I hope you have a strong stomach, because this stuff is not for the weak. I’ve been self-employed for just over two years now but since this is a new blog I decided I might as well start documenting my journey. This will be part one in a running series talking about the start of my web design company to where I find myself today. I’m not sure reading this will benefit anyone else considering the self-employment path but it might provide a little bit of insight into how much of an uphill struggle it can be. Don’t get me wrong, I love being my own boss, setting my own hours, and doing the work I love doing but if you aren’t disciplined and dedicated everything else will just fall apart.
First a brief history… I launched Logix in January of 2004 after leaving the design firm I was with for over three years. It was a quick escape and not very well planned but I’ve managed so far. If you’re considering going on your own there are a few things I highly recommend you have to start with.
- Working capital. I recommend saving up enough money to live on for at least three months if not more. Three is the bare minimum. The more the merrier. If you don’t have this money to begin with then try getting a loan from a bank. Warning though; in order to secure any kind of loan from a bank will require you to have a very solid business plan and good credit behind you. If you don’t have either of those then I wouldn’t bother stepping foot in the door. On the bright side, most community colleges offer an entrepreneur course that guides you through building a business plan. They can also help with the bank loan portion. I however took neither the route of saving up money nor getting a loan. It’s a struggle trust me. It’s not impossible but it’s not easy.
- A solid business plan. This goes back to the first point. Establishing a business plan will not only help you get a foot in the door at the bank, but it will also establish a direction for your business. Without knowing where you want to take your business and how you want to focus it then you have less of a chance to succeed. Again, this is something I didn’t bother with. And again, I don’t recommend avoiding it.
- Take a small business course. The knowledge you’ll receive will help you greatly! If you can’t stomach the thought of sitting through a night course on business management then you might as well stay at your current job. This is inescapable and if you don’t bother learning anything about business practices then you will not make it anywhere. I didn’t take a course but I spent years reading everything from business management textbooks to entrepreneurial guides and anything else I could get my hands on. Which brings me to my next recommendation…
- Read, read, read. Read about running a business, read about the industry you’re focusing on. Read magazines. Sign up for newsletters. Never stop reading. The world change constantly, which means so will your business. The only way to stay on top of things is to always be reading new material.
- Establish a peer or mentor network. If you want an easier in to the industry then meet people who are already there. If you can get out and network before launching your business then do so. Networking will bring you the highest return-on-investment ever, guaranteed. This is because people deal with others they know and are comfortable with. The more people you know, the more people will want to work with you. You could be the prodigy of your industry, but if you are horrible at networking and talking to people you’ll find things very difficult. I focus very highly on this aspect of my business.
- Get an accountant. If you think dealing with taxes is simple then just wait until you’re self-employed. Oh boy are you in for a ride. You want someone who knows what they are doing to handle your finances. Keep track of everything you buy, everything you sell, and everything you do with your business. Save receipts, write down mileage, and document everything. When the end of the year approaches you’ll want as many write-offs as possible to save you on taxes. I know this from experience. Especially since my last income tax bill totalled nearly five digits. I can’t stress this enough, get an accountant.
There is so much more to starting a business but those are the main things I recommend you have initially. I could go on for hours but I won’t. There are already numerous books out there that cover this same information so there’s no reason to repeat it. The two books I highly recommend in this industry are the “Graphic Artists Guild Pricing and Ethical Guidelines Handbook” available at www.gag.org, and the “The Business Side of Creativity: The Complete Guide for Running a Graphic Design or Communications Business” available on Amazon. These two books offer a wealth of information.
Now back to the current state of my business and how I came to where I am today. As I said, I started Logix at the beginning of 2004 but I knew long before that I wanted to start my own business eventually. I took the time I was employed at the other design firm to get my name out there. I did a bit of freelance work on the side. Now, before you go out and start pulling contracts while working for someone else, I recommend speaking to your boss about it first. Some companies do not like moonlighting and it can lead to a whole lot of issues, the biggest being finding yourself unemployed very quickly. I talked it over with my boss and we came to an understanding. I was in no way competing directly with the company I was working for so there wasn’t an issue.
With the understanding between my boss and myself, I spent a couple of years doing small projects on the side. I joined a lot of online design communities and helped out in forums whenever I had the chance. Helping out others in forums is an easy way of establishing yourself as an expert in your field. A lot of the freelance work I obtained was through job postings on these community boards. This is still where I get some of my work today, although you do have to be careful who you work for, especially if it’s on a global scale. That’s why I always use contracts, but I’ll get to that later. Eventually I contacted a couple publishing companies that release books about Flash development and they contracted me on an occasional basis as a technical editor. It was great work and I loved doing it. Again, it also helps establish yourself as an expert.
By the time I launched Logix I already had a large list of contacts in the industry and a variety of projects under my belt. This gave me something to put into my portfolio and was the foundation for the growth of my business. With a list of contacts I now had a way of finding new work and spreading the word. From there it was smooth sailing right? Well not exactly, but I’ll save that for part two. In part two I’ll talk about more hurdles I went through getting things up and running and what I’ve learned along the way. Until then, work hard, love your work, and enjoy life.
Nice read but too short
can’t wait for the rest
I’m glad you’re writing about this Brandon. I’ll be keeping up with it, especially if down the lines I end up with my own business if I follow through with the Landscape Design. That won’t be for years yet, but I’m glad I also have that in the back of my mind so I can start doing things correctly right off the bat.
It amused me that a bunch of the things you suggested were followed by ‘I didn’t do that, but…’… lol No wonder you ran into hurdles. Alas, you learn from your mistakes and now others can too. bwah haha.
ttyl
Daph
Excellent. I can’t wait to read more!
Great job! I think it’s important to discuss things like this because a lot of people think that if you’re in a job you hate, self-employment is the key to career happiness. Not to say that it isn’t, but it’s not as easy as it looks.
You’ve offered some really good advice for people on how to learn from others’ mistakes and hopefully others will take what you say to heart.
Sometimes it can be a little discouraging, but just remember to keep on going… what doesn’t kill you, only makes you stronger
as a recent graduted student looking for work in webdesign around london this is a very interesting read!
online portfolio
http://www.ruthlessgravity.co.uk
Wow, its almost like that was written specifically for me. I am finding out there are a lot of little things you dont take into account when you are first starting up. Im interested to read part 2 to see what kind of problems you have run into. Possible mistakes that maybe my company can avoid when we finally get running at full speed….
Hey Brandon …
Brilliant .. maybe this is another area we could explore in studiowhiz.net a place for us to discuss, advise and assist as people go through this process ey!
K.
Definately! There are a lot of pitfalls in starting a business and I’m sure I’ve found just about everyone one of them. If I can spare even one person from the same fate I’ll be happy
Low overhead is absolutely key as well when considering a startup, allowing you to go through the lean times as you build the business. That’s where alot of my friends fell down…big mortgage, two car payments, studio supplied all their computers…it simply cost too much for them to break away.
Thanks enormously for taking this topic on, and I’m definitely getting the books that you recommend, as well as following this blog.
I agree with the person who said, “keep your costs down.” In my case, I saw a niche, went to the bank, and on the basis of my once-good credit was able to get a loan… then, I got sidetracked trying to figure out all relevant sorts of code and technology **that I thought would give me an edge,** without really making time for the social network piece. Let me add that in my case, NO ONE ever asked me for a biz plan, helped me with a biz plan, talked with me about a biz plan… it’s incredible to me now, but I never had that element and having a good plan would have saved me at least 18 months 8-p
I’d like to recommend, “The E-Myth Revisited: Why Most Small Businesses Don’t Work and What To Do About It” (Michael Gerber). It’s available in paperback, and I’m still working my way through the activities and finding it extremely helpful. It’s humorous, practical, and has some superb insights. I’m very much in agreement with your advice to Read! Read! Read! Reading is The Only Thing That Has Saved My Bacon because my background was in education and intellectual areas, and I didn’t know squat about business 8-p
I’d also say, the world greatly underestimates the value of a personal thank-you note. Good samples, caring about customers, and being willing to lose money to ‘get it right’ 8-P are all factors. I feel confident about the technical aspects now, and increasingly confident that I can use biz as an avenue to do good things in the world, but the marketing and contract pieces are incredibly time consuming. But it’s been remarkable to me to see how one nice little hand-written ‘thank you’ note will ease things the next time you see someone. (Perhaps because they are so rare these days…?)
In my case, I just met with someone yesterday to say, “Hey, if I do the work, can you nail the contract end and cover the appointments?” I don’t know where this will go, but it can really be tiring covering all the bases. I didn’t have enough savvy to charge for time going to appts and that can add up.
My hat is off to you for starting this blog, and I’m really looking forward to other topics. Thank you.