The Principles That Freelancers Need to Know

2

Tonight I am assuming that everyone here has a/or understands …

your Featureyour Benefityour Value

Propositionyour Target Market

andcan Speak

EffectivelyAbout Your Service

Objectives

1. Establish a baseline of information needed

2. Explain a practical method to introduce project management

3. Understand the impact of time and target on Cash Flow and identify problems and create solutions.

4. Encourage those thinking of starting a business to take the plunge.

Establishing A Baseline

Financial Preparations: Budget ChartAnnual Household Income  

Monthly Income (Annual Income ÷ 12 months)

 

   

Monthly Expenses (estimate how much you spend per month)

 

Food  

Housing  

Transportation  

Healthcare  

Entertainment  

Personal Items  

Education  

Other:  

Other:  

Other:  

Credit Card payment (estimated)  

Student loans (estimated)  

Other debt (estimated)  

Total Monthly Expenses

(add all expenses) 

Financial Preparations: Start-up Cost Chart

Item Needed to Start Business Cost of Item

 Equipment  

Advertising   

Computer   

Internet Access   

Rent   

Transportation   

Subscriptions   

   

   

   

   

   

 Total Start-up Costs  

Financial Preparations: On Going Cost Chart

On-Going Costs (Monthly Expenses) Cost of Items

 Equipment Lease  

Advertising   

Utilities   

Internet Access   

Rent   

Transportation   

Subscriptions   

   

   

   

   

   

 Total On-Going Costs (Monthly)  

Time AssessmentActivity Time(00:00-00:00) Number of Hours 

Sleep  

Prepare for the Day  

Work  

Dinner  

Errands  

Other:  

Other:  

Other:  

Other:  

 

Total Hours in the Day 24 

Total Hours in Your Day  

Difference (Subtract Hours in Your Day From 24)  

How Decisions Impact Project Management and Business Operations

Business Operations

Operations is about logistics. • Logistics is the planning, implementation and coordination of the

details of a business or other operations.

• The objective of logistics is to get your product to the customer.

That is the most important goal.

Business Operations

Effective Project Management and Operations requires 1 fundamental thing:

• Making Decisions

But why is this sometimes difficult?

When you make a choice, how

many decisions do you make?

Two

1. The decision to choose one path.

2. The decision not to choose the other.

Project Management Simplified

All tasks below the red line, require

decisions and a dollar

value.

Everything above the red line,

like planning, does not need a dollar value.

Where are you now?Where do you want to be?

By when?What is your GOAL?

How will you get to where you want to be?

What is your STRATEGY or PROCESS?

What will you do to

accomplish your

strategy? What steps and actions must you

take?

What will you do to

accomplish your

strategy? What steps and actions must you

take?

What will you do to

accomplish your

strategy? What steps and actions must you

take?

What will you do to

accomplish your

strategy? What steps and actions must you

take?

The Basic Process

Time AssessmentActivity Time(00:00-00:00) Number of Hours 

Sleep  

Prepare for the Day  

Work  

Dinner  

Errands  

Other:  

Other:  

Other:  

Other:  

 

Total Hours in the Day 24 

Total Hours in Your Day  

Difference (Subtract Hours in Your Day From 24)  

Target Market Revisited

Goal: $5,000 Client 1 Client 2 

Average Contract Size $50 $2,500 

Number of Clients 100 2 

Total Number of Contact Hrs 1000 20 

Average Work Day 8  8

Total Days Needed 125 2.5 

Months 4 0 

Overhead Used: $8,000 0 

It Takes Time To Sell a Product or Service:As a general rule you should use a ration of 10:1 to calculate the amount of time it will take you to close a contract or make a sale.So for every one Contract you close assume it will take ten 1 hour meeting to get to that point.

Cash Flow and the Variables Come Together

Cash Flow

Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Total

Bal Fwd

+$1,250 +$1,250 +$1,250 +$500 -$500 -$1,500 -$2,250 -$3,250 -$2,750 -$3,000 -$3,500

Ovhd $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $24,000

C1 $500 $500 $500 $1,500

C2 $250 $250 $250 $250 $1,000

C3 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $6,000

C4 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $9,000

C5 $1,000 $1,000

Ttl Ernd

$3,250 $3,250 $3,250 $2,500 $1,500 $1,000 $1,250 $1,000 $2,500 $1,750 $1,500 $0 $18,500

Bal +$1,250 +$1,250 +$1,250 +$500 -$500 -$1,500 -$2,250 -$3,250 -$2,750 -$3,000 -$3,500 -$5,500 $5,500

Steps for Starting a Business in Philadelphia

Make a Preliminary PlanChecklist: Preparing Yourself for Business

•Conduct a self-assessment for business readiness

•Research your industry, competition and target market

•Construct a brief outline of business goals and steps needed to reach that goal

•Create a preliminary list of business costs and a rough 3-year plan

Obtain a Business Privilege LicenseChecklist: Obtaining Your Business Privilege License

•Prepare Application for Business Privilege License (available at the Licenses & Inspections office and online at http://webapps.phila.gov/li/)

•Take application and check for $300 to the Department of Licenses & Inspections or mail your application and check to the Department of L&I using the address on the application.

•Your Business Privilege License will be issued to you, along with your Philadelphia Tax I.D. number.

Secure a Location or Set Up a Home OfficeChecklist: Finding a Location for Your Business

•Obtain Zoning Compliance

•If you are doing any major building, plumbing or electrical renovations, obtain Construction Permits

•Obtain a Certificate of Occupancy

•Obtain business insurance

•Obtain Health Department Inspections and Approvals if necessary

While some entrepreneurs will need to obtain property for their business, many small start-ups can operate successfully from home, allowing the owner to avoid complications that can occur when buying a property. When planning the future of your business, decide with care.

File a Fictitious NameChecklist: Filing a Fictitious Name

•Determine whether your business name is available for use by checking the PA Corporations Bureau website

•Prepare application for Registration of Fictitious Name (on PA Open for Business website at www.paopen4business.state.pa.us)

•Send an application to Pennsylvania Department of State Corporations Bureau with check for $70

A fictitious name is necessary if you choose a business name that is not the proprietor’s first or last name plus a description of the business (e.g. Smith’s Auto Tags).

Establish a Legal EntityChecklist: Establish a Legal Entity

•Read the overview of legal entities and obtain legal advice about choosing the right entity

•If you cannot afford legal assistance, contact Empowerment Group about applying for free legal assistance through Philadelphia LawWorks

•File appropriate paperwork

Choosing a business structure and establishing a legal entity for your business is one of the most important steps in beginning your business. Be sure to gather information from a variety of sources, including consultation with a small business lawyer.

Obtain Additional Licenses or Approvals

Some businesses require additional licenses for their business properties. These might include:

•Sign or Canopy License

•Flyer Distribution License

•Dumpster License

For more information on additional City of Philadelphia licenses, call the License Issuance Hotline at 215-686-2490.

For more information on PA Sales Tax License, call the PA Department of Revenue at 717-787-1064.

•Fire Safety Approval

•PA Sales Tax License

Contact Us At:

Derek Ferguson

215-427-9245 ext. 202

derekf@empowerment-group.org

www.empowerment-group.org