How to run an efficient freelance writing business
An efficient freelance writing business is one that runs like a machine. It’s dependent on a lot of un-sexy stuff, like contracts, accounting software, and templates.
In this episode, we discuss the tools and resources we use to make sure we’re not wasting time and working as efficiently as possible.
Where to start
No one ever told us how to run a business. We didn’t start off by reading a guidebook or getting business lessons. So, naturally, we had a lot of questions when we were first starting out…and we had to get scrappy to find the answers.
The first thing you should do is take care of taxes.
A big fear for a lot of freelance writers is getting in trouble with the IRS by incorrectly filing their business taxes. When you’re first starting, use your connections. Do you know anyone running a small business? Ask if they can recommend an accountant.
“My first year was very ad-hoc, but I took care of retirement investing right off the bat.”
If you’re not a numbers person, the words bookkeeping or taxes can be intimidating. That’s why we recommend outsourcing these kinds of things. Plus, using software such as Wave or Freshbooks to simplify the bookkeeping process makes a whole lot of sense. Springing for a bookkeeper is a cost worth paying for. You don’t want to manually record everything in an accounting journal by hand, do you? (Trust me, you don’t.)
Contracts and lawyers
When you’re a freelancer, there are a few types of contracts that you’ll need regularly: One for new clients and another for any subcontractors you might be working with. We suggest finding a business lawyer to draw templates of these up for you that you can reuse again and again, or use a template, like this one from Kat Boogaard.
When it comes to getting them signed, there are helpful tools like docusign or proposify that make this easy.
If you’re working with clients that you’ve known on such a long-term basis and you trust then, a contract might just get in the way or slow things down. With long-term clients, we often just do a quick project review, (potentially) sign an NDA, and jump straight into the project.
So far we’ve not had any major problems, but it’s a good idea to set up an LLC to protect your personal assets. (Reminder: We are not lawyers, and this is not to be taken as professional advice.)
“I’ve only had one experience where a client didn’t pay me in full. They owed me $1,000. My lawyer said it’s not even worth chasing.”
If you struggle with money conversations, a contract is a great way to get around potentially awkward or uncomfortable conversations. You can just write your expectations and requirements all out in your contract or proposal (i.e boundary setting, meeting times, what you will and won’t do, when you will and won’t respond to emails, etc.)
If you’re working with a new client for the first time, 100% do use a contract. You can also ask for some or all of the payment up-front as a deposit. All of this builds trust and is a form of both parties putting '“skin in the game.”
Templates and time savings
We love templates. We mainly use two kinds, and they end up saving us so much time that we highly recommend all freelancers start using them for things like:
Client work: case study questions, writing briefs, etc. You can customize and tweak these for individual clients.
Email templates: Use these for client communication (i.e. every time a new client gets in touch with you, you have the process mapped out in email templates.) New clients usually ask the same questions over and over again, so it saves time and builds confidence when you can anticipate common questions.
A lot of freelance writers deal with similar problems, so using templates like these are huge time-savers. And as the old adage goes: time is money.
“Templates show: this isn’t my first rodeo. Here’s what to expect, my rates… everything is laid out up front.”
Know what your weak spots are in business and outsource them. Whether it’s money, legalities, or pitching: find someone who’s good at it and have them take the lead and show you how it’s done.
Don’t let the boring stuff stop you.
You can get a lot done ad-hoc until you figure out your processes and create or find the templates that work you for. Take your time. You don’t need everything figured out from day one.