Friday, 22 February 2008

More On The Financials Of A Freelance Writer

I posted an article about the finances of a freelance writer yesterday and wanted to say a little bit more about it today because it is an important part of the profession. Many writers struggle to make a living out of freelance writing for years but with a litle planning there is no need to go back to a 9-5 job at all.

Business banking is an important part of having your own business so you should take the time to look around for a good deal. Many will now give fee free banking for a period of anywhere between six months and eighteen months. You should choose a good plan with as many months fee free as you can because this will give you opportunity to plan and this is the most important thing.

Planning will give your writing creer longevity because you can get and keep your finances in order right from the start. Plan out expenses in advance and always over-project them so you are not left short of cash. That includes everything from overheads like rent and utilities to expenses for software, travel and other facilities you may need.

I do advise any writer to have a least two savings accounts in addition to the main business account because you will need one for tax payments and one for emergencies. It is essential that you make tax payments into your savings account every time you get paid so that you are not left short when you do get your bill through. You should put as much as you can in the other savings account every month too. The beauty of writing today is that there is a massive demand for it as a result of the Internet but you may find that you do not have work from time to time if a contract comes to an end and you have to find work, for example. It is always better to be safe than sorry!

Thursday, 21 February 2008

Managing Your Business Finances Effectively

There is a lot to deal with when you finally quit the dreaded office job and try to make a go of it as a full time writer. Finally turning a hobby into a career was a bit of an eye opener for me personally because I didn’t realise just what was involved. I had done a lot of research but nothing will prepare you for that day when you sit in your home office and begin work for the first time. Whilst I got used to a lot of elements of owning my own business quickly, one thing that did take me a little time to adapt to was the financial aspect of running my own business.

It is very difficult going from a regular income each and every month to getting paid by clients as and when the work is completed. I had purposely built up a list of clients before I left my job and really landed on my feet, but it does take some managing. For example, you have to be able to budget for bills, put tax payments away and make sure that you have an emergency fund should something go wrong. However, the most pressing aspect of it is making sure that you can buy the equipment you need to be able to work effectively and efficiently within a few months of branching out on your own.

There are two ways to do this. The first is business banking. You could apply for a loan via your business banking provider. You should set up business banking before you start because you are much better equipped to manage your finances that way. Business banking loans are the same as normal loans in many ways but they go on your business rather than your own name and credit report. As such, you may be in debt for the first few years of your business.

However, there is another solution. If you plan out the equipment that you need (computer, printer, fax, filing cabinets, desk etc) then you will be able to plan your saving and spending in advance. You may be able to obtain a cash advance via a payday loan. The beauty of payday loans is that there is no credit check and you could borrow money via one for equipment before your last regular salary payment or even afterwards as long as you have money coming in. Some companies that offer payday loans do accept applications from the self-employed. The great thing is that you avoid being in debt over a fixed period because it is payable when you get paid, so you get no debt and the stuff you need to get started!

Friday, 8 February 2008

Build Your Skills By Writing Reviews

If you're planning to be a freelance writer in the future then your immediate problem is knowing where to start. It took me months to figure it out and years before I could go full time. Now that I am, I wouldn't change it for the world! It is a long hard journey and it doesn't get any easier when you have made that first step but it does get much more enjoyable.

I have never undertaken a formal education as a writer. Instead, I have worked on my skills on the job itself. The majority of work I initially completed was unpaid just to build up a clients and contacts list but I did manage to make money on the side from what was essentially a hobby back then.

There is a website that will pay you for your opinions and enable you to build up your skills at the same time. In fact, there are quite a few. You will never earn very much off them, but there is something much more important up for grabs. The other members will help you. You write reviews of products, post them and then the members will often message you with hints and tips.

The material you write will very rarely be useful in any major writing jobs,but the advice will be priceless. Your basic writing style will shine through and they will assess it for you, pointing out weaknesses for you to work on.

The site is called Ciao! and you can access it and sign up for free by clicking the banner below. It is a useful starting point for you if you do want a little help. As a member, if you do post a review on there then let me know because I'll be happy to offer any constructive feedback that I can to help.