To get started in business you will need to make an investment. A professional designer needs professional tools, and they are not cheap. You will also need some basic office equipment and furnishings. You might be able to get some of what you need second hand. I recommend buying your software new. You plan to make money using the programs, fonts, and other software, so it is ethical to pay the creators of your tools. You also have access to technical support and upgrades as a licensed user. I wouldn't buy a computer that is more than 2 years old. (Personally, I buy a new one every 4 years or so.) Graphic designers are power users and need to have the most processing power that money can buy to be able to work efficiently. Also, hard discs crash eventually. Even if you are fully backed up, a crashed computer is a major business catastrophe. (And if you're not backed up, well, you can imagine.)
You can pay for your startup costs with savings or by borrowing. Sources of loans are friends and family, banks, and credit cards. If you borrow from friends and family, your relationship with them will change. They might even believe they have a right to give you advice or receive free services. Proceed with caution. Banks are another source of funding. If you want to borrow from a bank you will have to write a business plan. (A business plan is a great idea no matter where your funding is coming from.) Credit cards are extremely useful, but make sure you can make the minimum payment each month, and never be late. The fees and interest are harsh if you ever miss a payment. I use a credit card for ongoing expenses, and have used them for capital investments as well. Like your checking account, designate a credit card for business only and do not mingle with personal expenses.
The interest you pay on business loans is tax deductible. So is your business equipment. (See taxes.)
Business debt is different from consumer debt. In business, you are using money to make money. If you are charging for your services correctly, your investment will pay for itself and generate a profit. Being in debt can be stressful. However, as long as you are making a reasonable payment towards principal every month, you are doing fine. About every 5 years you will need a new computer, so pay enough every month to have your loan paid off in 5 years or less.
Managing credit wisely is extremely important for the small business owner. A good credit rating gives you access to loans at a lower interest rate. A bad rating means you will pay a higher rate, if you can get a loan at all. Every business has ups, downs, and emergencies. During downs and emergencies, having access to credit can save your business. Credit is a bridge to the up times when you are able to repay.
If you can grow without borrowing at all, that is commendable.
Thursday, January 28, 2010
Thursday, January 7, 2010
Presenting Yourself
The way you present yourself is the way you will be perceived. If you want to be perceived as a competent professional, you must dress and speak like one. Working at home can lend itself to becoming sloppy.
The way you communicate says a lot about you. Speak clearly and politely on the phone. A good tip I heard years ago is to smile when answering. Answer with your name or the business name. When using email, write in complete sentences with excellent spelling and grammar. Whenever a client or vendor does something out of the ordinary for you, a written thank you is in order.
When a client calls, be sure that he doesn't here barking dogs and crying babies in the background. When a client comes to your home office, make sure you have a clean, neat place to conduct the meeting. Keep clutter behind closed doors. Use an air freshener to remove cooking smells. Don't forget the upkeep of the exterior as well: mow the lawn, rake leaves, and shovel snow. (If you rent, some of this might not be in your control. Do your best with what you can.)
You might find yourself working in casual clothes, even pajamas, many days of the week. But every time you meet with a client you should dress like a professional. As a creative professional, you have a lot more latitude in defining what that means. Unusual color combinations and cutting edge fashion are acceptable, but sloppiness and dirtiness are not. (See what to wear.)
I am not saying you need to hide the fact that you work at home, just don't use it as an excuse to let yourself go.
The way you communicate says a lot about you. Speak clearly and politely on the phone. A good tip I heard years ago is to smile when answering. Answer with your name or the business name. When using email, write in complete sentences with excellent spelling and grammar. Whenever a client or vendor does something out of the ordinary for you, a written thank you is in order.
When a client calls, be sure that he doesn't here barking dogs and crying babies in the background. When a client comes to your home office, make sure you have a clean, neat place to conduct the meeting. Keep clutter behind closed doors. Use an air freshener to remove cooking smells. Don't forget the upkeep of the exterior as well: mow the lawn, rake leaves, and shovel snow. (If you rent, some of this might not be in your control. Do your best with what you can.)
You might find yourself working in casual clothes, even pajamas, many days of the week. But every time you meet with a client you should dress like a professional. As a creative professional, you have a lot more latitude in defining what that means. Unusual color combinations and cutting edge fashion are acceptable, but sloppiness and dirtiness are not. (See what to wear.)
I am not saying you need to hide the fact that you work at home, just don't use it as an excuse to let yourself go.
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