I was giving advice to a friend who recently started a freelancing business after a decade of being an employee.
Here are 12 habits that work fine when an employee employee, but ones worth unlearning to be a more successful entrepreneur/freelancer:
Here are 12 habits that work fine when an employee employee, but ones worth unlearning to be a more successful entrepreneur/freelancer:
1. Old habit: your time is equally valuable throughout the day.
New habit: parts of your time are far more valuable. E.g. working with a higher-paying client, or on projects with more opportunity cost. Generating valuable leads. Etc.
New habit: parts of your time are far more valuable. E.g. working with a higher-paying client, or on projects with more opportunity cost. Generating valuable leads. Etc.
2. Old habit: follow the beaten path outlined in a company and career path. Get promoted to senior, then to above or a manager path etc.
New habit: carve out the path where *you* want to get to. There's less of a beaten path to follow - and why would you?
New habit: carve out the path where *you* want to get to. There's less of a beaten path to follow - and why would you?
3. Old habit: learn mostly about your current profession. E.g. if you're a software engineer, keep learning about this domain.
New habit: learn about sales, marketing, accounting and business, in general. Cast a wider net.
New habit: learn about sales, marketing, accounting and business, in general. Cast a wider net.
4. Old habit: saying yes to most meetings and many requests. You're paid to do these, after all!
New habit: you don't have to say yes to anything! Unless it helps your business. Figure out what helps it, and what doesn't. No one is paying you to say yes to anything!
New habit: you don't have to say yes to anything! Unless it helps your business. Figure out what helps it, and what doesn't. No one is paying you to say yes to anything!
5. Old habit: calculate how you are financially by looking at your total compensation from your job.
New habit: get a sense of your cashflow, your net profit (after taxes!), set aside for taxes, utilize expenses, and decide how much you pay yourself vs keep in the business.
New habit: get a sense of your cashflow, your net profit (after taxes!), set aside for taxes, utilize expenses, and decide how much you pay yourself vs keep in the business.
6. Old habit: "If I work hard and do good work, I'll get ahead."
New habit: "If I create value for clients/customers I'll be successful." This is often irrespective of how hard you work (customers rarely care) and sometimes not directly connected to the quality of your work (!!)
New habit: "If I create value for clients/customers I'll be successful." This is often irrespective of how hard you work (customers rarely care) and sometimes not directly connected to the quality of your work (!!)
7. Old habit: ask for a raise once a year - or don't even ask, but get one.
New habit: increase your prices when you have too many clients (as a freelancer).
New habit: increase your prices when you have too many clients (as a freelancer).
8. Old habit: "My employer pays roughly the same for everyone at the company at a similar level. I should probably charge my clients the same as well to keep it fair, I guess."
New habit: forget this! Charge per client, based on value you provide, how much they can pay etc.
New habit: forget this! Charge per client, based on value you provide, how much they can pay etc.
9. Old habit: "I spend 40-45 hours working at my job, doing (mostly) my job and not much else."
New habit: you'll have to spend a considerable time not just doing your job, but potentially things like marketing, finding leads, accounting, admin etc.
New habit: you'll have to spend a considerable time not just doing your job, but potentially things like marketing, finding leads, accounting, admin etc.
10. Old habit: "I'll ask for permission to go on holiday from my manager (who always says yes)"
New habit: "I'll tell my clients I'm on holiday - and not bill them." (In reality, most entrepreneurs go way less on holiday because of this: beware!)
New habit: "I'll tell my clients I'm on holiday - and not bill them." (In reality, most entrepreneurs go way less on holiday because of this: beware!)
11. Typical assumption when starting freelancing: "I should charge per hour."
New habit: understand how charging per hour is just one option. Value-based pricing and retainers are others that might work better, and bring more profit with certain work.
New habit: understand how charging per hour is just one option. Value-based pricing and retainers are others that might work better, and bring more profit with certain work.
12. Old habit: to grow professionally, learn from my colleagues and resources like books, courses etc on my profession.
New habit: to learn, befriend other entrepreneurs and talk about business. And learn from business resources online and offline.
New habit: to learn, befriend other entrepreneurs and talk about business. And learn from business resources online and offline.
The biggest thing I'd suggest to "unlearn" is how it's enough to learn about entrepreneurship once you'll start a business/freelance/found a startup.
This might be too late, too painful.
Start earlier, like by selling something online: blog.pragmaticengineer.com/want-to-start-…
This might be too late, too painful.
Start earlier, like by selling something online: blog.pragmaticengineer.com/want-to-start-…
• • •
Missing some Tweet in this thread? You can try to
force a refresh
