Freelance Writer Financing And Self Employment Financial Tips
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Freelance Writer Financing And Self Employment Financial Tips

Freelance writer financing questions answered in detail! This article contains information regarding ways to maintain a full-time self-employed position as a freelance writer. It includes tips for financing, diversification, and general basic information for the starting freelance writer. Learn the cost projections for a bare minimum shoe-string freelance writing operation and develop your business concept design accordingly!

The start of a new business enterprise, especially for a freelance writer, can be a bit daunting financially. Most people will maintain a steady job and work as a writer on the side. However, another subset of would-be self-employed business owners and freelance writers will focus on trying to create a solid and stable business from the beginning. These individuals will need to determine their business model concept design, marketing strategies, and develop solid networking skills among others. There is one other crucial component that must be made viable before these start-up businesses can flourish. They must have financial backing.

A new self-employment opportunity can literally be derived from millions of different types of business ideas. Each business will have a different level of cost involved when it comes to actively beginning that new enterprise. Freelance article writing as a business can be taken as a good example. The costs of starting this type of enterprise are far higher than most people realize. Most individuals who start a freelance writing career do not calculate the costs of becoming such an entrepreneur. They will think it is a free method of earning money, but it is not.

A freelance writer working through an online medium must have a computer, an internet connection, a comfortable place to work, and electricity at the minimum. Many individuals working from home discount all of these items due to the fact that they will usually already have them. However, they must each have been acquired at some point! 

Beyond the beginning start-up costs of becoming a freelance writer full-time without another source of income there is the cost of living as well. This is where financing comes in. If the would-be writer has incredible credit they may be able to borrow money from a bank. If they do not, then there is the possibility of peer-to-peer lending and high interest loans to consider.

Peer-to-peer lending is a concept that involves normal everyday people pooling money to lend to business owners or start-up companies. This is not as individually risky for the lenders due to the smaller amount of money being lent individually.

In order to determine the exact amount of money that needs to be borrowed, take into account the cost of living that will be incurred for one month. Do not short change anything. Do not decide that you will eat ramen noodles every night to lower the cost of food if you normally eat regular meals.Take into account the cost of all expenses. In this article we will operate on the assumption that cost of living is $1,000 USD per month. This may me much lower or higher than the actual cost of loving for a specific individual, however it is a nice round number to work with. A freelance writing professional who desires to stay in business while maintaining a normal lifestyle will require a minimum loan equivalent to $1,000 USD per month in this instance. While most business endeavors should have enough starting capital to last for three to five years a freelance writer can get away with only having six months to one year's capital. This is due to the relatively non-existent overhead they have to deal with. They provide a service, not goods, and do not need to constantly buy things to sell or make physical products of their own outside of written articles.

Now that cost of living has been assessed it is time to determine the cost of doing business beyond that. A freelance writer working online does not need the most powerful computer on the planet. They may want to have solid, cutting edge, editing software. The cost of doing business will mostly be self-assurance that the business can be continued and marketing expenses. There is also the possibility that the freelance writer will want to work independently of article writing websites. They will need their own website in that instance.

A good starting budget for a freelance writer who wants to work solely as a writer will generally be between $3,000 to $5,000 USD. This is added to the cost of living. This capital is utilized to pay for advertising, build a website branded specifically to the freelance writer, and it will act as a cushion in case the writer's computer needs to be repaired or replaced. In short, for a full-time self-employed freelance writer to operate on an absolute shoe-string budget, in America at least, they will need a minimum of $9,000 for each six month period. This is the reason most writers will have a primary source of income outside of article writing.

Successful online freelance writers will diversify their writing portfolio. They will write for specific clients, work on article submission sites, acquire financial backing through loans such as peer-to-peer lending, and create a website to promote their work. This website may be insentivized with advertisments. The writer may even add on a section for the sale of writing related products or other items of interest. The fact is that the modern freelance writing market is much like modern farming. The truly successful writer will not focus solely on one type of item to produce. They will utilize as many options as it is feasibily possible to work with while providing excellent service and quality articles.

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Comments (2)

Useful, informative, and nicely written piece! Thanks for posting this info.

Good points to consider.