Do:
- Transition carefully, thoughtfully: I was a midnight poet, writing before and after, my work day (a financial writer for a small business publication). On the side, I dabbled with freelance essay writing and other creative projects. My big break-through came when my employer decided to launch a new column about business people & their hobbies. I gladly volunteered to research and write those pieces. That extra work eventually gave me the samples and experience I needed to become a columnist.
- Network: One of my former managers became a business editor at a major newspaper. I was able to sell her on the idea of a fun piece about the weekend activities of high-powered deal makers. That opportunity led to other high-profile assignments. Likewise, many former managers and co-workers now work at other national, regional and local positions. Those contacts and friendships have led to revenue for me.
- Work for your old job: When I first started freelancing, my former employer was one of my first clients. The steady assignments initially provided a financial cushion.
- Be Flexible: Be open to different kinds of clients and different types of assignments. I've written restaurant reviews and I've tutored high school students.
- Pace yourself: Learn to say no. Taking on too many assignments or too much too soon will harm your reputation if you can't deliver. I learned this the hard way: A few years ago, I agreed to an unrealistic schedule for a small niche publication. What's more, I had competing professional and personal commitments that were already pushing me to the limit. Ultimately, I disappointed one niche publication editor. We have not worked together since. I should have been realistic and just declined the project.
- Establish a support team: Get the right legal, tax and tech support help. In hindsight, I should have nurtured better ties in those areas before I went out on my own. Hint: There's no MIS team when your computer crashes in your home office.
Don't
- Forget the numbers: It's all about the money. Don't turn a hobby into a career if you lack the capital. Every business has start-up costs and lean periods. You need seed capital and a realistic business plan to get past early difficulties. Don't fly without a net. I've had my share of hard landings and I recommend nets & cushions.
- Price yourself too low. Be competitive, but set rates that will support you and your business. Don't give away your services.
- Overwork yourself: Once I worked non-stop for about 36 hours straight, with a small break for a family event. My work marathon led to bronchitis and lung damage. The extra work cost me a lot in terms of medical expenses and lost work. Don't pretend that sleep is optional.
In this post: Silly Goofs That Tank A Small Biz or Self-Employment, I featured advice from Ruth King, president and CEO of ProfitabilityChannel.com. I promised to follow-up that post with her tips for "turning a hobby into a business." Here's her list:
- Be a Shadow/Intern: Find a mentor in your field. Learn the about the nuts and bolts of your business from someone who operates a similar business. Many people are surprisingly generous with their time, talent and advice.
- Study the back office. Learn and try-out all of the back-office bookkeeping functions that you will have to master as a business owner. There is a lot of paper-work. It's not just about the craft, your services or the products.
- Learn about your suppliers and industry contracts.
- Research, research, research.
- Consider a part-time schedule: Keep your hobby part-time or on weekends only until you have developed enough contracts and contacts to make it worthwhile. Consider working part-time at a salaried post. Think about a part-time job that offers great benefits, such as Starbucks: 10 Reasons Why I'll Work at Starbucks: Late Bloomers Guide to Saving: Pt. 3
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The Frugal Duchess Booktique
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Very Timely Frugal Duchess!
ReplyDeleteBack in 2000 I registered a corporation with the State of Wisconsin. I let it drop after getting flooded by paperwork from the state for employee counts, earnings, etc etc etc. Just today the filing I made with the state to restore the corporation to good standing just took effect.
I have a website my wife and I are using to document our homebuilding project. So far, only the bank, my mother's business (title insurance & escrow company), and our well driller have their own websites. I will hit up our subs with a proposals for a low cost and low maintenance web presence as well as a couple of more intense and more costly sites.
I have a number of filings yet to complete but as you say never forget your rolodex of friends & contacts!
Marcus:
ReplyDeleteThanks for your comment.
Good luck with your new project!
Take Care,
Sharon
This is very timely for me too.
ReplyDeleteI am planning to leave the workforce and still trying to gather the courage to take the leap.
Your points will come in handy.
Thanks
Father Sez:
ReplyDeleteI appreciate the feedback and I wish you lots of success!
Take care,
Sharon