LET'S GET DOWN TO BUSINESS!
First... A Fable
A customer asked me how much it cost to do this job....
I answered him: $ 1500
He said: So expensive for this job?
I asked: How much do you think it would cost you?
He answers me: $ 800 maximum... That's a pretty simple job right? !"
- For $ 800 I invite you to do it yourself.
- But.... I don't know how to.
- For $800 I'll teach you how to. So besides saving you $700, you'll get the knowledge for the next time you want
- It seemed right to him and he agreed.
- But to get started: you need tools: A welder, grinder, chop saw, drill press, welding hood, gloves etc...
- But I don't have all these equipment and I can't buy all of these for one job.
- Well then for another $300 more I'll rent my stuff to you so you can do it.
- Okay, he says.- Okay! Tuesday I'm waiting for you to start doing this work
- But I can't on Tuesday I only have time today.
- I'm sorry, but I'm only available Tuesday to teach you and lend you my stuff. Other days are busy with other customers.
- Okay! That means I'm going to have to sacrifice my Tuesday, give up my tasks.
- I forgot. To do your job yourself, you also have to pay for the nonproductive factors.
- That is? What is this?"
- Bureaucratic, tax, vat, security, insurance, fuel etc.
- Oh no!... But to accomplish these tasks, I'm going to spend more money and waste a lot of time!
- Do you have them? You can do it to me before?"
- Okay!
- I'll make you all the material you need. Truck loading is done Monday evening or Tuesday morning you'll have to come by 6 loading the truck. Don't forget to be on time to avoid traffic jams and be on time
- At 6??? Nope! Too early for me! I used to getting up later.
...
- You know, I've been thinking. Y ' all better get the job done. I'd rather pay you the $1500. If I had to, it wouldn't be perfect and it would cost me a lot more.
When you pay for a job, especially handcrafted, you pay not only for the material used, but also:
- Knowledge - Experience - Study. - Tools - Services - Time to go shopping - punctuality - Accountability - Professionalism - Accuracy
- Guaranteed - Patents - Sacrifices - Safety and security - Payment of tax obligations
Only by knowing all the elements necessary for the production of a certain work can you estimate the actual cost.
A customer asked me how much it cost to do this job....
I answered him: $ 1500
He said: So expensive for this job?
I asked: How much do you think it would cost you?
He answers me: $ 800 maximum... That's a pretty simple job right? !"
- For $ 800 I invite you to do it yourself.
- But.... I don't know how to.
- For $800 I'll teach you how to. So besides saving you $700, you'll get the knowledge for the next time you want
- It seemed right to him and he agreed.
- But to get started: you need tools: A welder, grinder, chop saw, drill press, welding hood, gloves etc...
- But I don't have all these equipment and I can't buy all of these for one job.
- Well then for another $300 more I'll rent my stuff to you so you can do it.
- Okay, he says.- Okay! Tuesday I'm waiting for you to start doing this work
- But I can't on Tuesday I only have time today.
- I'm sorry, but I'm only available Tuesday to teach you and lend you my stuff. Other days are busy with other customers.
- Okay! That means I'm going to have to sacrifice my Tuesday, give up my tasks.
- I forgot. To do your job yourself, you also have to pay for the nonproductive factors.
- That is? What is this?"
- Bureaucratic, tax, vat, security, insurance, fuel etc.
- Oh no!... But to accomplish these tasks, I'm going to spend more money and waste a lot of time!
- Do you have them? You can do it to me before?"
- Okay!
- I'll make you all the material you need. Truck loading is done Monday evening or Tuesday morning you'll have to come by 6 loading the truck. Don't forget to be on time to avoid traffic jams and be on time
- At 6??? Nope! Too early for me! I used to getting up later.
...
- You know, I've been thinking. Y ' all better get the job done. I'd rather pay you the $1500. If I had to, it wouldn't be perfect and it would cost me a lot more.
When you pay for a job, especially handcrafted, you pay not only for the material used, but also:
- Knowledge - Experience - Study. - Tools - Services - Time to go shopping - punctuality - Accountability - Professionalism - Accuracy
- Guaranteed - Patents - Sacrifices - Safety and security - Payment of tax obligations
Only by knowing all the elements necessary for the production of a certain work can you estimate the actual cost.
How do you figure out how much to charge?
First things first.
Today, your web presence across all of social media can be your portfolio. First, make sure you have a website that features your best work on the front page and that there is an easy way to contact you. Then you use social media like Instagram to keep fresh content coming. Many freelancers post photos from the job site.
Contracts!
This is the most basic and important thing to have before starting any project. Have a contract between yourself and the person you are doing the work for. The contract can be as simple as "I agree to X for person Y and they will pay me Z in return."
Working with Clients
When you are working with a client, it is important to remember that you are the expert in your field.
Doing a job here or there as a student isn't going to get you into trouble with the government, but if you start making some serious coin then it is also time to make your business a legal entity. This means filing with both the state and federal governments and getting a Federal Tax ID. If this happens do some research and and find out what kind of business you need to start.
First things first.
- How good are you at what you do? Compare yourself to others in the field.
- How much do your peers charge?
Today, your web presence across all of social media can be your portfolio. First, make sure you have a website that features your best work on the front page and that there is an easy way to contact you. Then you use social media like Instagram to keep fresh content coming. Many freelancers post photos from the job site.
Contracts!
This is the most basic and important thing to have before starting any project. Have a contract between yourself and the person you are doing the work for. The contract can be as simple as "I agree to X for person Y and they will pay me Z in return."
Working with Clients
When you are working with a client, it is important to remember that you are the expert in your field.
- Ask Questions
- Listen to what they have to say
- Advise the clients based on your expert experience
- Know when you stand your ground with a client, when to compromise, and when to walk away
- It's ok to say NO to a project that is beyond your ability or if your relationship with the client is toxic.
Doing a job here or there as a student isn't going to get you into trouble with the government, but if you start making some serious coin then it is also time to make your business a legal entity. This means filing with both the state and federal governments and getting a Federal Tax ID. If this happens do some research and and find out what kind of business you need to start.
Professionalism - You will be Googled
Treat everything you produce as a piece of professional public work, whether it’s text or photos or a video you post on YouTube.
Treat everything you produce as a piece of professional public work, whether it’s text or photos or a video you post on YouTube.
- Your web presence is an important part of your portfolio.
- Does your laptop have a questionable image on it?
- Are you boozing it up on facebook?
- Silly messages on your cell phone?
Some Advice
- No your skills and limitations
- Ask for help when you need it
- Seek honest feedback
- Research your field
- Trade Websites and Magazine
- Podcasts
- YouTube Channels
- Conferences
- Tech Specs
- Keep your money separate
Now you make a mock business plan following this format.