Freelance Finance Guide

Check your Savings

For a small studio or freelancer, its important to first take stock of the savings that can be safely invested into the business. Avoid taking loans on interest, unless there is no option.

Avoid a Partnership

It’s better to be your own boss than to be dependant on your partners. Litigations and differences can ruin and collapse the entire effort that you have taken to setup the company.

Invest in a Workspace

It’s a wise decision to have an office workspace away from your home. The productivity and professionalism reflects in your work right from day one.

Register your Company

Have an identity, name and legal existence in the industry. Invest in registering the Company, the domain name and a registered address for operations.

Do the Maths

Understand fixed costs, one time investments and variable expenses. Rentals, loans, systems, software, salaries, travel, internet, etc. Add a certain percentage of profit to this amount that you wish to achieve per month. This amount now becomes your Monthly Targets.

Prepare for the Uncertainties

The creative industry has its own ups and downs. Losing a client, bad client, rejected project, delayed projects etc. affects the financial health on a month-on-month basis. Be ready to handle such losses in certain months.

Get Clients to Pay on Time

Its a good idea to hire a good billing and follow up staff to manage the billing and collection of payments on time. Someone with an accounting background and a strong determination to follow up works.

Retaining Team

Invest in your team to keep them motivated and engaged in innovative work. Have a good mix of talent based on creative, technical and intellectual skills. Keep a budget for ongoing learning and facility enhancements.

Optimise Workflow and Processes

Invest in automation, Cloud based tools and process driven approach. Have documentation, policies and standard practices in place. You can prevent big losses just by keeping all communication on record with clients.

Be the Change

Be aware of the dynamic changes happening in the industry, the client profile, the project demands, the technology advancements and accordingly make dynamic changes in the way you operate. Don't be scared to drop old stuff and pick new stuff. Create new possibilities.