What is a freelancer if not a small business? Just like small businesses, freelancers must engage in marketing, manage payables and receivables and other accounting tasks, perform HR functions, direct production, and plan strategy.
1. Planning and strategy. There are lots of great tools and apps out there that will help you to plan and execute great strategy for your freelance career or business, but the greatest tool you can use is knowledge. The Harvard Business Review is probably the leading publication for business and their an online journal contains thousands of articles nonbusiness theory, practice, and technique. The current issue of HBR includes articles which can provide great value to freelancers, such as “Stop Procrastinating…Now,” “Customer Loyalty in the Twitter Era,” and “he Secret to Dealing With Difficult People: It’s About You.”
2. Marketing. The single greatest marketing tool that a freelancers can use is standing directly in front of you: your clients. Happy customers talk, and when they talk about you or your business, the people they speak to listen. The typical freelancer will receive well over half of their new clients through word of mouth, and strong WOM builds business. Wikipedia defines it thus, “Customer relationship management (CRM) is a widely implemented strategy for managing a company’s interactions with customers, clients and sales prospects. It involves using technology to organize, automate, and synchronize business processes—principally sales activities, but also those for marketing, customer service, and technical support. Two great resources are Salesforce and Zoho.com. These two online resources allow you to plan and manage marketing campaigns, manage lead generation, automate sales management, perform inventory and customer support functions, and analyze and visualize customer data.
3. Managing HR. The human resources manager is typically one of the most important (and feared) members of the corporate management team. They typically manage processes that touch every employee every day: payroll, health benefits, incentive programs, performance reviews, pension and retirement plans, and vacation policies. But freelancers do all of this on their own, and more. The Society for Human Resource Management (SHRM) is the world’s largest association devoted to human resource management. Their website has a ton of resources for small businesses and freelancers, including articles, forms and templates, and user groups and forums, as well as information on other resources such as health care benefits, employee assistance programs, and retirement plans.
Well it’s that merry time of year again. We’re gonna rest a bit, enjoy the slow pace for the next couple of weeks, take the opportunity hang out with friends and family, perhaps even sip an egg nog. Let’s see now, what else are we looking forward to? Ah yes – tax planning!
Last year’s healthcare bill, love it or hate it, contained a provision that slipped in under the radar, but that will have a substantial impact on small businesses and startups. The bill contains two important changes to how 1099s have been used historically. First, 1099s will now have to be issued for goods as well as services, and second 1099s will now have to be issued to corporations as well as individuals. This means that small businesses will now be sending out literally millions of 1099 forms and will be responsible for keeping track of every one of these throughout the tax year. Beginning in 2012, businesses will be required to issue 1099 tax forms not just to freelancers and contract employees, but to ANY individual or corporation from which a business buys more than $600 in goods or services.
