In case you haven’t caught my recent posts, I’ve sort of inadvertently started an ongoing series. I’ve now given it a category tag, so you can read the posts in sequence, if you’d like (though the tag shows them to you in reverse order). This is another post in that series.
(Quick editorial interlude: you don’t see it in the comments, really, but A LOT of people are writing me direct via email/social media to comment about the series or ask questions. I want to say that I really appreciate the feedback and enthusiasm. And I also want to pre-apologize if I miss some things from you all. There are dozens of you and one of me, and I do my best with the responses, on top of running our growing business.)
I’m not planning to recap the entire series history for each post. But suffice it to say that, up to this point I’ve talked about how a “freelancing business” isn’t really a business and that moving toward business ownership in earnest requires you to reason about profit and think like an owner.
I’m mentioning this because so far I’ve basically just given you background information. Don’t get me wrong — it’s important background. But background nonetheless.
Time for Your First Concrete Action on the Path to Profit
So, I figured today I’d switch it up a little and give you a bit of decisive action: the first step along the path toward business ownership and profit.
It turns out the action itself is easy to summarize. I’ll do it right now:
Decide whether or not you want to own an agency and have a “managing director” kind of role.
If the answer is “yes, then,” great! You have your business plan.
If the answer is “no,” then you need a business plan. And the first step toward having that plan is recognizing that you need to stop billing by the hour.
The agency vs. non-agency decision is simple to conceptualize, but it’s important to mull it over for a while. So much so that the only actionable ‘homework’ I’ll ‘assign’ here is to make that decision. For the rest of the post, I’m going to explain why you have to make this decision.