Insurance, Retirement, and Vacations

The benefits that come with a full time job are health insurance, a retirement plan, and paid vacations. As a self-employed individual, you have to provide these benefits to yourself. Do not shortchange your health and future by going without.

The first benefit you need for yourself (and family) is health insurance. You are no good to anyone if you are too sick to work. What I recommend, and have for myself, is a high-deductible major medical policy. The premiums are affordable because you pay for most expenses out of pocket. The insurance only kicks in when you have a serious condition that requires expensive procedures. If you are in good health, your annual check-up and incidental costs will be much less that the premiums on a plan that pays for everything. The insurance can be coupled with a health savings account that you contribute to tax free.

If you have dependents, you should also have term life insurance. Term is straightforward and low cost. It pays a defined amount upon your death, and you pay a defined amount each year for the term (10 years, 20 years, whatever).

The next benefit you should set up is an IRA. Most investment companies will guide you through this very simple process. Your contributions to the IRA are tax deductible.

Taking vacations is vital to psychological health, especially for creative people. The stress of working extra hard before going away, and getting caught up again when you get back, is worth it. Everyone needs time to recharge. Working vacations have their place, but at least twice a year get away from work completely. Don't forward your calls and email. Make vacations part of your annaul budget, and charge enough during the rest of the year to fund these getaways.

The next form of insurance you'll want to consider is disability. Social security alone will not allow you to continue your current lifestyle should you become too ill to work. Interview insurance agents until you get an affordable rate.

Business insurance is not always required, but is a good idea. You can sometimes put a rider on your home insurance policy for business equipment in your home office. You should also look into business liability insurance. Some companies will require you to have it before they will work with you.

If you can find one insurance agent or company to handle all your policies, it sure is convenient and valuable. And you become a valuable customer to them.

Your hourly rate is much higher than someone working full time with benefits for the above reasons. You have the responsibility and privilege of taking care of yourself.

For a more in depth look at these topics, I suggest reading a book by Suze Orman.

Marketing and Networking

The best way to grow your business is by word of mouth. Make sure that every client you have the good fortune of working with has a positive experience and believes she got value for money spent. She will recommend you to her colleagues, and the multiplier effect goes to work for you. A dissatisfied client can have a poisonous effect on business for the same reason.

The way to get that first client is by promoting yourself and your business to everyone you know. This is called "networking." Once your family and all your friends know about your new endeavor, join business organizations and online networks. Have a short introduction of yourself and your business on the tip of your tongue for meeting new people. Carry your business cards with you and make sure they are well designed. Be confident and professional in all your interactions, both online and off.

For free publicity, your local newspaper might write articles on new businesses. Make sure they know that you have started a business. Volunteer for organizations that you'd like to be involved with. Your work will be appreciated, you will have pieces to add to your portfolio, and you'll rub shoulders with new people who might lead you to paying work. You will almost always get a credit line or thank you for your contribution in the organization's material, another chance for still more people to see your name.

You must have an online portfolio. Put the URL on your business cards so people can quickly and easily see what you are capable of. Put only your best work online, and keep the samples updated. Make sure your phone number and email address are on every page.

When going to a live interview, have real samples to bring. Tailor your live portfolio to the specific client and type of work they are interested in. Don't bring too much. Keep your resume updated, well designed, and proofread, because some organizations will request that as well.

Advertising can bring in new work, but can be expensive. A small ad in the local paper is usually affordable. Commit to a year of running the ad at least once a week, because it takes many repetitions before any advertising sinks in. You can augment print ads with a direct mail campaign. By itself, direct mail has a very low response rate. Again, repetition is essential if you decide to take this route. Another option is a billboard. Email is most effective for keeping in contact with existing clients. Anyone who doesn't recognize your name will send your email to the spam folder. Radio and television are likely to be out of reach for the small studio, but can be effective for a large, growing business.

When you consider the cost of obtaining a new client, you will agree that keeping each one happy is the best approach to long-term success.