2019 was my first year as a business owner, and I’ve spent the first week of 2020 reflecting on last year and making plans for accomplishing my 2020 goals.
Owning this business has been a fascinating journey so far with so much more to come. Here are a few things I learned in my first year as a freelancer and consultant, and a few tips for others trying to do the same!
- I filed with the state of Kentucky on January 2 to become an LLC. I worked with Incfile.com which helps verify your name, prepare and file articles for your state, give you a registered agent, provide free tax consult, and more. Honestly, other than the filing process, I didn’t use them too much. However, I absolutely recommend others to use it for the filing process – it’s definitely worth it.
- I spent time developing a contract and invoice template, business brochure, building my website, and hiring a designer to create a logo. If you’re just getting started thinking about being a freelancer or owning a business, there are dozens of things you should do to prepare.
TIP: Don’t be overwhelmed! Do research. Read books and blogs and follow other business owners who are doing or have done the same thing you are working toward. As you read, write down a list of everything they suggest or recommend you develop or have (contracts, invoice, business cards, website, etc.) Work through your list and prioritize those that need done first, and do one thing at a time!
- I got my first client in January! She’s a small business owner (personal trainer) who has relied on me for the past year to run her social media strategy. We’ve found great success, including significant engagement on her page and even leads and sales for her business.
TIP: DON’T RUSH. Don’t hurry to get your first client until you are completely ready. That client is taking a risk taking you on as a new business – don’t burn them! It’s tempting to run out and start pitching, but you need to remain credible through the process. Make sure you have your stuff together (or at least enough stuff) that you feel confident in being able to produce quality work, on time.
- I spent January finding balance. Balancing my Upwork clients and business clients, my full-time job and my business, work and personal life, and developing business materials that I would need to be effective.
Embrace the fear. Let go of perfection. Allow yourself to fail. Welcome the obstacles. Give yourself over to your passion with every fiber of who you are. And wake up every day and recognize you chose to build something amazing.
- My dad passed away the first week of February. This threw a wrench in the ability to focus and work. But I learned a valuable lesson – life happens, and no matter how much you plan or try to be prepared, something is bound to get in the way and mess it up.
TIP: If something throws you off track, make a “Regroup and Reassess” list. Write 10 things you need to do personally or professionally in the next 7-10 days to get you back on track, and work through that list.
- Part of being a working professional is staying current in industry trends and continuing education. While you could take a college course, you can also find certification courses online (free or with cost) to help you learn and grow. Three certifications I worked on last year were ANA’s Content Marketing Certificate Program, Google Analytics Certification, and Hubspot’s Inbound Marketing Certification.
- February was when I started understanding freelancer’s guilt. Being a freelancer, especially in addition to working a full-time job, takes sacrifices that sometimes I don’t want to make. But to build my portfolio and make a paycheck. those sacrifices are necessary. Apparently, though, feeling guilty is normal and common!
TIP: Read guiding the guilt for some tips on how to ditch the guilt and make the most of your freelance career.
- March was when I started budgeting and figuring out how much money I need to make and save to be able to freelance full time. It can be daunting to consider cost of your reoccurring monthly bills, health insurance, emergency fund, savings and other estimated costs you’d run into working on your own. It can be intimidating, and you may feel like you’ll never make it. But, once you break it down into numbers, calculate your hourly rate or number of clients you need, it doesn’t seem as daunting!
TIP: Make sure you understand all of the expenses you’ll run into as a business owner or full-time freelancer. Don’t forget about self-employed taxes, business taxes, health insurance, business costs (like supplies, business cards, website and domain costs, etc.). Do research or talk to an accountant to help you keep everything straight.
TIP: In whatever way works for you (whether it’s an app, website, or Excel spreadsheet), make sure you track all of your incoming and outgoing dollars. Also save all receipts that are related to your business.
- I realized towards the end of 2019 that I wasn’t ready to jump on the full-time freelancing train. I’m a saver, and I was nervous about the budget I felt like I didn’t have. I spent time mapping out what I needed to do to make it happen within the next one, three and five years. I considered my bare minimum monthly budget, researched additional ways I can generate a passive income stream, and thought about what my backup plan would be if I did take the leap and it didn’t work out.
TIP: Just because I wasn’t ready doesn’t mean you aren’t! If you’ve done the research, calculations, budgeting, and thought fully through what your plans are and could be, don’t be afraid! But always be sure you have a backup plan, whether it’s falling back on additional savings, getting help from family, or going back to work full time.
- In 2019, I also signed my first paying business client. I had to generate my first statement of work and invoice to an outside client not through Upwork. Honestly, it was scary! I was so afraid I was doing something wrong, or not doing something I should be doing, or invoicing or contracting wrong. But I did it, and it gave me confidence to continue to do it!
TIP: Consult an attorney and accountant before you sign on your first client. Work with a business attorney to make sure you statement of work/contract is sufficient, and your invoice structure protects you. Talk with an accountant to make sure all of your income is taxed appropriately, and you pay taxes the way you should!
2019 was a crazy year. It was a year of growth, excitement, heartbreak, learning, frustration and joy. I can’t wait to see what 2020 brings me and Callahan Communication! Thank you for reading, and for continuing to support my business!