Midyear Checkup: Are You Thriving or Just Surviving?

Taking stock of your freelancing business.

If you are reading this article on the date that I published it, we are exactly at the half-way point of the year. Yes, I killed the “evergreen writing” component once I wrote the title, but what I am going to say here can be applied any time of the year.

As freelancers we should take stock of “how are you doing?” at various points of the year. If you do not, then you risk missing the mark and whatever goals you set for yourself at the beginning of the year, perhaps even when you set out to freelance in the first place.

Freelancing Life

One thing about a personal review is that you can make adjustments to help you get back on track. To that end I have pulled out some of the concerns we self-employed workers have, identifying those areas and how you and I can make improvements. Oh, yeah, I am not about to harp on the “tough economy” angle either—if you are still in business for yourself, you already understand that challenge.

Time Management – Are you making good use of your time? Easily, we can become distracted by the Internet as we do our work. There are freelancer forums, blogs, social media and networking sites and email to woo us away from what we do. Be honest with yourself: are you spending too much time socializing and not enough time writing for pay?

Equipment Upgrade – I finally tossed my Windows-based personal laptop and bought a Mac. Yes, I am now a Mac snob. Seriously, I made the decision to switch when it became evident that registry errors and the usual PC slowness was a major drag on what I do. No more anti-virus and crapware to deal with. I spent more time in the past month writing for pay and less time trying to coax broken Microsoft Windows to work.

Pay Scales – I have been working with a few clients for several years and still charge them the same rate. That is good for them, but not for me as my own costs have increased since then. Are your freelancing rates frozen? Is it time for you to begin raising them? You should be able to pass along a modest five-percent increase without a problem, but if you are aiming for ten percent or more, then be prepared to explain why. Perhaps there is an added benefit such as tweeting and stumbling published work that needs to be mentioned.

New Vistas – I am not going to say that print magazines are dead, but if you are spending an extraordinary amount of time sending out queries with very little to show for it, then it may be time for you to explore other options. I get more queries from potential clients than those I send out, which allows me to cherry-pick the ones I want. Still, if things are a bit slow I will swallow my pride and take on a gig just to keep my writing flow going and my income stream flowing. I still write for two print publications, but the lion’s share of my income is derived from on-line work.

Tax Management – Yes, I am still doing my own taxes. I cannot see that changing unless my tax picture suddenly becomes very complicated. I do not think that it will, but I am not taking any chances. I know when my quarterly federal taxes, corporate state filing and local privilege licenses are due or up for renewal, I can tap a separate bank account I fund for those payments. No more panicking in advance of a tax deadline to pull together monies owed.

Long Term – Funding for my personal retirement has taken a back seat to everything else in recent years, but that is about to change. I will still put money in my children’s education accounts and set aside other cash and finally get serious about a period in my life when work will not be the priority it is today. Honestly, I do not believe I will ever retire—I love to write—but, my flesh and bones may not be so cooperative in my latter years. Plus, it would be nice not to be so deadline-focused, writing just enough to make some money, but without the ever-present calendar with important dates circled in red in front of me.

Your Passion

Six months from now I will be taking a look at a year completed and laying the groundwork for the year to come. One point I did not mention is your personal passion for what you do. If it is gone, can you get it back? If not, might it be time for you to move on?

Will You Be Reaching Higher In 2010?

Sample planning calendar to help you succeed in 2010

Forgive me if I appear to be blowing past Christmas with this article. That’s certainly not my intention.

Instead, I thought I’d stimulate your thinking by having you consider your course of action for 2010. I’ve been writing a series of business articles for SayEducate lately, focusing on the coming year purely from a business owner’s angle, therefore I’m taking stock in how I manage my own affairs too.

But now I want to look at things from a more personalized vantage point – your own work. What plans do you have for the coming year?

Freelancing, 2010 Style

I fully understand that it can be hard to say in detail where you’ll be this time next year – only God knows – but I do think that each one of us wants to see some changes in 2010, not least being an improvement in the way that we live.

Living in a market based society, the kind of work we do and the rate of pay we desire will go far in determining whether we reach higher or not. That sage maxim – if you fail to prepare, prepare to fail – is so true. How well we do depends a lot on our personal attitude and desire for self improvement.

The Self-Employed Depression

Last week, I read several articles where certain freelancers thought that it was within their right to judge other freelancers for working for a so-called content mill. I won’t link to those articles nor will I give those conversations much credence. Everyone has a right to work for whom they want and under what conditions suit them. Perhaps reading about the plight of other freelancers can bring clarity to this sort of thinking (The New York Times: The Self-Employed Depression).

But, if you’re seeking to better yourself in 2010, there are some steps you can take to increase the odds that the year turns out to be more profitable for you then this year. These are fairly simple, disciplined steps that can be taken gradually as the months unfold.

A Sample Calendar

Not everyone can hold to an ambitious schedule, so with that in mind I’ve come up with a calendar that you can follow, so adjust it to fit your goals and schedule:

January – You’ll be paying quarterly taxes on January 15th and again on April 15th, so make sure that you have enough funds in place to tackle that project. Use this month to review 2009 including asking clients for 1099-MISC forms. Get your receipts and other paperwork together for the tax man.

February – If all of your tax data is in place, then complete your return or make an appointment with your accountant. Hopefully, you’ll get a refund. If not, file after you have enough money to pay what you owe your state and the IRS.

Spring – With tax season behind you, use the month of March and early April to query editors. Send out letters to magazines, newspapers, and journals; cold call companies; touch base with your Twitter, Facebook, and LinkedIn associates. Over the ensuing weeks follow up with everyone; negotiate deals, sign contracts, begin new assignments from mid-April through May.

Summer – From June through August you’ll be busy working with new customers while keeping current clients happy. You’ll also take a much needed break with your family. Make sure that everyone is on the same page as to when you’ll be unavailable and how they can reach you in an absolute emergency.

September – With Labor Day past, you’ll have the strange feeling that the year is fast drawing to a close. I like to use this month to review current client contracts and reassess my relationships with them. That includes whether I’ll be continuing with a particular client or not, if I’ll be asking for more money, or whether we’ll be changing the terms of our agreement.

Early Fall – October and November can be good months to query for new work. At this stage of the year, plenty of companies are fast at work cutting costs for the year to clean up their balance sheets. Staff will be let go which means that some of their work will be outsourced. Be sensitive to corporate turmoil, but also consider that there may be an opportunity for you.

Holiday Season – The holiday season stretching from Thanksgiving to Christmas and through New Year’s Day seems like a positively awful time to take on a new client, right? Only if you’re super busy balancing family, church, social, and other functions. Use this season to enjoy time with loved ones; you’ll be busy enough come January.

Make More Money

So, what will following this calendar yield? Better opportunities, more money, and a balanced lifestyle, if you hold to a disciplined plan. No, I won’t put a figure or percentage on your gains, but if you develop a sensible schedule then you should see good results over time.

Photo Credit: Bartek Ambrozik