Gears and Cogs of a Freelancer - Part 1


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Gears and Cogs of a Freelancer - Part 1

  1. 1. Gears and Cogs of the freelancer<br /><br />
  2. 2. Financial & Management Issues of Self-employment<br />Should describe common financial expressions and self-development requirements. <br />Whatever your business idea or plan you must be able to clearly state all the financial issues that surround this and how you would use these to run the business on a daily basis. <br />
  3. 3. Accounting the Basics:<br />Cash Flow:<br />Cash flow is an amount of cash coming in that’s greater than the cash going out; to put it bluntly, this is what will allow you to keep freelancing. It’s obvious that when the cash coming in is less than the cash you are spending, something has to change.<br />Profit:<br />You may think as long as you’re earning a decent salary, then that’s all you need. Not true—having even a small layer of profit on top of all of your expenses, including your own salary, is a very important tool to weather months where the finances dry up or some other disaster occurs.<br />
  4. 4. Salary:<br />In terms of paying yourself a realistic salary, you should pay yourself what you would be likely to earn if you were employed<br />Insurance:<br />You cannot afford to go without insurance, even if you think you can avoid it. There are a plethora of insurance options, and your financial advisor can help you with these. You should consider such insurance as professional indemnity, business liability, and income protection. Should something unexpected occur, these plans could really save you a whole world of trouble.<br />
  5. 5. Bookkeeping:<br />The recording of financial transactions. Transactions include sales, purchases, income, and payments by an individual or organization.<br />Taxes:<br />A compulsory contribution to state revenue, levied by the government on workers' income and business profits or added to the cost of some goods, services, and transactions.<br />NationalInsurance:<br />Contributions to build up your entitlement to certain state benefits, including the State Pension. The contributions you pay depend on how much you earn and whether you're employed or self-employed.<br />
  6. 6. Overheads:<br />The ongoing expenses of a business which cannot be attributed to any specific business activity, but are still necessary for the business to function. Examples inculde rent, tilities and insurance. <br />Don’t get these mixed up with recording drums! <br />Contract:<br />A contract is a legally enforceable agreement between two or more parties with mutual obligations.<br />Invoice:<br />An invoice or bill is a document issued by a seller to the buyer indicating the products, quantities and agreed prices for products.<br />
  7. 7. Good Practice of a Freelancer<br />
  8. 8. Good Practice of a Freelancer<br />This video gives an excellent outline of important issues related to a Freelancer in the Music Industry. Here are the main headings… <br />1. Business Plan + SWOT<br />2. Professionalism<br />3. Bookkeeping<br />4. Taxes + Income Tax Returns<br />5. Contracts + Invoices<br />6. Promotion<br />
  9. 9. The Plan:<br />Plan or Strategy they both mean the same thing. This developing a basic structure for your business, this often over a period of time.<br />Structure:<br />A good business plan will contain:<br />Initial executive summary, giving the detail of the business proposal<br />Overview of the business' aims product or service<br />Financial forecasts and appendices, such as the CVs of key management members, market research data or technical product information.<br />
  10. 10. SWOT Analysis:<br />The SWOT analysis is an extremely useful tool for understanding and decision-making for all sorts of situations in business and organizations. SWOT is an acronym for Strengths, Weaknesses, Opportunities, Threats.<br />This is great for developing an understanding an organization and for decision-making for all sorts of situations in business, organizations and for individuals.<br />It provides a good framework for reviewing strategy, position and direction of a company, product, project or person (career).<br />
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  13. 13. Example of a Simple Finished SWOT:<br />
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