running a successful small creative firm or freelance business
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Welcome to Running a Successful Small Firm
or Freelance Business
Who to blame:
Michael Courtney mike@michaelcourtneydesign.com
Larry Asherlarry@workerbees.com
Mike’s story
© michael courtney design, Inc. p. 5
Our ClientsHealth Care
Higher Education
Real Estate
Hospitality & Lifestyle
Technology
Cultural
Larry’s old story
Larry’s new story
Every birth that takes place at Swedish — and there have been more than 200,000 of them — is aremarkable event. But the 1935 arrival of David Ishii is quite another story.
Sadly, his mother died in childbirth, and David’s father was ill equipped to take care of a newborn. So, Mr. Ishii made arrangements with Swedish to care for his new son while he took his six other children to Japan where relatives could look after them.
What was supposed to be a brief absence turned into 31/2 years. So David grew up at Swedish with a whole team of mothers — all dressed in starched white uniforms.
To this day, David remembers accompanying Swedish’s founder, Dr. Nils Johanson, around the halls of the hospital. And he faintly recalls a birthday party the nurses threw for him.
It was and is the Swedish way to do whatever it takes to make patients feel at home — even if it actually is your home.
Watch 100 stories about Swedish’s 100 years at www.swedish.org/100years
Thousands of babieshave been born at Swedish.
But only one went on tolive there for 3 1/2 years.
And you are?
Please deliver your neighbor’s 2 minute elevator speech.
You need to be an expert.
Ted Leonhardttedleonhardt.com
David C. Bakerrecourses.com
Blair Ennswinwithoutpitching.com
Why be an expert?Why be an expert?
Why be an expert?
Orthopedics $413,000 Cardiology $351,000Radiology $340,000OB/Gyn $243,000Internal Medicine $188,000Pediatrics $181,000Family Medicine $176,000
Medscape Physician Compensation Report, 2014
Why be an expert?
$0.07 per ounce $1.19 per ounce
> Charge more> Win without pitching> Better solutions> Lower anxiety
The advantages of being an expert.
MCD Environmental graphicsWorker Bees Health careCDK Cobalt Automotive retailCognition Medical illustrationHammerquist Active sportsShaw+Scott Email marketingHacker Grp. Direct marketing
Who are some experts?
ExpertProject
The Circle of Life
Share
ExpertProject
The Circle of Life
BlogTweetWeb Site ArticleSpeech TeachAd DMSEMSEO
Network
Share
ExpertProject
The Circle of Life
Trade ShowAssociation Mtg. Disc. Board
Job ShiftingGrapevine
RFPResponse
Network
Share
ExpertProject
The Circle of Life
RFPResponse
Network
Share
ExpertProject
The Circle of Life
RFP request
fromProvidence
Healthcareprofs. follow competitors
Featured onWB website
SwedishProjects
The Circle of Life
Awaiting word after
pitch
Chris refers to El
Camino
Connect with Chris
Bevelo
HealthcareProjects
The Circle of Life
So what are you good at?Skills Interests Experience Mandatories Prospects
So what are you good at?
Skills Interests Experience Mandatories Prospects
What you’re good at professionally
Stuff from your life that you like, not necessarily from your work
Types of companies and industries you’ve worked on
Must-haves for companies and clients you’d want to work for
Some companies that would be a good fit
Skills Interests Experience Mandatories Prospects
Brand strategy New-era marketing
Healthcare Well-funded
Ad concepts Mac computing
Real Estate Oppty to travel
Copywriting Baseball Transportation Good taste in creative work
Project management
Cycling Financial Svcs. Stable
Creative direction
Travel Bureaucracies Progressive
Client relations History
Presentations Photography
Larry’s personal inventory
Skills Interests Experience Mandatories Prospects
Brand strategy New-era marketing
Healthcare Well-funded
Ad concepts Mac computing
Real Estate Oppty to travel
Copywriting Baseball Transportation Good taste in creative work
Project management
Cycling Financial Svcs. Stable
Creative direction
Travel Bureaucracies Progressive
Client relations History
Presentations Photography
Larry’s personal inventory
Skills Interests Experience Mandatories Prospects
Brand strategy New-era marketing
Healthcare Well-funded More Prov H&S
Ad concepts Mac computing
Real Estate Oppty to travel Proliance
Copywriting Baseball Transportation Good taste in creative work
Polyclinic
Project management
Cycling Financial Svcs. Stable Sutter Health
Creative direction
Travel Bureaucracies Progressive John Muir Health
Client relations History Prime Health Care
Presentations Photography St. Alphonsus Boise
Larry’s personal inventory
Mike’s personal inventory
Skills Interests Experience Mandatories Prospects
Environmental Graphics
Business of Design
Hospitality & Lifestyle
Good Budgets
Design Concepts
Outdoor sports Healthcare ‘Gets’ what we can do
Brand Strategy Family & Friends
Integrated Design Prog.
Values User Experience
Client Relations
Baseball Culture and the Arts
Forward looking
Presentations Cooking Fortune 500 companies
Senior Management
Seeing NB connections
Making & building
Higher Ed Good taste in creative work
Collaborations Travel Real Estate
Skills Interests Experience Mandatories Prospects
Environmental Graphics
Business of Design
Hospitality & Lifestyle
Good Budgets
Design Concepts
Outdoor sports Healthcare ‘Gets’ what we can do
Brand Strategy Family & Friends
Integrated Design Prog.
Values User Experience
Client Relations
Baseball Culture and the Arts
Forward looking
Presentations Cooking Fortune 500 companies
Senior Management
Seeing NB connections
Making & building
Higher Ed Good taste in creative work
Collaborations Travel Real Estate
Mike’s personal inventory
Skills Interests Experience Mandatories Prospects
Environmental Graphics
Business of Design
Hospitality & Lifestyle
Good Budgets Park City, Snowbird
Design Concepts
Outdoor sports Healthcare ‘Gets’ what we can do
University Hospital(s)
Brand Strategy Family & Friends
Integrated Design Prog.
Values User Experience
University Campuses
Client Relations
Baseball Culture and the Arts
Forward looking
Seattle Waterfront
Presentations Cooking Fortune 500 companies
Senior Management
Starbucks
Seeing NB connections
Making & building
Higher Ed Good taste in creative work
M’s, Storm, Seahawks
Collaborations Travel Real Estate Hyatt
Mike’s personal inventory
Skills Interests Experience Mandatories Prospects
Let’s do yours
Who wants to make money?
How much to charge per hour
52 weeks x 40 hours 2,080Less 2 weeks vacation 2,000Less 30% non-billable 1,400
Your salary target $_______Divide by billable hours 1,400Target hourly rate $____/hr.
Take your salary, divide by avail. hours
52 weeks x 40 hours 2,080Less 2 weeks vacation 2,000Less 30% non-billable 1,400
Your salary target $80,000Divide by billable hours 1,400Target hourly rate $57/hr.
Expense Assumption Cost % of Total
Salary 80,000 64.8%
Payroll Taxes Typically 7% of salary 5,600 4.5%
Office Rent $600/month Pioneer Square 12,000 9.7%
Health Insurance Premera 35-39, $530/month 6,360 5.2%
Cell Phone & Internet AT&T Wireless & Comcast 1,500 1.2%
Promotion Expense Website, travel to 3 conferences 8,000 6.5%
Professional Services Attorney and Accountant 4,000 3.2%
Office Expenses Postage, supplies, toner, etc. 3,000 2.4%
Travel & Entertainment Parking, client lunches, etc. 1,000 0.8%
Taxes B&O and Federal payroll taxes 2,000 1.6%
Total 123,460 100.0%
Typical freelance expenses
Salary + Expenses + Profit
Your salary target $80,000Plus other expenses 43,460Total expenses $123,460
Plus 15% profit target $18,519
Total income target $141,979Divide by billable hours 1,400Target hourly rate $ 101/hr
Expense Assumption Cost % of TotalSalary
Payroll Taxes
Office Rent
Health Insurance
Cell Phone & Internet
Promotion Expense
Professional Services
Office Expenses
Travel & Entertainment
Taxes
Other
Other
Total
Your expense profile
Expense Assumption Amount
Target Salary $75,000
Total Available Hours Less 2 weeks vacation 2,000
Billable Percentage 65% billable, 35% chargeable 65%
Total Billable Hours 1,300
Total Expense Bring forward from expense profile $115,000
Profit Target 20% is on the high side $23,000
Total Expense + Profit $138,000
Optimal Hourly Rate Expense + Profit divided by 1,300 $106/hr
Your income profile
Expense Assumption Amount
Target Salary
Total Available Hours
Billable Percentage
Total Billable Hours
Total Expense
Profit Target
Total Expense + Profit
Optimal Hourly Rate
Your income profile
Where will $141,979 come from?
That’s nearly $12,000 per month
Hourly
The usual
Hourly Retainer
The usual Unlikely
Hourly
Project
Retainer
The usual Unlikely
Best choice
Hourly
Project
Retainer
Markups
The usual Unlikely
Best choice Yes, if you can
Sorry. You’re going to have to track time.
Other time-tracking options
FastTrack Schedule 10 for MacFunction FoxProWorkFlowFunction PointStreamtimeWorkgroup 2011StudiometryIntervalsTimex + Ticonderoga No. 2
Let’s eat.Because you don’t want to do
financial forecasting on an empty stomach.
Let’s recap the money stuff.
Expense Assumption Cost % of TotalSalary
Payroll Taxes
Office Rent
Health Insurance
Cell Phone & Internet
Promotion Expense
Professional Services
Office Expenses
Travel & Entertainment
Taxes
Other
Other
Total
Your expense profile
Expense Assumption Amount
Target Salary
Total Available Hours
Billable Percentage
Total Billable Hours
Total Expense
Profit Target
Total Expense + Profit
Optimal Hourly Rate
Your income profile
Essentials of Pricing & Negotiation
1. Seek clients who get it
2. Help them get it
3. Sell a skill, not a thing
4. Document fees
Educating your client
Educating your client
Clients who push back
Write a tight contract
1. Define exactly what you’re working on
2. Include the schedule
3. Define number of meetings and locations
4. How change orders will be handled
Write a tight contract
Write a tight contract
Keeping complex work in scope
What if the budget is inadequate?
1. Reduce the scope
2. Opt for time+materials
3. Phase the project
How to handle change orders
How to avoid getting stung
Good documentation makes money
1. A written contract
2. Before-the-fact estimates
3. Clear, regular invoices
CLIENT: Swedish Medical Center
DATE: July 19, 2010 v.1.
JOB TITLE: Ballard OB Outdoor Boards
JOB NUMBER: 6000-365
DESCRIPTION:
Creative Services
875
1,050
TBDElectronic Production/Digital Studio TBDProduction Management - Development Phase 350Production Management - Production Phase TBD
350
TBDSub-Total Creative Services $2,625
Outside Services
TBD
Prepress/Printing TBD
Sub-Total Outside Services 0
TOTAL Estimate $2,625
Client Acceptance: Date:
Project Management - Development Phase
D E V E L O P M E N T E S T I M A T E
Creative development of outdoor boards promoting Ballard OB. Estimate does not include
stock photography, media, or outside production costs.
Concept Development
Art Direction - Layout
Note: Prices quoted in this estimate are for budget purposes only and are as of the date given. Unless specifically noted, these prices are subject to
revision based on cost increases from suppliers, substantial changes in the scope of the project or major client revisions. Concepts shall remain the
property of Worker Bees, Inc. until charges are paid in full.
Art Direction - Production Phase
Project Management - Production Phase
Stock/Original Photography
XXXXXXTBDTBDXXXTBDXXXTBD
$ XXXX
$ XXXX
CLIENT: Swedish Medical CenterDATE: September 7, 2010 v3JOB TITLE: Ballard OB Outdoor BoardsJOB NUMBER: 6000-365DESCRIPTION:
Creative Services875
1,0502,450
Electronic Production/Digital Studio 1,215Proofreading 100Photo sourcing/Parent coordination 875Production Management - Development Phase 350Production Management - Production Phase 875
350700
Sub-Total Creative Services $8,840
Outside Services1,190
Sub-Total Outside Services $1,190
TOTAL Estimate $10,030
Client Acceptance: Date:
Art Direction - Production Phase
Project Management - Production Phase
Printing and Posting
Project Management - Development Phase
P R O D U C T I O N E S T I M A T E
Creative development and production costs of 9 outdoor boards promoting Ballard OB.
Concept DevelopmentArt Direction - Layout Phase
Note: Prices quoted in this estimate are for budget purposes only and are as of the date given. Unless specifically noted, these prices are subject to revision based on cost increases from suppliers, substantial changes in the scope of the project or major client revisions. Concepts shall remain the property of Worker Bees, Inc. until charges are paid in full.
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX $ XXXX
$ XXXX
$ XXXX
XXX
D E S C R I P T I O N A M O U N T
Art Direction/Production Phase 750.00Electronic Production/Digital Studio 750.00Production Management/Photo Phase 780.00Project Management/Production Phase 800.00
Steve Schneider Photo, Photos, #69550, 3/7/11 941.20Steve Schnieder Photo, Photo Shoot, #69575, 3/28/11 352.95Total Reimbursable Expenses 1,294.15
Previously Billed $4,025.00 Total to Date $8,399.15Estimated Amount $9,795.00 Over/(Under) Estimate ($1,395.85)
D A T E
04/05/11
I N V O I C E
311008
J O B T I T L E
6000-425 Leapfrog Ad
T O T A L
I N V O I C E
500 Aurora Avenue North, Suite 105 ! Seattle, WA 98109 ! Tel 206.930.3417 ! Fax 888.930.3417 ! accounting@workerbees.com
B I L L T O Melissa TizonSwedish Medical CenterMarketing Communications747 BroadwaySeattle, WA 98122
$4,374.15
Client NameCompanyDepartmentAddressCity, State Zip
XXXX-XXX Job Title
Q: What have you learned from failure?
A: I had to stop going to auditions thinking, “Oh, I hope they like me.”
I had to go in thinking I was the answer to their problem.
You could feel the difference in the room immediately.
The greatest lesson I learned was that sometimes you have to fake it. And you have to be willing to fail.
Marketing your business
If you know how to market your
clients’ products and services,
you should be able to do your own.
What marketing will do for you:> Keep you booked
> Give you options
> Know the market’s price threshholds
> Turn down unprofitable work
> Know what’s coming
> Develop new clients, reconnect with old ones
> Turn cold calls into warm calls
Who is your audience?
Peers vs. Prospects
Who is your audience?
Peers vs. Prospects
What is your message?
Remember 76 slides ago?
What’s the best way to reach prospects?
If no obvious ones come to mind, you may have chosen a field that
has no viable, vital network.
Remember: Marketing starts with your expertise
A model we could all stand to follow
Channel What’s Needed? Who Will Do? How Much? Due When?
Website
Blog
Publications
Speaking
Associations
DM/Ads
Portfolio
Getting the word out.
Channel What’s Needed? Who Will Do? How Much? Due When?
Website Launch new site Larry $0 Done
Facebook Launch WB company page Larry $0 Jan. 1
Twitter Hit 300 followers Larry $0 Jan. 1
Blog
Publications
Speaking 1 Speaking Engmt. Per Quarter
Larry $0 On-Going
Associations -- -- -- --
Direct Mail/Ad -- -- -- --
Portfolio -- -- -- --
Getting the word out.
Do what you can do.
> Don’t try to do everything
> Keep it simple (so you’ll do it)
> Consistency is king
> Aim mostly at prospects, not peers
Channel What’s Needed? Who Will Do? How Much? Due When?
Website
Blog
Publications
Speaking
Associations
DM/Ads
Portfolio
Let’s try it
Some (hopefully) useful resources
Let’s evaluate
Thanks so much for coming
Slide Deck:slideshare.net/svcseattle
Email:mike@michaelcourtneydesign.comlarrya@workerbees.com
Twitter: @WorkerbeesMC@MCourtney1211
Facebook Discussion Group:facebook.com/groups/seattlecreativebusiness/
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