Getting the Clients, Getting Paid, and Paying the Bills

When we consider the business of freelancing, the notions of where our clients will come from, will they do business with us, how we will get paid and what happens when we don’t get paid seem to be forefront in our minds. And somewhere in the back of our minds we are fantasizing about not having to report to anyone, working when and where we want, and all the great projects we’ll have.

So at some point these ideas begin to collide, at this juncture we have a “Reality Check.” And this is when we either go forth with the notion of freelancing or just decide to go to work for someone else.

This is because the very thought of tracking and winning clients, managing time, and knowing what to charge for our time, managing the resources, and managing a life, begin to make you very ill.

So do you have what it takes

Evaluate yourself and your experience
• do you understand the world of business and finance
• do you or have you had enough experience(s)
• why are you going into business for yourself

Evaluate your design and production skills
• can you render and communicate your concepts effectively
• do you know how to prepare print-ready material
• are you quick and efficient in the way that you work
• do you have good organizational skills
• can you adjust to your client’s style or needs
• do you know when and how to suggest cost effective solutions

Evaluate your business skills
• can you set reasonable goals
• can you make decisions quickly
• can you juggle projects and deadlines
• can you visualize the “big picture” in a situation

Evaluate your entrepreneurial savvy
• are you confident about your abilities
• are you a self-starter
• are you persistent
• can you put the needs of your business first
• do you know when to ask for help

Is the opportunity to succeed there?
Take stock of your potential market.
• is there a niche you can fill
• do you have one major client you can rely on
• what’s your potential market
• what’s your reputation

The Ten Commandments of Freelancing

borrowed from: “Starting Your Career as a Freelance Illustrator or Graphic Designer” By Michale Fleishman
1. Thou shalt learn when to say “no”. If you don’t like the suggestion, work it out amicably. Learn the art of compromise. However, accept the fact that there are actually some art directors who just won’t meet you halfway. These folks are not worth the headaches or heartaches. At this point, you just need to safely get out of dodge with style and grace.
2. Thou shalt be polite, persistent and positive. Always communicate in a professional manner. Listen to your client. Educate your client.
3. Thou shalt strive to consistently increase your skill level and expertise. Grow and learn; get it better than the day before.
4. Thou shalt relax and have confidence in yourself. Nobody’s shooting at you, and your not doing brain surgery on your mom. Believe in yourself, and other will, too.
5. Thou shalt make it a point to have fun. Love your profession. Do what you want, work where and when you want, and work with nice people only.
6. Thou shalt have a personal life. Never feel guilty about making (and taking) time for yourself and loved ones– it’s important.
7. Thou shalt always be honest and ethical. Never promise something you can’t deliver, and remember: Your selling a product, not your soul.
8. Thou shalt be a good business person. With stars in our eyes, we key in on those first four letters in the word “freelancer.” The financial (and physical) costs of running and maintaining you business will quickly alert you to the realities behind the lofty conceptions. Be an informed freelancer: Protect your rights by keeping abreast of the ethical standards, laws, and tax reforms. Stay current with pricing guidelines. Learn effective negotiation skills. maintain excellent records. Don’t start a project without paperwork.
9. Thou shalt not take rejection personally.
10. Thou shalt never miss a deadline. Be late with a job, and the chances are, that particular art director will never call you again.

Getting the Clients

Once you’ve taken stock of what you want to do and where where you stand relative to others doing similar work, you’ll have a better idea of where to direct your marketing efforts.

What aspects of a project or job do you do best?

• managing impossible deadlines
• innovative concepting

What types of clients are in greatest need of that skill?

• good at logo work and identities (look to private sector)
• excellent with print advertising (seek out the local agencies)
• is your style conservative (call on finance and law firms)

Getting your name out there

• New to the area…
• Working with new businesses…
• Networking…
• Volunteering…
• Referrals…
• Memberships and professional organizations…

Fifteen Quick and Easy Ways to Lose Clients

borrowed from: “Starting Your Career as a Freelance Illustrator or Graphic Designer” By Michale Fleishman
1. Be a pest. “Drop by” without an appointment or “pop in” unexpectedly.
2. Don’t return phone calls or answer your mail. Don’t follow up. Delay sending requested samples. In that same spirit, arrive, late for meetings.
3. Push your wares too fast or so hard that you are insensitive to the client’s needs and wants (while remaining overly sensitive to your own).
4. Be over confident; better yet– be arrogant or rude. Always project a negative attitude and unpleasant demeanor.
5. Act intimidated or lace confidence.
6. Give a slipshot, or unprofessional presentation. If you still get the job after this, do sloppy work.
7. Copy someone else’s art, or present work that is not your own.
8. Don’t listen to the client; don’t ask questions; then, don’t follow directions.
9. Overprice. Then, turn in a bill that’s larger than the quote.
10. Whine, whimper, or balk at suggestions.
11. Require the client do more work than is their responsibility.
12. Fluster easily, panic consistently.
13. Promise more than you can deliver; give less than what was asked.
14. Miss a deadline.
15. Do bad work.

Getting Paid & Paying the Bills

Once you have clients, or a plan to get them, figuring out how much money you’ll need. Estimating how much you think you’ll need to earn. If you’ll be able to make ends meet. And Where the money to get started will come from would be your next issue.

The process of Setting Fees

There are fundamental conditions to consider when setting fees.
• Overhead—or the cost of doing business
• Variable Costs—an estimated of the nature and complexity of a project
• Market Conditions—knowing the intrinsic value of the final product

Resources
Regardless of the business size, either freelance designer on their own, or a full-blown agency, long-term success will be the result of detailed, up-to-date information on the consumption of resources:
• staff
• freelance personnel
• supplies
• materials
• outside services

Record Keeping
The business of keeping track of these resources and how best to do so can be determined for you with the help of an experienced accountant.
• time / payables / income
• customized book keeping system / off-the-shelf software

Overhead and Setting an Hourly Rate

The best place to begin is to examine in detail the constant costs of the business or the overhead
Determine your overhead
• rent
• utilities
• equipment (leases)
• office supplies
• business insurance
• salaries
• taxes
• benefits
• professional services (accounting and legal)
• non-billable time (self promotion and administration)
• self-promotion / media

Don’t forget to include profit in th equation. A healthy business will generate about 20% profit each year after all expenses are have been paid.
• profit

When determining your hourly rate it is best that these overhead costs are calculated on an annual basis.
This dollar amount should then be divided by the total number of hours you have estimated are available for billing clients for the year or billable hours
• how many hours do you want to commit to (annually)

The Magic Formula • Annual Overhead (including salary) + Profit = “x” “x” / Annual Billable Hours = Hourly Rate

Hourly Rates From a Business Standpoint

Consider how these figures translate into a situation beyond freelancing, like for example, how a firm determines your hourly rate.

Timesheets and Tasks

Billable or not, most if not all time should be tracked.
• more predictable project / job estimating
• a means for progress reporting (how much time is left…)
• calculate project profitability
• monitor staff productivity

degree of detail
• dependent on management and/ or client’s needs
• task based tracking
• method or issue for inputting

handouts: task list sample(s); timesheet samples(s)

Other Expenses

Materials
• considered as overhead expense
• direct costs may be invoiced to client
• large acquisitions may require PO
Services
• outside services and provisions should be documented
• job spec or brief may be necessary
• all acquisitions should require a PO

handout: purchase order sample(s)

Reading Assignment (RECAP)

• TEXT: AIGA Professional Practices in Graphic Design; chapter 3; pgs 21-27
• TEXT: AIGA Professional Practices in Graphic Design; chapter 7; pgs 65-70

Reading Assignment (PREP)

• TEXT: GAG Handbook for Pricing and Ethical Guidelines; chapter 5; pgs 78-90