You might be one of the hordes of creative professionals who are still stuck in your company office, working a fixed number of hours and downing cup after insufferable cup of bland coffee from the machine at your office.

And you’re ready to break free.  I feel ya!

This article is a short step-by-step guide for designers, web developers, copywriters, usability experts and all other kinds of service providers who are ready to strike out on their own.  And even if you’re already a freelancer, don’t hesitate to apply these tips to your work.  You’ll only go up!

Write Your Business Plan

A business plan is just as important as your college professors said it is. While coming up with your own business plan is a challenging and time-consuming task, remember that it is the first thing that will help you to flesh out your business idea and turn it into a viable and profitable enterprise.

Think about your business idea long hard.

Ask yourself:

• What do I want to do?
• What can I offer that’s different from everyone else?
• How much am I willing to pay to get this business going?
• How much can I reasonably charge my customers?
• Can I do this on my own or do I need to hire an extra hand or two?

A business plan is also more or less a requisite for obtaining bank loans because it shows that you really mean business (pun intended). It tells the loan appraisers that you know what you’re doing and are determined to see your idea through to fruition.

Other people will tell you that you don’t really need a business plan, what you need is the guts to start your own business and to hell with all the frills. Well, this doesn’t always necessarily work. Just like any idea, your business project needs to be carefully assessed from all angles.

Craft a business plan draft, show it to your closest friends and family, and ask them what they think. You don’t have the market on business ideas cornered, and other people can help you focus your ideas even more. You can also try getting help from these:

• SBA
• Scott Kramer’s articles on A List Apart
• Businessplans.org
• Business Plan Archive

Funding

Raising capital is every businessman’s most laborious chore, and for your start-up business, it can be a tad harder. There has been so much literature on the topic of funding your own business that you can likely fill your local library shelves with books on the topic.

If you ask me though, there’s only two ways to go when you’re looking for funding: you either (a) shell out your own money or (b) you borrow from the bank.

The first option seems to be the wiser, or if you can’t cut it on your own, go for a combination of your own money plus another funding source. Because you’re spending your own hard-earned money, it’s likely that you will spend it more carefully. And securing a bank loan would mean that your business plan would need to be almost perfect.

As you scrape together enough cash to get your business going, you might be tempted to borrow from friends or family members who are financially well-off. I suggest that you junk the idea, because such loans are hardly ever paid back.

And if you do succeed in paying the loan (with interest, if you want) months or years have already passed.  And often times you can end up wrecking an otherwise good relationship if you decide to involve your friends and family financially in your business venture.

Choose Your Partner

Let’s face it, you can’t simply run a company with a one-man team. Well, you can but take it from me… it is way less effective!

You need partner to share the workload with you and help you decide on crucial issues. You can get a designer or developer who has greater or equal experience, that’s up to you.  But for variety’s sake I’d suggest making sure that he or she is an expert at something you’re not. This will help you attract clients more effectively—they will know right away that you are two pieces of a puzzle with two unique skill sets and not just a redundant team.

Still not convinced that you need a partner to see you through the crazy days of working your own business? Think about this, then. Your partner can be your in-house devil’s advocate, someone who you can run ideas by and seek feedback from on a regular basis.

Your partner is also your number one fan AND critic—he or she will praise you when you do a really great job for your first assignment. He or she will also do the exact opposite if you start to procrastinate or waste time or resources.  Take that one man wonder!

Find a Suitable Office Space

If you really want to set up shop someplace other than your house, think about what you need and what you do that warrants renting or leasing your own office space. There are many boons and banes to getting an out-of-home office, but the most important consideration is money.

Do you have enough funds to pay the lease faithfully over an extended period of time? Renting an office space is a huge expense, especially if you don’t have a consistent clientele, usually around $250-10,000 a month. That’s a big enough cost to make you break even for a long time until your business picks up enough to cover it and turn a profit. Besides, you can’t have just an empty space to work in—you need phone lines, an Internet connection, a bit of furniture and maybe even your own coffee machine. (Gotta have the coffee!)

On the other hand, having your own office lets you make a good impression on your clients when they come to talk with you. An office means that you’re serious, competent and trustworthy. And travelling (or walking, if it’s more applicable) to your office every day gives you a sense of purpose, forcing you to really step into the shoes of a real entrepreneur.

I can never emphasize enough that your business plan should contain all the details and give you an idea of how much you will be earning as against how much you need to spend on things like monthly rent and office supplies, so consider carefully whether you really need to get a separate office area for your business or whether that empty basement could do the job just as well. (At least for now.)

Don’t Get Carried Away

Let me say that again: don’t get carried away. While you’re still dreaming of your own skyscraper and your business listed in all the world’s stock markets, be content with spending what little money you have wisely and efficiently.

Save up on cash by not overspending on too many office supplies (sixty boxes of staple wires isn’t exactly necessary if you’re a web developer) or fancy equipment that you don’t need. An iMac looks posh on your workstation but your current laptop can handle all the graphics work pretty well, so why buy one? (Unless of course, it’s as old as the hills… then you might consider upgrading!)

Legal Software

Your office computer can run on pirated or ‘educational’ software, but your office equipment should be installed only with licensed software. They cost you more, but genuine software will protect your system better through regular updates… helping you avoid pesky and potentially detrimental things like system crashes or software failure.

Separate Finances for You and Your Biz

Need I say more? Remember that you can’t have your hands in both cookie jars or you’ll end getting confused about which goes where.  It’s just that simple!

File for a Fictitious Name

You’re really serious about creating your own business then likely you’ve already thought about how to name it. The thing is, you can’t just up and have your local stationer mass-produce letterhead for you with your desired name on it.

First things first: You have to register your fictitious name/company name/doing-business-as name with the state. This will benefit you on two levels: you will be prevented from using someone else’s registered DBA name and it will prevent other people from using your chosen name. This will cost you a bit (about $100) but the trouble is well worth it.

You can, however, choose a name that already exists, provided that you and your moniker don’t operate within the same industry. You don’t have to file for a trademark immediately because it’s an entirely different thing that requires more documentation and more money. And unlike your company name, a trademark isn’t required and you can definitely operate without it.

Get an Accountant

Your accountant is the person you can count on to help you with the financial management of your business, right from the time that you open your doors to the public up until you close up shop for good (if ever). You can go for an individual accountant or you can seek the help of an accounting firm to help you get started.  No matter which option you choose, your accountant will aid you in maintaining your company’s financial health and also guide you in paying your government taxes.

Be sure to get an accountant in the same state that you wish to operate because legal requirements vary from state to state. Moreover, get an accountant who knows business accounting, not someone whose experience is confined to family finances only.

And FYI…

The same rule about borrowing money applies to hiring the services of an accountant—avoid getting family and friends to help you manage your funds! You need objective and clear-headed opinions on how to get your business going. If you’re a little short on cash, strike a deal with your accountant—you can design a new website or PR brochure in exchange for some of the services he or she will do for you.

Be Reasonable with Your Rates

Yes, you are the best graphic designer this side of town, (maybe even on the planet) but if you charge too much, you will just drive away your potential clients. Remember that you are only starting out and good credentials and client feedback matter more than a quick return on your investment.

Charging competitively works for you on two levels: it lets you take on more projects and it makes your clients feel that they hired the right people for the job.  A fee that’s below conventional standards will either make your client suspicious about your ability to complete the project successfully, or it can encourage your client to insist on the same price for future projects that are more time intensive.  That would be bad!

So just as you don’t want to overcharge, don’t give discounts like candy either. Sure, you may have more than enough work to keep you busy for days to come, but your bank account won’t be quite as impressive and you’ll be on a quick road to burn out.

Marketing and Creating an Image

You have to be clear about your company’s image before you can project it onto your clients. Think about what it is that you do and what sets you apart from the rest of the start-ups or big businesses and work from there.

Since you’re paying for customized letterheads, make sure that your company name and contact details are prominently displayed along with a creative and refreshing logo. And it’s not only your office stationery that should look business-like—you too should dress the part of the budding entrepreneur.

Maximize your office space by having just the right number, type and size of furniture. A gigantic oak desk, three huge metal filing cabinets and an extra-large zebra print La-Z-Boy will not do well in a 30×30 square foot office. When your clients come a-calling, make sure that you have enough good coffee for everyone and that they have a safe place to park.

And of course, don’t forget to let your clients know when you’re doing cool stuff. Your most loyal clients can have their low times too, so it helps when you let them in on special promos that you might be running.  Keep them in the loop!

Keep Your Paperwork

You might think it’s high time to go digital all the way, but you’d be surprised at how incredibly important documenting all your office transactions can be. If I were you, I would be diligent about every piece of paper that comes your way—copies of tax forms, contracts, your business license, bank statements, receipts and project proposals.  In short… everything!

Just before you start your business, plan ahead about how you can efficiently file all relevant documents and where you will put them. A manual paper record of everything that your company ever does will require great big filing cabinets and a ton of folders so make sure your filing system is well organized.

The main thing to keep in mind is that however you choose to organize your documents you’re able to retrieve a six-month old contract or that receipt for yesterday’s office supplies quickly and easily.

Check websites like www.creativepro.com to help you with the forms you need for your business, such as project proposals, contracts, time sheets and expense reports. However, make sure you customize them.  Don’t be lazy and just print the forms without tailoring them to your business!

Create an invoicing system that allows you to check your receivables flawlessly and efficiently. Your invoices should be with the client not too long after the project is done or even while it is still progressing, depending on the terms you agreed upon.

Oh and one last thing.

Make sure that your copy of every contract details the mode and manner of payment clearly, as well as the signature of both you and your client. Unsigned contracts will more than likely get you nowhere in court when you decide to collect. But before things get that far don’t be afraid to ring your client up yourself to remind him or her of any unpaid balance.  Sometimes folks just forget!

Use Outside Resources

Just before you hit the big world of business, keep in mind that you’re going on your own not just to make money, but also to learn more. Check these resources to help you keep your business running smoothly and efficiently:

• Your local Chamber of Commerce
• SCORE
• Business seminars: not only do you get to build your network, you also obtain a lot of fresh ideas and updates.
• Creativepro.com. Gives you access to a world of resources like stock photos, business contracts, freebies and more. $29.99 / year.
• Elance.com. You may start out working for less, but at least its work and you can build your experience and knowledge base.

If after reading all the above considerations you still want out of your job and are ready to start your own business, then it is likely being an entrepreneur really is your true calling.

Just remember to look deep inside yourself and make sure you have the passion to see it through the initial birth pains and growing pains of starting and running your own biz.  There will be dark days, but commitment to your goals is vital.

A Word for Those Still Studying

It’s possible your business idea has been buzzing in your head for years prior to your graduation… so that when you finally make it out of college you end up striking out on your own immediately.

The simple truth is that some people are cut out for this kind of thing, and that’s wonderful.  But unfortunately most folks aren’t.

It would be ideal if you can get some real work experience first, if only to see how the industry you want to set up shop in works firsthand. You might have the talent, passion, and energy required to run a business, but if you don’t have the knowledge and the skill set as well, your business (and you) will suffer.

Take your J.O.B. or corporate career and view it as on the job training: see how projects are conceptualized, executed and assessed, how clients are treated, how deadlines are created and met.  When you’re still in school, you often only see just the tip of the entrepreneurial iceberg.  But real world education can give you a more complete picture and help you assess if you’re really ready to work for yourself.

And if you really are ready?

Then make it happen!