Solo PR Pro | Successful Freelance PR Consulting » financial

Why Did You Go Solo?

Kellye Crane — Thu, 15 Apr 2010 12:00:11 +0000

During this week’s #solopr Twitter chat, we discussed some of the most important questions that face independent PR consultants, especially those just starting out. Read the transcript (in PDF) for answers from top Solo PR Pros to the following questions:

1. Are your taxes done? Any surprises?

2) How many years did it take before your business had an actual profit?

2a) How long did it take you to match what you made prior to going solo?

3) Why did you go solo in the first place?

4) What are your clients doing for Earth Day 4-22?

If you weren’t able to make the chat, why did you go solo? Was it a financially profitable experience for you initially? If not, did the non-financial benefits make it worthwhile? Let us know in the comments!

The #solopr chat – held each Wednesday from 1-2 p.m. Eastern – is a weekly ritual for some of the most savvy Solo PR Pros on Twitter. Anyone with a Twitter account is welcome to participate – see Join Us for the #solopr Chat on Twitter to find out how!

To Free, or Not to Free

Kellye Crane — Wed, 17 Mar 2010 12:30:37 +0000

During a recent #solopr chat on Twitter, I made the following statement:

Remember: it’s worse to work for free than to not work at all.

While many pros agreed with me, some had serious questions about this advice (below). But aside from new business opportunities (which are unpaid in virtually all cases), working for free can often be a dead-end road. Working “on spec” – which means you get paid only if the client deems you worthy – or with a client you know is probably not going to get around to paying you, diminishes your worth.

For all of us, every time we work for a client we are establishing our value. If you work for free, then the value of your time is $0.

You may think that working for free for someone will put you in their good graces, and you’ll be the person they call first when they have a paid gig. In fact, it may be just the opposite. Similar to Groucho not wanting to be part of a club who would have him as a member, people like working with consultants who are in-demand. Working for zero smells like desperation — and isn’t it human nature to avoid being associated with someone desperate?

The economy is tough – my clients have limited budgets and I want to show I’m flexible

I have fallen into this trap myself over the last year. Though not working for free, I put effort into trying to help one long-term client stretch every dollar (rob Peter to pay Paul, kind of thing). Guess what? Shortly thereafter they decided to spend $20,000 of their marketing budget on something quite silly (wish I could tell you what – you’d be shocked!).

What I learned: organizations can find the money to spend when they want to, so make sure you’re on that list. And don’t over-compromise — it’s not worth it.

What if I want the experience and need items for my portfolio?

If you’re interested in working for free with the aim of gaining additional experience and samples to show, why not work for your favorite non-profit pro bono? Some large charities have marketing committees made up of volunteers — in those cases, you can expand your network while you support a worthy cause.

What about working on new business proposals for an agency?

This can work out well sometimes, but be careful. First and foremost, the agency should have at least one person doing the same amount of work on the proposal as you. Why? Because that makes them have some “skin in the game.” An agency will be far more choosy about the new business opportunities they pursue if they have to expend some resources to get it. You don’t want to be a dedicated worker bee on any and all long-shots that come along — there will be no incentive for them to pass up lost causes.

Also, unless you have it in writing that you’ll get a guaranteed XX number of hours for as long as they have the contract, you can also get cut out of the deal – I’ve heard of this happening to many solos. And make sure you trust, respect and enjoy working with the team on the proposal, since those will be your collaborators long-term.

In a nutshell, I believe it’s much better to spend a day in the park than toiling away on a project that helps your client’s bottom line, but not your own. In this economy, clients will push on occasion, and it’s our job to push back.

Do you agree? Are there any cases where you’ve worked for free and were glad you did? Any horror stories? Let us know in the comments!

From Productivity to Interns – #solopr Chat Transcript

Kellye Crane — Fri, 12 Mar 2010 00:17:05 +0000

During the #solopr Twitter chat this week, veteran Solo PR Pros and newbies alike shared tips on a wide-range of topics, including the following:

1) What are your favorite productivity tools?

2) Assuming many #solopr folks work from home, how do you manage interns and assistants? Where/how do they work?

3) Is it acceptable to apply for an internship in order to gain more exp for your own freelance goals?

4) In this economy, are you seeing more situations with clients flaking out on you (not paying, changing agreement mid-stream, etc.)?

Be sure to download the transcript in PDF for the wise responses to these questions. And stay tuned for an upcoming post detailing productivity tools – a sequel to “44 Tools for the PR Consultant’s Toolbox” (one of this blog’s most popular posts ever).

What do you think — do you have any favorite productivity tools to add? Any other suggestions to add to the discussion?

Planning for 2010

Kellye Crane — Thu, 17 Dec 2009 17:37:08 +0000

This week’s #solopr chat on Twitter focused on year-end planning and getting ready for 2010. This is an important period in planning for your business and setting the stage for an even better 2010! As always, the Solo PR Pro community had some excellent tips to share on the following topics:

What are you doing for year-end tax planning for your business?
What do you do to get your books in order? What systems?
For those who use Excel, is there a standard template you use, or did you create it yourself?
If in the U.S., how did you decide on your business structure (LLC, Corp., etc.)?
Are you doing anything now to manage cash flow in 2010?

Be sure to check out the transcript online or here in PDF for the answers.

If you were unable to join us this week, how would you answer these questions? What was your favorite advice from the chat? Please let us know your own thoughts in the comments!

The #solopr chat – held each Wednesday from 1-2 p.m. Eastern – is a weekly ritual for a host of savvy Solo PR Pros on Twitter.We’ll be on holiday break until January 6, 2010. Anyone with a Twitter account is welcome to participate – see Join Us for the #solopr Chat on Twitter to find out how!

Laid Off? Now You’re Free to Consult!

Kellye Crane — Fri, 10 Apr 2009 16:55:57 +0000

“We must be willing to get rid of the life we’ve planned, so as to have the life that is waiting for us”

– Joseph Campbell

The first time many people consider PR freelancing or consulting is the day they learn their job is no longer. If you’ve recently been laid off, or are concerned you might be, the time to think about working as a PR consultant is now.

This may be temporary while you simultaneously seek full-time employment, or you may find you love it so much you permanently join our ranks! As a newly-free friend recently told me, “I think we’re ALL gonna do a little consulting in the new economy.”

But where to begin? If you’re facing involuntary independent status, your head is likely reeling a bit, and that’s to be expected. Beyond the traditional job-seeking advice, here are a few consulting-related items to consider in the near-term:

If you’re still technically employed, plan to take copies of any information your company policy allows, in particular those related to your network of contacts (including business cards and emails) and work samples. If possible, retrieve any personal information you may have on your company blackberry, laptop, etc. You’ll need that information to help secure your new consulting contracts.

Don’t be ashamed of your status. Some of the industry’s foremost leaders and thinkers have announced publicly that their positions were eliminated in recent months. In this economy, there is no stigma against those that have been laid off, and there’s no need to apologize (even implicitly) as you network. Try to quell those demons. “Our doubts are traitors, And make us lose the good we oft might win, By fearing to attempt.” – Shakespeare

Consider your health insurance options. If you’re married, take a look at the plans available through your spouse’s employer. If the selection is undesirable or you’re unmarried, you can usually obtain insurance coverage through your employer’s COBRA plan. This will likely seem expensive, but it is worth doing near-term while you investigate your options further. It’s important to make sure your health insurance doesn’t lapse, since that can make it more difficult to get coverage later and subjects you to the whims of the insurance industry (e.g., pre-existing condition loopholes, application technicalities, etc. – ugh!).

Don’t worry about a business structure, name, or any of those things that might feel overwhelming at the moment. You can do independent PR consulting under your own name, and as a “sole proprietor,” with no up-front paperwork required. When tax time comes, you’ll just use the Schedule C form to report your income and expenses.

Speaking of expenses, start keeping track of them immediately. As you may know, you can deduct some of your job hunt expenses, but you can also deduct expenses if you do any kind of consulting. Just grab a folder and start stashing your receipts for anything professional, such as networking lunches, association dues, and meeting attendance fees. If you meet a colleague at their offices and you have to pay to park, that receipt goes in the folder. Buy some legal pads to write out your consulting ideas? Receipt in the folder! You get the idea… you’ll be surprised how quickly it adds up.

And then there’s the big question: fees. If you worked with freelance PR pros in your previous position, you probably have an idea of what PR consultants are charging in your area. If not, an excellent resource is the annual Writer’s Market publication. In addition to being available for purchase, it’s also typically found in the Resources section of your local library. Though written primarily for freelance writers, Writer’s Market includes a “How Much Should I Charge” section that offers some guidance on hourly fees for PR activities. Keep in mind that the rates for freelance writers are often lower than those for experienced PR professionals.

When it comes to setting consulting fees, the biggest newbie mistake is failing to consider the extra financial responsibilities you have as an independent. In particular, a full 15.3% of your income will go to the self-employed version of FICA (versus half of that — 7.65% — when you’re an employee). That’s in addition to your tax rate. Add it up, and you can easily find 40% or more of your pay going to Uncle Sam. Now before you go slamming your fist on your desk cursing the IRS, just remember it’s nothing to get upset about if you plan ahead and take this into account when setting your fees.

Another mistake is forgetting that you now will be responsible for a variety of non-billable work (sending invoices, new business plans, etc.) related to maintaining your business. You might have a billing rate in mind, but when you consider these factors you may find you should be billing considerably more than that. It will of course depend on your skills and experience — just be sure not to short-change yourself! In many ways, the market will perceive your level of expertise based on your fee level.

This is just a quick-hit list of initial considerations. It’s my hope that regardless of what direction you end up heading long-term, the result will be an even more satisfying career that brings you fulfillment and enriches your life.

Are you considering PR consulting, or have you recently “hung out your shingle” as a freelancer? What issues are you finding most challenging? Veteran solo PR pros – what advice do you have for those just getting started?

Photo credit: mufan96