when you work for yourself, there are a lot more services to deal with and hats to wear. working from home and for myself, i have to be ceo, cfo, coo, the legal department, the admin department, bookkeeper, and coach. oi! here are some essential elements to keeping the ship afloat, complete with horror stories to ensure you remember to protect yourself!
top ten ways to cover your ass when working for yourself:
- insurance. really. it alarms me how many people my age (mid-twenties to mid thirties) don't have health insurance. having dealt with the costs of a rare medical problem even WITH coverage lately, i can't emphasize this one enough. there are affordable plans for you out there, and the peace of mind is worth it. also- for dental and vision, you can generally get an hmo plan for little more then $10 a month that will cover cleanings, contacts, and check-ups. for more information, contact my miracle worker at farmer's insurance.
- more insurance. not to sound like a broken record, but if you plan to have clients in your facility or if you will need expensive equipment to do your job, you need insurance for this as well. malpractice is a good start, as well as an extra rider to cover things like cameras, printers, computers, etc. your insurance agent can explain these to you and will help you decide what coverage you need depending on your situation. (office, home office, whether you are storing merchandise etc.)
- legal advice. when you go into business, there are more contracts, more paperwork, and more details and loopholes to be aware of. since most of us don't want to go to law school, invest in a legal plan that gives you access to the legal system for a fraction of the price. i use, prepaid legal. for about $40 a month i get unlimited calls to a lawyer in a local reputable law firm, contract review, living will creation, and opptional additional identity theft. the peace of mind that this creates is amazing. to set up a plan, contact jeannie, my representative at prepaid legal.
- before you sign anything, read it. even those little check boxes on the internet. know what you are agreeing to before you agree. this was a big point at blogher. we need to be responsible users of services and complain when unreasonable demands are made of companies in order to access their goods.
- know your vendors. research the people you plan on working with, especially if they will be taking responsibility for any part of your business. this includes fulfillment houses, mailing lists, web designers, programmers, virtual assistants and so on. getting a good solid recommendation from a friend or colleague who trusts the vendor in question and has had a good working relationship is the best tip you can get. i have heard more horror stories in this area than any others. stories of having to pull goods out of fulfillment houses and then having to pay to transfer goods to another one, contractors who ended up being corrupt and irresponsible, bills delivered a year later for no goods rendered. yikes! do your homework and pick someone who has already delivered good service to someone whose judgement you trust.
- have your own contracts clear. if you are a service business, it is much easier to hold to your policy if you have clients sign an agreement. coaches and therapists generally have an agreement to sign regarding confidentiality and cancellation policy. this is a good way to go since a signed contract allows your relationship to feel clear with the client and creates a more solid and rewarding relationship for both of you. look at examples of other contracts and adapt as needed to fulfill your own businesses needs. for sales, this includes establishing clear terms with vendors. if you sell goods, you should know what net 30 terms mean versus payment due at time of delivery.
- learn to say no. even to potential business. get clear about who you want to work with and how you want to work with them. if you agree to pro bono work all the time, know you will get referrals expecting the same deal. it is often better to wait for clients who can afford your fee, as they will send you more who can pay as well. also- it does no one any good to operate in a bad working environment. it is better to have a great referral network for people who have different needs than those you can provide for than to take on work you don't enjoy and won't serve the client. your honesty will speak volumes.
- don't lapse on marketing, even during difficult times. marketing is a tempting budget to skimp on when things are tough, but slow periods require the same if not more investment in this area. make sure people know you are out there. keep your regular marketing going and consider adding on free or low cost options on top of those: facebook, myspace, linkedin, pulse, and google adds all are affordable or free ways to get your name and business out there.
- consider other options at every stage. staying open and flexible in your thinking will serve you more than you realize. whenever considering an option for your business, consider all possible options before committing. need help? you could hire an employee, but would an intern or trade with another professional be a better option? if you want to get your name out in a professional community, don't just consider a table at a conference, try to write for their publication, advertise in a magazine, or comment on blogs in the field. opening up your choices will allow you to pick the one that is best for you.
- mind your manners, you never know who is listening. good business practice includes treating everyone as if they are the best friend of your ideal client or investor. while you may not want to be best friends with everyone you come across in business situations, people are for more likely to pass on information about people they had a bad interaction with rather than a positive one. up your odds of good news floating around by resisting the urge to gossip opr badmouth others in the field.
follow these tips and consider your professional ass well covered. let us know if you have others to suggest.
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