The number one question I am asked is "How do I start my freelance design business?" This can be an overwhelming question. It can even make people too afraid to begin. I had no idea where to start! Four years ago, I grabbed a Starbucks, sat down and jotted out a business plan to do list. I decided I would tackle three main components first. Finance, Branding and Legal. {This one is long, but worth it. Hang in there! Stay tuned later today for my favorite freelance references.}
+ finance :: Have money set aside and/or hold a part time job for start up costs. Here is a list of what you will need to begin your design company.
/ Savings / Consult your spouse or your checkbook to make sure you are financially ready to take on feast or famine living. I am married to a "Normal" so we have one steady paycheck coming in.
/ Computer / I started with a laptop to be more mobile for onsite work. Now I have a laptop and a 24" iMac. When I work out of state, I can work in the client's office during the day, then go to the hotel and continue to work on the laptop for my other clients.
/ Software / Always own your own software. You never know when your computer will crash and you will need to rebuild it. Trust me. It will happen.
/ Printer / I would recommend investing in a laserjet. Quicker prints and high quality proofs to show your client.
/ Scanner / This one may be optional depending on your design process and if illustration is required.
/ Point-n-shoot Camera / When used correctly, pns cameras can take stunning portfolio pictures. Also good to have for sneaky in-store competitive analysis. {phones work well also}
/ Website URL / These days it is imperative that you have your work online. Social networking is very important and you must have an online presence. Most of the blog software can "domain map" or push your .blogname.blogprovider.com to just your .designcompanyname.com url. In my opinion, it looks more professional. GoDaddy offers inexpensive URLs.
+ branding :: The fun, yet difficult part for a designer. All paper elements should look branded and cohesive.
/ Company Name / I used my name to keep it simple. Check URL availability.
/ Logo and Business Card / It is hard to design for yourself. Don't over think it Just get it done. Warning. When I was an Art Director and I saw someone's resume come across my desk with a logo made of their initials, I knew it was someone fresh out of college. Red Flag. In my opinion, no initial logos.
/ Invoice / Great example in Jeff Fisher's book. Should have a space for the Job number, your contact and client contact information and brief description of deliverables.
/ Estimate / Looks the same as the invoice with wording like Est. and estimated total.
/ Contract / Great example with exact wording from Jeff Fisher. Another version can be seen here. Everyone should have one. How you use it is up to you. You should also have a lawyer check it over to see if they see any loopholes.
/ Fax sheet / All elements should be in black.
/ Mileage Sheets / I designed 6 up on a page and they sit right by my computer. You should keep track of business mileage to expense at tax time.
/ Job Binders / Everyone will keep paper trails from clients differently. I use the Avery presentation sleeves and keep all invoices, estimates, printout, briefs, sketches, emails and presentations in them. Label each binder by year so you can quickly find your information should a client ask.
/ Portfolio Template / Can be designed at a later time. Always stay up to date with your portfolio.
**helpful hint** As a freelancer, I have a finished product portfolio AND a concepts portfolio. The final project result will never be your original design intention. Clients always make changes. It is nice for a potential client to see your design concept abilities and even solutions that did not make it to final. Warning. Respect your current client's confidentiality agreement. DO NOT show concepts from an on-going project. Bad karma and bad ethics! Concepts should clear when the job is off press or on-shelf and public.
+ legal :: This can be the scariest one to tackle. Art schools are not teaching business courses. In my opinion, they should be!
/ Name Your Business / Click here for some tips.
/ File Business Name / File your fictitious name or "DBA" "Doing Business As." I am "Doing Business As" Vale Design. Click here for some tips and related articles.
**helpful hint** Research your state requirements for starting a business. In Illinois, I had to apply for an Assumed Business Name through the County Clerk's office. The announcement had to be notarized and was required to run in the newspaper for three weeks. They even sent me a snazzy looking certificate of ownership. However, I did not have to do anything when we moved to Indiana.
/ Open Business Bank Accounts & Credit Card / Another reason to have money set aside up front. Keep personal and business separate. Will be easier to keep track of business expenses at tax time.
**helpful hint** I write notes after each transaction and Job numbers by each deposit once the invoice is paid. Definitely helps at tax time for cross checking receipts. You can also use electronic software for banking and invoicing if you feel more comfortable and as your company grows.
**helpful hint** You should get in the habit of saving a percentage of each paycheck for tax purposes. I have always saved 25-30%. Better to have too much set aside at tax time, then not enough and having to dip into personal savings.
/ Locate an Accountant / CRUCIAL! Find one who specializes in small business. Feel free to ask for client references. You must trust this person.
/ Determine your Business Type / Your accountant can offer advice. This can change as your company grows or your needs change. This will also determine how and when you pay your taxes. Information on business structures from the IRS here. Business structures you will choose from:
• Sole-Proprietor - Most freelancers start out as an SP or LLC
• Partnership
• S-Corporation
• LLC or Limited Liability Corporation
+ last word of advice :: I would recommend keeping a "Business" binder. I use mine to hold every business related piece of paper, i.e., tax forms, contract master copy, invoice check stubs, bank information, website information, yearly invoice totals, etc. To me, being successful means being organized.
+ later :: Stay tuned later today for my favorite freelance design references!
{image credits Harry Halibut}
