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13 Best (and Worst) Things About Becoming A Freelance Writer.

13 Best (and Worst) Things About Becoming A Freelance Writer.

According to a new survey, 54 million Americans – or 34% of the workforce – are engaged in freelance work. Almost 8% of those are freelance writers – and that’s around 4,320,000 people.

It’s clearly an increasingly popular market, and with good reason, but it’s not always all it’s cracked up to be. If you’re thinking of becoming a freelance writer, make sure you go into it with your eyes wide open.

Let’s start with the good.

1. You’re Your Own Boss.

If you want to take a holiday, take a holiday. If you want to sleep in until 11, sleep in until 11.  If you want to hit the gym at 3 to avoid the post-office rush? Yup, that too.

One of the best things about being a freelance writer is that you answer to no one except yourself; you own your decisions.

Obviously you still have responsibilities and those responsibilities dictate your priorities but the point is, they’re your priorities (and your consequences). Not the company’s. Not your manager’s. Your good is the greater good.

2. You Can Work Wherever You Want.

All you need to be a freelance writer is yourself, your laptop and an Internet connection.

There’s no specialist equipment and, although some freelance writers do spend time with clients in-person, it’s not a job requirement.

With tools like Skype empowering worldwide inter-connectivity, there are few situations where a face-to-face meeting is more cost-time efficient than an e-meeting anyway, so it’s not a big loss if you never meet clients offline.

All of which means this: you can work from wherever you want, whenever you want. Maybe that means that little café you love with the hand-roasted beans, or maybe it means joining the hubud in Bali.

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Forget ‘the world is your oyster’ – the world is your office.

3. It’s Varied.

Being a freelance writer means having a portfolio of clients, rather than a single employer.

Because your skill is writing, rather than something strictly industry-specific, those clients can be much more varied that if you were, say, a freelance plumber.

Even if you specialize in writing for a specific area, the variety of work is endless. Being a great writer is similar to being a great actor: you have to be able to master different voices, different styles, different personalities

Work never seems mundane, because you’re constantly applying your skills in a different way.

4. It’s Secure.

One of the traditional arguments against freelancing is that you sacrifice job security. This is quite a fallacy.

When you first strike out as a freelance writer, things probably are less secure than having a full-time job, but once you’ve built up a client portfolio you’ve got a properly diversified income stream.

Your financial security is no longer dependent on one client but on many; this spreads and therefore minimizes your risk. In an insecure economy, it’s more important than ever not to put all your eggs in one basket.

 5. You Can Be Agile.

Markets change constantly. New opportunities spring up; new niches; new areas where you could make a mark. Being a freelance writer gives you the fluidity and agility to take advantage of new opportunities with minimal risk.

The e-learning market is a great example. Growing rapidly, it’s an area that’s attractive to a lot of freelance writers right now – but it’s still a relatively new industry and the bubble could yet burst. Freelance writers can easily dip a toe in the water with new markets like this – a new project here; a new client there – without needing to dive in and hope they swim.

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6. It’s A Constant Learning Curve.

As a freelance writer, your clients are paying you to stay ahead of the curve on their behalf. At least a third of your time isn’t spent writing at all, but reading, listening, watching and absorbing as much as possible, in order that you can write with authority.

For people who love to keep learning, being a freelance writer absolutely ticks that box.

7. It’s Fulfilling.

For most freelance writers, this is the most overwhelming positive: you get to do what you love.

It goes almost without saying that you have to love writing (and take a word of advice – if you don’t, don’t try and be a freelance writer. It’s bloody difficult if you’re not passionate about it), but it goes deeper than that.

Precisely because it’s such a flexible career, and because you’re your own boss, you can choose the sort of life you want to build for yourself. You can work for top-dollar with huge advertising companies, or throw yourself into that creative not-for-profit that you admire, or neither, or both.

It’s not about building an attractive resume, or showing career progression, or avoiding career gaps – it’s about choosing what you work on and when in the combination you find most fulfilling.

Being a freelance writer is not all sunshine and flowers, though. This job is very far from easy and, if you want to do it, you should know what you’re getting into. Here are the massive downsides to being a freelance writer:

8. You Have To Fight Your Own Corner.

Harsh truth time: there are a lot of aspiring freelance writers out there, and a lot of them aren’t much good at all.

Freelance writing sometimes seems to be a default career choice for those who want to freelance, but lack the writing-specific skills, knowledge or willingness that should back that up.

Finding work is competitive, and finding high-paying work more so. There’s no shortage of writers looking to undercut you, selling on price because that’s all they have to sell on.

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Being a freelancer writer means being able to sell yourself. It means having a really solid value proposition, and being able to pitch confidently to clients. It means knowing your worth, and being willing to negotiate constantly – because no one’s going to hand you anything on a plate.

9. You Can’t Be Rudderless.

There’s no simple path to success; no ten steps you can follow to automatically ‘make it’ as a freelance writer. The scale and diversity of the market are amazing, but it also means that you have a really strong sense of purpose or you’ll struggle to navigate in any meaningful way.

Clear goals and a clear mission to realize them are essential: without them, you could end up on a plateau, working endless hours and earning just enough to get by.

10. There’s No Life Raft.

Most of us have days where we just need to take things easy.

Maybe you’re ill, maybe you’re run down, maybe your head just isn’t in the game – whatever. Even if you’ve never pulled a sickie, I’m sure there have been days where you’ve been in the office more in body than in spirit, and that’s OK – if you’re employed.

One of the best things about being a freelance writer is the amount of effort you put in directly correlates to how much you earn – but it can feel like one of the worst things sometimes too. If you don’t draft, you don’t get paid – full stop.

That makes those off-days a lot harder to swallow.

11. It’s Hard To Find Balance.

The correlative to the above is that it’s worryingly easy to work yourself into the ground and burn out.

That freelancers have to be self-motivated has been said so many times as to be stale, but that doesn’t just refer to getting up and putting in the hours. It’s just as, if not more, difficult to know when to stop working and take time for yourself.

At the same time though you’ll never not have responsibilities again, if you want to be successful. You can aspire to work/life integration, for sure, but you can never truly switch off, never really leave work behind, because there’s no one else to take the reins.

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Finding ways to be compassionate and present in all the elements of your life becomes more of a challenge for freelancers.

12. There Are A Lot Of Odds And Ends.

If you become a freelance writer, you’re lucky if 75% of your time is billable. Writing might be what pays the bills, but you’re running a business now.

That means tax, business development, sales, marketing and so on.

The time you spend responding to emails will suddenly crystallize once you realize you’re earning zero dollars an hour while you do it.

13. It Can Be Lonely.

I don’t just mean lonely in the sense of literally being alone.

I mean it in the deeper sense, that you lack a shared purpose. Even if you hang out in co-working spaces or work on-site with clients, you’re running a business of one.

If you freelance, you can find yourself yearning after the shared sense of achievement, the camaraderie, you get when working in a team.

The thing about being a writer is this: it’s a vocation more than anything else.

If you’re thinking of becoming a freelance writer and you’re focusing on the reasons you want to freelance rather than the reasons you want to write, it’s probably not the career for you.

A good test is this. If you won $100 million on the lottery tomorrow, what would you do?

After the travelling and the cocktails and the new car; once the celebrations died down? If the answer isn’t write then don’t become a writer. Find a way to carve out a career doing whatever your answer was instead.

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Published on December 13, 2018

How to Start a Company from Scratch (A Step-By-Step Guide)

How to Start a Company from Scratch (A Step-By-Step Guide)

If you’ve ever thought about starting and running your own business, you’re not alone. Being your own boss, having flexibility with your schedule and keeping more of the financial rewards that come with business ownership are all good reasons to own your own company.

But as you might expect, it’s not all vacations and fat bank accounts. According to the SBA, 2/3 of businesses survive at least 2 years and approximately 50% survive 5 years.[1] So why is the failure rate so high? At least for the businesses that fail early on, lack of, or poor planning can be a major factor.

So how to start a company?

Starting a business from scratch doesn’t have to be hard or complicated, but it does take planning and work. Here are the first and most important 9 steps to take when your are starting a company from scratch.

1. Do an Honest Evaluation of Yourself

Do you work better in a structured or unstructured environment? Does a daily routine reduce your anxiety? What kinds of things are you good at? Does public speaking or making presentations make you nervous? Are you good at accounting and numbers? Can you handle the rejections you’re bound to get when selling or cold calling?

These are all important questions to ask yourself, in fact it’s a good idea to get other peoples opinion about their perception of you in each of these situations.

Whatever the answers you come up with for your evaluation, remember that’s all it is, an evaluation of where you are now. Think of it as a way to identify both your areas of strength and weaknesses.

You maybe good at public speaking which can help when raising money, but bad at accounting which just means that you’ll need to find some kind of help with that area of the business.

2. Evaluate Your Idea

If your business idea involves a new product or service (or even an enhancement to an existing product or service), it needs to be evaluated. This is technically called market research.

There are firms that specialize in doing market research for new products, but if you are on a tight budget, you can do this yourself.

First, if you can build a prototype for people to use, touch and look at that’s the best option. If a prototype is not possible or it’s a service business, then offer a highly descriptive presentation of the business plan complete with it’s unique benefits and how it’s different from the competition.

Then listen! Remember that this is not about others liking your product, this is not your baby that they are talking about. You want honest market research that gives you the best chance for a successful business. Take notes, when someone tells you that they didn’t like a feature or some aspect of your idea tell them ‘Thank you”.

After several rounds of market research with different groups of people, you should see patterns emerging about things that they both liked and didn’t like. Use this information to tweak your product or service and do another round of market research.

Keep in mind that you’ll never come up with a universally loved product, your job is to produce a product or service that appeals to the broadest range of your target market.

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3. Make a Business Plan

I know, I know this isn’t the “fun” part of starting your own business, but it is an very important step in creating a successful business!

Basically, you can think of a business plan as an outline or blueprint of your business. A good business plan should have the following elements:

  • Executive Summary – This should lay out the businesses product or service and the problem that it solves for the consumer.
  • Market Evaluation – This should talk about the market you are serving. Is it an expanding market, and how does your product better fulfill the consumers in that market.
  • Market Strategies – How are you going to penetrate the market and sell your product.
  • Operational Plan – How will the company run from day to day? Who are the key employees and what are their specific rolls. Do your key players have specific goals set for them in advance?

A final word on making a business plan: while lying is never acceptable especially when you are using the business plan to raise money, it is acceptable to “put your best foot forward”.

Playing up the positives while minimizing the negatives is almost expected in a business plan.

Besides, banks as well as professional investors will both do a more in-depth analysis before investing any money into your idea.

4. Decide on a Business Structure

You have many options here, and discussing them with your accountant or financial adviser is really the only way to know what’s right for you. But just to give you a quick rundown of the types of business entities and their pros and cons we will briefly go through them:

Sole Proprietorship

This is a common way for small businesses to get started.

The pros being:

Relatively low costs to set up (usually a business license and sales tax license).Owners normally do not have to set up a special bank account, they are allowed to use their personal one. Any income earned can be offset by other losses (check with your state!). You as the sole proprietor have complete control over all decision making. 

Finally, sole proprietorship’s are relative easy to dissolve.

The cons of using a sole proprietorship include:

You as the sole proprietor can be held personally responsible for the debts and liabilities of the company. Some benefits, such as health insurance premiums, are not directly deductible from business income.

If you need to raise money, you are not allowed to sell an equity stake in the company. In that same vein, hiring key people maybe more difficult because you cannot offer them an equity stake in the company.

Partnership

A partnership is formed when two or more people decide to start a business. Although there is no legal requirement for any documentation to form a partnership, it is my advice that you never enter into a partnership without having a partnership agreement. (Remember, spending $1500 now can save you $150,000 in legal fees later!).

The pros of a partnership include:

Being relatively easy and inexpensive to start. Hiring key employees can be easier as you are allowed to give equity ownership to as many partners as you want.

For tax purposes, partnerships are relative simple as any income is treated as “pass through” meaning that each partner pays tax on their individual portion of the partnerships income (As of this writing, always check with your tax adviser).

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As far as the cons go:

It can be difficult for some general partnerships to raise capitol. Because it is a partnership, the actions of one of the partners can obligate the entire organisation. All profits must be shared according to the partnership agreement regardless of the amount of work done by any single partner.

Some employee benefits may not be able to be deducted on income tax returns.

Limited Liability Company (LLC)

This is a very popular business entity for small to medium sized businesses. The reason for this is the cost of set up is not prohibitive and there is a separation between the owners and the company.

The pros of an LLC include:

Limited liability for the partners, unlike sole proprietorship’s and partnerships where the owners are held responsible for all of the companies debts and liabilities, an LLC provides some protection against certain debts and liabilities that are solely the companies.

Simple taxation, just like the sole proprietorship and partnerships, income is considered “pass through” and is only taxed once on an individual level.

There is no limit on the number of shareholders in an LLC. An LLC requires fewer fillings and administrative requirements than a corporation.

Corporation

A corporation is much more complex and expensive to set up. And a corporation is legally considered an independent entity that is separate from its owners.

The pros of a corporation include:

Complete separation between the owners and the company. Because the corporation is considered its own legal entity, owners can not be held personally responsible for any debts or liabilities of the company.

A corporation can raise capital much easier just by selling more shares in the company.

Cons of corporations include:

Much higher administrative costs than any other business entity. Corporations generally have a higher tax rate. Dividends are not tax deductible for corporations. Income paid in dividends is taxed twice, once by the corporation and again by the shareholder.

Again, this is just a short summary of the pros and cons, always check with your tax adviser about what will work best in your situation.

5. Address Finances

Again, not one of the “Sexier” parts of starting your business from scratch, but very important nonetheless.

So, you’ve done your business plan and an estimate of your start up funding should be included. It should include the amount of funding you’ll need to get you through your first full year of operations.

Now, how do you get that money?

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Self Funding

If possible, self funding is the easiest. You won’t have to go to banks and investors with hat in hand, or give up ownership or control of your company. But as we know, this is not a reality for most people. But don’t worry, there are still plenty of options available.

Friends and Family

They can be a good source of funding your business if they can see and understand your vision.

Remember that business plan? Pass them out to everyone you know. Then follow up, be prepared to tell them the total amount of money you expect to raise, the minimum investment you are looking for and what you will give in return for the investment.

For example, you give a friend your business plan and follow up with him/her a few days later. You can explain that you have secured funding for $80,000 of the $100,000 you need. You are selling a 2% share in the company for every $2,000 investment. How many shares would he like?

And when he/she tells you no, thank him/her and ask if he/she can think of anyone off the top of his head who might be interested? Tell him/her you really appreciate his/her time and if he/she does come across someone who might be interested to let you know.

Banks

These guys are happy to lend you money when you don’t need it, but all of the sudden they get stingy when you actually need a loan! This is where preparation comes in.

It’s a good idea to go over your business plan with an expert and maybe even have it rewritten by an expert before you approach either a bank or professional investor. Both will want to go over your business plan with a fine tooth comb, verifying all the numbers and data you provide.

You should also brush up on everything in the plan so that you can answer any questions they have with authority.

Crowdfunding

Finally, there is crowdfunding through sites like Kickstarter or GoFundMe. Crowdfunding helps to build interest, community spirit, and a customer base. It’s also an efficient way to raise funds. You can take a look at these tips to find out more:

6 Crowdfunding Tips To Get Your Project 100 Percent Funded

6. Register with the Government

As stated earlier, different types of business entities have different filling and administrative requirements. At the very least, you’ll probably need a business license as well as a state sales tax license.

Unless you are forming a corporation, there are many good resources on the web that will do everything for you at a minimal cost.

7. Assemble Your Team

Remember when we evaluated your strengths and weaknesses? Here is where we fill in the gaps!

Do you hate sales and cold calling? Great! There are people who love selling and wouldn’t want to do anything else.

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Bored to death with accounting? There are a ton of small accounting firms out there that will take care of that for you.

What about marketing? You can hire someone in-house or out-source that too.

Your job is to keep on top of all the different aspects of the business to make sure they are all running smoothly and getting the results you need. If not, it’s your job to figure out the problem and implement a solution.

Check out this guide and learn how to delegate effectively:

How to Delegate Work (the Definitive Guide for Successful Leaders)

8. Buy Insurance

No matter what kind of business you start, you need insurance! Yes, I know, no one likes to buy insurance, but it can literally be the difference between having a minor inconvenience and declaring bankruptcy.

We live in a very litigious time, even a minor slip and fall at your place of business could bankrupt you without insurance. If you need help finding a good agent, check with your local trade organizations or fellow business owners.

9. Start Branding Yourself

Has anyone ever ask you for a Kleenex or a QTip? We all know what they are because of branding, Kleenex is just a brand of tissue and QTip is just a brand of cotton swab. It doesn’t have to be as widely known as Kleenex or QTip, but you can make your brand a common name within your niche.

I once owned a manufacturing company that developed a product that was so popular that my competitors started co-opting my brand name for their products.

If you aren’t sure how to kickstart branding yourself, check out these ways:

5 Ways to Build your Personal Brand & Make More Money

The Bottom Line

Starting a business from scratch can be one of the most rewarding experiences a person can have.

But do you know what’s even more rewarding? Having a business that succeeds, is profitable and provides a good source of income for you, your employees and their family’s.

More Resources About Entrepreneurship

Featured photo credit: Tyler Franta via unsplash.com

Reference

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