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Best Practices for Freelance Business - Part 1
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Best Practice 7: Follow a business plan
When I refer to a business plan, I don't mean a 100-page monstrosity filled with five-year projections. A freelancer's business plan needs to have three qualities. First, it has to be written. The act of writing down your plan will force you to think it through much more carefully than if you "keep it in your head." Second, it has to set clear, measurable objectives. After all, how will you know that you've succeeded if you don't define success before you begin? The old Supreme Court definition of obscenity, "I know it when I see it," just doesn't cut it. Finally, it has to say what you intend to do to achieve those objectives.
Even a one-sentence business plan like, "My objective is to complete 10 projects at an average price of $10,000 each by targeting local real estate agencies," makes a difference.
Best Practice 6: Conduct regular performance reviews
It may seem silly for a one-person company to conduct performance reviews, but following a regular review process can dramatically improve your business. If you're like me, your usual self-criticism is anything but constructive: "I can't believe I lost that contract! I stink." Establishing a performance review process, complete with a standard set of evaluation questions, helps take unproductive and negative emotions out of the process while focusing your attention on areas of potential improvement.
My own personal review process is incredibly simple. Every three months, I fill out a form with four questions:
- What are three things that went well this quarter?
- What are three things that went poorly this quarter?
- What are the three areas in which I showed the greatest strength this quarter?
- What are the three areas in which I need to improve the most next quarter?
It takes me less than half an hour to conduct the review, and it focuses my attention on what really matters.
That's it for the first five of our top 10 corporate best practices to bring to your freelance business. Next, we'll look at the remaining top 5:
5. Monitor key operating metrics
4. Hold regular staff meetings
3. Take a systematic approach to sales and marketing
2. Maintain an orderly, professional work environment
1. Separate work life from home life