Tips on Starting a New Business

As a successful business owner, I have had some experience with what works and what doesn’t when trying to start a new business. Here’s a brief list of what I’ve found to be the most important considerations:

1. Create a business plan. This is arguably the most important part of starting a new business. A business plan lays out everything your business intends to do in a clear, concise manner. Referring back to your business plan can help you stay focused and on track.
A well written business plan will also improve your chances of securing loans from lenders. Lenders want to see professionalism and organization. Having a business plan shows the lender that you are prepared and will be spending the loan money wisely.

2. Start small and work up from there. When you’re first starting your business, work with as few expenses as possible. If you can work out of your home, do so. Only hire as many employees as you absolutely need. You can adjust as your business grows, but in the beginning, keeping expenses low will keep you out of debt.

3. Make sure you have the right small business insurance. Consult an insurance specialist, or a website such as businessinsurancenow.com to determine what type of insurance your business needs. An insurance agent can help you understand the differences between business liability insurance and errors and omissions insurance, among others.

It’s important to have the proper amount of coverage, buy too much and you’ll just be throwing money away. Buy the wrong type and you’re wasting money and uninsured! Don’t buy any at all and you will be completely on your own to cover mistakes, something a new business invariably makes.

If you need more information or assistance in getting your company started, visit the small business association website.

How Do You Make a Better Independent Contractor Agreement?

The best part about being an independent contractor is the opportunity to be your own boss. On the flip side, the worst part about being an independent contractor has to be assuming all of the responsibility of being your own boss. One of the biggest issues that independent contractors face is the actual contracts under which we all must work. As an independent contractor, I understand first hand that your contracts are your life blood. If you don’t have any contracts you aren’t working, however, writing or developing a contract is a daunting task.
Here is a basic list of items that your contract should cover:

• The specific job or services to be performed.
• How much you are to be paid for your services.
• The time frame within which your services are to be rendered.
• Who owns the work product resulting from your services? This is a key issue, especially in IT independent contract agreements. Make sure that if you are giving up the rights to your work product that you are being fairly compensated.
• How often should the progress of the project be reported?
• The issue of disclosure is a huge one. Are you going to be subject to a non-disclosure agreement? Do you need to hold your employer to a non-disclosure agreement? It is important to remember to protect your intellectual property. Part of that is protecting your processes. If you are sharing sensitive material, knowledge or information make sure that you, as well as your employer are protected.

Once you have established general criteria for what you want your independent contractor agreement to contain, my suggestion would be to find a professional legal form service to provide you with your finished product. It is going to be easier for you to purchase a contract and have it tailored to your needs or to make slight modifications to a purchased contract then it would be to learn the appropriate laws and then subsequently write your own contract.

Technology Fields for Independent Contractors

When I decided to throw myself out there as an independent IT contractor, I had big dreams of tons of clients.  Originally, I started out as a web designer.  About two days in, I decided to add “Web Developer” to my title.  As time has progressed, I have become aware of different opportunities that weren’t available to me as a mere web designer.

Depending on what degrees or certificates that you hold, your opportunities as an IT contractor will be greatly influenced.  The same can be said about what opportunities your work experience and portfolio will bring you.  Having a well-prepared portfolio is more important than having every possible degree or certificate.  Degrees and certificates show your level of schooling.  Your portfolio shows your actual abilities.  Remember to keep your portfolio current and make sure to stock it with your best work.  Also, make sure that every job you take on looks as good, if not better, than your best portfolio piece.

In today’s world of outsourcing and downsizing, corporations are turning to contractors and consultants whenever they can.  This is where your vital experience and abilities come in.  Why would you limit yourself to a specific category like I did?  Maybe because you see a large income possibility, maybe that is the only place where your talents lie, or more likely, that is the only talent you have thought about capitalizing on so far.

IT contractors are always needed in the vast world of the Internet.  Web design cannot be accurately described without breaking into multiple categories.  You can design e-commerce sites, simple single-page sites, complex content management sites, and the list could go on forever.  The best way to go in the web design/development field is to find a niche, develop a portfolio and earn a good reputation.  Having an extensive clientele gives prospective clients peace of mind and it also pulls in lots of referrals.

Graphic design is another great field to find contract work in.  Companies always need graphics for business cards, letter head or their annual newsletter and employing a full-time graphic artist doesn’t always make financial sense.  That is where you, the contractor, come into play.  You cost less than yearly in-house graphic artists and you always deliver on time.  Not to mention the fact that graphic work is great to bill out to customers.  You can make graphics as detailed as possible or you can make simple, less detailed, less expensive graphics to fit a tight budget.

Programming and coding are great way for contract work.  When companies or individuals find themselves needing a specific application, be it for web or non-web use, hiring a contractor will most likely save them money.  Unless you run a software development company, having coders on staff just doesn’t make sense.

The Importance of Defining Contracts and Business Agreements

Define your project.  Project management is extremely crucial to success.  If you are being paid a lump sum or have quoted a specified number of hours for a project it becomes even more important to manage time efficiently.  Any extra time it takes you can cut into your profit margin.  Before you accept a project, make sure that the project is spelled out completely and that all of the involved parties agree on what the project will entail.

I can’t hammer this point home enough.  It is very easy to agree to do something for a client and then half-way through the project realize your expectations and your clients are way off base.  Since the customer is always right, you end up spending extra time reworking or fixing the project to your client’s newly defined specifications.  The best way to avoid this scenario is with a clear, accurate and explicitly complete contract.  If you are building a web page, don’t just assume what content will go where or how it will be delivered.  Make sure that content, at least in a place holder form, is included in your contract.  Spell out how the “about” section will be displayed for end users.  Making assumptions is a cardinal sin to be avoided at all costs.  Without clearly defined boundaries and explanations in place, the life of an independent contractor is hell.  The reason people are contracting with you is that you can do something they can’t or you offer a more cost-effective option.  I’ve learned to always be wary of clients.  Even the best clients are only as good as their last payment.  That might come off as cynical but once you’ve been in the game long enough, you realize idealism is reserved for rookies.  In real life, clients are looking out for their best interests and so are you.  Sure, both parties want to work together in harmony.  The best way to ensure that beautiful harmony is with a well defined contract in place.

Once you have your amazing contract in place, it is up to you to achieve the objectives stated in the contract.  I find a well written contract leads to smooth deadlines and easily achievable goals.  That leads to higher productivity and satisfied clients.  Satisfied clients are return clients and referrals in waiting.  There isn’t any better business then return business.