Take the Leap: First Steps in Freelancing

Finding Good Advice

In the great Internet boom of a few years ago, every man and his dog tried to secure venture capital. As those great gods of finance flicked through proposal after proposal, one of the constants for which they searched was experience. They did that because they know experience helps -- it helps a lot.

Does this mean you shouldn't start a business until you have 30 years' experience under your belt? No, of course not. That would make life dull, and you'd be ancient before you had the chance to enjoy the fruits of your success. What you need is good advice from others who already have that experience, which will set you up well to go forward without a whole lot of your own -- even if it doesn't convince your bank manager!

There are plenty of people and places you can go to for good advice. Let's take a look at what's on offer in building a team of trusted professionals, how far to trust them, and in which areas to trust them. With a combination of all these resources, you'll be able to build some excellent advice for how to run your business.

Accountants

An accountant is the best source of accounting, finance, and budgeting advice.

Find an accountant with decent experience, and with whom you feel comfortable; don't settle for the one who lives closest to you. The accountant you choose to work with is a person who can have a major impact on your business life, so take the time and trouble to find someone with whom you can work well. Recommendations from other business owners are a good way to find the right accountant, so ask around those you know.

Bankers

First of all, bankers are never the best source of financial advice. They have a vested interest in selling you their own products, so their advice is always likely to be biased and not necessarily in your best interests. Knowing that, you can still approach a banker for some advice.

While bankers often have almost no real business experience, they have seen many people fail in business. This is where they can come in very handy -- they can usually see the warning signs of a troubled business, and may be able to warn you in advance. Many banks offer small business advisory services.

Solicitors

Solicitors are an excellent source of legal advice. Take their experience and opinions into account, but always remember that any final decisions are yours.

That said, try to gain a handle on all your own legal affairs. For instance, learn how to read a contract. I find it beneficial to sit down with a contract and go through it point by point. I actually write my own notes in plain English about what the contract says, and then review it like that. Take responsibility for understanding your own legal position.

Friends and Relatives

Friends are great for friendship, relatives are there to care; both are usually an unreliable source of business advice. Friends and relatives will tell you what you want to hear, believing their role is to offer encouragement, no matter how inadvisable your venture or crazy your scheme. By the same token, you'll have well-meaning friends and relatives who are fearful for your sake; they can be discouraging about your perfectly sound business ambitions.

Unless you know them to be objective and knowledgeable about your area of business, don't confuse sound friends with being sound businesspeople. Borrow their fax machines, not their advice.

Other Businesspeople

I'm not talking about major business leaders here; I'm talking about the woman who runs the corner liquor store, or the guy who runs a small trucking business, or the local florist. These people are in the trenches day after day. They know the importance of cashflow, they know how vital it is to keep costs down, and they know how to survive in what can be quite a harsh business world.

One of the most useful things I do is have a brunch every Thursday with five other small business owners. Our little group includes a PR consultant, a resort owner, a computer store owner, a taxi driver, and an Internet business owner. We run ideas past each other, discuss cashflow situations, and generally gain different perspectives on the issues we face.

That's the sort of advice you need -- non-biased and based on real-life experience.

Arming yourself for Success

There's a daunting percentage often trotted out when the failure rate of new small businesses comes up in discussion: it suggests that 80% of small businesses crash and burn within their first five years. While the origin of this finding is unknown and seems to be an exaggeration designed to dissuade the faint-hearted from taking the plunge into business, there is certainly a large number of small businesses that fail in their first few years. What makes you think you'll succeed? Well, it's simple. You'll succeed because you're going to be armed with several weapons that unfortunate contingent won't be:

A Goal

The vast majority of successful people have specific goals. Your goal must be achievable, and you must wholeheartedly believe that you can reach it.
a plan

I don't mean some vague little generalization written like a prayer on your office whiteboard -- I mean a detailed plan that covers everything. Who's doing your accounting, and what package will you use? Exactly how will you market your offering? What if a client decides to sue you? What if you make more than expected in the first two months? What if someone sends a letter asking for a job? What if the local newspaper approaches you? Think through all eventualities.

A Positive Attitude

Are you yawning? I know, I know; having a positive attitude has become a truism and a new-age mantra. But if you'll allow me to be deep and philosophical for just a moment, you do need a positive attitude.

You are about to be rejected by countless people. Some will laugh at you; others will sneer and scorn. Many people will refuse to take your phone calls, and few will return them. People will be aggressive, adversarial, and downright rude, but you must stay positive. A positive attitude is the difference between your success and failure.

Every successful person I have ever met has a positive attitude. They're optimistic, they know what they want, and they won't let a few disappointments stand in their way. Over the years, I've discovered that a negative personality in a business can very quickly destroy it.

Self-belief

I firmly believe you can never make a wrong decision. Okay, you'll come up against problems. There are plenty of solutions you can use to deal with those problems as they occur, and you implement the option that you decide will be best.

Let's say that option doesn't work out. Does that mean it was the wrong decision? No -- it was a solution you tried. So it didn't work out -- try something else, and then, something else. Sooner or later you'll find a solution to that problem. The next time you have a problem like that one, you'll find the best solution even faster.

I read a few years ago the big differences between the successful entrepreneur and the not-so-successful one: the successful ones don't care what others think of them, and they can't really imagine themselves failing. This indicates to me that fear of failure, and the resulting stigma attached to that failure, is the main barrier holding most people back from achieving their dreams.

You have to believe in yourself. You can do this. There's no doubt about it.

Summary

We've seen that a tiny minority of people have the self-belief and motivation to take the plunge and say goodbye to their unfulfilling wage slavery. You can take control of your destiny. You just need a little help along the way, and that's what this kit will provide.

We've questioned the definition of success, and found that it means something very different to different people. What the notion of success means to you -- and the way you run your business and to what end -- is entirely up to you.

We've looked at the differences between freelancing by yourself and setting up your own business to employ other people. We've seen that ability and talent is only part of the story. You need to put other skills into action, not least sense, forethought, planning, and the ability to sell.

In running your own business, a sensible approach and the right mindset is key, no matter how excited you are to be your own boss. Gathering a team of assorted professionals about you is vital for gleaning the necessary advice from their differing experiences. Finally, you need to define your business strategy by beginning at the ending: planning your exit.

Now that we've covered the basics of why you'd want to freelance and what freelancing is all about, the following chapter covers the information, advice, tips, and hints you'll need to test the freelancing or small business waters. So, are you ready to jump in and start working towards your greatest life goal? Fantastic! Let's make a start and get you where you want to be.

First, you'll need to download this chapter -- along with three others -- for offline reference, and if you're interested to see what else the kit offers, take a look at the Table of Contents. But ultimately, to get the most out of your small business, you'll need your own copy of The Web Design Business Kit 2.0.