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Rule Number One as Freelancer - There are Always Startup Costs
By Jonathan Ortiz | Published  01/31/2008 | Strategic Partnering , Marketing Strategy , Graphic Design , Business Life , Business Finance , Business Ethics | Rating:
Jonathan Ortiz
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Rule Number One as Freelancer - There are Always Startup Costs
Designers and Creative Professionals alike are all too often hesitant to see what goes into the actual cost of running a design business or a pint size freelance operation, so here are some advice touching on a few points. I have browsed through a number of forums for creative professionals and I have surprisingly found that they are under the illusion that there is no startup cost or cost to maintain a design business. This will hopefully help the creative starting out in their own biz and steer them away from several crucial misconceptions:

Some Tips for Designers who are starting their own business or are still struggling with start up:
  1. There is always startup cost. There is always cost, period.
    • You better get used to writing things off like your computer, software and even purchases made on sites like Flashden.net. Just because you enjoy designing does not mean that it is not a job. We are all fortunate enough in this industry to be doing what we are most passionate about. This is, however, a job and we, as designers, developers, etc. are fortunate to make purchases and label them as business expenses. My fiancee does my books and takes advantage of these liberties. I am by no means saying to creatively write off a Mac with 10 years of dust on it, but I do encourage to honestly itemize this past year's purchases...a good example is this: A friend has contacted you and wants some work done so you go for some lunch work out a marketing plan to grow his business. No matter if he is a friend or acquaintance, write off the gas and the both of your meals. You might question this "write-off," but will soon learn that, in business, friends like to do business with friends.
  2. Here are some other helpful tips to keep you afloat the choppy waters of business
    • Despite the name of this site, as well as the 'Freelance Switch' affiliate sites, I stay away from referring to myself as a freelancer. That is a term in a sense means "undervalued business owner." And we are anything but... in this forum we are designers and creative professionals, first and foremost, but we the fact is that we are all business owners, across the board. We might even wield more authority than the typical business owner because we have the design skills, program knowledge as well as valuable online / offline resources tools among a million other assets. We are privileged to be leaders in every industry we touch with our creative marketing, advertising and graphic design.
  3. So you are getting ready to break loose and start up your company.
    1. Some parameters to be aware of: You might have hardware, the software and a website displaying your skills but what about clientele? Got that? No one, regardless of industry or trade, just jumps into the sea of business with no clientele and lasts unless they have some things in place. You, as a startup, need to have a savings that to support your everyday living as well as support the purchases which you will be making in your efforts to market your biz as well as service your clients. Sure, it is quite possible to do without that...IF YOUR MOTHER IS STILL COOKING YOU BREAKFAST AND FOLDING YOUR UNDIES! But for those of you that are striking out on your own, outside the wide world of corporate America, if you do not have the funds in place then hopefully you plan on sniping up some of your current "slavedriver's" clientele... and they should no doubt be in contract before you leave and be your bread and butter while you bounce from flake to flake, trying to get more business. 'Cause let me tell you, there are some hard-knocks out there in the world of small biz. And there are some flakey people that will want services from you and make you bend over backwards for them and then they disappear and "You will swear that they have you listed in their contacts as 'Avoid at All Costs'...lol. It happens to us all; on the road to build your business it can be an enjoyable ride with a couple ugly potholes. Just try not lose a tire and you' ll be just fine.
  4. Some other things you should consider:
    1. Always be open to creative ways of getting yourself out there (ie: Partnerships, Sponsorships, Charity Work, Competitive Pricing, Free Resources)Don't Hesitate on this even if nothing comes out of certain areas, Law of Averages states for every ten sparks you will start one fire
    2. If you think you have a good client and you have met them and seen their outfit then try to price yourself as competitively as possible at first.
      • It would even behoove you to let them know outright and say to them "Usually my rates are $__, but after this great meeting I can offer you these services at a discount of $__. I am offering this initially because I would like to start a great business relationship by showing you the great service which I am capable of and hopefully after this first project you will continue to keep me in your creative toolbelt."
  5. This might be overwhelming at first but it should be; there are a ton of variables to consider when going into business for yourself
    • I likely missed a million more points to touch on, but these are the few that came to my mind after reading through the forum.
    If you would like to read some more nonsense pertaining to anything in to marketing, advertising & graphic design read my Blog.
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