So, you’re thinking about rebranding yourself, going from freelance writer to business owner.
The first time I considered doing this I was talking with a fellow copywriter about my passion for helping freelance writers market themselves.
She said, “I don’t identify as a freelance writer anymore.”
I did a double take. Really? Why not? It was an interesting conversation for me, because I consider freelance writing and owning a business the same thing. But as I’ve thought about it since that conversation, I kind of get it.
“Freelance writer” sounds kind of…hobbyish. It’s not, or at least it doesn’t have to be, but I get how it comes across like that. Solopreneur. Digital nomad. Free spirit.
“Business owner” sounds much more professional. Serious. All in. Having happy employees and maybe even an office space.
So, alright. I still equate being a freelance writer and running a business as the same. BUT here’s where I see them different. For the most part, freelance writers are a solo act. Sure they can have sub-contractors or even a virtual assistant but they’re not a corporation or anything. On the other hand, business owners ARE a corporation. They’re registered with the government. They have legal responsibilities.
Here are three of the many considerations you should be aware of if you’re taking the leap from freelance writer to business owner
1. It’s time to up-level your financial management
As a casual (or even a serious) freelancer, you may have been comfortable with a sporadic work and payment schedule. Work comes up when it comes up—there are busy times and less busy times—and clients pay when they pay. Some pay right away. Some take two weeks. Some take…longer.
But when you incorporate your financial management should step up a notch. Payment terms should be fixed. Contracts should be standard. Pipelines should be filling up during business times and slow. As a business owner you now have more financial responsibilities—more taxes, higher operating expenses, and possibly things like loan repayments and payroll.
And your bank account? You can’t just grab cash from it whenever you feel like it. Now it’s part of the company and needs to be completely separate from your personal finances. Inf act, it’s time to start paying yourself a salary.
As a business owner, financial management can make or break you. This is exactly why you should invest in a good accountant or financial advisor to help you take the leap.
2. Learn to navigate the payment system maze
Speaking of paying yourself a salary, how do you pay your business bills? And how do you receive payments? Sure, you cobbled together something that worked as a freelancer but now that you’re a business owner it’s time to tighten things up.
In my current freelance business I accept all kinds of payments and in all kinds of currencies—bank transfers, wire payments, ACH, cheques, PayPal…whatever! But…is that best? Should I have a streamlined payment system set up that takes the complexity out of accepting money? Yes, yes I should.
And if you branch beyond services in your business there is even more to think about. Payment processors, payment gateways, invoicing software. The way you handle money matters and your clients and customers need to know you’re managing transactions with security and transparency.
Thankfully, there are a lot of reliable software options out there. For example, there are super-niche solutions such as setting up a merchant account for CBD businesses. Like, seriously. You can get super customized. Be sure to do due diligence, ask for recommendations, and consult with a professional so you get off on the right foot.
3. Marketing is more than referrals
As a freelancer, you might have relied on word of mouth or repeat clients to keep your business afloat. I expect you would! I do! But when you move from freelance writer to business owner, your marketing strategy is probably going to need an up-level.
This could include SEO, social media marketing, content marketing, and paid advertising. Your expenses are higher and therefore your need for new clients is probably also higher. This may seem intimidating but once you get the marketing wheel turning, all you have to do is keep it going. (It’s a system!)
Until then, you may want to bring on a marketing professional or work with an agency to help grow your business and attract new clients.
