Full-time freelance writer: keep the cash flowing

Ready to go full-time in your freelance writing career? If you’re thinking of dumping your day job, it’s time to think about CASH FLOW.

Your Accounts Receivable are your life blood as a freelance writer.

This means that you need to be focused on your cash flow situation at all times: you need to know how much cash you have and how much is coming in. If you can see that you’re likely to have problems, the time to take action is – NOW.

Writers, artists and designers are in a unique situation. Not only are we creators, we’re also marketers and salespeople of our creative output. Combining these two create/ sell functions is so difficult that at times it feels as if it’s impossible. However, it can be done.

Here are some tips on how to keep the cash flowing:

Start your business with six months’ worth of expenses

If you’re going full-time in your own business, you need a cushion. It’s best to have at least six months’ worth of expense money to keep you going. Then, when you’ve been in business for a year, always keep at least three months’ worth of expense money in your account. Do whatever it takes to get that three months’ cushion.

No cash? Moonlight until things improve

Business works in cycles. It’s always either feast or famine. You either have more work than you can handle, or not enough. If you’re going through a famine cycle – and these can last for several months – moonlight. There’s a reason so many writers work as bartenders and taxi drivers.

Consider working part-time for someone else

Just because business is slow at the moment, it doesn’t mean that your business won’t thrive in the long-term. To ease the situation, take a part-time job. Although you’ll be busier than you’d like to be, the fact that you have money coming in regularly lets you relax, so that you can enjoy working in your business again.

Get an anchor client

You need an anchor client. This is a client who brings in a quarter of your earnings: with an anchor client, you can pay your expenses.

Follow up on slow/ no payers

You can’t afford to let people owe you money indefinitely. This means that you’re providing interest-free loans. Worse, if someone owes you substantial money, you’re an unsecured creditor. If they go down, they’ll take you with them.

Chase up slow payers. Send a friendly reminder email or fax once a week – every week, until they pay.

Don’t pile up debt

Try not to go into debt. It’s not worth it. It’s better to work part-time for someone else, or to cut back on expenses, rather than go into debt. You don’t know how long the slow period will last, and saddling yourself with debt is a dead-end solution.

In 2007, there are unlimited opportunities for freelance writers. You can become a full-time writer, just stay aware of your cash flow at all times.

As a full-time freelancer, get inspired on demand

Discover how to get inspired on demand, five ways to turn off your inner editor, and dozens of way to increase your confidence and writing skill. Whether you’re a student or a professional writer, this ebook helps you to take charge of your writing.

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