Being self-employed can be overwhelming. After all, by definition, you are just a one man or a woman team that is responsible for everything.
The difference between being someone else’s employee and working for a company is staggering.
Let’s say that you are a designer. After working for several years at a big design studio you have decided to set up your own shop. After all, you were the best one on your team, and clients asked specifically for you to work on their project. Maybe, some of them are coming to your new business from the start.
These days, an average hourly rate for a designer is about $75, which is potential for $180K income per year (don’t confuse with take home, as there is multiple expense counts that we will review in a second).
Is the income more than double than the average salary for the position? So, why is not everyone going free-lance?
Here is the catch of being self- employed you need to take care of everything: marketing, hiring, sales, contracts, renting space, accounting and collecting payments when they are due!
The question the said designer will face is how to stay on top of everything and stay alive.
The short answer would be: hire help. But, there is more to it. Hiring at least one person for each task would be expensive and run the designer out of business. Doing everything by himself also isn’t a viable option. For starters, 99% of people are not great at multiple disciplines. Even if our designer can market well and deal with the books, by the time he will be done he won’t have much time left to design, which might result in him running out of business.
Luckily, today there are plenty of automation solution that helps small businesses to increase productivity and provide the much-needed infrastructure to operate like a big business without committing to high costs. These SasS (Software As A Service) solutions increase productivity and literally pay for themselves.
There is a variety of tools and solutions for each problem that our designer will encounter. Most are free to try, so he can see if the solution in question is suitable for his business before committing to any expenses. When the free trial period is over, prices are usually at a tolerable range of few dozens of dollars per month.
My favorite example is our solution for automation of payment chase processor collections as many call it. Gaviti helps entrepreneurs to reduce the amount of time and effort many business owners put into payment collections. Assuring that your clients timely pay you is an art and a lot of hard work. Extremely time-consuming and frustrating task, overall.
For example, let’s say that our designer is dealing with one customer per week and each customer pays after only one reminder (which is extremely unlikely). A call or an email takes 15 minutes, while Gavity setup takes less than 5 minutes.
In that very optimistic scenario, a yearly cost of payment collection is at least $975, while Gaviti annual subscription plan would cost $600 or even less. While each additional reminder cost our designer almost $20, Gaviti costs stay the same (at less than $50 a month). And, let’s not forget that our designer can forget to chase some payments due to the fact that he’s busy working, at $3500 per invoice on average, that is a dear price to pay. Gaviti never misses invoices and helps business to stay on track.
To sum things up: use automation tools for your business needs in order to keep your business efficient and effective while lowering your costs.