Michelle Goodman will be available via live chat to give advice on how you can be a successful entrepreneur. Live chat: 7.29.07 at 7pm EST, here on Writers Revealed.

People often ask me what I would do differently if I could go back in time and leave my steady paycheck all over again. As I say in The Anti 9-to-5 Guide, I would wait a bit longer before fleeing the cube. Instead, I would build up my freelance business on the side while keeping my paycheck. I left the workforce (when I was 24) before I had any steady clients, contacts, savings, business sense, or networking savvy. I’m not saying you need to put in your time on the cube farm for a set number of years before flying solo, but you do need to get your ducks in a row before you turn in that letter of resignation.

If I could go back in time, I’d take a business class before making the leap (I waited until I was a couple years in). I’d schmooze my brains out with co-workers, vendors, and other people in my industry of choice to get the lay of the land and build up my list of contacts (i.e., potential clients or people who can otherwise help you in your solo venture). And I’d save up several months of living expenses instead of spending all my spare cash on live music, shoes, and booze.

Other common mistakes newbie freelancers make:

Spending too much money on equipment, supplies, and consultants they don’t need right away. Working in a vacuum rather than finding other independent professionals to bounce ideas off of, share war stories with, and form a freelance community with. Not being realistic about how much money they need to keep the business afloat and a roof over their head. Signing bad contracts with clients and not educating themselves about what makes a good contract. Not keeping set business hours, which usually translates into working round the clock. I could go on and on…

So what are the top three things you should do before making the freelance leap?

1. Research the market and industry. Read the business section of your local newspaper as well as industry publications and sites. Join at least one professional networking organization and a couple of relevant listservs or web communities. Talk to independent professionals you admire (treating them to lunch will get you everywhere!) and glean as much advice as you can.

2. Get real with your finances. Know how much income you need to cover both your business and personal expenses. Talk to a financial planner if you have to. (I use my mom, who’s infinitely affordable.) Be realistic about how much money you can bring in that first year, given the going rate for someone with your level of experience.

3. Have a Plan B. Your fallback plan can be several months’ living expenses in the bank, a lucrative bread-and-butter skill you know people will hire you to do, and/or an employer who tells you, “Any time you want your old job back, give me a call.” Once I wised up to the fact that credit cards were not a viable fallback, I started working with high-tech clients to ensure I’d always have food on the table. It may not be my first choice of work, but it helps finance some of my more creative (and less lucrative) projects.

Related Posts
Michelle Goodman’s How do you Survive Work as a Short Timer?
Michelle Goodman’s Business Plan Do’s and Don’ts

This entry was posted on Tuesday, July 24th, 2007 at 6:03 am and is filed under Live Chat, Non Fiction. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.