Pink-Slip Your Non-Performers

nonperformers

When you’re an employer, it’s no easy task to let someone go that hasn’t been pulling his/her weight and measuring up to company performance standards. Have you communicated your concerns with clarity? Are there resources or motivational strategies you may have overlooked? How will assignments be reallocated in the interim so as not to disrupt the workflow?

When you’re a freelancer – and writers are especially prone to this – it’s just as hard to let go of all the dribs-and-drabs publishing markets that are supposed to collectively sustain you until Something Really Big comes along. Yet how many of these low-paying gigs have actually increased your exposure, added to your skill sets, and/or made you feel deeply appreciated? If they’re just taking up space on your calendar and desktop, maybe they need to be shown the door.

Consider the following:

  • “Non-performing” markets take up a disproportionate amount of your time and resources and – because you’re not seeing the results you want (i.e., a growing bank account, a bigger global footprint) – can put a negative cast on your self-esteem and sense of accomplishment. Content mills are a good example of this. On the surface, $25 for a short article sounds like a pretty easy and consistent income stream. If you can turn out said article in 60 minutes, not have to do any research, and not have your material sent back for rewrites, you’re earning $25 an hour. But what if that project takes you two hours? Four hours? Eight hours? Before you realize it, you’re now making $12.50/$6.25/$3.12 an hour. Those hours add up – and could be better spent on projects that pay more handsomely.
  • In focusing on how to correct ongoing problems (i.e., chasing down payments, dealing with difficult clients), there’s no telling how many opportunities are being missed in venues that provide greater promise. As recently as last week, for instance, I had a writer colleague tell me that she’s reluctant to dissolve her relationship with her agent despite the fact the latter hasn’t sold anything for her in almost two years. “I don’t want to hurt her feelings,” she said, ignoring the reality of her own career being hurt by a non-performer that’s holding her back.
  • Whether it’s personally or professionally, you’re also known – and evaluated – by the company you keep. As a leader, you’re judged by how effectively you’re managing your team. As a team member (albeit a subcontracted one), your reputation can be jeopardized if the entity with which you’re associated starts getting bad press. This further extends to the issue of whether you should stay with a sinking company and squeeze out a few more checks until you’re officially let go or jump ship before a replacement opportunity for new income has presented itself. While the saying holds true that it’s easier to get a new job while you still have one, how much of a sinking company’s failure do you want attached to your own name if you wait too long to leave?

This being a new year and a chance for a fresh start, it’s time to have a staff meeting (with yourself!)  and take a critical look at what can be jettisoned in order to get you where you want to be.

In my own experience, I look at three key elements in either accepting new projects or culling venues from my existing list of obligations: (1) what does it pay, (2) who will I reach, and (3) how will I feel about doing it. For a project/venue to be viable, it has to satisfy at least two of these three criteria. For example, I’ve been writing lesson plans for free since 2009 for an online resource for video arts educators; I’ll continue to do so for the foreseeable future because I’m not only reaching multitudes of teachers and schools across the country but the feedback and effusive appreciation they express makes it all worthwhile. Conversely, I’ve turned down a number of ghostwriting projects which – while they would have yielded a high paycheck – would have involved stressful interactions with demanding/unpleasant/contentious clients and left me little time or energy for the projects that gladden my heart…and bear my own name.

Lastly, it’s important to look at the consequences of off-loading business relationships that don’t seem to be doing as well as you’d like them to. Is there a way to negotiate better terms and conditions? Is it a platform for professional growth if you continue to pay your dues and prove your worth? Are there perks or networking opportunities that might not be found elsewhere? A case in point for the latter is an associate who pens freelance interviews for an arts and entertainment magazine. While he often grouses that the pay is paltry, he’s also compensated with tickets to film screenings, play previews, concerts, gallery openings and the chance to schmooze with celebrities. For the time being, it’s an association that meets the performance definition of Priceless.

 

 

The Business of Being Creative

Painter

Several years ago at a party someone asked me what type of business I was in. “I’m a writer,” I replied. “No, I meant for a real job,” she said. Despite the fact I’ve been a full-time wordsmith for some time and earn a good income from it, her response wasn’t an uncommon one. When you have a career that pays you to have fun, it somehow flies in the face of conventional wisdom – and parental nay saying- that you’re just not treating the concept of “work” seriously enough.

Unfortunately, I’ve encountered a number of aspiring writers, artists and musicians that are apologists for their own talent, boxing themselves into the category of hobbyists on the argument that they haven’t been discovered yet. To support themselves until that day arrives, the salary they draw from being employed by someone else often becomes the excuse to avoid thinking about how they’re going to be their own boss.

This is a self-defeating mindset on several levels, the most important being that if you’re not treating your creative endeavors as both a brand and a business right now and spending the time and money to be successful, no one else will invest in your dream, either.

Even if your passion is currently in the part-time/evening/weekend stage:

  • Do you have a well defined marketing plan?
  • Do you have a presence on social media?
  • Do you hold regular staff meetings with yourself?
  • Do you set weekly goals?
  • Are you willing to cut poorly performing divisions (i.e., low-paying markets)
  • Do you research what your competition is doing?
  • Do you really know who your audience is?
  • Are you staying abreast of current trends and technology?
  • Do you constantly look for ways to repurpose/reinvent/recycle past projects into exciting new ones?
  • Do you reward yourself when your one-person team does well?

Creative types are also the least likely to pay attention to what they have to pay in taxes or what types of business expenses are allowable as deductions.

Herein are six tips to lessen the pain of tax season (and possibly avoid an audit):

  1. Even if you haven’t made the transition to a full-time creative (and your relatives still refer to this quest as your “little hobby”), it’s critical to treat your craft like the professional enterprise it is. If you don’t have one already, there should be a designated “home office” space in which you can perform, uninterrupted, the principal tasks relevant to your biz. If this space is used exclusively and regularly for that purpose, you may be able to claim a tax deduction for costs associated with its maintenance (including utilities and repairs). Note: If your art/music/writing really is a hobby, the deductions you claim can’t exceed the total amount you have earned.
  2. When you work for someone else, a lot of deductions come out of your paycheck before you ever see it – the largest of these typically being state and federal income tax. If you’re a freelancer, the responsibility to estimate these amounts is up to you. For every check you receive, set aside approximately 25 percent of it so you won’t be caught short when annual taxes are due. If you’re bringing in large sums of freelance money on a regular basis – as opposed to occasional dribs and drabs – you’ll need to make estimated tax payments every quarter.
  3. Familiarize yourself with what’s a legitimate business expense and what’s not. If, for instance, you’re writing a biography about Beethoven, you’re likely to show up on a tax auditor’s radar if you went out and bought yourself a grand piano for $100,000 to just sit in your living room and inspire you. On the other hand, a $2 pair of earplugs so you can immerse yourself in Ludwig’s world of silence would qualify as a research tool. Other deductible expenses include resource materials (books, periodicals, tapes), office equipment and supplies, business insurance and licenses, membership fees, conferences and subscriptions, telecommunications, photocopying and postage, and marketing. Travel, meals and entertainment may also be deductible if there’s a verifiable correlation to your business.
  4. Keep detailed records and receipts for everything you plan to claim as a business-related expense. And no, we don’t recommend throwing everything into a shoebox. Set up an Excel file or purchase an accounting software program to judiciously log every money transaction that comes in or goes out. Create a back-up file and store it somewhere other than where you keep the original.
  5. Don’t toss your rejection letters. Yes, yes, we know they’re painful reminders that someone didn’t like your work and you’d just as soon rid yourself of the evidence. When you’re just starting out, however, this paper (or email) trail of correspondence serves as proof that you have actually been trying to hone your craft. Otherwise, that pricey new computer you’re claiming as a business expense could raise suspicions that you’re only using it for games and watching cat videos on YouTube. Keep in mind that you have to be earning something from this creative endeavor and that it has to be more than what you’re trying to claim on deductions.
  6. Hire a professional who is well versed in the tax laws and filing requirements specific to freelancers home-based small businesses. Even if you’re as savvy with numbers as you are with words, tax preparation can be stressful. (And really now, shouldn’t you be putting your brain to better use thinking of a plot for your next book or the subject of your next painting?) If you do try to go it alone, second-guessing what’s allowable, what isn’t and which form to fill out could get you in trouble. FAQs can be found on your country’s tax authority website along with a help line to speak with an expert.

*****

Here’s the line-up of this month’s guest bloggers:

Can Introverts Excel at Publicity? – by Marcia Yudkin

Level the Playing Field Using Sponsored Content – by Roger Wu

The Anatomy of a Killer Facebook Ad – by Jasmine Batra