No matter what you write, earning money from your writing means you are running a business. If you are serious about having a writing career, one that will allow you to pay your mortgage and eat, then you need to know what you are getting into and plan accordingly. Here are 15 tips for setting up a professional freelance writing business.
Tip 1: Write a business plan before you write anything else. Know how you are going to run your business, how much you need to make each month to cover expenses, taxes (don’t forget self-employment taxes on top of regular federal, state and local taxes) and other expenses.
Tip 2: Define your Market. Who are you going to target for work? What type of work do you want to do? Do you want to write for corporations, nonprofits, associations or publishers? Do you want to write blogs or web content? Speeches or scripts? Figure it out and make a list of prospective clients to target. If you want to stick to writing books or articles, make a list of publications and agents to target.
Tip 3: Write a marketing plan. Once you’ve figured out who to target, you need to decide how to market to them so you can turn prospects into clients. This will require a marketing strategy to convince them you are the best choice for their writing needs. Remember that marketing is essential all the time, even when you’re busy. It’s the only way to stay busy. If you wait until you have time, you will fall behind and have gaps in your work.
Tip 4: Set up a database or other way to track your efforts. You will need to keep records of who you are contacting, when, how and the response you get.
Tip 5: Be strategic in your efforts. Set up a phased-in plan so you know what to tackle first, second and so on. What will you do before anything else? Get to work on that, but know what comes next so you can start laying the foundation for that too.
Tip 6: Register your company with local officials. Every jurisdiction is different, but they all require businesses (even those run by sole proprietors in their home, i.e., freelance writers) to register the business. Check your local authorities for details or contact your Small Business Development Center (SBDC) or Small Business Administration (SBA) for help. They are wonderful in guiding a new business owner through the various hoops, and trust me, there will be hoops.
Tip 7: Get business cards. They don’t have to be fancy, but they do have to be professional. They aren’t as necessary with publications, but if you want to work for corporate, government or non-profit clients, you will need professional business cards.
Tip 8: Keep good books. This means knowing what contracts have been signed, what the job is and for how much, when it is due and when you invoice. Leave columns for payments and for repeat invoices sent. It will happen. More often than you will like. Be ready for that. If you have questions, contact a bookkeeper or accountant for help. It pays to get set up properly.
Tip 9: Keep a capital reserve to carry you through tough times. The general recommended amount is six months capital to cover you in lean times. This means salary to pay your expenses as well as those of the business, including taxes. When you run a small business, money is always be an issue. Clients and publications notoriously pay late. Sometimes they don’t pay at all or not until they receive a nice letter from an attorney. It happens. Be prepared. Even with good clients, delays can happen. Don’t rely on being paid on a specific date. This is true in any small business. You need to be able get by without getting paid for a few months.
Tip 10: Be prepared with a writer’s biography, resume and clips. You will be hired on your writing and prospective clients will want to see samples. Be ready with printed copies, PDFs and links for email communications. If you don’t have any clips yet, mock up some so the client has a chance to see what you can do.
Tip 11: Create a writer’s website and manage it. This means writing content that is meaningful and readable. Maximize your SEO. Add a blog or samples, if you want. It’s up to you. The main point is to have a site you can refer clients to for more information about your business and/or to see samples, depending on your business model. I rely mostly on referral so I don’t include samples on my web site, but I do host my blog there.
Tip 12: Learn the tax laws and regulations for businesses in your area. Find out if you need a home business license or a tax identification number. There are many options for how you set up your business that will affect what you need. Get good advice and be sure to fill out all the necessary paperwork. Your accountant or business consultant can advise you on legal liabilities associated with different business structures, such as LLC or S-Corp.
Tip 13: Get a business account at your local bank. This will require a business license, but it is essential. Banks will not cash or deposit checks made out to a business without a business account. This means if you are doing business under a name other than your own, you will need a business license and business bank account. Most jurisdictions require this for people running a business under their own name too. Since there are legal liabilities involved, I highly recommend getting professional advice. Ignoring the rules can have serious consequences both professionally and personally.
Tip 14: Ask for referrals from clients when you complete a project, assuming they are pleased with your efforts. Word-of-mouth is the best way to build your business.
Tip 15: Always be pleasant, deliver your best work and meet or beat your deadline. Those are the three most important elements of having a successful career. Don’t ignore them.
Good luck!
Next week’s blog will look at the top things you should never do as a writer.