Kimberly Ben over at Avid Writer has a great post up about the stability of a freelance career compared to a 9-to-5 job. In the comments, Kim said something incredibly insightful: “… if it weren’t for freelancing I wouldn’t have half the skills I’ve developed over the past two years.” Ditto that.
As freelancers, we’re thrown into the business of writing and/or editing, but also into the business of running a business. We learn everything about business. Here are some of the take-aways from my six and a half years at it:
Dealing with all sorts of people. Good, bad, nasty. They’ve all crossed my in box and I’ve become a stronger business person as a result. I’ve learned there’s no substitute for a professional demeanor no matter how hostile, difficult, or insulting the other person gets. You can’t replace your professional attitude once you drop it.
Building business plans and goals. It’s possible to conduct business without a plan or a goal, but it’s not possible to grow a business unless you define it and assess it constantly.
Taking care of taxes. Yes, I hate them. Yes, the IRS amends my returns regularly. But I’ve learned to start with Schedule C every year, to keep detailed records, and to pay quarterly taxes only after I’ve calculated my actual earnings that quarter.
Saying no when I need to. I have turned down about one-fourth of the offers that have come my way. I’ve not regretted it in any instance. Staying true to my instincts and my personal limitations has helped me avoid potentially awful situations.
Protecting the business revenue. The hardest thing you’ll ever learn to do is stand up for your rate and protect it like it’s your child. But in order to conduct a viable business, it’s a must. Setting a rate and sticking to it means saying no, means looking for clients who aren’t afraid to put quality ahead of price, and expecting to be taken seriously. That last one’s the tough one – you have to take yourself seriously enough to expect your rate in order for others to take you and your rate seriously.
So what has your career taught you?
It's taught me that I can learn anything and write about anything and DO anything if I want it badly enough.
I'd have to say, I've learned a lot about what people respond to and the ways in which they choose to respond. I feel I also understand people a lot better because of the ability I've gained to dig a little bit deeper.
I've learned that if you're professional, go through the right channels, and have an assignment from a reputable publication, you can get an interview with almost anyone.
Well, as long as their "people" answer their phones. (Ongoing issue right now in getting a 5-minute interview set up with an actor who doesn't have a publicist, and his manager said she'd arrange things then stopped answering her phone, cell phone, and e-mail. My editors – who can play hardball with her – are ready to intervene this week.)
As for the IRS, Lori – I have explained to them many times that I am not psychic, I am not a CPA, I can't project my earnings for an entire year, nor can I guarantee I will earn enough each quarter to pay the set quarterly amount they might deem I have to pay if I were to allow them to estimate it for me. I told them my payments would vary depending on my actual earnings. They cash my checks, yet each quarter they send the indecipherable instructions for estimating taxes. So I'm glad to hear I'm not alone in my defiance. I've never not paid my taxes, I've never cheated on my taxes, and when I've underpaid, I've paid the (thankfully small) penalty.
Thanks for the link love, Lori.<3
I've learned to trust my instincts and that sometimes saying "no" to a project is the best thing. I've also gotten quite good at telling the difference between a serious prospect and one whose just trying to pick my brain for free info.
Paula, once I let Turbo Tax estimate my quarterly taxes. The result – over $400 in penalties because it was wrong. And no recourse from Turbo Tax's maker. Thanks for nothing, guys. Now, I try the estimated thing, but if I know I've made less, I'm going to do an actual calculation. It saves us both time and paperwork. And it saves me unnecessary penalties.
Devon, I agree. I learn so much by being curious enough to take on new topics and ideas.
Mridu, that's a great lesson to learn!
Kim, they're so transparent after a while, aren't they? I've learned to spot people who are serious about the project versus those who want it, but figure they'll shop around for the best price. That's not my client.
This is my first year paying estimated taxes, so if I sound ignorant, please forgive me… but there are PENALTIES for paying too little? Are you saying that you can't just pay the difference between what you actually owe and what you've already paid in April?
How are you–especially if you're fairly new to this–supposed to know how much to pay? I've just made some wild guesses so far, figuring I'd pay the difference later or get a refund, depending on which side I erred. But I'm going to be outraged if there's a penalty! Geez!
It's taught me that what I lack in math skills I make up for in Excel spreadsheet skills!
And I hear ya with the taxes–if you have clients who pay on time, it's so much easier to base your quarterly payments on your actual earnings.
JMS, yes, there are penalties for underpaying. I believe it's a penalty on any shortage over 10 percent, but check with the IRS.
Amie, I don't factor in any payment I've not received. I got that advice from an accounting type once – if it's not on the received side, it's not a payment. And yes, I hear you. If they pay the day after you pay your quarterly taxes, that messes things up!
One more thing, JMS. The IRS gives you a worksheet to help you figure your earnings, but you have to figure it on what you earned in the previous year (2009) and pay some odd percentage of that in 2010. I think it's somewhere around 15 percent of 93 percent of your gross income. Odd, isn't it?