As creative professionals, we have the opposite problem of most entrepreneurs.
When most entrepreneurs launch a new business, they don’t pay themselves much at all, especially for the first few years.
After all, they’re just trying to get their business off the ground and are putting everything they’ve got into it.
In contrast, when we launch a new writing business, we often take whatever cash that comes in the door as compensation.
But that’s not the way to do it.
In this podcast episode, I discuss a cash management strategy I’ve been using that’s completely revolutionized my finances and the way I feel about my business.
And I describe how you can adopt the same approach — and why you should.
The notes that follow are a very basic, unedited summary of the show. There’s a lot more detail in the audio version. You can listen to the show using the audio player below. Or you can subscribe in iTunes to get this show delivered straight to the Podcasts app on your smart phone, tablet or iPod.
And if you treat your business as a business, you’ll do better than if you simply consider yourself a “writer for hire.”
Anytime you’re running your own business, you assume some risk. You’re doing something that most of your peers don’t have the desire or courage to do. You’re out on your own.
And that risk calls for some kind of reward.
A few years ago, I came across the book Profit First by Mike Michalowicz. I combined his ideas with a few other strategies I’d been experimenting with and made significant changes to the way I handle my business finances.
One of the biggest changes I implemented was to start paying myself a profit distribution every quarter.
Here’s how it works: You decide what percentage to put aside. Then, every payment you get, you allocated that percentage of that payment to a separate “profit” account.
Every quarter, you take out 50% of the balance of that account and use that money to reward yourself.
You can use this money anyway you choose. I like to spend mine in two areas: 1) something I want but wouldn’t normally splurge on or 2) a special trip or experience.
I strongly encourage you to start doing this. It will make owning your own business feel that much sweeter.
And remember, you don’t have to allot a large percentage to your profit account. Even a small portion will add up over time. Start with one percent if you have to!
But whatever you do, start.
Because you deserve to reward yourself for the risks you assume as a business owner and entrepreneur.
Plus … whenever you’re ready, here are 4 ways I can help you grow your freelance business:
1. Grab a free copy of my book for ESTABLISHED writers/copywriters.
You’ll discover how to quickly and predictably reawaken dead leads, generate new client opportunities and convert not-yet-ready prospects into freelance writing clients. — Click Here
2. Download a free copy of my new book for writers who are NEW to freelancing.
I’ll show you the 3 things you need to do to get your business off the ground safely and land your first paying client faster. — Click Here
3. Join my implementation program and be a case study.
I’m putting together a new implementation group this month. If you’d like to work with me to grow your income quickly with better clients (and become one of my new success stories). Just email me at [email protected] and put “Case Study” in the subject line.
4. Work with me privately.
If you’re a 6-figure writer who’s trying to earn more in less time, with less stress, I might be able to help you get there faster than you think. Email me at [email protected] … put “Breakthrough” in the subject line and I’ll get back to you with more details.