The Importance of Diversification

Diversification isn't just a term for investments. As a matter of fact, the term extends into all areas of life - including business. As a freelancer, you've no doubt heard someone tell you that you "shouldn't put all of your eggs in one basket". Even if you aren't a freelancer, you've probably heard that saying before. As you begin to grow your business, it's important to introduce a variety of streams of income. Being too reliant on any one stream can be detrimental to your financial health.

Say for instance you are working with a particular client and are earning enough to maintain a decent living. That's great! But, what happens when things start to go south for that client and they need to cut back on the services they have hired your for or worse yet - they FIRE you?

If you've been keeping all of your eggs in a single basket, you won't be prepared for such a change. Your world will be turned upside down and your financial status will plummet. Dramatic changes, such as this, can send you right back on the job hunt, and we already discussed that you don't want to quit freelancing and go back to slave labor, so that won't work - at least not in terms of your long-term goals. So, what's the solution?

Since you can't rewind time (wouldn't it be neat if you could?), you have to refocus on the future, which can me getting a "real" job for just a bit as you sort out your finances and gradually bridge the gap back into freelancing. If you have a nest egg/emergency fund saved and can stay afloat for a little bit, it would be best to continue on in your search for additional clients.

The emphasis here is on the "s" at the end of that word. You must not settle for only one client, but should focus on having multiple clients. That way, you can be sure that you aren't as affected in the future. Again, let's not put all of our eggs in one basket. Diversify - have several clients in differing industries. That way, there's less opportunity for your work to become mundane and your make sure that if one industry "folds", you still have other clients that are still staying "afloat".

Do you have a diverse book of business or are you putting all of your eggs in one basket?

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Will You Quit Freelancing in 2012?

I was reading the 12 Must Read Freelancing Predictions for 2012 on Freelance Folder, and what I saw was very troubling. Believe it or not, some of you will quit freelancing in 2012. Some of you will simply give up. I thought about that, and I know that I cannot let that happen. I cannot let you go back to working in a cubicle for a salary. It may seem "safe" right now, but ultimately you are jeopardizing not only your happiness but your ability to make a professional decision.

Let me tell you a story... back in April of 2010, I went to work just like I did on any other day. The difference was when I left work that day, it was a bit earlier than usual. Why? I had been fired. My thing is, I wasn't a puppet, and I would not tolerate being treated like one. I've always felt that I have the right to stand up for what I believe in, and well, not everyone likes that. When you are found to have that spirit of a leader, you will surely be singled out and working in an "At-Will" state, they could say anything to kick me off the payroll. I was still able to draw unemployment, of course, but that was not the point. I actually felt rather defeated. I felt like I failed. Yes, I had my dignity, but I didn't have my job. It almost made me question how much my dignity was worth. The people around me didn't make it much better, as I didn't tend to find myself surrounded by other entrepreneurial people. Everyone else had a 9-5 (aka a "real job"). I had no one to lean on to find out about transitioning into the world of freelancing.,

I had worked as an independent contractor before, but it was a bit scary. So, instead, I applied for job, after job, after job until my knuckles hurt from typing. My full-time job was trying to find a full-time job. In a down economy, that was a recipe for disaster. I was at the mercy of employers who had plenty of other people to pick from -- perhaps and most likely more educated and/or qualified than myself. After all, I had taken a slew of college courses, but to date had only completed a high school diploma. Pay no never mind to the fact that I was expecting to graduate soon. The jobs that did hire me were all sales jobs and all completely out of my element. I've never been a person to enjoy high-pressure sales. I sucked at both jobs.

It was not until August 2010 (4 months later) that I found the perfect opportunity - even though it was an independent contractor position. The good thing about it was, though, that I could work from home around my own schedule. I gave heavy consideration to it and ultimately decided to go with it. I don't regret it for even one moment.

Why do I have no regrets? I love the freedom that comes with it. I have the type of personality where I don't like to be micro-managed (who does like that?) and appreciate having more free-reign in my work. I also was put into greater control of my own earnings. I could take on as much (or as little) work as was available to me. I was given freedom to choose who I work with. I never declined any project, but it was good to know that I did have that freedom.

I want you all to know this freedom. That's why you can't quit freelancing. If anything, I recommend you come up with a plan to quit your day job to freelance. Once you do, the freedom you experience will be amazing. You will be able to set your own schedule and work on your own terms. You will be able to do the work you truly desire. The bottom line is -- you will have choices.

So, stay strong in the fight. Don't be a statistic. As a matter of fact, you can make it one of your SMART goals to continue freelancing at least for the rest of 2012. Once you've done it for a year and given it your best effort with no real results, it may be time to re-evaluate.

What is your plan to make sure that you don't quit freelancing in 2012?

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Liability Insurance & Accountability in Freelancing

You know something that really irritates me about freelancers/independent contractors/whatever you call yourselves? The lack of accountability in your work...

Allow me to explain - when you are working on a specific project for a client, you should be responsible for the work you do (and don't do). That means - if you make a mistake that costs your client anything (their own clients or money), you should be willing to take responsibility for your actions. Normally that is in the form of financial reimbursement. However, there are other ways that you can "repay" your client.

Either way, if it was your mistake that caused the issue, you should be willing to take fault for it. Taking fault doesn't mean merely apologizing. No, there's much more to it than that. There should be some sort of consequence. Leaders step up to the plate without being asked. Followers wait to be confronted about the issue. Are you a leader or a follower?

That brings me to my next issue - the importance of liability insurance when you are working as a freelancer. In case you "mess something up" while working on a client's project, you need to have the peace of mind to repair what you did. Sometimes you can't afford to make things right with your client using your own money. Say for instance you build a shopping cart for a client and you don't configure it correctly. You set all of the products to sell at 50% of their true retail cost. This causes the client a loss of $50,000 over a 7-day period. What do you do when the client sues you for your gross negligence (you may have caught the error if you had some quality assurance mechanisms in place)? If you have no insurance, you may be forced to pay that cost out of your own money.

What type of insurance do you need? For that, it may be best to talk with an insurance agent. Overall, though, you should have some sort of umbrella coverage that protects you from a certain amount of damage. Many finance and insurance professionals carry at least $1 million worth of coverage. Again, talking to an insurance agent will let you know what will best suit your business.

How do you deal with accountability issues when working with clients?

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Even Freelancers Need Vacations

You work hard. Of course, you've got bills to pay and the repo man doesn't take excuses *wink*.

However, it's important that you take a step back from client projects, emails, etc. and take some time out for you. After all, if you get burned out or aren't in the right frame of mind while working, that can be a productivity killer. And before you ask - no, a vacation doesn't involve checking your email at ANY point - even at night after everyone else has gone to sleep.


A little over a year ago, Freelance Folder (one of my favorite freelancing blogs -- other than this one) discussed freelancer burnout, the warning signs, and how to cope. Ultimately, this is related to not taking vacations when you should. The worst part is, you may not see any direct signs of burnout. You may be able to work on client projects just fine, and you may even be pleased to talk to clients. However, you get easily distracted from your work. You find yourself putting client work on hold to play games on Facebook, read gossip sites (I know I'm not the only one), etc. This is not healthy behavior for you or your business. It's better to let your clients know you are taking a few days off (in advance, of course) than to get burned out and create an end product of questionable quality. Here are a few other "less obvious" signs of freelancer burnout (taken from the Freelance Folder site):

• Being afraid to say "no" to your client when they offer you a new project - sometimes it's best to say "no". Don't overwhelm yourself with projects just because you want to be a "superstar".
• Thinking about work when you should be doing other things - don't check your email when you should be enjoying dinner with your spouse, family, friends, etc.
• Your work is causing relationship problems - no work is EVER worth hurting or distancing yourself from someone you care about (unless that person doesn't respect your business). That's very important. I will quote Suze Orman on this: "People first. Then money. Then things." Your priorities should be in that order. Of course, as freelancers, we want to please the client, but that should never come at the expense of someone you care about personally.

So, go ahead and plan that mini-vacay (or a full vacay if that works for you), let your clients know in advance, and don't check your email or work on anything for your client while you're gone.

When you get back, let me know if you were able to maintain your self-control (something I'm still working on) and if so, please share pictures :-).

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Why Every Freelancer Needs a Productive Work Environment

For the past year I worked from my couch, the bed, Bread Co. (a St. Louis twist on Panera Bread), and even on my patio. Were these productive work environments? Not in the very least. Sure, these spots are fine when you're only doing an hour or so of work, but not for working a full day. You need your own personal space that is defined as your office.

Why does an office make you more productive? There are a few reasons:

• When you enter your office, you know it's time to work because that's the space dedicated to working.
• You can have a desk that is unique to your working style.
• You can have an ergonomic office chair that is comfortable and provides a good level of support.
• You can put up pictures of your family, friends, pets, etc. that mean the most to you (the reasons why you work).

Now that I have my own office, things are different (though my space is a bit cluttered right now). I'm better able to focus, and I know when I sit down in my office chair, I mean business. I have even been able to hook my laptop into a monitor from an older computer so that I can run dual screens. This helps immensely as I'm able to look at information on one monitor while I may be keying everything in on the other.

How has having a dedicated office boosted your productivity?

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Freelancing After Job Loss

I made a vlog for today's post - hope you enjoy!

Here's the article I'm discussing: http://www.stlamerican.com/business/local_business/article_2f32fe32-ccfa-11e0-ab71-001cc4c002e0.html

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Getting Your Loved Ones to Understand the Freelance Lifestyle

You're weird. You don't wake up every morning, rush out the house, fight with traffic, and sit in a cubicle (or maybe even a nicely-appointed office) all day long. Yeah, you're one of those...one of those...freelancers. It's almost as if you exist on your own little island or came from another planet. The point is, you're not like them, and that's a problem -- or is it?

Do either of these sound familiar?

• Your friends are planning to get together and they're comparing schedules, but you are conveniently left out of the discussion. After everyone else is all set, they let you know the time they've come up with. When you ask why you weren't involved in the planning, you're informed that you can come anytime. It's not like you work a real job anyway.
• Your significant other asks you to run an errand that will take at least a couple of hours. You mention that you have a few things you have to work on that day, and you're met with "I thought you made your own schedule."
• Your mom (or dad) asks you for a ride to the store, bank, etc. When you say you're just a bit busy with work stuff, they tell you that your job is on the internet and you can do that anytime.

If you can relate to any of the above, you are suffering from "freelanceritis" (not a real word). This is a condition that affects those who have friends and family who don't quite understand that you actually work for a living. They mistake freedom for not being required to work. They feel that if you work at home your job is "easy" and less pressing than their jobs or anything else they have/want to do.

So, how do you combat this thinking? Well, it's definitely not simple - especially if the person in question has never done any freelance work. Some have found success from disconnecting themselves from friends/family while working. Others have been able to find success in talking with their loved ones about their work and work schedule. Ultimately, though, the most successful approaches involve a bit of education (you may even suggest they read this post).

Make sure they know your work is important, your work is your priority, you really do work when you say you're working, you have a work schedule just like anyone else (though you set it yourself). Ideally, you should be keeping business hours where you focus exclusively on your work. This will lessen confusion because people will know that between 8-5, 10-6, etc. you are actually working.

At some point, I hope freelancing is a more understood and widely-accepted career choice. But, until then, keep educating the ones you love so that they can respect you and your work.

P.S. If someone referred you to read this blog post and you aren't a freelancer, they are trying to tell you something. Start taking their work seriously. Please and thank you. *smile*

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Breaking Down the "Free" in Freelancing

Did you know that the term freelance originated as two separate words? A free lance (noun) was a man (sorry, ladies) that was available for hire as a lancer (in a sword fight). This fact was brought to you by the letter "Z". Ok, so that's not what you came here for, huh? Well, I thought it was a cool fact to share...

At any rate, now we view a freelancer as a man or woman (YAY for equal rights!) who works independently. Sometimes you can be called an independent contractor or self-employed, but they all essentially mean the same thing.

So... why the term freelancer? I'm not entirely sure where the "lancer" part comes into play (this post is about the "free" part anyway), but "free" can equate to a lot of things in an independent workers lifestyle.

Let me count the ways (or at least the first five):

1. Schedule freedom: Remember those days of punching the clock? You know how you used to wait on someone else's move? Yeah, forget those days. Feel "free" to pick your own schedule - whether consists of early morning hours, late night hours, or something in between. Need a vacation day? Take one (provided it doesn't interfere with client commitments).
2. Freedom from micromanagement: That boss that used to watch your every move while breathing down your neck? They're history! You now manage yourself.
3. Freedom from barriers to entry: Have you dreamed of being a web designer but don't have any experience? Now's the time to break in. You don't have to wait get a job, you can start building your portfolio right now.
4. Freedom from dress codes: Only own one shirt/tie that you recycle day in and day out? Do your dress shoes leave your feet blistered and uncomfortable? Ditch the dress code for your PJs (we'll even throw in your slippers!).
5. Freedom to explore the world on your terms: Want to move from the USA to Canada or vice versa (or really anywhere in the world)? Tired of your job "relocating" you? Travel wherever a plane (or train, or car) can take you. Just be sure to take your computer along so that you can keep in touch with your work.

Is that free enough for you?

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Can You Succeed As a Freelancer?

A little bit ago, I was blog surfing and found one post that struck me as rather interesting and the title nearly slapped me in the face. The writer said work-at-home freelancing is a joke. Comments are disabled on his blog - otherwise I would have commented on it.

I just couldn't get some of the things he said off my mind - and mainly because the blog is titled "Matthew's Problem with Authority". Ideally - he is a perfect candidate for freelance work because he can essentially "be his own boss".

But, to answer the question posed in the title - yes. Well, it depends. And here's why --

In order to succeed as a freelancer, you have to have all of the following:

• Willingness to succeed - believe it or not, some people don't really want to succeed. It may sound odd, but trust me on this.
• Ability to commit - if you aren't able to commit to yourself, you won't be able to commit to your business.
• Entrepreneurial spirit - you must be able to self-manage. There's no getting around it. If you aren't able manage your list of priorities, you will fall behind and could risk losing a client.
• Marketing skill (or money to pay someone to market your business for you) - you must be able to market yourself to your target market. If you aren't able to do this, you may not be able to get clients.

Possessing the above listed characteristics doesn't guarantee your success as a freelancer. However, having these tools in your arsenal is a recipe for potential success.

If you don't think that you can have a successful career as a freelancer, maybe you can't, but that doesn't mean that others will have the same result.

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