Talk in person with as many sole practitioners as you can in your
specialty to learn how they made it. The largest pitfall for me was
not understanding adequate cash flow and planning for the lean times.
I'd say the challenge area for most is financial management and
adequate capitalization. 

You can't charge what you think the job is worth as though you were
paying for it from your own wallet. Talk to others to learn what they
charge. Do some research. I used contracts and ask for a healthy
deposit up front to begin work. That helped me get better clients and
reduce cash flow problems.

I believe in doing your own bookkeeping so you understand your
expenses and overhead. Be aware if you set up a partnership, you have
more liability if the partnership doesn't work out. A corporate
structure is worth set up if you want the tax advantages. If you
aren't good at business administration, hire an accountant to help
you.

Figure out what is your area of strength and focus. Draw in support
and resources, realizing you may spend half your time running your
business and getting new business.

Take time to network out of your office on a regular basis. Also take
time to regularly assess where you are going, how you spend your time
and if it's worth it. 

Personally I love freelancing, and did it for more than a decade. By
choice now that I'm a parent, I have a day job, benefits and go home
to my family at 5 pm. I still freelance part-time to do select design
projects. 

Here's a good way to boost your confidence: Spend a few hours line
up all your best work you ever did and look at it. 


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Posted from the new ixda.org
http://www.ixda.org/discuss?post=31583


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