ELIZABETH: Hi everybody, and welcome to the EQUITY video series!
I'm Elizabeth.
ALEX: and I'm Alex ELIZABETH: and today we are going to talk
about two self-employment options: entrepreneurship and freelance work.
ALEX: That's right, the employment opportunities that many people don't even consider – but
can be great ways to earn money!
ELIZABETH: So Alex, when I think about work, I think about going to a job.
You know, like a desk in an office, or a server in a restaurant, or a cashier at a supermarket.
But that's not usually what entrepreneurship or freelance work is, is it?
ALEX: No, it's not, this is a whole different story.
With entrepreneurship and freelance work, you get to choose the jobs you take, your
own schedule, and often set how much you're paid.
It can take more organizing and dedication than conventional employment, in a way, but
it provides freedom that many regular jobs can't.
That means you can more easily hit the bank or the post office when they're open in
the middle of the day, take time for yourself if you're feeling overstressed, or really
go into overdrive when you want to earn some extra cash one month.
ELIZABETH: If you do things right, it can even help you get ahead of the pack.
So let's explore these great options, and what you can do to make them work in your
life!
ELIZABETH: Now, entrepreneurship and freelance work are closely connected, but they are not
exactly the same thing.
With entrepreneurship, you start your own business and build it up from the ground level,
offering a service to the public in exchange for a fee.
This can be anything from a dog-walking service, all the way to building up a company where
you are the boss.
ALEX: For example, my buddy John started a company that helps people test tap water to
see if it's safe to drink.
It took a good few years to get going, but now it actually has investors and is really
growing fast!
He's even making a decent salary now that it's going full speed.
ELIZABETH: that's awesome!
And freelance work is a little different, right?
ALEX: Definitely, although sometimes they can overlap.
So freelance work – which some people also called "gig" or "contract" work – is
when you keep an eye out for individual, one-time, part-time jobs or contracts and get paid for
them one at a time.
This could be something like freelance journalism, where you write articles or blogs for a magazine
or a website and receive money for each one.
You could even help those companies improve their websites if you know how to do computer
coding!
I also know a few people who do acting gigs for commercials or little company videos,
which can pay pretty darn well for a one day job.
ELIZABETH: I bet that's a neat option for people with disabilities, if companies are
looking to add diversity in videos.
ALEX: Absolutely!
ELIZABETH: Now that we know the basics of self-employment, let's look at the steps
to get started with your new jobs!
ALEX: So, let's say that you're considering starting a business or doing some freelance
work.
Step one is just to ask, "is self-employment right for me?"
ELIZABETH: That's right.
Because let's face it, any kind of work takes, well, work.
It's just that self-employment takes a bit more of your own motivation, as well as handling
all of your own business details such as paperwork, advertising, and even taxes.
There isn't a boss or manager handling operations ALEX: Or nudging you about deadlines…
ELIZABETH: spoken from true experience.
ALEX: You may also want to consider what it will mean for your benefits.
If you're one of the many folks who receive SSI, Medicaid, or other benefits, self-employment
can provide an opportunity for earnings that might not affect their income limits, which
is great.
And there are even government programs for people with disabilities that can help you
get your business off the ground.
For example, a Plan to Achieve Self-Support – or PASS Plan - lets you save money toward
a business goal without affecting SSI or Medicaid's $2000 asset limit, and the Department of Rehabilitation,
if you're interested in this, can provide guidance and even financial support for starting
your own business.
ELIZABETH: But either way, reporting business income to the Social Security Administration
and any other agencies that manage your benefits is super – I mean super – important.
If you don't, you can endanger those supports.
It's also important to keep your taxes in order, which means recording business income
and expenses, then finding the right forms.
We aren't exactly tax experts, so you can either do your own research or find a professional
that can help you come tax time.
ALEX: For more details about programs to support self-employment and how to report your income
and taxes, check out the self-employment chapter of EQUITY online!
ELIZABETH: Okay, so let's say you are confident that you can handle all the details, from
schedules to taxes to reporting business income, and ultimately keeping yourself motivated
long-term.
The next question is, "do I have the right ideas and skills to make some money on my
own?"
ALEX: See, the basics of a business are coming up with a product or service, selling it to
businesses or the public, and taking in enough money to cover your costs and pay for your
time, or what they call make a profit.
A good entrepreneur will come up with something to sell that enough people are willing to
pay for, then finding enough customers to buy it at the right price.
If they manage their own costs and create a quality product, they can usually make money
in the end.
ELIZABETH: You might feel like you already have the ideas and skills to do self-employment
without a problem.
If you do – or if you're just exploring the option – the first step to really getting
the business off the ground is developing a solid business plan.
This doesn't have to be set in stone, but it provides a vision of what you want your
business to look like, and a roadmap to success.
It helps guide you along the way – and if you are looking for people to provide finance,
such as government agencies, some crowd-funding, or even bigger investors, it can give them
a reason to help you out.
Let's say you come up with a good business idea, like a dog-sitting service for all your
neighbors that go to work on the weekdays.
You have a big enough backyard, and all of the dogs will get to be friends and get to
play around with each other.
You plan to charge a fee that's lower than the other dog-sitters in your area, so plenty
of people will be coming your way.
Better yet, you'll be more than able to cover the costs of dog food and make some
money for your time.
A business plan breaks this down and sets a roadmap so you can really get started.
ALEX: That's right, and a business plan usually has 7 parts.
The first is an executive summary, which provides a snapshot of your company, explaining who
you are, what you do and why.
ELIZABETH: The second part is a description and vision.
This includes your mission statement, the company vision, the business goals and objectives,
and the history of the business, if you have one.
ALEX: The third piece is a definition of the market.
Basically, you might be providing something completely new, or there might already be
some businesses like it.
Show who your competitors are, who your potential customers are, and why people will purchase
what you're providing.
ELIZABETH: The fourth piece is a description of your products and services.
It's usually useful to provide enough detail to really show the idea in full, as well as
why your products or services are competitive compared to others.
ALEX: And fifth, show your business's organization and management.
This includes everything from the structure to legal details, any licenses or permits,
a description of yourself and any other managers you might have on board.
ELIZABETH: Next, show your strategy for sales and marketing.
It's always good to read up on marketing strategies, especially in an age when so many
people are online.
Show who your customers are and how you will reach them over time.
ALEX: And finally, show your estimated finances.
This includes startup costs, projected income, expenses, and overall cash flows.
If you think it might take a little time to really build up some revenue, look forward
into the future and figure out when you start making a profit!
ELIZABETH: When you have your business plan in order, you can start looking for funding
and really get things rolling.
Always remember to stay organized when you do!
ALEX: So, business plans are the way to go for many entrepreneurs.
Sometimes freelance and gig work can be a bit more relaxed, and you don't necessarily
need a business plan in the first place.
Here's a fun story: personally, back when I was in college, I was looking for some extra
cash.
I always loved writing, still do, and knew this guy from college – from a little while,
we had some overlap – and he ended up going on and working for a magazine once he graduated.
I asked if the magazine was looking for any contributors and he said yes, and talked to
the editors and actually even offered money if I wrote for them.
The pieces paid anywhere from $50 for an opinion column to a few hundred dollars for a full
article.
When I started tracking my time of doing researching and writing, I realized I was making $20 or
more per hour.
Not bad for a college kid working on his own time!
ELIZABETH: And all you had to do was reach out and send a writing sample, right?
ALEX: Yep, that's all it took!
And of course, making sure I met those deadlines, mostly…
ELIZABETH: I'm glad you did.
ALEX: So, that's the story of self-employment.
If you'd like to learn more, head on over to the EQUITY webpage at www.WID.org/equity.
ELIZABETH: Thanks for joining!
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