A Good Business Manual To Start Freelance Writing Full Time

I've been a professional freelance writer for some time now but do not profess to know everything there is to know about working for myself. In fact, there is probably more that I don't know then information I do know! However, I found the ultimate business startup bible over Christmas when I was given a book as a present. This is not any old book though - it's Steve Monas's Shoestring Venture: The Startup Bible.

Now I usually hate reading business start up books, both those that tell you how someone else did it and those that profess to be how to books. They bore me and are generally useless because they are written by self indulgent and arrogant businessmn that have no clue how to speak to someone like me! However, I was plesantly surprised to find that this book was different. It is actually a well laid out manual so it acts as a practical guide. I'm ashamed to say that I would not have bought this myself had I not been given it as a gift, but now I would not be without it and would highly recommend it to everyone else looking to make a go of their own business, whether that business is writing or not.

The Startup Bible covers aspects of business that I didn't even think about let alone plan for or consider in too much depth! Take outsourcing for example. I do not like turning down work and so would rather work 20 hours if the opportunities arise than saying no. However, it pointed out that if I had too much work and not enough time then outsourcing is the best option in terms of client retention. Of course, client retention is important for any business but the possibility of giving work to another freelancer did not even enter my head! That section in the book is outstanding because it deals with everything I need to know in a straightforward and yet comprehensive manner. All sections are like that in fact and all of them are equally impressive.

Even if you do not read the book all the way through, The Startup Bible is a handy manual to have on your desk for reference. All of the information is aimed at the individual business owner and is based on principles that have helped others succeed in the past. As such, it is a good investment as it will not date. You will need other resources for certain areas. Take blogging for example. There is very little on it in the book but then there is enough about that on the Internet. Most of the information given in the book is hard to find online, or at least hard to find in one place. As a result, I would highly recommend it.


You can view the book and buy it here at Amazon: Shoestring Venture: The Startup Bible. It is well worth every penny.

More On Business Finances And Credit Cards

I was re-reading through some of my previous posts on here and realised I had yet to discuss the obstacles that you may face when you apply for credit cards if you work for yourself. Few lenders will actually offer you a credit card if you are self employed because they have no guarantee that you will pay the money back. Although some will ask for your accounts or will consider you as a result of your bank balance, others will just decline your application immediately, so what to do?

The solution lies in your status as a business in your own right, believe it or not. When self employed individuals apply for credit cards, they are much more likely to meet with success if they do so through their business. This is risky if you want it for personal use because you could end up in debt via your business. However, if you are applying for a credit card for business purposes then the likelihood is that you will recieve a stamp of approval. Although banks are currently a little reticent to loan businesses money, very little has changed in terms of the amount of credit card approvals.

Always be sure to compare the best possible rates of credit cards when you apply because there are best value products out there and others that are extremely poor by comparison. The same principle applies to business finances as to personal finances so be sure to compare, compare, compare before you apply!

Manage Your Accounting And Credit For The Crunch

It's certainly been a while since I blogged on here but I am lucky enough to have been incredibly busy over the last few months. I'm extremely glad of that given the fact that there is a credit crunch now in full swing! Work seems to be steady at the moment but I credit the fact that I am extremely conscious of my finances to explain the fact that my business is doing well so far. Of course, that is not to say that I will not need a helping hand in the future but I have confidence in the fact that my finances have been pretty stable so far and may continue to be so.

One of the reasons behind this is adequate financial planning and I can offer tips to help others, the first of which concerns the proverbial rainy day! Always make sure that you have a business savings account or a personal savings account with a little set aside for those just in case moments because you never know. Try to have at least two months operating costs and personal costs put away because that gives youtime to either get back on track or to find a part time job to supplement your writing. Also, you may want to consider having an emergencies card just in case you are waiting for a buyer to pay you. I am having difficulty with a client who keeps putting off payment. As annoying as it is, it prevents me from purchasing stuff that the business could do with. However, I have an American Express credit card that I put any expenses on and then pay off in full every month. This also helps separate business expenses for tax purposes as well, which is a bonus.

Just be smart and make sure that your financial future is protected as far as possible. This will save a lot of heartache in the future.

Your Questions: Getting Paid!

Thanks to everyone that has emailed a question to me since my last post. Rest assured, I will get to them all so stay tuned for the information you want and need. The question that I'm going to answer today concerns payment. Two people asked roughly the same question:

How can I guarantee that I will get paid for work that I do?

The reason why I'm dealing with this first is because it is very important for you if you want to make a living out of writing. It is also a legitimate concern. After all, if you don't get paid then you have no career.

The first and most important thing to know is that there is no guarantee that you will be paid for the work that you do if you do not protect yourself. Agreeing to do work before putting measures in place will leave you open to con artists and those that will take your work and run. I have only ever not been paid for my work once. I made good use of the work I had done and ultimately benefitted from it, but it doesn't always turn out that way. You can try the following to protect yourself and ensure you get paid:

1 - Get A Deposit - Some writers only work on a deposit basis so they get a percentage of the total fee before anything is written. This is great for you because you have something for your work no matter what. However, most buyers are rightly sceptical and will not pay you in advance. They are as mistrustful of writers as writers are of them. They have no guarantee that you will not run off with the money. Also, very few buyers will trust unknown writers with an upfront fee because they have no idea what you are capable of. Try negotiating and remember that there is no harm in asking, but you are not likely to be taken up on your request!

2 - Draw Up A Contract - This is an excellent idea because it gives both writer and client peace of mind. However, it is only suitable for larger jobs in reality because every client knows that a writer doing a job for $50, for example, is not going to take them to court if they are not paid. It is not financially viable. However, for any jobs you do that are over $200 or $300, a contract is a must.

3 - Use A Protected Site - Finally, the best idea and way of protecting yourself! Certain sites, like Rentacoder, require the buyer to deposit the full amount agreed upon for work before you start on the project. The funds are in a neutral escrow and are released to you as soon as the buyer approves you work. There are actually writers that will only work through Rentacoder and ask all potential clients to set up a project for them rather than doing it privately. As long as you complete the work, you are guaranteed to get paid.

So there you have it, a quick guide on how to make sure you get paid! I hope that was useful for you. If you have any questions on this or any other questions that you may want to ask, just give me a shout!

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!

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!