November 8, 2002 GAY PEOPLE'S CHRONICLE 11

bigtips

How do I go from my regular job to self-employment?

by M.T. 'the Big Tipper' Martone Dear Big Tipper,

This is it. I'm tired of one particular brand of rat race, so I'm thinking of building my --by starting my own business.

own maze-

I have a friend who's done financial consulting for years, and he says there's plenty of business, and he has been encouraging me to work on my own for quite a while. I feel like I have the necessary professional experience, and I like the idea of having a more flexible schedule.

But as I start to think about the change I realize I'm not sure at all how to get from point A (being at my 9 to 5 job) to point B (being viably self employed). I feel like jumping right in, because I know there's great value in showing my commitment, but I'm a pretty routine-oriented and safety-minded person, so that brand of rash action seems hard to swallow.

I've been to the bookstore and am reading several books on starting up a small business, but I wonder if you have any suggestions for me?

Dear Bank on It,

On the Money?

I think it can be a great idea to start your own business. You can have a great deal of freedom, and any tyranny that you'll suffer will be self-imposed. If you are very selfmotivated, it can work out. And any success you achieve will be due to your hard work.

Of course, there's a certain sort of mental freedom working for someone else: if you're a little cranky one afternoon, you might have the freedom to slack off a little. Maybe there are informal benefits like being able to make the occasional long-distance phone call: And there are probably the real benefits, like any insurance or retirement plans. These aren't reasons to stay in a mainstream day job, but they are factors that you need to take into consideration when you're deciding things like what your hours will be and what you'll be charging your clients.

You're smart to be reading those books, because the first thing you need to do, while you're still employed in your current job, is information gathering. Your friend should be a great resource: what did he do when he set up his business? What sort of unexpected trouble or expenses did he run into that he wasn't expecting? Is there anything he desperately wishes he knew before he started?

You can take him out for a nice dinner and pump him for information. Let him know that you're grateful for the assistance and his time. He's an ally.

If it's possible, cut back your hours at your other job and start up your business part time. Some people even start their businesses on weekends and evenings so they can keep a

BIG TIPS

stable income while they ramp up, but sometimes it does take a symbolic gesture like cutting back your regular work hours to scare you into really committing to the new life. This decision definitely depends on whether you have a family to support or you have a bit of savings you can use as a cushion.

You need to think about what you're going to charge. I'm sure

any start-your-own-business book will have its own formula. Simply put, you need to figure out what you need/want to live on, including expenses for setting up your business and/or office, and for insurance and other benefits you want to continue to enjoy. Then divide that amount by how many hours you reasonably expect to work. Remember to factor in vacation time and sick days. Once you have some sort of figure, you want to weigh that against what other people in your area are charging for similar services. You don't want to undercharge, because that will really piss off your colleagues and you may be discounting the value of your labor. On the other hand, if you feel like your colleagues are gouging their clients, you can charge a more reasonable fee and that can be a marketing point for your business. This may be a good topic for that conversation with your friend.

Find out what sort of business license you need to have. Also find out if you need to carry any sort of insurance to cover your provision of service. Make sure these expenses are factored into your "what do I charge" formula.

And then it's all about generating a client base. You'll need a marketing strategy. A good resource for this would be the professional organizations in your field. They frequently have publications and Web sites that have information about selling your specific sort of service. Typically the best ways to let people know about a new service are: word of mouth, client referrals, ads in the yellow and white pages, local printed ads, and direct mail. Make sure you tell everyone you know and meet. Feel no shame. Don't be an ass or

a bore, but let people know that you're starting up, because people equal business.

Get your name out there. A great way to get a service noticed is to donate some hours of your time to a fundraiser for an organization that is having an auction of a raffle. This doesn't just generate good karma, although 'the value of that should not be discounted. It may well create a client who keeps you on after the first free part, and a person who is outside of your regular circle who can talk you up. You also get seen by all of the people

at the event.

Differentiate yourself: why should someone use you? Do you offer special rates to nonprofits? Do you have unusually accommodating hours? Is there a certain population you have specific experience working with? Will you go and provide services to people in their homes? At work? Make your business something special that people will understand as clearly advantageous.

Having recommendations and references is great when you're starting up. Can you do work for friends and family who can then be used as referrals?

Keep good records. If you're a money guy, you probably already do, but besides information for taxes, keep records of your conversations with people even if they don't immediately become clients: they'll be impressed if you can pull up notes later. Keep notes on conversations with colleagues: they may refer you to something that you'll want six months from now, and you don't want to have to ask again.

Good luck!

Send questions to the Chronicle, attention Big Tips, P.O. Box 5426, Cleveland 44101. online at www.bigtipsonline.com, e-mail to martone@drizzle.com or fax to 216-

631-1052.

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