freelancer you are allowed a "Trading As" account which has all the business benefits you may need even if you are not a registered undertaking. This allows for effective tracking and management of both business and personal finance.
Now when going out on your own, whether as a new company or a sole trader/freelancer, you are a business regardless. And it's very important to separate business funds from personal funds. That's why it's extremely important to open a separate account for your business activities, as a business becomes it's own dependent entity financially regardless of it's legal type. Banks do offer business accounts for all sorts of business types, as a freelancer you are allowed a "Trading As" account which has all the business benefits you may need even if you are not a registered undertaking. This allows for effective tracking and management of both business and personal finance.
3. Pay yourself a Fixed Salary
This is one of the most important reasons for point (2.) above. In order to not mis-manage funds, it's better to seperate yourself from your business financially. You need to calculate exaclty how much you need per month for your personal needs and expenses, and set a salary for yourself based on that amount and a specific date that you will pay yourself. That's the money that you will meet all your personal financial commitments with. You can also set your own intervals at which you will pay yourself a bonus based on your business performance, this will motivate you to work even harder.
This is one of the most important reasons for point (2.) above. In order to not mis-manage funds, it's better to seperate yourself from your business financially. You need to calculate exaclty how much you need per month for your personal needs and expenses, and set a salary for yourself based on that amount and a specific date that you will pay yourself. That's the money that you will meet all your personal financial commitments with. You can also set your own intervals at which you will pay yourself a bonus based on your business performance, this will motivate you to work even harder.
4. Have a Financial Management System
In order to effectively manage your finances, I would highly recommend you create a record tracking and forecasting financial system, even if by using a spreadsheet or making use of the many available money management software on the market. Find a system that best suits your business and personal needs. This will help you keep record and plan your finances effectively.
5. Make use of a Project Management and Tracking tools
I know many of us feel we get too busy to learn new software and hardly anytime to capture data when we're in the middle of projects. But the truth is, once you find the right software and you force yourself to use it in your routine, it ultimately becomes habit and saves you a lot of headaches later when important project data is required. This software allows for project tracking, task assignments, milestone recording, due date reminders, file sharing, communication capturing and team collaboration, etc. Making it easy to manage and track your work.
In order to effectively manage your finances, I would highly recommend you create a record tracking and forecasting financial system, even if by using a spreadsheet or making use of the many available money management software on the market. Find a system that best suits your business and personal needs. This will help you keep record and plan your finances effectively.
5. Make use of a Project Management and Tracking tools
I know many of us feel we get too busy to learn new software and hardly anytime to capture data when we're in the middle of projects. But the truth is, once you find the right software and you force yourself to use it in your routine, it ultimately becomes habit and saves you a lot of headaches later when important project data is required. This software allows for project tracking, task assignments, milestone recording, due date reminders, file sharing, communication capturing and team collaboration, etc. Making it easy to manage and track your work.
6. Communicate Effectively
This has to be one of the most important key points. You need to be a firm communicator with your clients, even if it means being that annoying constant caller and mailer to those clients that are usually too busy to reply, keep making contact until they supply you with what you need from them to ensure that you remain on track with your promised time frame to deliver. Also constantly share project progress and request for feedback to ensure you are still on the right track, as most clients have a tendency of focusing on current urgent business matters and totally neglecting you and the project until it also enters the "urgent" zone and suddenly start breathing down your neck with changes and only then supply you with all the material you need to still try to push to get the project completed on the agreed time, which means that now you are required to do what was scheduled for maybe 2 weeks, in 2 days. So to avoid finding yourself possibly under such pressure, I highly advise that you enforce communication especially when it's lacking from the other end, and ask for all verbal requests and changes to the project to be documented before you agree to them. This will save you from being unfairly in the red should there be issues regarding the project.
This has to be one of the most important key points. You need to be a firm communicator with your clients, even if it means being that annoying constant caller and mailer to those clients that are usually too busy to reply, keep making contact until they supply you with what you need from them to ensure that you remain on track with your promised time frame to deliver. Also constantly share project progress and request for feedback to ensure you are still on the right track, as most clients have a tendency of focusing on current urgent business matters and totally neglecting you and the project until it also enters the "urgent" zone and suddenly start breathing down your neck with changes and only then supply you with all the material you need to still try to push to get the project completed on the agreed time, which means that now you are required to do what was scheduled for maybe 2 weeks, in 2 days. So to avoid finding yourself possibly under such pressure, I highly advise that you enforce communication especially when it's lacking from the other end, and ask for all verbal requests and changes to the project to be documented before you agree to them. This will save you from being unfairly in the red should there be issues regarding the project.
7. Be Disciplined
Okay, now this is the most important of them all. You can be highly intelligent and talented with the ultimate plan and strategy, but without discipline that will all fall to failure. In order to build solid relationships, you need to earn trust, and in order to earn trust, you need to be reliable and deliver. Many businesses grow and stand firm on good relationships they built over time. Your customers and/or clients are your most valuable asset. Continuous business with them allows you to grow and better define your business over time. So if you practice the following:
Okay, now this is the most important of them all. You can be highly intelligent and talented with the ultimate plan and strategy, but without discipline that will all fall to failure. In order to build solid relationships, you need to earn trust, and in order to earn trust, you need to be reliable and deliver. Many businesses grow and stand firm on good relationships they built over time. Your customers and/or clients are your most valuable asset. Continuous business with them allows you to grow and better define your business over time. So if you practice the following:
1. Good work ethic = Great service
2. Being organized and always on time = Reliable service
3. Attending to queries timeously = Effective Customer Care
2. Being organized and always on time = Reliable service
3. Attending to queries timeously = Effective Customer Care
8. Constantly Market yourself for more Business
Freelancing, as a form of entrepreneurship as it is, has it's ups and downs. When things are going well and you have that big project, you can sometimes totally lose yourself in it. And once the project is complete, you find yourself with no work and a possible cash-flow problem a few months after, which can be very frustrating. Now the best strategy to save yourself from possibly finding yourself in such a predicament, is to constantly market yourself. Set up weekly or monthly mailer campaigns to firms that could use your services, and also grow your prospects contact list database by acquiring more business contacts every month which you will add for your next campaign. You can perhaps set a target for yourself to collect and capture 100 new contacts to your database each month. Your own website with your profile, contact details and contact form is highly recommended. Also making use of business and career social platforms like LinkedIn, BranchOut, Referral Key and SkillsPage will be very advantageous, make sure you keep your profiles up to date at all times as these platforms open a channel of many opportunities. I have also just recently joined the Web Development Group for international remote work. I will write an article of my first job with them as soon as I land one.
Freelancing, as a form of entrepreneurship as it is, has it's ups and downs. When things are going well and you have that big project, you can sometimes totally lose yourself in it. And once the project is complete, you find yourself with no work and a possible cash-flow problem a few months after, which can be very frustrating. Now the best strategy to save yourself from possibly finding yourself in such a predicament, is to constantly market yourself. Set up weekly or monthly mailer campaigns to firms that could use your services, and also grow your prospects contact list database by acquiring more business contacts every month which you will add for your next campaign. You can perhaps set a target for yourself to collect and capture 100 new contacts to your database each month. Your own website with your profile, contact details and contact form is highly recommended. Also making use of business and career social platforms like LinkedIn, BranchOut, Referral Key and SkillsPage will be very advantageous, make sure you keep your profiles up to date at all times as these platforms open a channel of many opportunities. I have also just recently joined the Web Development Group for international remote work. I will write an article of my first job with them as soon as I land one.
Now that's some of the most important lessons I've learned from my own business venture. I do hope that you found this article useful in some way. Should you also have some points you would like to add, please share with us in the comments below.
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