Big struggles - All of the crap that has to go along with freelancing - the “boring” business side of things - bookkepping, etc.

Business Structure

- Running an LLC through your personal taxes is the same as sole proprietorship. However, you gain the credibility of an LLC Business, access to business checking, etc.

- As an LLC, you can protect your personal assets from liability

- However, if you’re treating the LLC as a Sole Proprietorship, you lose the advantages.

- RESOURCE - Colorado Secretary of State Website http://www.sos.state.co.us/ - Tells you everything you need to set up an LLC. Has a wizard for filling out Articles of Incorporation.

- RESOURCE - Business Librarians -Business Librarian at Poudre Libraries - Anne McDonald

- If you’re an LLC, a CPA is highly recommended

- As an LLC or Sole Proprietorship - keep about 30% set aside for tax.

- Self Employment tax - 15.3% - Required as an LLC or Sole Proprietorship

- If you have a qualified retirement plan as a self employed individual, you are eligible to deduct those contributions at the end of the year. Solo-K, SEP-IRA are eligible. A Roth IRA is not eligible.

- Make sure your business structure is right for your business. Sometimes incorporating will lose you money.

- You can ‘upgrade’ your business entity status at any time - from LLC to INC, but can’t ‘downgrade’. You have to dissolve the INC first.

How to Find A Good CPA

- Twitter

- Personal Referrals

What Should You Outsource?

- Accounting

- Client Management, Invoice Tracking System

- RESOURCE - Harvest - GetHarvest.com - Integrates with BaseCamp, iPhone App

- RESOURCE - FreshBooks - freshbooks.com

- For bookkeeping, start with the high end, like QuickBooks, it’s a pain to move everything between systems.

- Legal, especially review contacts for liability

- RESOURCE - Graphics Design Handbook - Blue Book - Disc with templates for legal forms

- RESOURCE - NOLO Books

- RESOURCE Cohere LLC has a copy of an eBook from NOLO, contact them for information.

- RESOURCE - www.printablecontracts.com

- Web Design, SEO

- Outsource ANYTHING you DON’T enjoy doing. The more time you spend doing the stuff you love doing, the better your business will be.

- Just because you CAN do it, doesn’t mean you SHOULD.

- Especially outsource if you can do it for less than your billable rate.

- Tech Support - Backups, Computer 

- RESOURCE - Simplicity Tech - IT Services - Well Recommended

- You should always have some sort of a backup, whether it be an online backup, or on external media.

- RESOURCE - external Media Backups - Time Machine for MAC - Built In Windows Backup

- RESOURCE - Online Backups - MozyPro - Carbonite - Google Docs - Syncplicity (Syncs with Google Docs) - DropBox

Insurance Issues

- Errors and Omissions Insurance - Especially as a writer.

- Cost will depend on the industry

- Liability insurance, if a physical business, or you have physical products.

- Renter’s Insurance - CAREFUL - If you have your business address a home address, they won’t cover you.

- Above all else - CHECK YOUR POLICY - Take it to another agent, have them review it.

Psychological Shift to Becoming a Freelancer

- Initial Shift - from “Holy crap I can get up whenever I want” to “Holy crap if I don’t get up I don’t get paid.”

- Treat yourself like your own client, you’ll get stuff done

- You have to put your business before your clients. Otherwise, your business won’t grow.

- Cash Flow - make sure you can weather any fluxes in your cash flow. Build your reserves.

- Understand your billing terms. Net 30 usually means Net 60 or Net 75.

- Make sure you have clients sign for the payment terms.

- RESOURCE - PayPal, or other Mercant Services Account - Can write off handling fees as Business Expenses

- Make it easy for your clients to pay you. Never let them say “The check is in the mail.”

- Never be afraid to understand that you have an inherent value.

- Say NO!, And don’t feel bad about saying NO!

- Sometimes you have to learn to say no by saying yes too many times.

- Saying no also opens up the opportunity to say yes to the right client.

- Balance building a portfolio of your work vs. giving yourself away for free.

- Rely on your gut. If you know that a client is going to be trouble, then just say NO and walk away. Or quote them REALLY high.

- Find a “creative partner” to bounce ideas off of. Get honest feedback from them. Also known as a “Frontstabber”.

- Set up regular pricing reviews, make sure that you’re charging what you’re actually worth.

- Don’t be afraid to raise the rates on existing clients, especially if they’re long term clients. But be sure to work with them on the increase, and increase their rate slowly, especially if it’s a big increase.

- Always have pricing conversations over the phone or in person, not via email.

- Establish a referral policy.

- Consider having two different pricing schemes, one for Open Market pricing, one for Agency pricing.

- Be sure to thank people for referrals.