Good day yesterday. I had an unexpected lull in a pile of work (waiting for interview sources and feedback), so I was able to devote a large chunk of my day to my manuscript. I like where it’s going, and I like that I had time to get the story elements aligned. I had inadvertently introduced a character and then changed her name unexpectedly two chapters later. That’s what I get for not writing it down.
Most of us are in the thick of finishing up work for clients, finishing shopping, wrapping, planning, and decorating. So why would I choose now to bring up the fact that you need to be working on your business plan for next year?
Because next year is exactly 24 days away.
Actually, you should have planned something already. You did, right? Right? Never fear – it’s never too late to get a plan in place and start acting on it. If you’re doing it the way I do it, you revisit your plan every month anyway, so you’re amending as you go.
If you’re not, fear not. Just start somewhere. Try here:
Income goals. Didn’t make enough money last year? Want to make more this year? Then figure out what it will take before taxes to earn what you want to have in hand after taxes. Get a calculator. Get an accountant if you must. Just get that figure in your head.
Expenses. Planning the earnings should automatically come with your expense planning. Everyone needs equipment at some point, or supplies, or trips to various trade shows, etc. Jot down your list of must-haves, would-like-to-haves, and wish-to-haves. Work that into what you need to make to get some, if not all, of those things.
Rates. What will your hourly rate be next year? If you’re giving yourself a long-overdue rate increase, it’s up to you how you want to handle that with current clients. For me, I’ve added the rate increase as I’ve added new clients. It’s less of an issue if they agree to my new rate coming on board. Or you could send them a notice attached to a “get this rate before it expires” offer.
Client list. Give yourself an hour or so to consider who your clients will be. It’s easy to fit that time in – while you’re driving, shopping, running, folding laundry, etc. What clients have you worked with and which ones would you like to keep? How can you attract clients just like them? If you don’t have clients you’d like to hang onto (it happens – you could be between clients at the moment), consider whom it is you’d like to work with.
Marketing approach. Don’t write down one way to get clients. Write down all ways to get clients. Give yourself plenty of options and make sure to plan how often you’ll market (every day, right) and when/how you’ll follow up. Open your calendar program and schedule it. Go on. You’ll be glad you did.
New skills. Now is the time to plan out when you’ll learn how to write those press releases or put together those case studies. If you’ve been wanting to, put it on your agenda and schedule time to research how and when you’ll study.
What goes into your business plan?
10 responses to “It’s Nearly 2012: Do You Know Where Your Business Plan Is?”
I need to redo my business plan. While what I did in 2011 kept my head above water, it's still not the balance I want, so I have to re-adjust how I'm allocating some of the work and go after more clients doing what I like best.
I'm relying too much on the teaching, and, while it's rewarding in many ways, it's also draining, and I need to expand the client base a little more.
I'm with Devon…I've got to redo and rebalance. I did well this year, but primarily doing work I just don't enjoy that much. I've set my 2012 income goals and I've raised my rates, but I have to focus on the client list and the marketing. I hope to have some breathing room at the end of this month to do that.
Devon, I was surprised that you had so many drop that class. It's such a great concept.
Ronda, I think you can start right now. Take ten minutes today and focus on something in your plan. Start with income goals. That takes very little time to decide. Then move to rates. Each day, check on more of these off your list. By next week, you'll have it all done and it won't feel like you even broke a sweat. 🙂
I so love how simple you made this, Lori. And you know how I love simple. 😉
And I also love how Devon and Ronda focus in on balance. After all, isn't that why we went into freelancing? It's such an important element.
A very simple goal I work on every year is working smarter. With the more time I get under my belt, I eliminate tasks that are time-consuming with unsatisfactory gains (such as, financial or promotional gains). Because I am a lover of education, I also have to take a serious look at what I spend on books, eBooks, webinars. I definitely have gotten smarter about that. 🙂
Great post, Lori.
Lori, I've been reading your site for a while, but I think this is my first time commenting. For the past 5 years I've been religious about a business plan, as I've been working full time while I built up my freelance business enough to get off that treadmill. This year I was finally planning the jump for 2012 (income was where I wanted it to be [which is hard to do when you're already working 40 hours a week], client list needed a couple more clients, but that would be do-able with 40 more hours in my week, etc.) and now I am expecting a small bundle in April that has completely thrown off my calculations. Not unplanned, but sort of given up on…
I'm frustrated, since I consider having a business plan the 11th commandment, but there's just so much unknown right now. I'm even afraid to set my monthly income goals, since this is our first child and a giant leap into the unknown (juggling a full-time job with almost full-time freelancing I know. throw a baby into the mix, and I feel like I have no idea what I'll be doing).
And going to full-time freelancing is being put off again, since affording health insurance for a pregnant woman is almost unthinkable. Maybe next year…
If I can keep my clients and income the same this year, I'll be thrilled. Treading water has never looked so good. My question these days is how much can I go down without being completely UNhappy (or sinking) …
Any suggestions?
Cathy, simple is what I do. 🙂 You're very smart to point out the "working smarter" angle. If you pick up one better habit every year, imagine how much stronger your business will be!
Liz, I'm glad this brought you out to comment. 🙂 Sorry you're feeling like a sinking ship. You're not. You're just increasing your crew. 🙂 Babies do tend to play hell on the best plans, don't they? Here's hwat I say:
If your partner has insurance, make the leap. Babies require your attention a lot, but they sleep a lot those first months. They sleep at night and during the day, and it's amazing how much you can get done under the gun when they're napping. Plus when they're older, you can set up their desk next to yours and arm them with office supplies of their own.
I think the toughest part is establishing your boundaries. You can do it. Discuss with your mate the time you'll need to work, arrange now for at least four hours of uninterrupted time each day. Hire a sitter if you have to. Consider this your career because guess what? It is. Treat it like any other job. If you work in an office, you'll still need a sitter, right?
It's a leap into the unknown, but if you and your partner have an undersanding thaty this is your career and you need support and encouragement in order to make it work, you'll do fine.
Keep your eyes open this week and next. I'm going to break all this down so it makes it easier for you to determine if it's the right time for you.
That would be "what" I say, and congratulations on the impending arrival. :))
Lori, Thanks so much. Right now my husband doesn't have health insurance, so we were going to get an individual policy ourselves (that just sounds wrong somehow). Which are even more prohibitively expensive for pregnant women, if you can find one that doesn't have a waiting period. I considered Cobra from my current job, but it's even more than single-payer…
I'm definitely looking forward to your break down!
Maybe I'm weird but I love the last week of the year. I'm typically proud of the fact that I survived one more year as a freelancer, and look forward to new opportunities that will come my way in the coming year. (Yes, I do that all while staring at the Christmas tree, sometimes while sipping hot tea or cocoa, but NOT wearing a dorky Christmas sweater.)
Don't hold me to this, since it will depend heavily on how many new assignments I pick up in coming weeks, but ideally, I'd like to get a new computer by year's end – maximize those business deductions and prepare for a year where my technology isn't chronically out-of-date. But First I need to make sure I have enough in the coffers to cover a couple months with huge heating bills on top of the normal bills. I can't really start a website with my current computer that is incompatible with virtually everything…but in 2012 I want to start my own blog (not about writing, since as Lori's post from yesterday proved, there are already a slew of great writing blogs), start selling some of my hand-knits and hand-crochets on Etsy, etc….
This morning I played hooky and got my hair cut – touseled, with fun shorter layers in back, longer layers in front. Cute, cute, cute!
Thank gawd you're avoiding the sweater, Paula! I think they should be banned. If people insist on banning quality writing, why can't we ban ugly sweaters? And crocs worn in public, for that matter?
If you get a new computer, I swear I'll faint. 🙂