freelance/starting a company - suicide?

[razuel]

I could use some advice. I'm just about finished with my degree and have been working part-time at a marketing firm. I'm really not enjoying working under other people and working on other people's projects. For the past 3 years I've worked for a friend's company where I had complete freedom (aside from client limitations) and was in charge of everything design related.

So I was considering trying to freelance or start my own company with a friend and attempt to go at it alone. Is this a stupid idea considering the economy right now, especially being in West Michigan? My aspirations definitely lie with owning my own company, perhaps it would call for a relocation to an area with more growth going on?

The logical, safe thing would be to tough it out at an agency for awhile first I'm sure, but I just don't see myself being happy that way.

[PrintDriver]

Happiness aside, have you learned enough at this point to take any kind of project through to completion? Do you know how to talk to printers and/or web developers in a way to get things done? Do you have startup capital? Do you have a business plan?

Not that many freelancers do these days. But they should.

[Craig B]

Also, even doing freelance you won't necessarily have complete freedom. Your friend's company may have been willing to let you do almost anythign, but in the end you have to please your paying clients, and they may have more than just limitations. I do freelance from time to time to supplement my normal job, and I'll tell you, you don't usually have complete freedom. All of those clients are essentially your boss when it comes to approvals, revisions, opinions, etc.

Just to let you know. Design is not about doing what you want, but doing what works best for your client in a well designed and pleasing fashion.

[razuel]

I have completed many Web projects for clients, start to finish, but none with print. I do a lot of Web design myself and my friend is a developer. Start-up capital is low, but I'm imagining that the overhead would also be low to begin. No business plan yet-- just an idea.

So I suppose it would be a Web design business to start, considering that's the most likely thing to take off.

[razuel]

Also, even doing freelance you won't necessarily have complete freedom. Your friend's company may have been willing to let you do almost anythign, but in the end you have to please your paying clients, and they may have more than just limitations. I do freelance from time to time to supplement my normal job, and I'll tell you, you don't usually have complete freedom. All of those clients are essentially your boss when it comes to approvals, revisions, opinions, etc.

Just to let you know. Design is not about doing what you want, but doing what works best for your client in a well designed and pleasing fashion.


Oh yeah, definitely. I have done a lot of freelance on the side, but have never considered taking it full-time or starting a company. I guess when I say complete freedom, I really mean in the sense of having ownership and decision making on the projects, aside from what the client tells me of course. At a firm I'm forced to do crap edits on other people's projects, no interaction with the client, no ownership of anything. I'm assuming it'd get better over time, but again-- I have high aspirations and am a very hard worker, I'd rather work my ass off on something that is mine.

[oceane]

It would take a very rare creature indeed to start a successful design company straight out of school.

99.9% of the time, you need to spend several years paying your dues before you get to do anything truly challenging or rewarding. You likely won't be happy while doing it, but that's just how the world works :)

If you really believe you've got the chops (in terms of both design and business) then sure, hang out your shingle and see how you fare. But you need to be brutally honest with yourself about your goals and your capabilities.

The economy is a bit rocky, yes... which might make you think twice about striking out with so little experience. It is a highly competitive field, and if there are less customers to go around in your area, they are going to be spoiled for choice. Think about how you would be able to convince them that your new company should be their first choice, when there are so many other more established companies to choose from.

There are also elements to running your own business that make it a uniquely challenging life to lead. No paid vacations (actually, no real vacations to speak of), no sick days, no pension, having to source, sell to, manage and satisfy your own clients, endless administrative work, billing, collections, etc etc etc. And for the first few years, you will need to know how to live in phases of "feast or famine". So, you need to be sure it's the sort of life you really want.

[Craig B]

Sounds good. I just wasn't sure if you were aware of that. Also, starting out, yes, you do have to do a lot of menial production type work and don't work on a lot of big projects and you are usually "watched". At some point, the more experience you have, you tend to move up the chain. It's part of the process. People usually don't start at the top.

I'm not trying to discourage you from freelance, I'm just saying what I feel.

[razuel]

It would take a very rare creature indeed to start a successful design company straight out of school.

99.9% of the time, you need to spend several years paying your dues before you get to do anything truly challenging or rewarding. You likely won't be happy while doing it, but that's just how the world works :)

If you really believe you've got the chops (in terms of both design and business) then sure, hang out your shingle and see how you fare. But you need to be brutally honest with yourself about your goals and your capabilities.

The economy is a bit rocky, yes... which might make you think twice about striking out with so little experience. It is a highly competitive field, and if there are less customers to go around in your area, they are going to be spoiled for choice. Think about how you would be able to convince them that your new company should be their first choice, when there are so many other more established companies to choose from.

There are also elements to running your own business that make it a uniquely challenging life to lead. No paid vacations (actually, no real vacations to speak of), no sick days, no pension, having to source, sell to, manage and satisfy your own clients, endless administrative work, billing, collections, etc etc etc. And for the first few years, you will need to know how to live in phases of "feast or famine". So, you need to be sure it's the sort of life you really want.

Great input, thanks. I definitely feel that I have the talent, am extremely competitive, and am able to work like a madman if it's something that's mine. I've been working with a business so closely over the past few years that I think I have at least somewhat of a grasp on how to run a business. I'm very business-minded, I just need to learn how to manage money.

I don't know, maybe you need to look at my portfolio and bring me down to reality if you don't think it's possible? haha.

[Kool]

The business plan will answer if you are ready or not. Do a little research and find a good BP template. They are a bitch to complete and sometime what it will tell you is NO you are not ready. Way too many people ignore this and that is why they fail.

[oceane]

The business plan will answer if you are ready or not. Do a little research and find a good BP template. They are a bitch to complete and sometime what it will tell you is NO you are not ready. Way too many people ignore this and that is why they fail.

Seconded. Fail to plan, plan to fail.

[a_muse]

Even with a good business plan it's hard!

[PanToshi]

In addition to a business plan, I would recommend having at least 6 months of living/business expenses saved. In the current economic environment, some suggest that be 12 months worth. I would also recommend an accountant who can help you figure out the costs involved with starting-up, and will be invaluable in terms of small business taxes.

[Tunaone]

Clients and contacts! Gotta have them. Build a rapport with all the clients you've been dealing with, consider the industries they are in - list all potential that you will pursue and those that will come on board. Do you have a start? No pint in hanging a shingle out and then pounding the pavement. Better to build over time with the ultimate goal in sight.

[tZ]

Half the time its not about your portfolio – its about how well you can sell yourself. Most people don't know the difference from bad and good design and just would like things done. Selling yourself isn't nearly as much about your portfolio as it is about what you say and how you carry your yourself if your work is at least decent.

[razuel]

Clients and contacts! Gotta have them. Build a rapport with all the clients you've been dealing with, consider the industries they are in - list all potential that you will pursue and those that will come on board. Do you have a start? No pint in hanging a shingle out and then pounding the pavement. Better to build over time with the ultimate goal in sight.


Yeah, that's what I'm going to do basically. And good point tZ, very good point.

Thanks for the input everyone. As Tunaone suggested, I plan on starting out slow (in the sense of how much money I invest), but hit the ground running in every other aspect. I'm going to put up a Web site and register a name, begin taking on jobs part-time and see how it grows over the next 12 months. If it takes off, then I'll consider moving somewhere more prosperous and opening full-time.

[stickleback]

also - bear in mind that it's not an either or scenario.

many people combine a flexible design position (especially on which isn't perhaps full time) with freelance work in their free time.

this is not such a bad idea and gives you at least some cover in terms of paying the rent...

cake and eat it? why not

[klucid]

Half the time its not about your portfolio – its about how well you can sell yourself. Most people don't know the difference from bad and good design and just would like things done. Selling yourself isn't nearly as much about your portfolio as it is about what you say and how you carry your yourself if your work is at least decent.

That's great advice!

[CG Man]

If you go freelance your clients will make you do work they want you to do and they will bend your arm into doing your design their way. If your doing a design for someones money it's their project not yours and thats how it feels. The only bonus of freelance is you can brew up as often as you like and you can have a DVD on while you work.

Get used to working for a boss and working with others or you wont like clients telling you to change the design and only quit a full time job once your freelance work is making more money and your getting work in often enough.

[razuel]

If you go freelance your clients will make you do work they want you to do and they will bend your arm into doing your design their way. If your doing a design for someones money it's their project not yours and thats how it feels. The only bonus of freelance is you can brew up as often as you like and you can have a DVD on while you work.

Get used to working for a boss and working with others or you wont like clients telling you to change the design and only quit a full time job once your freelance work is making more money and your getting work in often enough.

Well I have done a lot of freelance and I tend to disagree. Sure, I have to please a client, but I make the decisions and I am the one who tries to convince the client to do what I want. And honestly, most of my clients have been really open to my designs, I've loved freelancing.

Either way, it's more so that I want to have ownership and leadership of my own company rather than work for someone else.

[CourtneyJames]

Hey Everyone...

As always, loads of great advice here. That's why I love this forum.

I actually did start a Graphic Design and Web Design company straight out of college and it was like pulling teeth with a pocket knife.

I made money, but it was a steep learning curve. I had a business plan, but it was missing the most important part: a MARKETING plan. My marketing plan was almost non-existent and nobody even blinked an eye at the local business center.

They just told me that my plan was fine. What a load of bull.

Any way. You can have semi-decent design skills, and six months of living expenses, and all the ambition you want. Just make sure that you know who your clients are and what they want to buy or you're in for pain.

Some advice from my personal mistakes:
• Your prices are probably too low. (I only started to make money when I doubled and then tripled my fee)

• Get on the phone. Contact everyone you can. Go to seminars. Meet people. Even if you're not social. DON'T STOP.

• Understand why they buy. Believe it or not most clients don't buy Graphic Design to make money.

(I know somebody will argue this, but if you want an easier sale... stop playing the money card first and start talking about what they really want to accomplish: pride, appearance, authority, beauty, pleasing their boss.... whatever. Find their motivation and appeal to it.)

When in doubt just ask them:

"Hey, what do want this to do for you?"
"Funny, that's exactly what I've got."

• Why should they do business with you as opposed to everybody or anybody else? (Tough question.)

And this part may really help you out...

Here's why I personally went out of business:

• Lack of finance. I made a refund during a month where I made no sales because I was 'too busy' designing web sites to market my services.

• I stopped networking. Every time I went to a special event or seminar I almost always made a new friend that turned into clients eventually. When I stopped getting out... my business shrank faster than a leech in a salt bowl.


Most frustrating parts or being a freelance designer (for me):

• After two years almost every site I designed has been hacked to crap by small business clients with no clue about web design. They look like some pre-schooler with HTML skills decided to play jigsaw.

Most illuminating discovery:

Did you know that many large corporations, community services and charities don't really care all that much about how much you charge?

Let me explain...

In some companies... for some demented reason I don't understand. The marketing budget is set by the year. If they don't spend it then they can't get the same amount of funding next year. This explains why you see designers and ad-agencies getting away with absurd fees. But, it's upsetting if you actually believe in making people money.

I hope that helps.

In short: Yes, you are committing suicide. Try to do it quickly and painlessly... or keep your day job until your business income grows.

[razuel]

Hey Everyone...

As always, loads of great advice here. That's why I love this forum.

I actually did start a Graphic Design and Web Design company straight out of college and it was like pulling teeth with a pocket knife.

I made money, but it was a steep learning curve. I had a business plan, but it was missing the most important part: a MARKETING plan. My marketing plan was almost non-existent and nobody even blinked an eye at the local business center.

They just told me that my plan was fine. What a load of bull.

Any way. You can have semi-decent design skills, and six months of living expenses, and all the ambition you want. Just make sure that you know who your clients are and what they want to buy or you're in for pain.

Some advice from my personal mistakes:
• Your prices are probably too low. (I only started to make money when I doubled and then tripled my fee)

• Get on the phone. Contact everyone you can. Go to seminars. Meet people. Even if you're not social. DON'T STOP.

• Understand why they buy. Believe it or not most clients don't buy Graphic Design to make money.

(I know somebody will argue this, but if you want an easier sale... stop playing the money card first and start talking about what they really want to accomplish: pride, appearance, authority, beauty, pleasing their boss.... whatever. Find their motivation and appeal to it.)

When in doubt just ask them:

"Hey, what do want this to do for you?"
"Funny, that's exactly what I've got."

• Why should they do business with you as opposed to everybody or anybody else? (Tough question.)

And this part may really help you out...

Here's why I personally went out of business:

• Lack of finance. I made a refund during a month where I made no sales because I was 'too busy' designing web sites to market my services.

• I stopped networking. Every time I went to a special event or seminar I almost always made a new friend that turned into clients eventually. When I stopped getting out... my business shrank faster than a leech in a salt bowl.


Most frustrating parts or being a freelance designer (for me):

• After two years almost every site I designed has been hacked to crap by small business clients with no clue about web design. They look like some pre-schooler with HTML skills decided to play jigsaw.

Most illuminating discovery:

Did you know that many large corporations, community services and charities don't really care all that much about how much you charge?

Let me explain...

In some companies... for some demented reason I don't understand. The marketing budget is set by the year. If they don't spend it then they can't get the same amount of funding next year. This explains why you see designers and ad-agencies getting away with absurd fees. But, it's upsetting if you actually believe in making people money.

I hope that helps.

In short: Yes, you are committing suicide. Try to do it quickly and painlessly... or keep your day job until your business income grows.

Awesome input and advice, thanks! I'd love to tap you for some more, mind if I PM?

[lanternlad]

The part I find most irritating is telling clients what they NEED to sell their product base, and have them counter with what they WANT.
"Yes, I work for you, Mr. Client. It doesn't mean that you're RIGHT. Just because you WANT it doesn't mean its BEST for you."

Its hard to convince them of that without stepping on toes. Very few clients ESPECIALLY small businesses REALLY know what they need to do to sell their service/product.

[urstwile]

It may not mean that they're RIGHT, but it does mean that they have the right to input on the work you're doing or getting ready to do for them, regardless of how expert you feel you may be in your advice. There's a medium that needs to be found with that kind of thing, I suspect that thinking that you're right and they're inevitably wrong is not going to go far in getting you long-term business.

[lanternlad]

Of course the client has a right to input. I never said that they didn't. I'm talking about hardcore PITA clients that don't listen to YOUR input. Sorry if I wasn't more clear on that.

[urstwile]

No worries, lanternlad, and I understand the frustration from which your post was coming, we have clients like that at my agency as well. :)

[a_muse]

Ya, I`ve been dealing with this really with this maddening client who has been given the worst marketing advice ever by a so called expert. She`s an alternative therapy practitioner, so you would think she would understand that people come to her to feel better, they want to relax and don`t want to be overloaded with information, they want to be soothed!
She`s using all these over the top marketing techniques, it`s just an overload of information, I`m trying to figure out how to approach her gently about it.