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Like most writers, I have two jobs: consulting work and a "real"
job. I'm not ashamed to say, for a long time, my consulting
business was haphazard, at best. While, I'm a strong writer
and designer, I knew little about running my own business until
recently.
After nearly a decade of working for newspapers and the like, I
started a new life as a marketing executive for a small
manufacturing company. As with most small companies, I found
myself taking on a variety of tasks, including billing, customer
service, inventory and shipping.
The lessons I've learned working for this company, I applied to
my editing and Web design business with great success. Here's
what I've learned:
* You can set your own terms. You can decide if you will be
paid upon receipt, in 15 days or 30 days. Make your terms
clear and print them on your written bid and on your
invoices. It was liberating to know that I no longer had to
wait and keep asking my client when the check would be sent
out. Nor was I held hostage to smaller companies that
considered my invoice a lower priority than their other
bills.
* A credit check can be your best friend. Before a
manufacturer will give a new client it's best terms
(usually Net 30 or Net 45), it will run a credit check.
Think about it, when you tell a client they don't have to
pay you for 30 days, it's the same as offering a line of
credit. But what do us writers do? We run to our message
boards and ask other writers if they have ever worked with
this particular client before. Make a simple form with your
logo and call and check the references yourself. It may
take an hour or two of work, but avoiding one bad credit
risk will save you hours more. (It can save a lot of money,
too!)
* Have someone else call companies that are late with
payments. Manufacturing companies know the person who makes
the sale and handles customer needs should not be the same
person demanding payment. I'm lucky. My husband is a no-
nonsense businessman who has no qualms about calling my
clients and demanding payment. If you aren't so lucky, you
can ask a friend in a similar or complimentary business to
make the calls for you. In exchange, offer to do the same
for your friend's business.
* It's okay to charge for shipping. If you are sending files
or documents via any method other than good, old standard
mail, it's perfectly acceptable to add the cost of
shipping. (I strongly suggest making sure your customers
know that UPS or FedEx is not included in your bid price.)
Not only is it OK to add this charge, but also most
manufacturers add 10% because the manufacturers are
fronting the cost of shipping. That's right, you're paying
for it and expecting to be reimbursed. That has a value.
* Use a packing list. If you are sending a client documents
or a CD containing electronic files, use a packing list.
Don't describe the contents in a cover letter, it will be
thrown away or misplaced. Not only should you use a packing
list, but also it should be in the same format as your
initial written bid and your final invoice to avoid
confusion.
* Don't be afraid of paper. Writers aren't necessarily afraid
of paper, but home business owners are. Manufacturing
companies, especially those that are ISO certified, keep
paper copies of everything. If you get an e-mail from your
client changing the specs of a project, print it out and
file it. You never know when your client might need a
reminder.
* Develop a paperwork system and stick with it. If you
require a client to sign a written agreement outlining his
expectations, require the same from all your clients. If
you need a purchase order number from a client to begin
business, ask the same thing from everyone.
