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Going Independent
Going Independent
WSA Internet Business SIG
January 22, 2002Linda Merrick
Co-founder, P5 Group LLP
®Our Story: P5 Group, LLPOur Story: P5 Group, LLP
Freelance marketing services for technologycompanies since 1998.
Partners each have 18+ years of technology marketing leadership experience.
Marketing communications
Product management
Freelance marketing services for technologycompanies since 1998.
Partners each have 18+ years of technology marketing leadership experience.
Marketing communications
Product management
®Our Story: P5 Group, LLPOur Story: P5 Group, LLP
Why did we go independent?
We love doing marketing
Why did we go independent?
We love doing marketing
Getting CommittedGetting Committed
Economy
Risk tolerance
Isolation
Self-promotion
Self-sufficient
Economy
Risk tolerance
Isolation
Self-promotion
Self-sufficient
Confidence
Willingness to run your business
Confidence
Willingness to run your business
Getting the AttitudeGetting the AttitudeRegardless of the business agreement between you and a company, it’s aboutRegardless of the business agreement between you and a company, it’s about
What is it that you do… better than anyone you know?
“You need to imagine yourself working through a series of projects, adding value for specific customers,
internal and external.” - Tom Peters
Getting StartedGetting Started
Collateral
Business cards Backgrounder Samples of your work Web site and domain name
Office
Away from kids/noise Well equipped
Collateral
Business cards Backgrounder Samples of your work Web site and domain name
Office
Away from kids/noise Well equipped
Getting Started: LegalGetting Started: Legal
Form of Business
Business License/UBI number
Form of Business
Business License/UBI number
Getting Started: AccountingGetting Started: AccountingSeparate bank account
Professional invoices
Accounting software
Taxes
Self Employment Tax Washington Business & Occupation tax, city taxes Estimated Tax payments
Retirement funds
SEP/Keogh
Separate bank account
Professional invoices
Accounting software
Taxes
Self Employment Tax Washington Business & Occupation tax, city taxes Estimated Tax payments
Retirement funds
SEP/Keogh
Getting Started: InsuranceGetting Started: Insurance
Health, life, disability insurance
Business insurance
Errors and omissions
Trademark, copyright, patent infringement
Virus coverage
Health, life, disability insurance
Business insurance
Errors and omissions
Trademark, copyright, patent infringement
Virus coverage
Getting Started:Getting Started:
Getting WorkGetting WorkWho do you know?
Co-workers, freelancers, agencies Neighbors, friends, workout buddies…
Ask for referrals
Other methods
Conventional promotion Placement agencies
Freelance-Seattle.net & other lists
Who do you know?
Co-workers, freelancers, agencies Neighbors, friends, workout buddies…
Ask for referrals
Other methods
Conventional promotion Placement agencies
Freelance-Seattle.net & other lists
Sell solutions.
Getting the Message AcrossGetting the Message AcrossClients get exactly the expertise they need, when they need it
Without adding head-count Without paying a full-time expert Without training or management burdens Without layoff pain, unemployment expense Without operations overhead
All while extending their budgets
Clients get exactly the expertise they need, when they need it
Without adding head-count Without paying a full-time expert Without training or management burdens Without layoff pain, unemployment expense Without operations overhead
All while extending their budgets
Getting PaidGetting Paid
Contracts, proposals
Hourly rates
Your old salary, with the decimal moved 3 places to the left -or-
Your hourly pay x 2
Billing rate calculator
Contracts, proposals
Hourly rates
Your old salary, with the decimal moved 3 places to the left -or-
Your hourly pay x 2
Billing rate calculator
Getting the RewardsGetting the Rewards
Increased flexibility in work hours
Increased productivity
Less politics
Fewer complaints about management
True understanding of Brand YOU
Increased flexibility in work hours
Increased productivity
Less politics
Fewer complaints about management
True understanding of Brand YOU
Good Luck!Good Luck!
Linda Merrick
Download these slides at www.Freelance-Seattle.net
Getting HelpGetting Help
Freelance-Seattle.net
Freelancers discuss insurance, accounting, etc. Clients seeking freelancers post their projects
Business License www.wa.gov/dol/bpd/buslic.htm
Running a Freelance Businesswww.creativebusiness.com for creative and marketing types
Starting & Operating a Business in Washingtonwww.oasispress.com/smartstart/
Freelance-Seattle.net
Freelancers discuss insurance, accounting, etc. Clients seeking freelancers post their projects
Business License www.wa.gov/dol/bpd/buslic.htm
Running a Freelance Businesswww.creativebusiness.com for creative and marketing types
Starting & Operating a Business in Washingtonwww.oasispress.com/smartstart/
Billing Rate CalculatorBilling Rate CalculatorTarget revenue
Current market rate or existing salary 90,000
4985Plus employer-paid insurance benefits 1200Plus employer-matched retirement contribution 4000
1500Plus telecommunications & ISP 1200Plus professional services (CPA, Attorney) 1000Plus professional development (training, association fees)1000
1,573Plus 1-2 months expenses in reserve 12,000
Total target revenue 118,458
Plus annual cost of office equipment, supplies, & furniture
Plus employer-paid SS tax (.0765 on first 80,400)
Plus or minus anything else you can think of (self-promotion expenses come to mind)
Plus B&O tax; look out for Bellevue business tax!
Example ONLY!
Billing Rate CalculatorBilling Rate CalculatorTarget for work hours
Total weeks/year 52Less:
desired vacation 3sick time 1"lag time" between projects 4
Total estimated work weeks 44Billable hours per week 30
Target billable hours per year* 1320
Minimum billing rate 89.74$
* This is an aggressive example
