Author Archive

Freelancers: Just Where Did the Year Go? And What Are You Planning for 2012?

on December 21, 2011

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Happy New Year!If you are like me, a solopreneuer, you get to the end of the year and wonder where where it all went. Hopefully you’ve been busy doing great work and enjoying making and keeping in touch with new connections, but you probably haven’t been thinking about how to wrap up the year. You’re not alone!

Here are four things you can do now to end the year on a high note:

Taxes: This is the time of the year you really need to start planning for your 2011 taxes. It’s best if you do it year-round, but we’re busy and often don’t keep up. Be sure you have all your receipts in order and you’ve got all your billings tallied. If you work with an accountant, be sure to schedule a December checkup to do some taxes preplanning. For instance, it may make sense to pay your state taxes for 2011 before January 15 in order to relieve some tax burden come April.

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Freelancing in 2012? Here’s How to Get Started.

on December 1, 2011

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The New Year is approaching, and it’s a perfect time to make a change. If the change you have in mind is from “corporate life” to “freelance life,” then you’ve stumbled on the right post to get you started.

Let’s start with the mechanics. Know who you are and what you are selling. Design. Marketing. Sales. It doesn’t matter what skill you are taking to market (and that is what you are doing) — you have to be sure you are exact in the telling. It has to be short and easy to transfer from human to human – this kind of selling is called referral sourcing. For example: “I specialize in SEO” is easy for people you meet to remember and to tell others about. “I specialize in SEO for big companies who are selling imported goods” is a lot harder. Take any leads you can get in your area of expertise — it’s better to be the filter than the drain.

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Be Your Own Boss: What You Need to Know Before Going Freelance

on April 29, 2011

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A new session of Beth Temple‘s popular class on successful freelancing, Be Your Own Boss, will be held at The Hired Guns Academy next Thursday, May 5th. We thought we’d give you a taste by asking Beth to discuss the three most common questions that have popped up in previous sessions.

“How (and how much) should I charge?” Hands down, this is the top question. Of course, if I had an exact answer to the “much” question I would start a side business and add it to my own revenue line! The “how much” question usually refers to an hourly rate, which affects the “how should I charge?” end result. So let’s break it down.

The classic ways to charge are by the hour, by the project, and by a retainer fee. All methods require some knowledge of what an hour costs you in relation to how much a client is willing to pay for that same hour. Start by estimating an hourly rate based on what you were making at your full-time job using this equation: salary / 2000 (hours) + hourly costs of benefits = hourly rate. Then estimate the hours it would take to complete the project, and charge a project fee based on the total hours multiplied by your per-hour rate. (There are a lot of other variables that can come into play, of course, and I go over them in the class.)

Once you start the project, be sure to track your actual hours. At the end compare the number of hours you thought you’d work with what you did work. You will likely come up short that first time–but over time you’ll easily make that up.

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The Tax Man Cometh: 5 Small-Business Tips for Next Year

on April 21, 2011

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Today we welcome to the blog Beth Temple (@bethtemple4u), a digital consultant whose column is for the “preneurs” in The Hired Guns family. Although her focus will be split among advice for the entrepreneur, intrapreneur, and solopreneur, she will always return to proven ways to get ahead–whether it’s by growing your company, mastering important leadership skills, or learning how to sell yourself.

I know what you’re thinking–you missed the mark. Tax Day has come and gone. Well, for this year it has, but trust me, it will be back next year, and the best time to start planning for April 15, 2012, is now.

If you are like most small business owners (and yes, being just one person counts as being a business!), you’ve probably made some tax mistakes. I did my first year out: I didn’t realize that I had to pay quarterly estimated taxes based on forecasted income. Only made that mistake once.

Here are some things you should be doing now (and forever after) to help ensure a smooth tax season next year:

1) Beth’s 40% rule: In order to be sure I have the money I need throughout the year to pay for taxes, I take out 40% from every check (let me repeat that–EVERY check) and put it in a special account just for taxes. This way I don’t see it, I don’t spend it, and I always have the cash I need. Put the money in a saving account attached to your business checking account–it’s never a good idea to co-mingle your business and personal money. At the end of the year, if there is any left over in the tax account (and there usually is), that’s my yearly bonus. I either invest it back into the business or buy something small as a reward. (You could also use it to bulk up the three to six months’ worth of living expenses that financial experts say we all should have but often don’t.)

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