What does it take to be your own boss?

On May 20, I'll be giving a presentation at the HOW Conference called, "What It Takes to Be Your Own Boss."

I'm in the process of developing the material and would love your input. Answer any or all of the questions:

1. What do you wish you'd known before going into business?
2. What myths about self employment or freelancing are just that -- myths?
3. What has surprised you about being in business for yourself? What didn't you expect to find or experience?
4. What 3 skills and/or personality traits must you develop to be self-employed?
5. What kind of preparation should someone do before taking the leap into self employment?
6. What's the biggest reward of working for yourself?

Comments

[Kathy Piersall]

My answers:

1. How competitive my field (graphic design) actually is. How important it is to have a lot of money in the bank to tide you over during slow times. Much more about marketing (but I'm making up for lost time now, thanks to Ilise).

2. The myth that you will immediately have much more control over your own time as soon as you become self-employed. It can take years to get to the point where you can truly work only the hours and days you want to. Until then you need to honor the schedules of your clients and vendors. Which is still pretty much 8-5, M-F in my experience.

3. I thought it would be one long, steady climb. Instead, lots of peaks and valleys, as clients' businesses come and go, the economy waxes and wanes, and new technologies and competitors come on the scene.

4. A. Understand that there is a major difference between freelancing and being a "small" business. B. Lose your shyness. C. Learn to figure out who is a good target for your services, and to not waste time with the rest.

5. Put as much money in the bank as possible, and have a detailed marketing plan in place that is tailored to your industry. Be sure that your product or service is superior to, or at least competitive with, everything else your competitors are offering. Make sure the important people in your personal life, such as spouses and parents, are very clear on the sacrifices that may need to be made and are supportive. Understand that there are countless sources of business and marketing advice out there, but much of it is repetitive or meaningless for your field. Just having some steady clients is not enough. Be absolutely ruthless about protecting your time and other resources from being infringed on.

6. Freedom. In spite of all the above, I still have more freedom as a self-employed person than I ever did as an employee. I feel more free to network and make connections with a wider variety of people than I ever would have as an employee.

[Kara Gray]

Ilise, what a great topic. Can't wait to see the responses.

The biggest thing I wish I'd known? That my niche would take me outside my local geographic area. I wasted a lot of time beating the bushes here, when I should have been prospecting elsewhere.

The biggest myth about freelancing? The freedom -- yes, I can work for whomever and whenever. But, if I'm not working, I'm not getting paid. I can't chit-chat around the coffee pot on the clock. I can't take a sick day and get paid for it. It's not all bad, though. I can sneak off to go horseback riding without having to lie about it!

What has surprised me? The endless potential for success.

What didn't I expect to find or experience? That clients would try to take advantage of me and/or not pay for work completed satisfactorily without a fight.

What 3 skills and/or personality traits must you develop to be self-employed?
1)Discipline (obviously), 2)time management, 3)guts (both to take the leap and to stand up for yourself - see above).

What kind of preparation should someone do before taking the leap into self employment?
Aside from the obvious financial planning, set up a "real" work environment, if possible, and try to keep regular hours (regardless of what time they actually take place). These help with discipline and time management, and also with buidling confidence (if you feel more professional and take yourself more seriously, your clients will too).

What's the biggest reward of working for yourself? Knocking a project out of the park! Repeat business! And, being able to balance my clients' needs with the needs of my family on a daily basis.

[Cynthia]

Awesome topic! I've been lurking lately but thought I'd reply...

1. I wish I had known how much fun it is and how "not hard" it is to jump and just go for it- I would have done it much sooner!

2. I guess the freedom aspect, again, though with a bit of time management, I can get much more freedom during the day than I had expected.

3. What surprised me is how much fun I have during the day. Seriously! I truly love what I do and it doesn't feel like work. When I worked for somebody else though, and had a boss, it was definitely "work". Also the power of word of mouth, blogging and networking via blogs, even those that aren't related to my field, is amazing.

What I didn't expect was to find I feel "ok" with turning a potential client down and not taking them on just for the work if they don't fit what I'm looking for. Also, and it probably sounds corny, but saying thank you, literally, to a client for sending you their projects, goes a long long way.

4. Kindness, appreciation, and dedication. Relating to your client and understanding that their business is just as important to them as yours is to you, and work with them to get the best possible results.

5. Put away a nest egg, just in case. You never know when a rainy day will come. It also gives you a bit of power knowing you have that little stash to fall back on if needed. And if you don't need it, use some of it to go on a well-deserved holiday!

6. Confidence and getting the opportunity to meet and work with so many great people on a huge variety of projects. And having fun while doing it!

[mave gibson]

1. What do you wish you'd known before going into business?

I wish I'd known from the outset the basics of what to charge, how to deal with contracts, etc. and that handling money properly is more important than being able to earn a lot.

2. What myths about self employment or freelancing are just that -- myths?

that it's easy. it's not. it takes a lot of hard work, and in most ways is far more stressful than working for an employer. there's a lot more responsibility and pressure. I think another thing that really bothers me is this view that it's not a "real" job somehow. I think people who are unhappy in their jobs often make jokes like that (i.e. "well some of us have to work for a living!") out of jealousy.

I don't think the freedom thing is a myth, though - I disagree with the others here. the freedom is very real. it's just that it comes with responsibility. but I greatly enjoy not being at the mercy of an employers decisions.

3. What has surprised you about being in business for yourself? What didn't you expect to find or experience?

that I really can succeed at it and make it work. I think I started out on my own mainly as a desperate escape from the world of employment, but I never really thought it would be AS MUCH better than being employed as it has turned out to be. I also didn't expect to encounter some of the truly horrendous people I have encountered. I always knew that there would be good and bad, but I didn't realize the degree to which that would be true.

4. What 3 skills and/or personality traits must you develop to be self-employed?

#1 = DEFINITELY confidence. self-employment is not for the faint of heart. insecurity, shyness, etc will only leave you underpaid, overworked and walked over in this world.

#2 = self-awareness. people always say you need discipline, etc but I think that's just the old protestant work ethic thing at its worst. it's not discipline that you need, so much as you need an understanding of how you work, what you need, what you want, what will keep you motivated and interested, etc etc.

#3 = personal responsibility. this goes hand in hand with the other two. you really need to be able to take responsibility for your own experience and ensure that you are getting what you need out of your work. you also need to take responsibility for your actions - good and bad - so that you can learn and grow and improve in all ways.

5. What kind of preparation should someone do before taking the leap into self employment?

I think people constantly give bad advice in this area. business classes are great, research is great, a bit of savings in the bank is great, but none of those things are really going to prepare you for self employment. the #1 thing you should do to prepare for this type of work is personal development work. get to know yourself. work on your assertiveness, self-awareness, personal responsibility, self-esteem. these things will take you a thousand times farther than anything else.

6. What's the biggest reward of working for yourself?

definitely the feeling that everything I do, every effort I out forth in my career goes toward my OWN success, rather than an employer's. I always used to feel like I was sacrificing the best years of my life and all my creativity and talent and hard work to ensure my employer's ventures would be successful, and I felt that was a huge mistake. I still do. I want to build my own empire of happiness and success.

[Tom Henderson]

1. What do you wish you'd known before going into business?

How competitive my industry (commercial photography) is. You have to continue to learn and grow all the time. No time to rest on your laurels. How many things you have to be good at. Sales, money management, studio operations, IT, accounting, collections, new trends and technologies. It never ends! Sometimes I'm jealous of friends with real jobs. They go to work, do one job and go home. I have to do it all, and be at least fairly good at all of it!

2. What myths about self employment or freelancing are just that -- myths?

That if you do good work, clients will flock to your door. Yes, good work is required, but after that you still have to sell yourself!

3. What has surprised you about being in business for yourself? What didn't you expect to find or experience?

How quickly clients change. I thought my business would build slowly but steadily as I continued to add new clients to my existing base. But you lose a lot of clients through no fault of your own. Your contacts get fired, or move to a new company. Companies get bought by other companies. All these transitions frequently mean that you lose that client. So your business is constanly changing. Long term clients are very hard to come by.

4. What 3 skills and/or personality traits must you develop to be self-employed?

You have to be a good salesperson! I tell people that and they say -- "Oh, I hate sales." Well, I hate to tell you, but that's probably the most important task.

You can't be easily discouraged! There are a lot of tough days when things look bleak and don't go your way. If you quit at the first sign of trouble you won't make it.

You have to be flexible. If one thing doesn't work, you have to be willing to abandon that idea/technique/approach, and figure out a whole new thing. Even if you were SURE your first idea was the best.

5. What kind of preparation should someone do before taking the leap into self employment?

Find work in the field if possible. Be an assistant, and intern. Read trade publications. Talk to people. Make a marketing plan! Who's your market and how do you sell to them? The less money you have in the bank the more agressive your sales campaign will have to be to get quick results.

6. What's the biggest reward of working for yourself?

Variety. Every day is different.

You don't work with the same people every day, so even if your client has an abrasive personality, you only have to put up with it for a day at a time. There's hardly any personality you can't put up with when you know you're done with them at 5:00.

You can change direction to suit where you think the market is going and what kind of work you want to do.

And, yes, sometimes you can take time off in the middle of the day and do something fun!

[Cedric Hohnstadt]

This is a great post, lots of helpful comments. On my blog I recently wrote a two-part post on the Pro's and Con's of freelancing:

The Con's of Freelancing
The Pro's of Freelancing

Also, I'll be plugging Marketing Mentor on my blog tomorrow. It's a fantastic resource.

[Jason]

1) I wish I'd known just how little other people's ways of doing business (mostly freelancers in one discipline or another) has to influence the way I do business. I wish that from the start I'd tailored my work day to MY OWN standards--what makes ME most productive as an individual (not what I'd heard other people doing with success). I wish I'd known MYSELF! : ) Also (as someone else already wrote) I wish I hadn't focused so much on my local market--I should've specialized my expertise and increased my reach.

2) Freelancing Myth: "People are going to choose you because you're good at what you do." Not true in the least! Most people wouldn't know the difference between good and bad creative work anyway (that's why our insight is so valuable). It's all about making the connection on a personal level and building trust--just like any other business. Technical/creative skills are important, obviously--but once you reach a certain threshold, they won't get you any further without honing your people skills too.

3) What surprised me about going out on my own? How rarely the people at networking meetings who say, "Wow, that's a great idea," actually turn into customers. Networking is priceless, don't get me wrong--but you can't take what people say when they're also networking for themselves at face value. Again, build trust and rapport, then worry about the details.

4) Three must-have personality traits: Patience, Risk-Tolerance, and, above all, CONFIDENCE! (In your expertise, in your methods, and in your ability to perform) An important note: all three of these will be improved dramatically if you NEVER STOP LEARNING!

5) Preparation for Taking the Leap: Everyone always says, "save up a bunch of money"--that's all well and good, and, to be sure, there were MANY times where I wish I'd had money to throw at a problem. But (in my experience) the more money I had to spend on marketing, the less careful (and creative!) I was with how I spent it. Sometimes having no money can be a good thing, if it forces you to think more intently about EXACTLY what you have to communicate to people and how best to communicate it. My main take away here would be this: Don't let a lack of a bankroll stop you from taking the first steps. There will always be too many reasons to put off your dreams--take action! Focus on building your most important (and cheapest!) assets before you leap--your network, and your skills/ideas.

6) Biggest reward for working for myself: Nothing gets me higher than when someone gets on board with my ideas! That moment when the client's eyes light up and you can tell they just got it--it's the greatest feeling in the world, made even better by the fact that I'm creating this whole experience from nothing and doing it on my own terms. There is NO substitute for that feeling!

[Jennine Arena]

Thanks, Ilise for this posting. It's a great subject and it's nice to read that others feel the same way.

1) What do you wish you'd known before going into business?
To truly spend the time going after the clients you want, instead of only taking on the clients that land in your lap.

2) What myths about self employment or freelancing are just that -- myths?
That you'll work less and have more time. That you can work with a baby/kids at home and not need to pay for daycare.

3) What has surprised you about being in business for yourself?
The pride I feel when people ask "what do you do?". The growth I've experienced so far and that there's still room for further growth.

4) What didn't you expect to find or experience?
The competition of so many other designers. The amount of time and effort it takes to get a potential client to start working with you.

5) What 3 skills and/or personality traits must you develop to be self-employed?
Be a risk taker. Do it, even if it is risky. Take a chance and follow through on it to see where it brings you.
Be a student. Whether learning to be more efficient in your skills as a designer, time management, marketing/sales, etc. - always strive to learn more and grow.
Be personable and appreciative. With the amount of people out there that have the same computer skills, having a personality that the client enjoys goes a long way. Showing appreciation for the work you receive not only makes the client feel good, but makes you feel good, too.

6) What kind of preparation should someone do before taking the leap into self employment?
Research - find out what the competition is doing. How can you be different? What clients need your services.
Savings - it takes about 6 months for your first contact with someone, and then consistenly following up with them, before they will give you work. On top of that, it takes (if all goes well) 30 days AFTER the project is completed to get paid. You need cash up front to pay the current bills while you're building your client base.

7) What's the biggest reward of working for yourself?
Flexibility. I have the joy of being with my kids after school until they go to bed. If something needs to be done I can do it once they're in bed. If there's a field trip, I can go without "asking" for a day off. If they're sick, they stay home and I continue working. If the teacher asks for volunteers to read a story, I step away from my computer for a couple of hours and don't have to justify any of it.

[MrPositioning.com (Stanley Bronstein)]

#1 thing it takes to be your own boss:

BELIEVE IN YOURSELF, BELIEVE IN YOUR ABILITIES, YOUR TALENTS AND YOUR IDEAS

#2 thing it takes to be your own boss:

KNOW WHAT YOU ARE GOOD AT AND HIRE PEOPLE TO DO THE OTHER THINGS

Take care.

Mr Positioning
Stanley F. Bronstein
Attorney, CPA, Author & Professional Motivational Speaker