A Flash Developer Resource Site

Results 1 to 5 of 5

Thread: Help with going solo!

  1. #1
    Member
    Join Date
    Nov 2003
    Posts
    61

    Help with going solo!

    I am kicking around the possibility of creating my own small business for doing my own design projects through. I live in Hungary, but am an American citizen. What should I look at doing first?
    How do you freelance guys handle your jobs?
    Thanks in advance for any replies.

    [pk]

  2. #2
    http://www.flipshark.com flipshark's Avatar
    Join Date
    Aug 2001
    Location
    Montreal, Canada
    Posts
    135
    First things first you will want to create yourself a portfolio.

    You may also want to try using freelance marketplaces to get some work to fill the portfolio or at least get your name known in the freelance community.

  3. #3
    Senior Member
    Join Date
    May 2002
    Posts
    232
    First of all, ask yourself if you want to be freelancing or running a business. If you are a freelancer, then you will be contracting yourself out to perform a certain task. Online freelance marketplaces or other design firms can be two places to find work. If you want to run a business, then you are a consultant paid to produce a certain result. In that case, businesses, corporations and non-profits will be your typical client.

    Once you decide this, you'll know who your target client will be. Now you'll have to figure out how to find and be found by them (marketing) and how to close a deal when you do (selling). Unfortunately, none of your design skills will be of use here. Assuming you have no sales/marketing experience, you'll have to get an education in this area. This will be much more critical if you are pursing the "business" concept rather than freelancing.

    Personally, I think needing a portfolio before you start is overrated, but that's because I pursued the business model and none of my early clients even asked to see mine. (Good thing -- I didn't have one!) If you are freelancing, then a portfolio is more essential, especially if you are looking to sub-contract to other agencies.

    There isn't a right or wrong choice. Pursue whichever you feel fits you best. For me, I felt that freelancing was too much like working for someone else -- you're viewed as a subordinate who's paid to push the right buttons on the keyboard. That's why I don't bother with freelance marketplaces where you're one of a hundred other low-ball bidders. I prefer to be paid for my knowledge and expertise and be viewed as a peer.

    Sorry if I got a little off-topic. Hope that helps.

    Oh, here's some links that might be useful:

    Honest Selling - Articles

    SitePoint Articles - Sell Your Services

    The Web Design Business Kit

  4. #4
    Member
    Join Date
    Nov 2003
    Posts
    61
    Thank you very much for your reply. I forgot to mention I am the creative designer (audio, graphics, illustrations, web) for a foundation full-time, and do the same in a small business on a needs based timetable. Sometime it is a lot of work, sometimes very little.
    I also meet potential clients for consulting sessions, so I have some experience. I also have people that would hire me out.
    I am more concerned with how to set up a business to work through. Thanks for any replies.

    [pk]

  5. #5
    FK M.D. pheck's Avatar
    Join Date
    Jul 2001
    Location
    MN
    Posts
    807
    I'm not sure about Hungary, but in the states it is relatively easy to set yourself up as a business.

    As soon as you take in 1 cent from a client, you are technically a sole proprietor under the law. That's all there is to it. Well, ok, it gets a little more complicated, but not much.

    Basically there are 2 main types of business structures: sole proprietorship (SP) or corporation. There is a slightly different animal called a partnership that is very similiar to a SP. On the corporation side, you have your limited liability corporation (LLC), S-Corp, and C-Corp. The S-Corp basically allows you to "pass-thru" money from your business to yourself without having to be taxed twice (once for the company's income and then for your own). The C-Corp is basically the classic corporation setup. The LLC is a relatively new setup that has become increasingly popular over the years. Many folks here run a LLC. The advantage of chosing a corporation over a SP structure is that you can protect your assets if you are sued. That is, only your corporation's money (in most cases) is liable if your company is sued, not your personal assets. The disadvantage of a corporation structure is it is generally more expensive to setup and often involves more attorney/tax consultant fees. In many states, the taxes on a corporation structure are significantly higher as well (or have a minimum tax fee), relative to a SPship.

    In terms of the SP, if you use your own (legal) name for your business, you don't have to pay a fee. If you want to get a fictitious name (doing business as or DBA), that usually costs very little and can be obtained from your county office.

    No matter what business structure you decide on, there are a few very important things to consider. One, there are often state, city, and other local licensure fees. Sometimes not. It depends on the area and you need to check with your state, city, county about them. Two, I would highly recommend you split up your business assets and expenditures from your personal (read, open a separate business bank account and a business credit card). In a corporation this is almost required, but it is just as important for a SPship. SPs are the most often audited business structure because of the abuse of them over the years. The crooks I am referring to will say they run a business just to expense some of their personal expenditures, so that those expenditures are in effect, income tax-free. By separating your money and having a separate bank account, you can easily track your income and expenses, instead of having to sift through your personal bank account looking for business charges and income. At tax time, you'll be glad you did for the above reasons. Three, get a hold of some accounting software to make everything automatic and easy. Everyday I sit down at the end of the day and enter in all business credit card expenditures, income received, car travel (to the bank, restraunts, client's place of work, etc.), and all other transactions for that day, into my accounting software. This way, I never forget transactions. Then, at tax time, it's a matter of a few simple mouse clicks to generate the reports I need to fill out schedule C and the other tax forms.

    All the best and good luck.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  




Click Here to Expand Forum to Full Width

HTML5 Development Center