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Turning Freelance into Fulltime: Taking the Leap

This blog completes a series of 5 posts which outline and address a very valuable lesson for any industry or any career – how to turn your freelancing into a fulltime business. If you’re currently contracting out a set of skills or have at least thought about it, this can be the critical first step toward starting your own business. I invite you to join me each week as I share the 5 most important components needed to prepare for a successful transition from freelance to fulltime.

In case you missed it, read:

Establishing Professionalism

Getting Your Name Out There

Moving Away From One-Time Clients

Building a Client Base

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Taking the Leap

Man leaping entrepreneur businessLast December when I wrote the post Entrepreneurial Survival Mode,” I talked about how sometimes you have to give yourself no option but to sink or swim in order to find that inner fire to make your business a success. I still believe this. But during my own journey from freelance to fulltime, I didn’t tie a blind fold and allow myself to walk off a cliff. Instead, I carefully calculated the jump before I ultimately made the leap into entrepreneurship. The most important concept I want you to take away from that previous post and now this one is that when you can take the leap – do it without hesitation and get ready to work for all you’re worth. It’s a bold and risky move, but it holds the possibility of the most rewarding career experience…creating something that’s all your own.

Here are the key steps I recommend to every almost-entrepreneur contemplating a leap of faith:

Crunch the numbers.

I still have the first spreadsheet I created with all of my expenses versus the meager income I would make if I turned my freelance business into my sole income. It’s a great reminder of where I started and where I’m never too far from to return. But most importantly, it was the assurance I needed to know that I could make ends meet even if everything about my business stayed the same (which of course I hoped that it would improve). When I reflect on this spreadsheet now, it still offers that same assurance that if all came crashing down, I could stay afloat. At this point in my entrepreneurial journey, I learned the skill of minimizing costs. On my spreadsheet I listed all of my current expenses with my fulltime job. I was paying for internet I never used, far too big of a Comcast package and a reserved parking spot at my apartment. Before I took the leap, I really crunched these numbers. I cancelled internet and began sharing with my neighbor for a fraction of the cost. I downgraded my TV (anticipating 80+ hours a week of work on my new business didn’t leave me much time for such luxuries anyhow). I discontinued my parking spot and as a city resident was able to get a parking pass right across the street for just $5 a year. I wasn’t as surprised with my ability to minimize costs as I was shocked with why I was ever throwing this money out the window to begin with.

When you first start your own business, don’t let anyone convince you that you immediately need to rent an office space, pay for a separate phone line or upgrade the speed of your internet. There are many ways to achieve the same results for little to no cost. Separate business needs from business wants. Later down the road when money comes, so will the corner office, fancy business cards and personal assistant. You simply don’t need these things for the first year…or first five years. How much money you have in the bank isn’t just about how much money you made, it’s about how much money you didn’t spend. Minimizing your expenses will help supplement a smaller income and make your leap less of a stretch.

Consider everything that will be affected.

A salaried, fulltime position has many benefits beyond the stable paycheck. Remember that as an entrepreneur your healthcare, 401K and taxes will become something you actively worry about. These will take research and a critical eye to determine the best option for you. For healthcare, I got lucky with my age. Until 26 I’m able to stay on my parents’ insurance plan for a very minimal cost each month. After that dreaded birthday, I’m not sure what I’ll do next but I do know there are more and more options every day for entrepreneurs and small business owners. I will likely talk to a local independent healthcare provider and outline my options. For retirement, I rolled my existing 401K into a Roth IRA. Again, it made the most sense for me for a variety of reasons, but do your research and talk to several people before landing on a plan. Finally there are taxes. I dread them more and more every year as what I pay goes up in proportion to my income. As a business owner, it’s your responsibility to claim your earnings and pay taxes on them accordingly. For the first several years you may be able to get away with claiming your business as a loss or have enough deductions that you still get money back. But that can only last so long. Eventually you should consider paying taxes on a quarterly basis to lessen the blow come March  (which is by the way when business owners must file taxes—note this now and avoid a nasty letter from the IRS later).

My dad gave me the best advice when I first started making freelance money, “Spend only what you need and keep the rest in savings.” He meant this so I would always have enough to cover my taxes, but wouldn’t it be great if we all handled our money like this all of the time?

Have an emergency backup plan.

For some, a backup plan may seem like a way out. I’ve heard, and at times agree, with the theory that a safety net is only an excuse to fall. But for large enough leaps where you are risking your income, career and possibly all of your worldly possessions (not to mention sanity), a safety net is warranted. For me, my emergency backup plan came from solid relationships with past employers and key contacts who said that if I should ever decide to be available for fulltime hire, I have a standing offer for a position with them. This verbal reassurance from people who believed in my skill set was the emergency backup plan I am grateful to have never used. More than just the ability to find fulltime work should I need it, I also keep a financial “runway” of at least 3 months. By this, I mean I aim to keep enough funds in savings and in my business that if one day absolutely all income should go to zero, I would be able to continue living and spending in exactly the same way for 3 months. This is a substantial amount of time to find additional income, cut back on spending and make other adjustments to prevent depleting this runway, but it’s a comfort to know it exists.

The idea of having an emergency backup plan in place reminds me of the quote by Robert H. Schuller. “What would you do if you knew you could not fail?”  This plan is not to give you an easy way out should things get too hard; it’s to give you the confidence to move forward fiercely and passionately. When you know your next step is not doomed to be your last, you can keep moving forward with courage.

Do it right – and don’t look back.

Once you outline a tight budget, decide how you’ll handle your healthcare, retirement and taxes and setup and emergency backup plan, you’re ready. As tempting as it may be to go out with bang, scream “I quit!” and throw everything off your desk onto the floor, resist the temptation. Your grand finale should be one with grace and professionalism that demonstrates to your employer and everyone else that you are destined to become a great entrepreneur. First, speak directly to your boss. Give them the honor of being the first to know your passion for your side business and plans to take it fulltime. Whether you hate them, don’t want to disappoint them or have no relationship with them, they deserve this respect. Once they’re on board, they can become your advocate and guide you through the process of leaving. Depending on the structure of your business, you may need to speak with the Human Resources Director to place your 2-weeks’ notice. For me, I was also required to write a resignation letter (which felt absolutely wonderful to sign). Going through the proper process of resigning from your job allows everyone to be aware of why you’re leaving and to celebrate with you. It also allows you to take advantage of things like using vacation days, selling back sick days and getting that final pay check 2 weeks after you finished working. By leaving on the right foot, you’ll also start your new business on the right foot. And if you haven’t learned already, this world is a small place and you never know who you’ll see (or have to work with) again.

Once you properly end your fulltime job, that’s it. It’s all you now. During your first year it’s natural to be reminded of your old job by every season, holiday or co-worker’s birthday that would have been a special mile marker. But you have new mile markers now. Don’t look back or keep track of where you might have been had you not taken the leap. The fact is, you did take the leap and every ounce of you should be focused on sticking that landing rather than trying to backpedal mid-air.

Have you enjoyed the 5-part series, “Turning Freelance Into Fulltime?” If so, share this with a freelancer or entrepreneur you know! This wisdom was gained through my own rough and wild personal experiences and I only wish to use it to help others navigate their similar journey. Thank you for reading along.

 
 

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Turning Freelance into Fulltime: Building a Client Base

This blog continues a series of 5 posts which outline and address a very valuable lesson for any industry or any career – how to turn your freelancing into a fulltime business. If you’re currently contracting out a set of skills or have at least thought about it, this can be the critical first step toward starting your own business. I invite you to join me each week as I share the 5 most important components needed to prepare for a successful transition from freelance to fulltime.

In case you missed it, read:

Establishing Professionalism

Getting Your Name Out There

Moving Away From One-Time Clients

———————————————————————————————————————————–

Building A Client Base

rolodex business card client baseThe two previous posts, “Getting Your Name Out There” and “Moving Away From One-Time Projects” are both aimed toward the ultimate goal of building a solid client base. Reaching this goal is more than just having your business known in the local community; it’s taking it to that next critical level of getting people to actually hire you. While many aspects about taking your business from freelance to fulltime will be about building a professional brand, this particular component will most directly affect your business’s bottom line – or more accurately, its “life line.” You need to have a core client base which can provide you with a stable income while so many other aspects of your business are fluid and ever-changing. So how do you begin to build this base of paying clients? It only needs to begin with one. From there you can implement these following steps to turn this single brick into a solid foundation for your business.

Ask your existing client(s) for leads.

Your first one or two clients are much more than a desperately needed paycheck. They are a source of potential leads for new clients. Not only can they speak to your business from a firsthand experience, they are also likely to have connections in similar situations where your services could be of great value. If you are a freelance writer and one of your clients is a commercial video production company that often hires you for script writing, they are likely also connected to other video production companies that could use a freelance writer. My own client base was built in a similar way – through word-of-mouth recommendations from current and past clients. Because of my background in political campaigns, I secured my first freelance political client who I helped with public relations and planning fundraisers. At the fundraiser, many of his fellow colleagues who are also elected officials were fascinated with the services they could contract out to me. This single client helped me break into a unique area that has consistently grown my business ever since. I am also lucky that it’s an area I truly enjoy. When I first began my freelance Public Relations business during my senior year in college, I knew little to nothing about political campaigns nor did I have an interest in them. Yet with a single client, I established a whole new branch of my business. When looking to build your own client base, don’t overlook the obvious or easy. Ask your existing clients for leads from their own network who might be interested in your services. Better yet, ask them to connect you directly by personal email. If the initial introduction to your business is made by someone that the lead knows and trusts, it won’t be as easy to brush it off as a cold sales call and will speak volumes for the quality of your work.

Identify your niche.

When using existing clients as a building block for new clients, it’s natural that a pattern of businesses with whom you work most frequently will emerge. Allow this to build organically for some time before taking a critical look at what these patterns mean for the direction of your business. Essentially, you will now need to identify your niche and embrace it. Identifying your niche is not a limitation or a blinder for future business. You can and should seek out projects from all directions as you never know when this could tap into a new reservoir of work. But a niche will allow you to target many aspects of your business’s branding and marketing to appeal to this niche and establish your expertise within it. Say you make custom invitations to sell on Esty and begin to track that the most orders you receive are for wedding invitations. You can focus your web site content, social media and portfolio on wedding-related stationary. You may also choose to attend more bridal shows and advertise in bridal publications or on wedding web sites. This focus will allow you to place your time and effort in the area in which you are most likely to secure future clients. In the client building process your focus may form a spotlight on your niche, but don’t completely turn out the lights on all other categories of services. Remember that the bride you created invitations for will someday be interested in birthday and baby show invites or holiday cards. Make sure even current clients are aware of the full scope of services you offer.

Introduce and incentivize.

Once you’ve reached out to your existing clients for recommendations and have focused on your niches, next comes strategically introducing your business to potential clients. There are various ways in which you can accomplish this and the method will depend upon your type of business and the clients you’re trying to reach. One common method is a letter written to the business owner which serves as a friendly introduction to you are and what you do. This should go out to all businesses which fall within your niche or with whom you’d like to work. The letter should close with a realistic call to action. This can be as simple as inviting them to visit your web site or alerting them that you will be following up by phone in the coming weeks. If you’re in the position to do so, including an incentive such as a discount or free trial for one of your services is a very effective way to get a response. I’ve written such letters for several clients and we’ve seen some amazing results. The more personal you can make it (add in details specific to the person or their business) the more likely you are to receive a response. People want to feel that it’s genuine and not a form letter sent to hundreds of other businesses. Finally, by providing an incentive to try out your services, you reduce the risk of the unknown and take one step closer toward gaining a new client.

Stay tuned as the “Turning Freelance Into Fulltime” blog series continues with: Taking The Leap

 
 

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Turning Freelance into Fulltime: Moving Away From One-Time Projects

This blog continues a series of 5 posts which outline and address a very valuable lesson for any industry or any career – how to turn your freelancing into a fulltime business. If you’re currently contracting out a set of skills or have at least thought about it, this can be the critical first step toward starting your own business. I invite you to join me each week as I share the 5 most important components needed to prepare for a successful transition from freelance to fulltime.

In case you missed it, read:

Establishing Professionalism

Getting Your Name Out There

———————————————————————————————————————————–

Moving Away From One-Time Projects

busy full calendar monthly clients

Often freelancers are hired for a single project that is pre-defined in both scope and pay. If the project was ongoing or needed regular maintenance, that business would just hire a fulltime in-house employee instead, right? Not always. Some businesses still have the need for a fulltime employee but may lack the office space or sizeable pay to do so. This is where being able to offer a contracted service is so valuable. You can provide as much time and skill as a salaried employee, but at a much lower cost because you don’t require a workspace, benefits or consistent 40 hours a week of work. To turn a freelance business into a fulltime career, you need consistent pay or in other words, consistent work. Instead of living on a hope and prayer from one project to the next, begin building a reoccurring client list to add stability to your income.

Identify An Ongoing Need.

When you want to move away from a pay-per-project basis, sometimes you need to be one to identify an ongoing need in which you can address. Essentially, you need to put yourself in the position of that business owner. Ask, “What are their long term goals, reoccurring problems or limitations?” Once you’ve uncovered these valuable issues, look for areas in which the services you offer can align with resolving them. For example, a graphic design artist doesn’t have to wait around for the next client who needs a logo or promotional material put together – these tend to be isolated, one-time projects. With some creative thinking and researching you might discover that the client also updates their website homepage graphic on a monthly basis or regularly includes infographics in their weekly blog posts. This presents the opportunity for an ongoing contract in which you can provide these services on a reoccurring basis. No matter what your freelance business offers, there’s almost always the opportunity to become a regular contractor if you look closely.

Create Your Own Position.

Once you’ve identified a client’s ongoing need, you’ll next need to package your services in such a way that they create a valuable position that your client will want to fill – and do so by hiring you. Start organizing your ideas by writing them down. What can you offer on a regular basis? If you’re a freelance writer, this could be weekly blog posts, website content writing and formatting a monthly email newsletter. Be specific in what you’ll bring to the table and remember to include things like monthly client conference calls, unlimited email communication and projects guaranteed to be completed by a certain deadline every month. These will help to make the position look less like a freelancer and more like a real employee. By doing this, you will have essentially created a proposal in which you will need to pitch. For any freelancer, the first time you pitch to a client can be role reversal that takes some getting used to. Often you’re the one being pursued for work, now you’re the one pursuing a client for work.

Learn to Pitch.

You identified a need, you created a job proposal, now you need to pitch it – and hope you hit it out of the park. First, be sure your client is expecting a proposal for your work. If you’ve worked with them on several projects before, you can easily initiate a conversation in which you explain what you’d like to do. You want to offer them your services on a reoccurring basis to maximize their business goals. Once they’re aware of your intentions and are expecting your proposal, schedule a time to meet with them in person (if feasible) or a time you can connect for a conference call. In either scenario, email them a PDF of your proposal before your meeting so they can review what you’re offering and bring up any questions they may have at that time. This simply removes the back and forth that can often occur later. After your meeting, set a time frame for follow-up that works for both of you. This can be another call or just an email. This follow-up should confirm whether or not they are interested in hiring you as a regular contractor. During the whole pitching process, answer any phone calls or email within one business day. This sets the first standard for how responsive you would be if hired and clients will take this into consideration. Once you’re comfortable with the proposal and pitching process, you’ll be well on your way to securing more ongoing projects and this will also become a very useful skill once you take your business fulltime. Want more information? Click here to read the popular Bennis Inc Blog post, “Protecting Your Pitch.”

Think “Value Added.”

When turning one-time projects into reoccurring clients, your energy is best spent answering the question “What can I gain by hiring you on a regular basis?” Depending on your services and the situation, the possibilities are endless. Most commonly your answers will be among the following. A client will be able to focus more time on running their business by not always looking for freelancers every time a new project should arise. They will save money by using multiple services from one person. You will both develop a working relationship that will allow you to understand each other’s communication style and work together most effectively. I refer to this as “value added” or the value that is above and beyond the services in which you’re being paid to perform. If a client can understand the value you bring to the table that is at no extra charge to them – but can often become invaluable – then you are far more likely to secure them as a reoccurring client. Because there really isn’t a place to emphasize the value added services in a proposal, they’re best communicated when you’re pitching to your client. Make a strong case for yourself! Think of every client as one step toward taking your freelance business fulltime and put this passion into your proposal.

Stay tuned as the “Turning Freelance Into Fulltime” blog series continues with: Building a Client Base

 
 

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Turning Freelance into Fulltime: Getting Your Name Out There

This blog continues a series of 5 posts which outline and address a very valuable lesson for any industry or any career – how to turn your freelancing into a fulltime business. If you’re currently contracting out a set of skills or have at least thought about it, this can be the critical first step toward starting your own business. I invite you to join me each week as I share the 5 most important components needed to prepare for a successful transition from freelance to fulltime.

In case you missed it, read:

Establishing Professionalism

———————————————————————————————————————————–

Getting Your Name Out There

get your name out there name tagGetting comfortable with confidently talking about your freelance business can be awkward and challenging, but is an essential part of getting your name out there. Often this also means opening yourself up for rejection or dismissal – after all, you’re not yet a “real business” in the eyes of many. If you wait to build a network, you’re only putting yourself months or years behind when you do take your business fulltime. It’s never too early to begin. So how can a freelance business establish a name and a reputation strong enough to compete among the best? The following steps are what I stumbled upon as the most effective way to establish my name in the local market when I was still freelancing:

1. Weave it naturally into any conversation you can.

People can’t know what you don’t tell them, so don’t be shy about sharing the skills you offer on the side. Whether you’re at a dinner, the bar or the bank, if you see an opportunity to connect with someone who could be a potential client or put you in contact with some, it’s worth mentioning what you do – even on the side. You never know who is listening or what you’re saying that could resonate with someone. Be sure to practice a smooth 1-2 sentence explanation as to what you do that you can delivery clearly and confidently. Also, think of adding in a unique or memorable tidbit like, “I first began my side business in college and have since worked with clients from several different states,” or “I just opened a shop on Etsy and custom-make every product.” This not only qualifies your business, but makes you stand out. As a note of caution, be sure to look for natural segways in the conversation that allow for the topic to be brought up. An unnatural insertion can make you look desperate or unprofessional. Start with asking them what they do and when they ask you in return, there’s your green light.

2. Join local networking groups, but limit them to ones that best serve your business.

There a myriad of networking and business development groups at the local, state and national level. Don’t be tempted to join every single one. Think quality over quantity. As a freelancer your time is more valuable than ever – trying to juggle a fulltime job, side business, family life and everything in between. The time you can dedicate to joining networking groups is best spent divided between 2-3 groups maximum. If you pay the dues but are spread too thin to attend any of the meetings, this is a waste of money and potentially a bad reflection on your business. I was fortunate enough to be introduced to category-specific networking group in my area right around the time I went fulltime. This type of networking group is unique in that only one business can represent a category. What this does is create a small “community” of businesses who feed clients to each other. Without competing businesses in the same networking group there’s no conflict of who gets what recommendations. These are often non-dues paying with the idea that you earn your membership by sharing leads. This group meets weekly and has better turnout than most monthly groups with a membership 4 times its size. It’s a large time commitment but also produces consistent results for my business. Because of this, I am only a member of one networking group – and I give it my all. Depending upon your business and what’s offered in your area, a different combination of networking groups might make more sense. The bottom line is to do your research, give each of them a try and know when to stay or when to leave.

3. Ask close family and friends to spread the word.

This may seem overly obvious, but often the best ideas are. Your family and friends have a vested interest in seeing you and your business succeed. They can also speak intimately about your character and skill set. Let them be your mouthpiece and plug your business for you. Even just 4-5 people talking to their networks, increases your network exponentially. I remember creating a little half-page handout for my mom to share about my business. She knew a lot of fellow business owners back in my hometown that could benefit from my consulting work and she did as any mother word – she promoted it. Also, whenever anyone asked what I was doing or where I was working, she remembered to mention that I was also running a side business. Prompting your family and friends to do the same will help the word spread in many different directions and to many potential clients.

Stay tuned as the “Turning Freelance Into Fulltime” blog series continues with: Moving Away From One-Time Projects

 
 

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Turning Freelance into Fulltime: Establishing Professionalism

This blog begins a series of 5 posts which will attempt to outline and address a very valuable lesson for any industry or any career. To say I’m excited to share this information is a gross understatement. Reading any post on my blog, you will see I’m passionate about sharing my life experiences with as many other entrepreneurial hopefuls as I can. This special series “Turning Freelance Into Fulltime” could very well one day become a best-selling book or feature article in Fortune (we can all dream, right?), but for now it’s solely for your benefit and inspiration.

If you’re currently freelancing a set of skills or have at least thought about it, this can be the critical first step toward starting your own business. I invite you to join me each week as I share the 5 most important components needed to prepare for a successful transition from freelance to fulltime.

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Establishing Professionalism

Business card professional imageLaunch a web site.

As a freelancer, you’re often caught in the awkward limbo of working a fulltime job while living this second life on the side. How much time and energy should you spend on creating a professional image for your freelancing work when it’s not yet your bread and butter? My advice is – a great deal. When a prospective client asks for more information or a sampling of your work, it’s easy and convenient for you to send them a link to your web site. When I first started, I used an extremely clean and simple template on Weebly.com. The web templates are as easy to create as a word document and Weebly hosts your site completely free (which was right in my price range when I first started). Although I’ve since outgrown Weebly as my business grew, I highly recommend it as a starting point for any other freelancers. When you’re ready, you can purchase a domain name to personalize your site further. The bottom line is that a web site shows prospective clients that you’re serious about your side business and the quality of work you put into fostering this business is a good indicator of the level of work you’ll also put into their projects. Once you’re ready to take the leap into fulltime entrepreneurship, you’ll be that much further along in your process of developing a business web site.

Create business cards.

It’s never too soon to have a professional looking business card for your freelance business. When you have the opportunity to talk to someone about your business and they show an interest, you want to be able to give them something that allows them to be immediately in touch with you or to find out more about your work. A business card does just that. It’s also discrete in that you can easily slip someone your card and shift the conversation so you’re not stuck feeling like all you do is talk about this “side job” you have. I remember the first business cards I created. I ordered the minimum amount from VistaPrint.com using one of their pre-made designs. When they arrived in the mail and I saw my name alongside my business’s name on that little card, I felt that first jolt of energy that entrepreneurs live the rest of their life for.

Designate a professional email.

Once equipped with a web site and business cards, you’re now in need of a professional email designated for your freelance work. I still encounter many well-established businesses that skip this step and it’s noticeable. If you bought a domain name for your web site, you can usually create an email at this same address such as John@JSmithDesigns.com. First, this type of email address is both neutral and easy to share in that it uses your name and your business and not something awkward like 2Hot2Handlexoxo@yahoo.com. I can’t imagine a perspective client could overlook this red flag and not question the professionalism and legitimacy of your work as well. Second, a professional email is a nice accompaniment to your business cards. Finally, if someone misspells or misplaces your web site URL, they can easily find it by following what’s listed after the @ (I use this technique quite often to verify web addresses even now).

Include freelancing on your resume and Linkedin.

Even though your freelancing business is only a side job at the moment, there’s no reason to exclude it from your work experience. It says many valuable things about you. First, you have a specific skill set of a high enough level that multiple people are interested in contracting you just for this work. Second, you are organized and proficient with time management to be able to juggle a side business along with a fulltime job. Finally, you’re a leader and an entrepreneur to not only get a side job, but make a side job – which could very well become your sole business with enough time. Be sure to include this wherever relevant. I added my freelancing Public Relations work to Linkedin profile and my resume and received quite a few connections who were intrigued by this work. They key is to find the balance between promoting your work but not in such a way that it becomes a conflict of interest with your fulltime job. I assure you, there is a balance that can be reached!

An Extra Snippet: Do you need to incorporate?

While we’re at the very beginning of how to turn your freelance business into a fulltime career, now is an important time to cover the issue of how and when to incorporate. I waited about a year and a half into my own freelancing before I woke up and did this. And it was only after a brutal tax return that I saw the value in doing so. Once you start bringing in frequent income from clients that averages over several hundred dollars for each project, I suggest talking with a CPA or a tax attorney in your area. I was connected with a very sharp tax attorney who saved me from a bad tax year and set me up right away as an S-Corp. There is a cost associated with incorporating your business (especially if you do it the right way) but you easily earn that back the first year you file this side income as a corporation rather than an individual. Yes, there are online programs like LegalZoom.com that can get you started, but it can be a complicated process and I wouldn’t mess around with the IRS. Talk in person with a local professional who can advise you and apprise you of all of the decisions that will come your way as a new business owner. Never once did I hear of someone who regretted this extra effort!

Stay tuned as the “Turning Freelance Into Fulltime” blog series continues with: Getting Your Name Out There

 
 

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