About two or three times a month, I receive an email from a fan who has heard me talk about being a self-employed web designer on the show. Although the letters vary in content, some recurring themes abound:
- The person wants to work at home at a web based business and wants to know about how to get started.
- The person is a web designer who /isn't finding work for other people/is unhappy where they are working now/is concerned about the viability of the business where they work now and wants to try striking out alone.
- The person has a baby or children and wants to work at home to spend more time with the kids.
- The person wants some great tips on how to get started in business.
I decided to make a rather long blog entry about my own experience of being self-employed, how I got there, and how I stay in business, mostly because I'm getting sick of repeating myself in so many letters. I waffled between making a form letter and posting here, and since I hate form letters, I decided instead to post a blog entry about it.
Warning: If you're looking for advice on how to do this quickly, on a get-rich magic formula, or anything that doesn't translate to years of hard work, then you might as well stop reading now because I'm going to be of no help. My secrets to success don't involve anything quick and they sure don't involve getting rich. Yes, I make very good money (and no, I'm not going to tell you how much). But I also work very hard and have done so for many, many years.
I should first explain a bit about what I do. I call myself a self employed web designer, but it doesn't really cover what I do. I really do two things: I do some outside work for clients in the area of human factors, which is a fancy term meaning that I design website navigation systems that people will actually use. Second, I run a small web-based advertising business (no, I don't spam, direct mail, junk mail, gold selling, viruses, gambling, porn, or anything illegal. I cater to a targeted client base of hobbyists in a very specific niche field. And no, I'm not going to say what it is because I'm not interested in everyone knowing who I am in real life).
I am an accidental entrepreneur.
I never set out to start a business. It just happened.
In 1994 (yes, I am older than Amazon and eBay), I started the website that has become my dominant business. It was something I started in conjunction with a hobby of mine, and I wasn't looking to make it a business. In fact, I was doing it for free, as much as to learn how to create websites. By the time three years had passed, I was spending 30+ hours a week on it, while working a 40-hour-a-week day job as a college professor. I decided I needed to start charging, and promptly lost 80% of my "customers" (I put those in parentheses because these "customers" were not paying me anything to this point). However, I was getting some money in, and my workload dropped back down to a reasonable level. That didn't last, as my customers came floating back and paying for the service, and my workload began creeping upward again. In another few years, I was back to my old pattern. I worked 40+ hours a week at a demanding day job, and almost every day, I came home, ate dinner, got out the computer, and worked several more hours until bedtime. Weekends were time to get caught up on whatever I didn't get done during the week. I was also taking on some contract work (which I will talk more about in a bit) starting in 1997.
Although I started my business in 1994, and turned it into a paying business in 1997, I did not actually quit my full-time day job until 2002, eight years after I started the business. I worked seventy to eighty hour work weeks for years before I realized something had to go -- my business or my day job -- because I was literally going crazy. I was so stressed out much of the time.
So as you can see, I don't have any magic answers. I worked full time during the time I was building my business and pulled in a lot of long hours and stretches with no vacation.
Fortunately, having a spouse who is also employed full time with full benefits made the transition much, much easier -- not to mention much less expensive. Health insurance can be well over $300 a month for very basic individual coverage if you have to buy it yourself, considerably more for better plans and family plans. I have health and dental through my husband. Everything else -- life, business liability, etc -- I have to pay for on my own.
During this time, I was also doing some contract web design, which I used to do much more than I have in the past year or so simply because I don't have to work quite that hard anymore. I specialized in human factors work -- namely redesigning web navigation systems for the Intranets of two Fortune 500 companies. How did I get these jobs? An old employer who worked first for one company and then for the other called me out of the blue back in 1997 and asked me if I'd be interested in doing it. I've done that work for about seven years, though I stopped this about a year ago simply because I don't have to do it anymore. My web advertising business is profitable enough that I don't have to do the contract work on top of it.
Let's review the timeline then:
14 years ago: I began working full time as a college professor.
13 years ago: I started my primary business as a hobby.
10 years ago: I started making money from my primary business.
10 years ago: I started contract design work for a Fortune 500 company.
8 years ago: I quit working a 40-hour a week job as a professor and started working a 50-hour a week job as a web designer for a dot-com.
5 years ago: I quit working the day job and went full-time self-employed at my primary business.
1 year ago: I quit taking contract work and work solely on my advertising business.
This was hardly an overnight process. This was nearly a decade and a half of hard work.
So, web designers who want to start your own business, I have no guidance for you. I have never had to find clients or build a portfolio of work. All my clients for my advertising business come through contacts I have built through my hobby. I know many, many unemployed or underemployed web designers from my three-year gig as a web designer for a dot-com (with 500 useless shares to prove it) who complain incessantly about the work needed to find clients. The IT business is so difficult these days, you really need to do it because you love it. Otherwise, I couldn't honestly recommend the field to anyone right now.
Working at home has its good points and its bad points. You need to be realistic about both.
Most people have a fantasy about what working at home is really like. They see themselves surrounded by their creature comforts and not having to pay attention to a boss or a difficult manager. They can decide when to work and when not to work. The commute is easy and you can work in your pajamas if you want. They may have children and anticipate being able to eliminate the need for babysitters, nannies, and day care.
Yes, BUT...
I also know a lot of people who worked for themselves and hated it.
Working at home can be very isolating. Many people don't realize how much they will miss the daily contact with other people, particularly other adults if they have children at home. There is something people find energizing about bouncing ideas off one another. You can help pick up the slack for someone else, and they can help pick up the slack for you. If you work at home, home is no longer a refuge from work. Getting stir-crazy, especially during periods of bad weather, is a real problem.
There is also a danger in turning your hobby into your business. While it's important to do something you love and something you're passionate about, the hobby loses its escapism. Although I stay involved with the hobby related to my business, I no longer participate in it directly because -- well, because it's work now.
Being self employed, especially being self employed and working at home, requires a great deal of self discipline and self direction. Nobody is going to tell you what to do or when to do it. You order your time yourself. If you decide to give yourself the day off, that has a price in what you do tomorrow. Going on vacation means that nobody does your work while you're gone (you may have also had this problem when you had a day job though) and it's all waiting there for you when you get back. If you are a person who needs approval and praise, realize nobody is going to pat you on the back or tell you what a great job you're doing, except maybe your client when you're done. It's tempting not to work if you're feeling a little ill or just don't feel like working on a glorious, sunny day, but you need to be adult about deciding when this is and is not a good thing to pursue.
If you have children, don't kid yourself about your productivity. I know many work-at-homes who still have to hire someone to watch the child while they are working because they wouldn't get anything done otherwise. I know many who told themselves that "my child will be fine" who found out otherwise.
I don't work well in my pajamas. I am not in "work brain" in my PJs.
There are a lot of responsibilities you have to accrue yourself when you are self employed, such as billing, invoicing, bookkeeping, chasing down bad check passers, figuring out and paying estimated income taxes, budgeting, getting credit card processing accounts (no one these days should be without the ability to accept credit cards), balancing your incomes and outflows, deciding whether you can really afford to upgrade the RAM in your computer, etc. There are a lot of laws and responsibilities. You have to file at least a DBA (doing business as) with your county, if not consider looking into incorporation depending on your business. You need an excellent insurance agent, a tax accountant, and an attorney, preferably a tax attorney with a strong small business background. You need to keep good records. You need to find out if you need to charge sales tax and how to go about doing that. If you're going to need employees, that's a whole 'nother set of rules I don't even want to think about, having successfully avoided having to hire anyone for years (if I could afford an employee, it would be a bookkeeper. I am a good bookkeeper because I have to be one, but I hate it). You have to work on finding new business and keep the customers you have. People think about starting a business and don't realize that they will have to do all of it, even the parts they don't like.
All that said, I love it. I've learned to adapt to the parts that are difficult.
I am an introvert and don't mind the isolation. In fact, I prefer a quiet office and didn't like the hectic cubicle environment.
I do make it a point to get out every day, however, whether that's out to lunch with my husband or just a quick road trip to the post office to get my mail. I purposely got a post office box so I would have to leave the house to get my work mail. This is especially important when the weather is bad.
I go to work around the same time every day and leave it around the same time, give or take an hour or two. I dress for work, including shoes -- I don't have a dress code but I am at least wearing a shirt, shorts or pants, and sandals. I can't get into work if I am not dressed like I am working.
I have a dedicated office in my house. This suits two purposes. One, it gives me a space that is not "home" and the rest of the house can still be home and a refuge from the office. Two, it makes it easy to deduct the space on my income taxes for a home office deduction. (I have two computers for the same reason -- a work computer and a personal computer. The IRS is very fussy about home office computer deductions, so I can show that my work computer is only used for work, and I have a second computer where all my personal stuff goes).
I am self disciplined and self directed, but it helps to keep a daily work journal. I have a Franklin planner where I write down everything I did and all the tasks I need to do. I forward the "need to dos" from day to day as needed, but I can easily look back and see what I have already accomplished. If I send our payment reminders to clients with a deadline, I can write a note to myself on the deadline day to check the payment status.
Even the parts I hate I have learned to work through, by interspersing them with tasks I find more enjoyable. I just realize they need to get done and I do them.
I have changed my work computer to a laptop so I can take my computer with me on vacations, at least to check mail and make sure no disasters are hitting while I'm gone. It does mean I end up working most vacations, though, at least for a little while. It's a sacrifice I make.
I do just give myself time off when I want it, and the flexibility is very convenient. As we have been buying our house it's been great to tell the builder and the lawyer and the banker and whoever else that I can schedule meetings whenever needed because I am not required to do any of my work at a particular time. It has to get done, but I can say when.
I do not have children, but based just on how much my cats get in the way sometimes, I can't imagine trying to get work done while being responsible for a child. I'd have to hire a sitter to be with them or else I'd never get my work finished.
Let's just say this: starting a web business is no different from starting any other kind of business, except the delivery system. Any good book on business plans and running a home based business will tell you what you need to know. Contrary to what people would have you believe, there are no "easy" get rich home businesses (well, legal ones anyway). While self employment has its rewards, it also has significant challenges and is probably harder than working for someone else, in terms of effort, breadth of skills required, time, and demands on your life. Mostly I prize the flexibility; as I am fond of saying, "my boss is a total bitch but she offers a great vacation plan".