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Archive for the ‘Money’ Category

Let’s just dive in to this one: bad habits that may be putting the brakes on your freelance ambitions. Feel free to add your own in the comments! And for the record, I’m not getting all superior here…I culled many of these bad habits from my own experiences!

  • Waiting for the big block of time that is never coming. That book you’ve been planning to write; that marketing campaign you’ve been meaning to launch; that blog that you’ve been on the verge of creating…but not until you can take a week and focus only on that task. News flash: unless you’re independently wealthy and have no responsibilities to anyone except yourself, the big block of time is never coming. I tell you this because I waited (literally) two years to write the second edition of How to Succeed as a Freelance Translator, because I was going to take a month off and just blaze away at it. After two years of waiting for that elusive month, I decided that even if I only wrote one sentence, I had to work on the second edition every single day. And guess what; in another six months, it was done. So, whatever your long-term goals are, chip away at them in small, regular increments.
  • Publicly ranting about clients or colleagues. When I see people doing this, mostly in the form of Facebook or Twitter posts, I have one question for them: Why? I agree, everyone needs to vent now and again. But that’s what your e-mail and phone connections to your most trusted colleagues are for. Public ranting has so many downsides, it’s hard to know where to begin. First, nothing on social media is private, and someone may forward the rant to the client or colleague at whom it’s directed, even if you don’t actually name them in the post. Second, social media is there forever. You can delete the ranting post, but lots of people have already seen it. Third, it’s off-putting to other people who might refer work to you. I would never take the risk of referring a client to someone who is a habitual ranter. Also, I think that most clients run away from translators who have a reputation as being high-drama or difficult to work with. The emotional release of publicly flaming someone just isn’t worth the risk. Fourth: that whole thing about people in glass houses. I definitely get irritated when clients or colleagues inconvenience me because of their own bad planning, or send the wrong file, or don’t understand a question or instruction that seems simple to me. But I try to keep the perspective that undoubtedly, I do those same things sometimes, possibly without even realizing it. Fifth, it’s a waste of your time and energy. With the time you spend being aggravated at a client who bugs you, you could proactively go look for a new client who pays more and is less annoying. So, keep the complaints offline, and only to a few colleagues who you really, really trust.
  • Feeling that other people have all the luck in this industry. Everyone else lands the plum direct clients. Everyone else gets asked to speak at the cool conferences. Everyone else’s webinars sell out. My take: it’s not luck.  If you want to be jealous of something, be jealous that those “lucky” people work harder than you are willing to. As Thomas Edison said, “Genius is one percent inspiration and ninety-nine percent perspiration.” So go out there and perspire; just don’t wait for the big block of time to do it!
  • Overestimating your marketing/networking/professional development efforts. I bet that if you asked most translators to honestly audit themselves, most people are doing *no* outbound marketing at all: zero. And even those of us who are doing outbound marketing are likely to be radically overestimating how much we’re doing. For example, I think I’m pretty good at outbound marketing, and I have a database of potential clients who I regularly send stuff too. But, I ordered a set of 100 marketing postcards about 10 months ago, and I have at least 40 of them left. I aim to send out one postcard per day, and I’m actually achieving more like one and a half per week. Ditto with professional development: let’s say that we recommended that freelancers spend the extravagant sum of 5% of their yearly gross income on professional development. So if you’re making 70K, that would be $3,500…here again, I’m guessing that even translators who attend something like the ATA conference are not hitting that mark. Result: if you don’t move forward, neither will your business, in terms of new clients and new opportunities (see “some people have all the luck” for more on this).

I could go on…but, over to you!

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Let’s look some more at the “How much should I charge?” question, since it’s such a source of stress and speculation for most freelancers. You might also be interested in these previous posts–What is the right rate for your translation services, and How and why to raise your translation rates.

If you want, you can have an absolutely 100% set price for your translation services. My accountant (who I love), charges $220 an hour, end of story. Phone calls more than 5 minutes and lengthy e-mails are billable, end of story. That tactic could work for translators too. But whereas accounting work is relatively predictable, we’re always balancing factors like the subject matter, the turnaround time, the format of the source document, the high or low maintenance-ness of the client, the appeal of the project in general, and so on. So instead of having a set rate per hour or per word, here’s another option: think zones.

The green zone is a rate at which you would almost never turn down work, as long as the project is within your capabilities. It’s your ideal rate, and ideally, you’re always trying to push it a little higher. Note: the green zone is a good place for your clients to be, because it means you’ll bend over backward for them (worth subtly pointing out to them, too!).

The yellow zone is a rate that’s not ideal, but that’s worth taking a look at. This might be a rate that you consider when work has been a little slow, or if a project is particularly interesting, or when there’s some non-economic reason to consider the project. For example, when I translate books, it’s yellow zone work. It’s interesting, it’s nice to be off the daily deadline treadmill, but it’s at the low end of what is viable for me financially.

The red zone is work that you turn down because it’s too low-paying. Point being: to have a viable business, you have to have a red zone. If you are continually making exceptions to your absolute, I-don’t-go-below-this-number rate, just for this one project and then you’ll really never work for that little again…you will never have a viable business. So whether your red zone is 9, 20 or 40 cents per word, just make sure that you have one.

I find that this zone approach really helps me; having an “I don’t turn on the computer for less than…” rate helps me feel that this is a policy, rather than a case by case decision. Over time, I also find that I’m more attracted to billing direct clients by the hour; they understand where the number is coming from (which, with per-project pricing, they might not), but I also get paid for everything I end up doing (which, with per-word pricing, I might not). But that’s material for another post…any thoughts out there on pricing zones?

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Let’s just dive on in to this one; a few basic business management things that every freelancer should do, right this red hot second. Not rocket science, just things that are crucial to the survival of your business!

  1. Completely separate your business and personal finances. Even if you are not incorporated, open a separate checking account for your business to keep things clean. This also really facilitates recreating your accounting records if you ever need to.
  2. Have a reliable project and invoice tracking system. Post-it notes on the computer monitor work if you’re doing one translation job every two months. But when you start juggling multiple clients in a week or a day, you need a better system. Whether it’s Translation Office 3000 (not an affiliate link), a spreadsheet or even a whiteboard, make sure to have something in place.
  3. Buy a domain name and use it for your work e-mail. Your own domain name looks professional, and protects you against ever having to change your e-mail address again. You can also use whatever interface you want (i.e. Outlook, Gmail) to manage it.
  4. Put a percentage of every payment into a business savings account. I say “a percentage,” because it depends on your country and your tax bracket. But here in the US, let’s say at least 30% of every invoice if you just want to cover your taxes, and probably 40% if you also want to establish a paid vacation fund in order to pay yourself when you take time off. In a higher tax situation, say if you live in the European Union, you might be looking at more like 50% just to cover taxes and social charges. But the point being, don’t get caught short at tax time with no way to pay what you owe.
  5. Investigate retirement account options. Again, a little vague, but that’s on purpose. Put it this way: although one of the nice things about freelancing is that you can potentially work into your older years if you want or need to, don’t depend on that. I have an individual 401K through Charles Schwab that I’m quite happy with (and it has very high contribution limits, allowing you to put away a lot of money tax-free), but there are lots of other options out there: Roth IRAs, SEPs, etc.
  6. Investigate whether it’s worth incorporating. If you live in the US and are a sole proprietor (non-incorporated self-employed person), self-employment tax is a big hit. Essentially, you pay some taxes as if you are the employER and the employEE. Incorporating can allow you to legally avoid paying self-employment tax on some of your income, and can also give you some liability protection. Downside: having to file payroll taxes and a separate tax return for the corporation, depending on the corporate structure that you use.
  7. Use a professional e-mail signature. An e-mail signature (the few lines of text that get pasted at the bottom of every e-mail you send) is a very basic marketing tool, and also helps people know who you are. Here’s mine:–
    Corinne McKay, CT
    ATA-certified French to English translator
    http://www.translatewrite.com (professional site)
    http://www.thoughtsontranslation.com (blog)
    http://speakingoftranslation.com (podcast)
    303-499-9622

    Even if you have a very basic signature, like “English to Japanese translator,” it’s worthwhile. But overdoing it can be worse than nothing: the original convention was 4 lines, and I’ve clearly broken that rule, but definitely do not double the length of a typical e-mail with your signature.

Any other basic tips out there?

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No matter how long you’ve been a freelancer, rates are always a source of intense stress: charge too much, and you’re afraid of having too little work. Charge too little, and you’re afraid of not earning enough. There are lots of ways to think about rates (see my previous post about deciding how much to charge) and about raising rates, but let’s take a shot at the basics. Here’s a question I often get from other freelancers: how do I raise my rates, and what’s the best time to raise my rates? My take:

If you’re talking about raising your rates with existing clients, my two word answer is: you can’t. That’s a little harsh, but think of it this way. If you have a salaried job and you want to make 30% more than you’re making right now, you’re unlikely to get that raise in your current position. To make that jump, you have to change jobs. And so it is with freelance rates: a longstanding client is probably not going to agree to a significant rate increase, so you just have to look elsewhere. But let’s say you’re talking about a modest increase. A few options here; some may be nothing you’d ever say, and some might work for you:

  1. You could use Chris Durban‘s suggestion and invoke a third-party authority, like “My accountant has brought it to my attention that you’re my last client paying X cents per word/hour.” This can be a good tactic because the mythical third party is the bad cop, and you get to be the good cop and tell the client how much you love working with them, and that you really hope you can continue the relationship.
  2. You could try a human-to-human conversation with the client, like “I love working with you because you offer so many advantages : your staff are so helpful and easy to deal with, your projects are interesting and you always pay on time. At the same time, looking at my bottom line, you’re now my lowest-paying client, which means that I only accept work from you when I have nothing else in the pipeline. I’d really love for you to be one of my preferred clients, and the rate that it would take to get here is X.”
  3. You could just impose the rate increase and see what the client does; send an e-mail saying “As of March 1, 2014, my base rate will increase to X. Please let me know if you have any questions.”
  4. If you sense that the client could pay more but for some reason is resisting, you could try asking them for the truth (always a dicey proposition, but worth a try!). Such as “I’d like to ask for your feedback on what it would take for me to move into your top tier of translators. I love working with you and am committed to always doing excellent work, so this type of feedback would really help me move my business to the next level.”

But my succinct advice on how to really raise your rates remains: look for new clients.

Now, on to the question of when to raise your rates. Short answer: with new clients, and when you’re already really busy. Why? Because then, if the new potential client says no to the higher rate, you’ve lost absolutely nothing. You’re still really busy and you have enough work. And if the new potential client says yes to the higher rate, you know that at least some portion of your target clientele will bear that rate. Try 15% or 25% higher than you’re charging right now; heck, even try 50% higher and just see what happens. If you believe that you deserve that rate and that your work is worth it, there’s a good chance that the potential client will believe it too. And do not forget that if 100% of potential clients accept your rates without negotiating, you could be charging more. That’s not business advice, it’s just a fact. If literally no one thinks that you are too expensive, you’re leaving money on the table.

Here’s another rate truth: I work with both agencies and direct clients, and I like them both for different reasons. With my agencies, I just translate, and sometimes that’s just what I want to do. With my direct clients, I’m in the thick of the action, usually dealing with either the person who wrote the French document or the person who’s going to use the English document, and sometimes that’s just what I want to do. But here’s a truth of the agency market: you can only compete on quality and service to a certain point. Once you hit the agency’s rate ceiling, you’re stuck. For example I recently wanted to raise my rates with one of my agency clients, but they told me (and I believe, honestly) that they’re already paying me 2 cents per word more than any of their other French to English translators, so I can either continue at the current rate or not work for them anymore. This is not to say that direct clients will blindly agree to every rate increase, but they generally have more flexibility to move money from other budgets and allocate them to translation if they really want to retain you.

Readers, any thoughts on this? Any rate increase techniques that have worked for you?

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The beginning of the year is always a good opportunity to take stock: what went right in 2013, what needs to go better in 2014, and where do you want to be a year from now? Let’s look at some questions that every freelance translator should ask. I’ll kick things off with my own answers, and please add yours in the comments.

Think of where you were at this time last year and what your goals were; by comparison, how are things going now?
In January 2013, I made a major change and joined a co-working office, in which I’m sitting right now. This has made a huge and positive change in both my work and home lives, since I now rarely work at home and try to maintain a fairly rigid separation between the work day and the non-work day. I surmised (correctly, as it turns out) that at the office, I would get more done in less time and potentially earn more money. So, overall, this year was a very successful one.

If you’re stuck in a rut (in terms of income, clients, workflow), what needs to change?
I’m not currently stuck in a rut, but I was at this time last year. So here’s my advice: look for the root cause of the rut. At this time last year, I was feeling relatively blah about work in general: wanting to break through to the next level of income, find more direct clients, and earn a larger percentage of my income from teaching, consulting and writing. I realized that I really needed to shake things up, and that the root cause was that I needed an office outside the house. For you, maybe it’s something different. But it’s important to realize when you need a big revamp rather than some small tweaks. Also, accept your reasons for wanting a change, even if they seem weird or superficial. One thing I love about the co-working office: it’s an excuse to wear nice clothes. If I feel like wearing a new dress, or fun shoes, or a cute hair style that I saw in a magazine, I do. So there.

Did you earn what you wanted to earn?
It’s OK, and even positive, to admit/accept that you translate primarily for the money. I love the work that I do as a translator. I love getting paid to read and write all day, and I love learning about new subject areas. I even (mostly) love interacting with clients and colleagues. But I also love that I can earn a healthy income while working largely on my own schedule and living in a place where there are few, if any, in-house jobs for what I do. Over the years, I’ve seen that for me at least, earning a good living doesn’t make life better, but it does make it easier. So be honest with yourself: are you making as much as you want to? Or do you need to up your income in 2014?

Who did you work for?
This one is critical: what are your revenue streams? You can probably name your top two or three clients without looking at your accounting records, because they’re the ones you hear from all the time. But you might be surprised to see who your mid-level clients are. If you do work other than translation, you also might be surprised to see what percentage of your income the “other” work generates. For example this year, every session of my online course was full and I taught 7 sessions of the class, meaning that the class is now one of my top “clients.”

How much did you enjoy the work that you did?
If you’re earning what you want to earn, working for yourself is generally pretty great. But ask yourself this (and I know I’ve harped on this topic lately, so bear with me!): did you take what landed in the inbox, or go looking for work that really turns you on? Was it another day, another dollar/euro/yen, or did you really look forward to diving in to your work on Monday morning?

What are you getting sick of?
I’m generally a very positive person, almost to a fault. Meaning that I tend to ignore the negative until it’s staring me right in the face. But think about this: what aspects of your work are making you nuts, and what can you do about them? For example I’ve recently talked to a couple of translators who are retiring, and who said “I’m not sick of translating, but I’m sick of deadlines, and rush jobs, and clients who want a miracle for yesterday.” Now that I’m over 40, I hear that. I realize that in another, say, 10 years, I’d like to be focused on work that is really, really on my own schedule, such as teaching, writing books and translating books. I’m not really at the “had it” point yet, but I see it on the horizon.

Should you outsource anything?
A couple of years ago, I realized that doing my own accounting was counterproductive. Although my accountant charges more than I do, it takes me approximately 57 times as long to do payroll taxes as it takes her. So I decided to allocate about $1,000 a year to accounting fees and I now pay my accountant to do almost everything. I keep my own income and expense records, but other than that it’s all her, and it’s well worth it.

Where do you want to be at this time next year?
I’m not a big one for resolutions because they’re kind of a setup for failure (for me at least). Also I’m fairly disciplined, so I tend to follow through on long-term goals. So I think more in terms of goals for the new year rather than resolutions. Here are some of mine: I’m planning to launch a more advanced-level online course (Beyond the basics of freelancing) within the first quarter; then I’d like to do a third edition of How to Succeed as a Freelance Translator. I also really, really need to work on connecting in person with more direct clients. I work primarily with direct clients, but most of them have fallen into my lap; I need to make more of an effort to actively seek them out.

Now, over to you? How did 2013 go? What’s on tap for the new year?

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I spend a lot of time explaining the merits of agencies to translators who work with direct clients, and explaining the merits of direct clients to translators who work with agencies. So, I thought I’d offer my explanation to the whole translation blogosphere and solicit your thoughts! Here we go:

Translation agencies are great, because:

  • If the agency does its job right, you just translate. You are freed from such tasks as explaining to the client why the words aren’t in the same order in the translation as they are in the original document, or explaining to the client that words like “software” and “information” are not pluralized as “softwares” and “informations” in English.
  • If the agency likes you, they will keep you busy. They will fill your inbox with requests, rather than the other way around.
  • They have a sense of what you do, and what the constraints of your job are. They know not to ask whether you could translate 25,000 words for 3 days from now, or whether you charge “for the little words.” By the way, that was an actual question I received from a potential client. I apologize if my answer, “Only if you want them translated,” sounded rude or glib.

But translation agencies have their drawbacks, such as:

  • In the agency market, a translator can only compete on quality to a certain extent. It’s in an agency’s best interest to use the cheapest translator whose quality and reliability fit the agency’s purposes. An agency that really likes you might pay you 10% more than what they pay their other translators, but they’re not going to pay you 100% more, whereas a direct client might.
  • They can’t afford to be loyal to you. A direct client might shuffle deadlines, pay rush printing charges or have their own staff work on a weekend in order to snag a translator who they really love. But agencies rarely will: if you’re not available within a reasonable amount of time, they’ll call the next person on their list.
  • Many agencies are not transparent about their teams and processes. When you work on a large project for an agency, the agency may refuse to let you communicate with the other translators. They may decline to tell you whether your work is being proofed a) by another translator in your language pair, b) by a speaker of the target language only or c) not at all.

Direct clients are great, because:

  • At a certain point, you will reach “terminal velocity” in the agency market. You will be charging as much as even the highest-paying agencies will pay, and you can’t increase your speed beyond a certain point if you want to maintain quality. So, the next logical place to look is the direct client market, where the price ceiling is much higher.
  • The business relationship is between you and them. Normally, you can communicate either with the person who wrote the source document or the person who is going to use the target document. In 11+ years of working with agencies, I’ve been in contact with the document’s writer or end user exactly zero times. To put it diplomatically, this model has its problems.
  • Quality is a major competitive advantage. I know for sure (and Chris Durban has said this as well), that some of my direct clients use me for their mission-critical translations; when they’re applying for a large grant or producing a report that will go to potential donors, they’re willing to pay my rate. But for other, less mission-critical things, they use either agencies or less expensive freelancers.
  • Questions and feedback are not only possible, but welcome. In the agency model, there’s pretty much an impenetrable membrane between the translator and the end client; in the direct client market, the back-and-forth flow is what makes the work more satisfying and the translation more accurate and more readable.

But direct clients have their drawbacks, such as:

  • Sometimes, they have no idea how you work, other than that you change documents from one language to another. 12,000 words for tomorrow? Some direct clients don’t know that that’s laughable. And while you’re at it, why don’t you translate into your non-native language? Or interpret for their upcoming conference? It’s not their fault, it’s just not their industry.
  • They may need you only sporadically, or for huge amounts of work at one time. Some direct clients only need a translator for a small job a couple of times a year, for example when they issue earnings reports or press releases. Others may have an onslaught of documents (grant applications, RFPs) a couple of times a year, and then they need 100,000 words in a month. So you absolutely must have a partner or backup person (more on that in another post).
  • Corollary: you really don’t want to turn down their work if you can help it. In the agency market, you can pretty much accept and decline projects at will. As long as you accept at least some of the time, the agency will likely call you again. But if you bail out on a direct client at a key time, your relationship with them may be over, because they have to find someone else immediately (see reference to partner/backup above).

Now, over to you! Thoughts?

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After “How do I find some clients?,” I think that the most common question I get from beginning (and for that matter, experienced) translators is “How much should I charge?” My sense is that most people want an answer like “If you work for agencies, charge 16 cents. If you work for direct clients, charge 30 cents. Anything else I can help you with?” But of course, it’s not that simple. As I always tell the students in my classes, I can’t tell you how much to charge, but I can help you figure out how much to charge. Here’s a short course in how to do it:

If you want a step-by-step guide, check out Jonathan Hine’s pamphlet I am worth it! How to set your price, and other tips for freelancers. Jonathan’s advice is right on: first, figure out how much you want to earn, and what your business expenses are. Then, figure out how many hours you want to work (or, conversely, how much time you want to take off). Then convert that into an hourly rate, figure out how fast you usually translate, and that will yield your target per-word rate. Again, this is a major oversimplification, but you get the idea!

Most translators base their rates on factors like this:

  • Fear (of charging too much, of earning too little, of pricing themselves out of the market, of living under a bridge when they’re old)
  • Speculation (about what other people are charging, because most people won’t talk openly about their rates)
  • Vague notions of “what the market will bear,” or “what clients are willing to pay,” with little to no actual data to back that up

Whereas most translators should base their rates on factors like this:

  • The types of clients they want to work for (agencies, direct clients, or both)
  • The balance of supply and demand in their language pair or specialization.
  • Whether most of their clients translate things because they have to, or because they want to.
  • How much they want to work
  • What their financial and lifestyle needs are: kids, student loans, aging parents, a desire to be location-independent, a desire to retire early, a passion for high-level clients, a passion for running ultramarathons while still earning a good living, etc.
  • Actual conversations with other translators about how much they charge.

Here a few other Zen koan-like tips on how to decide how much to charge:

  • “The right rate” means that you and the client both feel that you’re getting a fair deal.
  • “The right rate” means that you are motivated to do an excellent job.
  • “The right rate” means that you can live the life that you want to live.
  • If 100%, or even 95% of potential clients accept your rates with no negotiation, it means that you could definitely be charging more.
  • The best time to raise your rates is when you’re too busy. Try a higher rate with the next new client who sends you an inquiry: if the client turns it down, you still have enough work.
  • How do you significantly raise your rates with existing clients? You don’t. You raise those rates a little bit, then you make the big jump with new clients.
  • Broken record alert, but here we go again: There is *lots* of good, high-paying translation work out there. Income of six figures is becoming more and more realistic, even if you work with some agencies and some direct clients. There are even clients who are *looking* for someone like you and don’t know where to find you. So you have to go and find them. But most people won’t do that. They’ll continue to take what lands in the inbox, while complaining that some (other) people have all the luck in this industry.

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Inspired by Judy Jenner’s post about her first three months of co-working, here’s an update on my own co-working situation.

Brief background: about this time last year, I came to a few realizations.

  • Next year (now this year), my daughter would be starting middle school and would be getting more independent.
  • My husband, who used to work at home, now works at an office.
  • A lot of my longtime friends who used to work part time or be home full time are now working full time or are busy with other things. Of course I still see them, but they aren’t around as much during the day.
  • After 10 years of working at home, I needed a change. What used to seem peaceful and blessedly quiet started to seem isolating and lonely. I realized that I had to take action when I saw a really cute outfit in a store (second hand, naturally!) and then thought “Where would I ever wear that? It’s not like I see anyone during the work day.”

And well, I’m a doer. So I decided to do something about this situation and find myself an office outside the house. Fortuitously, Boulder has no shortage of co-working spaces for all flavors of freelancers, and after touring four or five of them, I found “the one,” in a beautifully renovated old building right in downtown Boulder. I’ve been happily working there/here for the past nine months, so here’s a quick FAQ about the experience.

Q: How do you like co-working in general?
A: Three words: I love it. It gets me out of the house, it gives me some semblance of a boundary between home and work life, it forces me to get my work done in a defined period of time, it gives me an excuse to wear something other than workout clothes and it gives me interesting people to talk to. When I get up in the morning, I feel like I have some place I need to be, which is a feeling I enjoy. I ride my bike to my office, which is also nice: it’s a 20 minute, not too strenuous ride, just enough to get the blood pumping in the morning and the afternoon. When I get home in the afternoon, I feel like something happened during the day; I feel like I have something to talk about, other than “I sat in the office/guest room, then I washed some dishes, then I sat in the office/guest room some more.” Admittedly, a lot of these factors probably have more to do with me than with the objective realities of freelancing, but there you go. Those are my reasons!

Q: How much does the office cost and what do you get?
A: I pay $350 a month for my own desk, and I keep all of my work stuff there. I also get use of the building’s conference rooms, unlimited coffee and tea (plus they wash the cups…that alone is worth $350 a month) and I can eat in the building’s social club for an extra fee.

Q: Who else works there, and did you know them ahead of time?
A: My building has private office suites and a group work room. I have a desk in the group work room; there aren’t any other translators here, and I didn’t know anyone else in the building ahead of time. I really like both of those aspects: it’s interesting to work around people who do totally different jobs than I do (IT, PR, law, corporate writing, etc.) and it’s just enough social interaction. I have something in common with a lot of the people in the building, but I can also get work done without feeling like I have to socialize.

Q: Are there any negatives?
A: So far, not really. I feel that the improvement in my enjoyment of the work day and my increased productivity are well worth $4,000 a year. In fact, this year is on track to be my highest-earning year ever, despite the fact that I took a month off this summer. So I think that my perception that I’m getting more done in the same amount of time is probably accurate.

Q: Any advice for other people considering co-working?
A: Make sure you find the right spot, because all offices are not created equal. The first place I went to look at was everything I *didn’t* want in a co-working space: in a basement with no natural light, empty vodka bottles in the kitchen (seriously) and more of a tech-startup vibe than a word nerd vibe. The office where I ended up has the feel of a really, really nice library with a great garden and a lot of nice art. So the physical space has a lot to do with it; at least more than I thought at the outset.

Other co-workers, any thoughts??

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On Tuesday, September 24 at 12:00 noon New York time, Eve Bodeux and I will host the next in our series of free Speaking of Translation conference calls. This edition’s topic is International payments: an overview, and if you send or receive payments across borders, you should definitely listen in! The call will last 30-45 minutes, it’s totally free other than any phone call charges (and no sales pitches for any of our services), and you can even submit questions for Eve to answer. Here’s the full description:

Call description: It costs money to make money, but in this call we’ll help you figure out how to spend as little as possible on international payments while keeping as much as possible in your pocket. Eve Bodeux, a frequent speaker on the topic of international payments, discussed this with Speaking of Translation back in 2009 and there have been some (good and bad) changes since then. She will fill us in on the pros and cons of current options including ACH, wire transfers, foreign bank accounts, checks, international currency transfer services and PayPal. She’ll also discuss some considerations related to exchange rates and taxes. If time allows, we’ll take questions from the audience.

As an added bonus, Eve and Corinne will preview the upcoming American Translators Association annual conference, which will be held from November 6-9 in San Antonio, Texas.

To join the call: A few minutes before 12:00 noon New York time, dial 209-647-1600, then enter access code 178865 and press pound (#). If you live outside the U.S. or if you pay by the minute for long-distance calling, the least expensive option is probably to purchase Skype credits and use the Skype “Call Phones” function. This should cost less than 3 US cents per minute.

In addition, you can listen to the archives of our Speaking of Translation podcast and conference calls for free at any time. No charge, no sales pitches, just fun discussions about translation industry topics!

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Disclaimer: I’m not an accountant or an attorney; these are just some tips from my own experience and what works for me in my freelance business. Managing your freelance finances is a) time-consuming and b) absolutely critical to your survival as a freelancer. So, it’s worth taking some time to consider whether you’re optimally managing your money. And those of you who are more financially oriented than I am, please chime in in the comments.

  • Before you do anything else, separate your business and personal finances. Even if you do business as a sole proprietor (meaning that you are not incorporated), open a separate checking account that you use only for business purposes.
  • People use various accounting tools and processes, but at the very least, track your total freelance income for the year. Every time a client pays you, enter that amount into something (a spreadsheet, QuickBooks, Translation Office 3000, etc) so that you have a running total of how much you have earned.
  • Always, always have a savings cushion, especially if you are your (or your family’s) only income. Freelancing has its highs and lows; some months go like gangbusters and other months drip along. Big clients may unexpectedly change their plans or hire an in-house translator. And if you (or a family member) are too sick to work for an extended period, you’re left without income unless you have disability insurance. So don’t let yourself live paycheck to paycheck. Keep at least 3-6 months’ living expenses on hand in cash at all times.
  • Track your total outstanding invoices. For me, this is a big one. Of course you’re going to record your outstanding invoices so that you know whether clients have paid you or not, but you also want to know how much money you should be receiving in the next 30-60 days. This statistic will tell you how aggressive you need to be about looking for or accepting new projects. For example, let’s say that your income goal is $7,000 per month. Every time you issue an invoice, you enter it into an Excel file with a column that totals your outstanding invoices, so that you know how much money clients owe you. So for example if your outstanding invoices only total $5,000, you know that the next month is going to be lean unless you take on a lot more work. But if your outstanding invoices total $9,000, you know that you can afford (at least from the financial point of view) to be choosier about the work that you take on, to work on some non-paying tasks such as updating your website or marketing to higher-paying clients.
  • Track your business expenses. The easiest way to do this is by using a debit or credit card associated with your business bank account. That way, you don’t have to comb through your records at the end of the year, wondering whether that trip to the office supply store was for home or for work.
  • Establish a business savings account. Another big one: at the very least, you need to set money aside for taxes. Depending on your situation and your tax bracket, this could be anywhere from 25-50% of what you earn. Every time a client pays me, I deposit the check in my business checking account and then immediately transfer 40% to my business savings account so that I am never in a bind when tax time rolls around. And also…
  • Use your business savings account as a paid vacation fund. Freelancing doesn’t have many downsides, but one of them is no paid vacation. So, provide yourself with a good quality of life by having a paid vacation fund. For example, if you want to take off 4 weeks per year and work 48 weeks, start by putting $100 a week into your paid vacation fund. Then you’ll have $4,800 to “pay” yourself during your month off.
  • Have some sort of retirement plan. My accountant likes to say that “Everyone has a retirement plan. Either you’re saving for retirement or you’re planning to work until you drop.” Retirement strategies are really diverse, and they depend a lot on your expenses, how long you plan to work, if you have kids and how old you’ll be when they leave home, and so on. Plus the not insignificant question of how long you’re going to live. But whatever you do, have some kind of plan in place.
  • Set money aside for professional development and (why not) bonuses. It amazes me how many translators spend absolutely nothing on professional development and then wonder why their businesses are stagnating. In order to stay current in our industry, you have to keep your skills, knowledge and contact base current. Meaning that you have to learn new things. Take webinars, read books, do teleconferences, attend in-person conferences, join the Chamber of Commerce. But set aside at least 5% of what you make for professional development. And, if you have a good year, you really deserve a bonus. I once had a boss who left $50 in everyone’s mailbox on the last day before winter break; a manageable amount for the company, and an amount that everyone was excited to go and blow on something fun over the holidays. Consider earmarking some “fun money” for yourself, getting a new technology toy or treating your most valuable colleagues to a good meal at the end of the year!

Other ideas??

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