August/September 2006

Volume 47, Number 1

Ruminations on More Than a Dozen Years as an Independent

by Linda G. Gallagher, STC Associate Fellow, CIC SIG Manager

During the last few months, as I think about celebrating thirteen years in business and see the questions that Consulting and Independent Contracting (CIC) SIG members post to the SIG e-mail list about business, I realize the lessons I’ve learned and how far I have come. Without digressing too far, I started my business nearly thirteen years ago after being laid off from Southwestern Bell in St. Louis, MO. The layoff was not a big surprise to me, and I knew that I wanted to work as an independent technical communicator. In that way, I was better off than many who were surprised by the layoffs and had no direction. I knew that I had a lot to learn, and I forged ahead reading books, joining STC, and taking a Womens Entrepreneur class.

Recognizing What I Did Not Know

In an interview for a project fairly early on, I was asked if I wanted work on a W2 or 1099 basis. Much to my chagrin, I did not know what that meant, and I said so. I felt embarrassed to admit it. However, I had already learned that being straight-forward and honest is always best. Luckily the interviewer, a long-time STC member, was very kind and explained the difference to me. Of course, upon arriving home that day, I set out to learn more, and did. Today, I frequently explain the difference to others who are new to or contemplating the independent contracting life.

I think about how little I knew about estimating projects. I can’t say that I have it down to a science, or that my estimates would work for anyone else, but I do have a method that works well for me. I had to learn about managing scope creep and making sure that I clearly conveyed to clients that their requests to edit the text in the user interface or to add breadcrumbs to their original plain vanilla help would add time and cost to the project.

Financial Management - Critical for Small Businesses

Keeping track of revenues and expenses is something that I know a lot of small business owners struggle with. I’m lucky that this was not something I had to learn. In this case, I married well. My husband is an accountant and has always handled my books for me. I mention it here, however, because it is very important for many reasons, not the least of which is knowing whether you’re making a profit and paying the piper each quarter (that is, your federal and state income taxes).

I’d like to emphasize how important it is to handle your finances in a business-like manner. Open a separate checking account into which you deposit all business revenue and from which you pay all business expenses. Track your revenue and expenses in a spreadsheet or program like QuickBooks and set aside roughly 40% to 50% for taxes. Doing so will help you manage your expenses, make a profit, and have the money to pay your taxes each quarter.

How Do You Find Those Clients?

Many of us wonder how to find clients. I’ve received numerous questions over the years that deal with finding work. This is critical, but often difficult. I tried a bit of cold calling early on, but found it excruciating to do, and I never garnered any clients from it. I did some small mailings to targeted lists, and then followed up with a call. This was about as much fun as the cold calling. For me, networking has worked best. I’ve been active in STC and another local writers group. I also attend other networking meetings periodically that have paid off in finding new clients.

Referrals from members in these organizations have been my primary source of clients. Oh, I have gotten projects from one or two job postings on one of the e-mail lists I’m on, but they’re not a primary source for me. My best advice is network, network, network. I know it’s hard. I’m an introvert by nature, but I’ve learned to don what I call “my business persona” when I go to meetings. My business persona is more of an extrovert and lets me strike up conversations and follow up on leads. How much I’ve changed from the college student who could barely pick up the phone and place a call to someone I didn’t know!

Making Sure You Get Paid for Your Hard Work

Probably my most difficult lesson to date is not to trust a client when payments start coming in late, even one who has paid well in the past. A few years ago, I let it go for awhile and one client owed me close to $12,000! It’s not that I ignored the problem. I called regularly, received partial payments, and slowed my work pace significantly, but the owed balance grew. By the time it reached $12,000, I stopped all work and told the client that I had to receive full payment before I would continue.

This story has a happy ending. I did receive payment in full, though it took a few months. I also informed the client I would work for him in the future only if I received payments in advance. I’ve found that works well with startups and other small companies whose finances may be shaky.

I don’t ask for half up front or a very large sum, because many companies balk at laying out large amounts of money up front. I ask for the equivalent of 20 or 40 hours at a time. As I use up that time, I send a new invoice. In the meantime, clients are seeing my outline, questions I’m asking, a prototype, and drafts, so they know that the work is proceeding. I’ve not had a client balk at this payment method yet.

Lessons Learned

Of course, I’ve learned so much about many other things like various software tools, PCs, page layouts, writing procedures, handling graphics, juggling projects, and so much more. As in all things, especially in our fast-paced, high-tech world, there is always more to learn.

Along the way, I’ve met a lot of great people, many through STC. I’ve taken on leadership roles locally, in both the St. Louis and Rocky Mountain Chapters, and the CIC SIG. I enjoy being active in STC and sharing the things I’ve experienced and learned these last 12 plus years. Many people have helped me with advice, information, feedback, and more. This is my way of giving back.

Linda G. Gallagher is an Associate Fellow of STC and the manager of the CIC SIG. She founded TechCom Plus, LLC, a technical writing and consulting firm that specializes in creating software and hardware user guides. She regularly uses single sourcing to provide her clients with affordable user documentation in print and online. Her focus in all projects is creating information that users can understand and use. You can reach her at lindag@techcomplus.com or 303-450-9076.