2 minute read
TRANSLATING TECH
Tips for success in the gig economy
Jane Harrison You know that bad feeling you get in the pit of your stomach on Sunday evening when you realize tomorrow is Monday?
I call it the “ga-gunk,” and I never get that feeling. Never.
Why? Because as a freelancer, while so many are rushing out the door in the morning, I’m having a leisurely cup of coffee, reading the news and planning my day. Many retirees and younger workers are turning to freelancing or what some call the “gig economy.”
While I genuinely revel in the freedom, life without a steady paycheck is a trade-off.
In three decades on my own, I’ve collected some tips on managing finances as a solopreneur.
Choosing the right clients
I hear the same story over and over again. Someone enters the freelance world, and a large company starts feeding them work. The next thing you know, their entire income is in the hands of one client.
Here’s some advice: Just because you’re busy doesn’t mean you’re in business.
To build a healthy freelance business, you need a diversified client list. That way, if you lose one—and you will—you still have income while you search for a replacement.
Even better: Strive for five “A” clients of equal value.
What’s an “A” client? → Clients who pay well. I like medium-size firms.
They have decent budgets, yet they’re not so big that you have to deal with layers of approvals. → Clients who pay in a timely fashion. I give extra points for those who make it their responsibility to pay on time. They follow up and then reach out to accounting if there’s a problem. Love that. → Clients who respect you. This is another big one. Does your client give you credit for your contributions? Do they allow you enough time to complete the job?
“A” clients are different from one freelancer to another. Get clear on what’s best for you and put your antennas to work seeking them out.
Streamline
Consider embracing the minimalist lifestyle. Like so many empty nesters, I had too much house. Recently, I sold it and used just the equity to buy a bungalow. Then I went through all of my expenses and trimmed and shaved and then shaved some more.
Less overhead. More freedom. Best thing I ever did.
Start off right
Lastly, staying vigilant about cash flow will do wonders. Always request a deposit at the start of a project. Invoice your client the minute the job is complete and make your terms “due upon receipt.” With new clients, attach a completed W-9 with the invoice. Send polite reminders if your invoice is late.
I’ve been through slow times when finances were a worry. But it’s never been scary enough to give up my independence, my quiet mornings and life without the ga-gunk.
