Disaster Recovery for Freelance Writers: Data Issues

When it comes to disaster recovery for a small business, there are usually two types of issues that you must address: data issues and systemic or process issues. Today, we’ll look at the first of those two, and what the freelance writing business owner can do to minimize the impact of a disaster on her business.

A freelance writing business relies heavily on electronic data. Most of this data falls into one of three categories: product, communications and financial records. Each of these types of data is critical to the continuity of your business if a disaster should strike. Let’s tackle each in turn:

Product

The freelance writing business’ product is, of course, the writing. Whether it’s ebooks, magazine articles or web copy, the text you produce is the lifeblood of your business. It’s what people come to you for, and it’s what makes you money.

When a disaster – such as a crashed hard drive – occurs and you lose your saved files, it’s akin to having a tornado hit a warehouse and wipe out all of your inventory. Depending on the kind of work you do, you could be looking at days or even weeks of rewriting material. If your hard drive crashes in the final stages of a 150-page ebook, you’re going to lose valuable time and money if you don’t have a disaster recovery plan.

The good news here is that disaster recovery for your product can be relatively simple. You might have a dedicated backup hard drive, for example, that backs up your files every night. You might instead subscribe to an online backup service. If you can manage it, I recommend the online backup service, just because the local hard drive option still leaves you in the lurch if, for example, you have a house fire.

Communications

Another key element in your freelance writing business is your communications records. Freelance writers deal with things like contracts, orders and client communications on a daily basis. If you lose all of this type of data, you wind up having to go back to your clients to try to recreate it. While most clients will understand if you say, “My house flooded and I’ve lost my records, can I fax over a second copy of this contract,” how much more impressive would it be to those clients if they know your house flooded, yet you don’t miss a beat?

For the most part, your communications are probably electronic. Here again, a backup service is probably the best way to protect this type of data. If you use an email client on your PC to POP your mail, a backup service should cover you.

However, understand that if you use an email service – such as Gmail – you’re at the mercy of that email provider. If Gmail experiences a huge data loss tomorrow, you could lose valuable client communications. You need to have confidence in your email provider. Think long and hard about what email service you choose to use for your freelance writing business. (I, for the record, am completely confident in Google today. I use Gmail for the vast majority of my communications.)

Financial records

The last type of data you need to keep tabs on in a disaster is your financial records. This includes everything from your monthly bookkeeping to your receipts for expenses. Portions of your financial records can be electronic, while portions of your financial records will be paper. The electronic portion can be handled just like your electronic communications, while the paper records deserve a few extra thoughts.

You have a couple of choices when it comes to dealing with paper financial records. One option is to eliminate paper records by scanning everything into electronic format. This can be time-consuming, but it can also save you worry (and the clutter of a physical filing system).

Another way to deal with paper financial records is to invest in secure storage. This could include a fireproof and waterproof filing cabinet, or it could include an offsite storage option, such as a safe deposit box at your bank. This method isn’t as time-consuming as scanning all of your records, but it does require regular, manual use of the secure storage. In other words, you have to take your records regularly to your safe deposit box for this method to be effective. For me, the fireproof cabinet is the way to go, but I do know some small business owners who prefer offsite storage.

Next time, we’ll take a look at disaster recovery planning for your freelance writing business’ processes and systems.

Why Your Freelance Writing Business Needs a Disaster Recovery Plan

When you read about disaster recovery, you probably think less about your small freelance writing business and more about bigger companies. Indeed, most of the advice you’ll find on disaster recovery has to do with things like redundant data centers, off-site storage facilities and cross-training. There’s big money in disaster recovery planning, and the a small freelance writing business isn’t usually the target of marketing efforts.

Still, that doesn’t mean you shouldn’t be ready for when disaster strikes. Just ask the folks at Equipment Express.

Equipment express was a small startup founded by an Indiana man named Jeffery Ake in his garage. Ake designed some specialized way to bottle water, and he traveled the world promoting his product. Equipment Express was a small business with just a few employees.

April 2005 was the last time anyone saw Jeffery Ake. He appeared on Al Jazeera TV with two radical Islamists pointing rifles at his head. He’d been kidnapped while doing business in Iraq. He was never seen again.

After the kidnapping and disappearance, Ake’s business struggled. Without him at the helm, sales dried up. Within a year and a half, Equipment Express was more than a million bucks int he hole and the company was liquidated.

Equipment Express had no plans in place to allow their company to recover in the event that something happened to its founder and primary salesperson.

Even if your freelance writing business is just you, the story still illustrates how vulnerable your business is. One big client goes under, and you could be struggling for months. And, while you can’t plan for every kind of disaster that your business might face, there are some you can plan for.

Over the next few posts, I’ll talk a little bit about the risks facing your freelance writing business and what you can do now to help protect yourself and your family if something bad should happen.

The story of Equipment Express has a somewhat bittersweet ending. In 2007 one of the employees purchased the business’ assets and opened a new company called Liquid Packaging Solutions. They hired most of the old Equipment Express employees and opened up a new plant in Laporte, Indiana. Today, the company has around $5 million in sales annually.

Where Do You Spend Your Marketing Dollar?

What you’ve heard is true: you have to spend money to make money. Yes, you can get your freelance writing business started without really putting up much cash. You can do like I did, and start writing for a friend, or you can hire on to one of the larger content creation shops like Demand Studios. Both are viable, free ways to get into the freelance writing business.

However, if you want to grow your business and move into new and different types of opportunities, you need to spend some cash. Specifically, you need to spend some money on marketing. But, where do you spend it so as to get the most bang for your buck?

Here area few places you can drop some coin that will, ultimately, increase your freelance writing business income:

1. Get some business cards. I won’t go into all the merits here (click the link if you need convincing) but I will say that a business card with a quality design can bring you both attention and new business.

2. Put up a website. A website gives you a way to display your writing portfolio online, and you can direct folks to it via social media, your email tagline or even your business card. You can get web hosting for a few bucks a month. You can put up a blog on your site if you want to try to create attention or if you’re trying to break into the blog writing market, too.

3. Hire a professional designer for your website. You might have a good eye for design, but your website will look amateurish unless you hire a real professional. If you can’t afford a designer yet, do the best you can, but this should be a priority.

4. Join a freelance marketplace. Elance and Guru both come to mind. Both offer very limited “free” memberships, but putting a little bit of money into an actual membership can really pay off.

5. Educate yourself. I’ve been talking a lot about Seth Godin and Zig Ziglar lately, I know. Don’t worry, I go through phases with these sorts of things. The point is, learn what you can from marketing and sales experts, as well as from other freelance experts.

10 Tips on Freelance Writing Sales from Zig Ziglar

A successful freelance writing business means being able to sell. You need to sell yourself and your product, and you need to be able to close the deal. If you can’t sell your freelance writing effectively, you’re eventually going to have to look for other work. That’s just the cold truth.

In the world of sales, there are few names bigger than Zig Ziglar. Over the past four decades, Ziglar has traveled more than five million miles giving his messages of life improvement and his perspective on how to win over the customer. He has shared the platform with three presidents, and figures as divergent as Paul Harvey and Dr. Robert Schuller. He’s also been recognized in congress for his dedication to the free enterprise system.

Here are some of the lessons I’ve learned from Ziglar over the years:

1. Your attitude, not your aptitude, will determine your altitude

How you approach your business on a moment-by-moment basis will play a huge role in whether or not you succeed. Positive thinking doesn’t make sales, but negative thinking can kill them.

2. If you don’t see yourself as a winner, then you cannot perform as a winner

Self-image is key. If you don’t believe in yourself, no one else is going to believe in you, least of all not potential clients.

3. Focus on relationships and not transactions

This is especially true in the freelance writing business. Your customers are not just buying a product: they’re buying you. Freelance writing is a very personal skill, and you need to be able to establish trust and reliability if you’re going to seal the deal.

4. Interpret your benefits, not your features

This is part of basic copywriting principle, yet many freelance writers forget about it when it comes to promoting their own services. Your customer doesn’t want to hear about how your writing is readable; they want to hear about how it will increase their sales, or establish them as an authority in their niche.

5. Every choice you make has an end result

Some choices in your freelance writing business will be good, others not so much. You can’t always predict the result, either. The main thing is being aware that your actions have consequences and doing what you can to make positive, beneficial choices.

6. Failure is a detour, not a dead-end street

Selling means getting rejected. Sometimes, customers pick the other guy. Depending on how competitive your particular niche is, you might experience a lot of rejection. Getting back up on the sales bicycle after a failure is essential.

7. People don’t buy for logical reasons, they buy for emotional reasons

Part of sales is being able to appeal to the emotions. You need to be honest here, of course, and not promise that your product can do something it can’t. But you need to be able to connect with customers on a level that makes them feel something good about you and your product if you’re going to succeed.

8. Success is dependent upon the glands – sweat glands

Yes, you need to learn to become more efficient, to work “smarter.” That’s even one of Deb’s mantras here, and I don’t disagree. But real results require real work. Learn better ways to sell, but don’t forget to sell altogether.

9. When you do more than you are paid to do, you’ll eventually be paid more for what you do

Going the extra mile isn’t just good customer service; it’s also a sales tactic. Don’t let customers abuse your generosity, but do try to do a little bit extra if you can.

10. The way you see people is the way you treat them

If you see your clients as ignorant schmucks, you’re going to treat them that way. People aren’t dumb; they can tell when you’re looking down at them or despising them. Your clients aren’t schmucks, and they aren’t just a meal ticket, either. They’re people, good people, who need your help and who are willing to pay you for it.

Want to get more Zig Ziglar? Here are a couple of places to start:

Zig Ziglar’s Secrets of Closing the Sale

See You at the Top: 25th Anniversary Edition

How to Have a Rockstar Freelance Writing Business

The majority of small businesses fold within two years of opening. It takes five years, on average, for a small business to show a profit. If you’re within the first five years of your freelance writing business, chances are pretty good you’re still struggling quite a bit. While there are no magical cures, there are some things that exponentially increase your chances of success.

Here are 10 ways to push your business through the roof:

1. Plan

I’ve said it before, and it bears repeating. You can be a great writer and a kickass salesperson, but if you don’t plan it out right, you’re going to fail. You need to have a clear idea of where you want your business to go and how you intend to get there. You also need to be flexible enough to change course if your plan isn’t going well.

2. Know Yourself

You need to get a handle on what it is you do. You need to understand what your job entails. You’re not a tortured novelist. You’re not even really a writer much of the time. You’re a small business owner. That means you market, you do bookeeping, you administrate and you might even supervise personnel. Occasionally, you even write. Figure out the parts of small business that you’re good at, and the ones you’re not. Either get good at them or hire someone who is.

3. Know your Customer

Give your customer what she wants, not what you think she wants. If you do, she’ll come back and buy from you again. Yes, you can offer advice and enhancements to improve on what she’s asking for, but if it doesn’t work, she’ll know who to blame.

4. Know the Freelance Writing Business

You can’t get a competitive edge if you don’t know the business. Know the industry. Know what kinds of writing people buy and why. Figure out exactly where in that business environment you fit.

5. Develop Your Brand

Your brand is an important part of your marketing effort. Your potential customers create their perception of your business from your brand. Make sure the message is consistent, from your blog to your Twitter account to your Facebook page to your Elance profile.

6. Price for Profit

If you’re writing $5 articles that take you an hour to complete, you’re better off flipping burgers. Same holds true if you’re writing $10 articles that take you an hour to complete. For every hour you spend writing, you need to spend a certain amount of time in bookkeeping, marketing, sales and the like. That amount of time likely varies from one freelance writing business to the next, but I like a 1:1 ratio.

7. Keep Good Records

If you don’t know where your money is coming from, you can’t go back and ask for more. Good records are like instruments on an airplane. Without them, you’re flying blind. With them, you know which way to turn in order to move toward success.

8. Learn from the Pros

Look, you’re talented. That’s cool. But there are people who have been doing this gig for a long time, who can tell you some seriously important things if you’re willing to listen. They can save you a heck of a lot of headache. Listen to them. Take what works for you and ditch the rest.

9. Follow Up

Repeat business is the key to long-term success. Build up a solid client base, do outstanding work for them that helps their business grow and they’ll come back to you again and again and again.

10. Don’t Give Up

Good old-fashioned stubbornness is a virtue you must have if you’re going to make it in the freelance writing business. The reason so many small businesses close their doors within two years isn’t that they weren’t good at what they did; it’s because they couldn’t tough it out.

Choosing Your Freelance Writing Business Structure: Sole Proprietorships and Partnerships

Let’s get into some of the nuts and bolts of the freelance writing business, shall we? Whether you’re new to the freelance writing business or whether you’ve been doing this gig as long as I have, you may not have stopped to consider the options when it comes to the structure of your business.

The vast majority of freelance writing businesses are sole proprietorships, not because that’s the best model for their business, but because they haven’t had a need or seen the possible benefits of another structure.

Today, I’ll look at two of these business structures, and talk a little bit about each one from the perspective of a freelance writing business.

Sole Proprietorship

A sole proprietorship is sort of the default small business. A freelance writing business will usually start out as a sole proprietorship. With this business structure, you as an individual receive all of the income generated by the business, and the profits of the business go right into your own tax return. You’re liable and legally responsible for any debts the business incurs.

From a freelance writing business perspective, this isn’t a bad model. Because freelance writers typically don’t require huge investments in a storefront, inventory or equipment, the liabilities of a freelance writing business are usually smaller than other businesses. Unfortunately, if you want to spend some money on things like marketing for your writing business, your ability to raise funds is usually limited to your savings or a commercial loan.

Partnership

With a partnership, two or more people share the ownership of the business. A partnership is like a sole proprietorship, but with multiple people. That is, the individual partners receive the income of the business, and those profits hit their personal tax returns. The partners are jointly responsible but individually liable for the actions of the other partners.

A partnership can be a good thing in the freelance writing world. Most often, a freelance writer will partner with a freelance designer in order to offer more robust services to clients. Partners with complimentary skills can then work together to grow the business. On the down side, a business can dissolve when one of the partners withdraws. Make sure your freelance writing business partner is someone who can work through the kinds of difficulties that come with a business.

Come back next Tuesday, and we’ll look at the remaining options for freelance writing business structures. Better yet, just subscribe to Business Tips for Writers and you’ll get the update automatically in your feed reader or email inbox.