Resourceful Designer: Strategies for running a graphic design business

Communicate clearly and jargon-free. Pixels. Bleed. Wordmark. Hero Image. SSL. White Space. I imagine, as you read each of those words, your mind quickly thought of each one's meaning and how you use them. To you, a designer, deciphering these words uses up the same amount of brainpower as reading the words eggs, horse, car, or house. There's no need to burn brain calories contemplating them since they are second nature to you because you're familiar with the jargon of the design industry. You wouldn't be much good as a designer if you didn't know what pixels or bleed or a wordmark, etc. were. But you deal daily with people who are not in our industry. That's why they hire you, after all, because of your creativity and knowledge of all things design. But sometimes, that knowledge can become a crutch—especially when dealing with clients who don't know what we know. I recently had a Zoom chat with a new client looking for podcast cover artwork. The gentleman was in his 80s and starting a podcast about the commonalities between creationism in religion and science. He's a retired professor of quantum physics with an in-depth knowledge of string theory. He's no dummy. Some may even consider him a genius. However, during our discussion about his podcast cover artwork, he asked me what a pixel was. He had read how podcast cover artwork should be 3000px by 3000px square. He was unfamiliar with the term but rightly surmised that pixels are a form of measurement. But he had no idea how big or small a pixel was because, in his vast knowledge of the inner workings of our universe, pixels had never come up. This goes to show you that even the brightest minds don't know everything from every field. And nor should they. Maybe you're thinking, "The guy was in his 80s, so that's understandable. However, most people these days know what a pixel is." And I'll concede that point. I, too, believe most people know what a pixel is. However, if you ask a non-designer how wide 300 pixels are, they probably couldn't answer. You, on the other hand, could probably make a reasonably accurate guess as to how wide 300 pixels are. That's because you're familiar with them. You work with pixels daily and therefore have a good idea. For the rest of the world, there's no reason for them to know how wide 300 pixels are. Let's get away from pixels. What I'm getting at is jargon is an excellent way for us to learn, for us to share information and communicate with our peers, and for us to instruct the next generation of designers. But jargon has no place when communicating with our clients unless you explain what you mean by the terms you use. For example, I never tell a client I'm installing an SSL Certificate on their website because they have no idea what that means. Instead, I say I'm installing a security certificate because most people understand the word "security." I then further explain, in terms they know that a security certificate encrypts the communication between a visitor's web browser and their website. So when the browser and website are exchanging information, it's like that information is put in a sealed envelope and handed to someone to deliver it to the other side. Nobody can see what's in that envelope until it reaches its destination, and the appropriate party opens it. Without a security certificate, it's as if that information is delivered back and forth on sheets of notepaper that everyone can read. When explained in these terms, a client can understand the importance of an SSL Certificate without knowing the jargon. When you're talking with your clients, be conscious of the terminology you use. If you need to use jargon, make sure the client understands what you are saying. If you're not sure, ask them. For example, "I think a wordmark would suit your brand. Do you know what a wordmark is?" Don't presume the client knows what you're saying. Give them a chance to learn during the process by asking. They'll appreciate and trust you more for it. Clients are guilty of using jargon as well. Communicating with our clients is not the only time jargon comes into play. Our clients are just as guilty of this when they deal with their clients or customers. Industry speak, another word for jargon is seen in marketing material everywhere, mucking up the message it's trying to relay. Your job as a designer isn't to create pretty designs for your clients. It's to ensure your designs tell a precise and accurate message, a message that provides a solution for your clients. One that those who see it will understand. One of my clients is a Chiropodist (foot doctor). When he acquired a new state of the art laser unit to help him treat various foot ailments, he asked me for a new brochure to help him spread the word. Rightly so. It was a great addition to his clinic. However, the way he wanted to spread the news was all wrong. He sent me the text for the brochure he wrote himself. Copy that included all sorts of technical information about his new laser, information full of jargon that only other chiropodists would understand and find appealing. I could have taken the information he supplied me and designed a beautiful looking brochure that would have ultimately failed. It would have failed, because his target market, people with foot problems would be confused by the industry jargon and not understand the benefit they'd receive from the new laser unit. Instead, I sat down with my client to discuss not what the laser does or how it works or the technology behind it. But how it benefits his patients, what it means as far as their treatments go, how it speeds up the healing process requiring fewer and shorter visits, how it's safer than the older traditional methods for treating different foot conditions. We eliminated the jargon and explained in easy to understand terms why people suffering from foot problems should book an appointment with him. And you know what? After distributing his brochures to doctor's offices and clinics around the area, he saw a spike in new patients asking about his new laser treatment. I'm convinced that replacing the jargon with easily understood copy is what made that project a success. Your job is to ensure your client is thinking about their project from their target's point of view. It doesn't matter what your client thinks or likes, just as long as it appeals to their target market. Convincing your clients. It's not always easy to convince clients to think in terms of their target market. I know. I've been a designer for over thirty years, and I still have trouble doing it. But here's something you can try. Ask your client to imagine that a grade-schooler is doing a research project on their brochure, website or whatever it is you're designing for them. With the information provided, do they think a grade-schooler would understand it? If not, then they should change the wording of the message. If they argue that their target market isn't grade-schoolers, remind them that according to studies, when interpreting instructional or informative texts: 49% of the global population have basic or below basic reading skills. (In the USA that number is 52%.) 12% of the global population read at a grade 9-10 level or lower. That's the same percentage in the USA. Only 2% of the global population read at a grade 11 level and up. What this means is, people have a hard enough time comprehending the instructions or information they read that you shouldn't complicate it by adding jargon to the mix. There are some exceptions when jargon is beneficial. I recently built a new website for an engineering company that manufactures control systems for industrial plants, hospitals, hydro dams, airports, etc. Any business requiring industrial automation. My client didn't need this website to attract new clients. They needed it for recruitment. The problem they faced was weeding out the skilled and capable engineers amongst the hundreds of resumes they receive every month. So in their case, we used all sorts of industry jargon that only the most qualified candidates would understand. Since its launch, they've received few resumes, but the quality of candidates increased. So there are some instances where jargon can be beneficial. But in most cases, jargon should be saved for conversations amongst your peers. When talking to your clients, you should make a conscious effort to minimize the jargon you use or at least explain it in terms your clients will understand. And don't be offended if they ask you to clarify something. There are no dumb questions when posed by the uninformed. If you take care of your clients, they'll be more impressed and more loyal to you. Resource of the week Coolors.co Coolors.co is a super fast colour scheme generator. Press the spacebar and create beautiful colour schemes that always work together. Coolors.co also allows you to pick colours from uploaded images. You can adjust and refine colours by temperature, hue, saturation, brightness and more. You can also save your pallets for easy future access. They also offer an IOS and Android app as well as an Adobe Add-on for Photoshop and Illustrator to display all your pallets in your programs.

Do you offer Website Maintenance to your web clients? [sc name="pod_ad"]Offering Website maintenance is a great way to make extra money while putting in minimal effort. It's right up there with print brokering as a way to supplement your design income. Way back in episode 9 of the podcast, I shared 12 ways designers can earn extra income. On that episode, I mentioned making extra income by offering to host your client's websites. Since then, I've made a few changes to the way I operate. I no longer provide web hosting on its own. Instead, I offer website maintenance, and I make a lot more money doing so. And so can you. The typical lifecycle of a web design project. A client approaches you to design and build their new website. You agree on a price, get the contracts signed and receive your deposit. You get to work on their site. When it's ready, you present your client with their new website. You make any requested adjustments until they're thrilled with what you did for them. They pay the balance owing to the project, and you launch their site. The client is happy with their new website. You're pleased with the money you earned—end of the story. Once this process is over, you may or may not hear from that client again until they need a new website in a few years. That's providing they don't meet another web designer between now and then. If they do, then all bets are off. But it doesn't have to be that way. By offering a website maintenance plan as part of your web design services, you retain that client on the books, and chances are when they need new web work in the future, they'll turn to you because of your ongoing relationship. Plus, wouldn't it be nice to earn a recurring monthly income that gives your clients piece of mind while costing you very little in return? If you are not offering a website maintenance plan as part of your services, you're leaving easy money on the table. Offering a website maintenance plan doesn't require much tech knowledge. The best part of a website maintenance plan is if done right, you don't need much tech knowledge. I didn't know much when I started. And to be honest, there's still a lot I don't know. But I don't have to know much for my plan to work. What a website maintenance plan looks like. Website maintenance plans differ from designer to designer. However, let me break down what my website maintenance plan looks like. When I started offering website hosting in 2005, I charged my clients $12/month. When I switched from hosting static HTML sites to hosting WordPress websites, I raised my hosting fee to $35/month. Then I attended WordCamp Ottawa and met a fellow designer whose business was very similar to my own. However, instead of just hosting his client's websites, he was offering a website maintenance plan. After hearing about his success, I immediately implemented it in my business. I raised my price to $69/month and expanded my offering from simple hosting to a full-fledged website maintenance service. Some web designers may find $69 per month expensive. But it's not. I know designers who charge much more than I do for their website maintenance plans. Look at it this way, if you're building $500 or $800 websites for clients. Then yes, they'll find $69/month expensive. However, a client who pays several thousand dollars for a website, won't hesitate to pay $69 or more each month to keep their investment safe. That's what a web maintenance plan offers, safety and peace of mind. My website maintenance plan consists of: Managed WordPress hosting (I have a shared hosting plan that I divide and resell to my clients.) Premium licence fees for themes and plugins. Unlimited email accounts for the client's domain name. An SSL Certificate for their site. Malware Scans. Weekly WordPress Core, Theme and Plugin updates. Daily website backups to an offsite storage location. Enhanced Website Security. Uptime Monitoring. In return for these monthly services, my clients get a stress-free website. They don't have to worry about their website getting hacked. They don't have to about keeping their site updated. They don't have to worry about evolving security measures. They don't have to learn how to manage their own website. Instead, my clients can concentrate on growing their business, knowing that I'm taking care of their website for them. Over 90% of my website clients see the value in my maintenance plan and sign up without hesitation. Variations on website maintenance plans. Some web designers offer a certain number of non-carryover hours as part of their monthly plan that allows a client to request small updates to their site. I don't provide this. If a client wants changes to their website, I bill them extra. Some web designers offer to maintain their client's website regardless of where the site is hosted. I don't provide this either. If one of my clients wants me to manage their site, I insist they host it with me. This way, I'm familiar with the web host, which makes it easier to fix any problems that may arise. A website maintenance plan is not a lot of work. Maintaining a WordPress website doesn't require a whole lot of effort. Other than keeping WordPress, the theme and the plugins updated, there's rarely anything to do. Most of the work is done before launching the site and continues working month after month without any input required. I use SiteGround to host my clients' websites. They help me set things up, and their 24/7 support means I can count on them should I need help with anything. Here's what I install on every client website I maintain. SSL certificate (Your web host may be able to help you with this). A backup plugin (I use BackupBuddy from iThemes) A security plugin (I use iThemes Security Pro) Malware scanning (I use both iThemes Security Pro and SiteGround for this). Uptime monitoring. (I let SiteGround monitor the site uptime for me.) Should anything go wrong with a website, If it crashes during a plugin update, or gets hacked, I can quickly restore it by reverting to a previous backup and have it up and running again in less than 30 minutes. That's it. There's nothing else for me to do. Except collect $69/month from the client. It's that easy. How to start offering a website maintenance plan. The first thing you need to offer website maintenance is a web host. There are many great web hosts you can choose from, but as stated previously, I recommend SiteGround. A good web host can help you with most of the hard work. When taking over an existing website, a good web host can help you migrate it to their platform. A good web host can help you install SSL Certificates. A good web host can help you update and add DNS Zone records as required. A good web host can help you troubleshoot site issues that may arise. Basically, a good web host will help you do the things you're not comfortable doing. Once you've chosen a web host, the next thing you need are plugins to manage your security and backups. I prefer iThemes plugins for this, but there are many other good ones you can choose. Finally, if you want to get serious and maintain a growing number of websites, you'll want a way to minimize your time. iThemes Sync is the platform I use to maintain all my client websites. From one dashboard, you can monitor, update, backup and restore all the sites you manage, saving you precious time every month. Website maintenance doesn't require a lot of time. On average, I spend less than 5 minutes per month, maintaining each client's website. Of course, not all of the $69 I collect goes into my pocket. I have to pay for the hosting fees, the SSL certificates (if they require something other than a free one.) Theme and premium plugin licenses, etc. So maintaining ten client websites takes less than one hour per month at $69 each, which turns into a great hourly rate. But what if something goes wrong? I suggest you put a small percentage of your monthly fee aside in case of an emergency. In the rare case that something goes wrong with a client's site that is beyond your abilities to fix, you can easily hire an expert to handle it for you. What to look for in a web host. Here are some things to look for when searching for a web host for your clients' websites. Dedicated WordPress server: Shows they understand WordPress. Reputation: Look at reviews. Cost: Get the best bang for your buck, but be careful of dirt-cheap hosting services. Performance: What servers and OS are they using? Scalability: Can you upgrade or grow should the need arise? Uptime: Look for 99% uptime or higher. 99.9% is best. Nobody can guarantee 100% uptime. 24/7 Customer Support via phone, chat or email. Help/Training Resources: Document library to help you learn or get out of a jam. Security: Good to have, but doesn't replace a premium security plugin. Bandwidth: Make sure they don't limit you based on site traffic. Storage: Unlimited websites doesn't mean as many as you want. Read the fine print. Domain Names: Good if you don't already have a service for managing domains. Email: If you offer email as part of your website maintenance plan. Site Migration: It makes it easy to move a site from another host. Ease of Use: An easy to use backend. CDN: Servers web files from various locations around the globe. File Access: FTP or File Manager for when you need to poke around. Exit Strategy: Easy to leave should you want to migrate to a different web host. Additional Services: Backups, Malware scanning, Updates etc. As I've already mentioned several times, I recommend SiteGround as a great web host with all of these features. Website maintenance is the best form of passive income for web designers. Offering a website maintenance plan is a great way to supplement your design income. I estimate between 30%-40% of my annual income is from monthly website maintenance payments. This recurring income allows me to continue earning money while on vacation or at a conference. You can do the same. You're already designing the websites for your clients. Why not go the extra step and offer them the peace of mind of a worry-free website by providing a website maintenance plan? Both you and your clients will benefit from it. You can thank me later.

Is your side gig a hobby or a business I had a conversation with a fellow designer recently who works full-time for an ad agency and periodically takes on small design projects on the side. He called it a hobby. That got me thinking, what is a hobby and does what he's doing qualify? Hobby vs. Business Standard disclaimer: I'm not a lawyer, accountant, tax expert or business advisor. The following is solely my opinion. Hobby: A hobby is an activity done for enjoyment, typically during one's leisure time. A hobby encourages the acquisition of skills and knowledge in that area. Business: Business is the activity of making money by producing or selling products such as goods and services. Simply put, business is any activity or enterprise entered into for profit. By those definitions, any design work you do where you get paid should be considered a business venture. At least you would think. When does a hobby become a business? According to the IRS, a hobby is an activity that an individual pursues without the intent of generating a profit. "Intent" is the keyword here. Meaning it's ok to make money pursuing your creative hobbies as long as it wasn't your intent, to begin. For example, let's say you have a screen printing machine and print yourself graphic T-Shirts. If someone sees one of your shirts and offers you money to make one for them, it's still considered a hobby, because it wasn't your intent to sell the design or shirt when you created it. However, if you designed and printed the shirt with the hopes of selling more like it, then it's a business. An artist who paints for the joy of it, and sells the odd painting to cover the cost of supplies is considered a hobbyist. But as soon as that artist decides to showcase their paintings, in the hopes of selling them for a profit, it becomes a business. If you create something because you want to help a friend, a family member, your church, a local organization or charity you support or your kid's sports team, and they offer you money for your generosity, as long as you intended to help them and not of making a profit, then it's not a business dealing. However, if that friend, family member, church, organization or charity asks you to create something for them in exchange for payment of some kind, then your acceptance is based on the knowledge you will be making a profit. Therefore it's a business transaction. Why is the distinction between hobby vs. business important? The distinction between hobby vs. business is essential for tax purposes. Yup, blame it on the government. If you are making a profit from something, they want their cut. But that could be a good thing. If you are making money from your "hobby" or "side gig" you should want the taxman to take a cut. Why? Because as a hobby, you can't deduct losses and expenses on your tax return. But once you're hobby is classified as a business, you are entitled to the same tax advantages other businesses enjoy. Including home business expenses or additional costs that don't typically apply to income from your day job. Who knows, declaring your hobby a business, may even end up saving you money on your taxes. Check with a professional. Rules may differ depending on where you live, so check with a professional in your area to see if your side gig or hobby qualifies as a business. Keep in mind; you have to be actively seeing to make a profit for what you do to be considered a business. But be careful. Even if you are actively seeking to make a profit, don't just declare what you're doing as a business without checking with a professional first. There are stiff penalties for claiming business expenses on your taxes if you don't qualify for them. What the IRS is looking for in declaring a venture a business. The IRS has a vague outline for determining the state of your earnings. However, here are some rules that may help you achieve business status with your hobby. You engage in your activity with continuity and regularity. You're taking actions to improve profitability. You keep accounting and business records. You consult professional advisors to help improve profitability. Officially declare yourself a business. The easiest way to get the IRS or any government tax agency to view what you do as a business is to make it official. Name and register your business. Open a business banking account Begin collecting sales tax if applicable Hire a CPA and other advisors. There are no guarantees the IRS or whatever taxing agency there is in your country will consider you a business. But if you officially register as one, chances are they'll agree with your assessment. Is your design business registered? Let me know by leaving a comment for this episode. Resource of the week Savvy Social School If you're looking for a simple, easy (and fun) way to use social media as a tool to grow your design business, the Savvy Social School takes you from wasting time to feel confident that you're making the right choice for you and your business. Savvy Social School is the BEST training and coaching resources for entrepreneurs wanting an online presence who are tired of GUESSING and STRESSING about social media. I've been a member of the Savvy Social School for almost a year now, and it has helped me grow the social media presence for my business, which in turn has translated to paying clients. You can do the same.

Are you a Pixel Pusher or a Design Thinker? Do you exude confidence when dealing with your design clients? If you answered no, you could be losing out on valuable business. Designers usually fall into one of two categories: PixelPushers, and Design Thinkers. Pixel Pushers rely mostly on instructions to do their job. A client or art director tells them precisely what they need, and the designer uses his or her skills to create it. Pixel Pushers can be amazing designers. Capable of turning those simple or vague instructions into something beautiful. However, Pixel Pushers tend not to exercise their creative powers as much, since they let other people do the conceptual thinking for them. Design Thinkers, on the other hand, not only know how to use the tools at their disposal to create stunning designs, but they also have the skills to imagine and conceptualize those designs from scratch. They think up vague ideas, the smallest of thoughts and massage and expand on them until they turn it into something amazing. Now, of course, I am harsh with these distinctions. There is no hard line separating Pixel Pushers and Design Thinkers. Pixel Pushers do require design thinking skills to turn someone else's ideas into reality, just as Design Thinkers need the technical expertise to turn their own ideas into reality. In fact, in most cases. Design Thinkers started their careers as Pixel Pushers. Following the instructions of someone more experienced than them. Think of your path. Were you ever a junior designer? Did you ever follow the instructions of a more senior designer? That's how I started. The print shop hired me straight out of college, and without any experience working with real clients, I relied upon the other, more knowledgable designers around me for guidance. It's how most of us start and grow as designers. Some designers are content with that life, content with the limited creative freedom they have, as they design things based on someone else's ideas. There's nothing wrong with that. I know several designers who enjoy what they do, while recognizing the pressure of the design concept, dealing with the clients, the success or failure of a design campaign, is all on someone else's shoulders. But for people like you and me, being a Pixel Pusher isn't fulfilling enough. We want more. We want to deal directly with the clients. We want to come up with the design ideas ourselves. We want to manipulate those pixels and bring the images from our head to life. We want to revel at the successful campaigns we design for our clients and learn from the failed ones because that's what makes us better designers. But how do you go from being a Pixel Pusher to a Design Thinker? One word, confidence. Confidence in your skills. Confidence in your knowledge. And confidence in your ability to do what it is you do, without the need for instructions from anyone else. You're probably reading this because you either run your own part-time or full-time design business or you're dreaming of one day starting one. So chances are, you fall into the Design Thinker category. Congratulations, and welcome to the club. But, just how much confidence do you have? There's a wide range of Design Thinkers, and where you stand among them is mostly determined by your confidence level. That's why you see some self-employed graphic and web designers who are struggling and barely getting by, while others are hugely successful. It's not their design skills that separate them. It's their confidence level. Their confidence when they deal with clients. Their confidence in their abilities. Their confidence in what they charge. All of this adds up to greater success. Think about it. How much confidence would you have in a lawyer who tells you they're not sure about your case? How about a surgeon who says they've seen the procedure they're about to perform on you many times, but have never done it themselves? What about an auto mechanic who says, "sure, I'll have a look at your car, but I have no idea what I'm looking for?" Your trust in them would be very low, giving you second thoughts about proceeding with them. Now imagine your interactions with your design clients. From the client's perspective, how are you coming off? Are you exuding enough confidence for them to know you're the right person for their project? If you quote with confidence, clients are more likely to accept your price and hire you. If you present your project proposal with confidence, clients are more likely to trust your instincts. If you submit your design concepts with confidence, clients are more likely to agree with your ideas. So, how do you exude confidence? Here are my thoughts combined with a few ideas I read on articles about confidence in business from entrepreneur.comand wisdomtimes.com. Stop waiting to feel confident. Confidence is a state of mind that grows the more you practice. You don't have to feel fully confident before starting anything. Start small and expand on it. Begin by "acting confident," even though you don't feel it. The more you practice this, the more your mind will shift, and soon you'll stop acting and actually start to feel confident. Keep in mind that a little fear and nervousness are healthy. Even the most confident people still experience these emotions. Don't let them stop you from feeling confident. Focus on the benefits to your clients. A great way to grow your confidence is by focusing on the benefits you bring to your clients. Concentrate more on how your work will help your client and less on how you're going to accomplish that work. If you show confidence and make it clear what the client is getting by working with you, you're halfway to getting them to agree with you. Be direct. Tell your clients exactly how it is and how it's going to be. This is your price. This is my proposal. Here are my designs. Clients will appreciate your directness and see you as a professional. Learn to accept rejection. If you want to be confident, you need to be able to accept NO as an answer and move on. Every time someone says no to you, think of it as one step closer to getting a yes response. If you confidently give a quote and the client rejects it, move on. If need be, use what you learned and adjust your price on the next similar project to quote. Package yourself for success. To show confidence, you should look the part. Dress well for the client. Wear formal attire for corporate business clients and something clean, casual and yet still professional for more relaxed clients. Correct your posture. Your posture is a clear indication of your confidence level. If you're slouching, you come off as insecure, lazy or disinterested. The straiter you sit or stand, without looking stiff, the more confidence you'll exude. Do your best, and worry less. Stop worrying about what others think of you. If you doubt yourself, people will sense it. Focus on the things you do well and learn and grow from your mistakes. If there are things you don't do well, hire someone else to do them for you. Focus on your future. Gain confidence by focusing on your Vision Statement.Your business' Vision Statement will help guide you towards your long term goals and give you confidence in your decision making. It will help you refocus on what is the most important moves for you and your business. Proceed with confidence with anything that enables you to reach that destination. Embrace positivity. The more positive you are, the more confidence you'll exude. When dealing with clients, look for the positive aspects in their criticism. Focus and expand on what they liked about your design, and put aside and forget the things they didn't like. Let go of small mistakes. Nobody is perfect; we all make mistakes. Don't dwell on small errors. Don't obsess over what you did wrong, Instead, take responsibility, apologize if you need to, fix the mistake if you can and move on. Practice and continue to grow and improve. The more you know, the more your skills improve, the more confident you'll be. Confidence is like a muscle; it gets stronger the more you use it. So keep practicing it in your day to day life. Try acting more confident with family and friends and everyone you deal with on a day to day basis. You'll soon see a positive change in the way they react to you. Invest in yourself and your business will grow. Don't be afraid to ask for advice. One of the best ways to show confidence is by admitting you don't know something. Let your client know with confidence that what they're asking is beyond your abilities, but you'll find someone with the required skills for their project. Conclusion. If you want to be a highly successful design business owner and not a struggling artist, you need to show confidence in all your business dealings. The more confident you are, the more money you can charge. The more confident you are, the more focus and dedication you'll put into your work. The more confident you are, the more your clients will trust and enjoy working with you. The more confident you are, the more your clients will refer you to others. The more confident you are, the less stressed you'll be while running your design business. So go out there and be confident in everything you do. How confident are you in your business? Let me know by leaving a comment for this episode. Resource of the week SiteGround SiteGround, in my opinion, is one of the best website hosting companies out there. I have several of my own as well as clients' websites at SiteGround. They offer easy 1-clickWordPress installation and allow multiple domains and websites on one hosting package. And if you are already hosting your site elsewhere you can take advantage of their free migration tool to have your site moved from your old host to SiteGround.

Do you have a vision statement for your design business? I heard this quote on a podcast recently. Vision without action is a daydream. Action without vision is a nightmare. I looked it up, and it turns out this is an old Japanese proverb. It means if you have a vision, but you don't do anything to achieve it, it's nothing more than a daydream. However, if you take action, without any sort of vision to guide you, the results can be chaotic and possibly catastrophic. I know that sounds kind of dire. But many new businesses, including graphic and web design businesses, never achieve their full potential due to a lack of vision. That's why having a vision statement is essential. The difference between a Mission Statement and a Vision Statement. What is a Mission Statement? The purpose of a Mission Statement is to define the what, who and why of a company at the present moment. It's kind of an action-oriented instructional roadmap for how a business operates. It defines the purpose of a business; it's function and objectives. What is a Vision Statement? A vision statement, on the other hand, defines where the company, in this case, your design business, wants to be in the future. It guides you in your decision making when it comes to setting goals to reach an eventual destination. When comparing the two, a Mission Statement is a journey, one you take to reach your destination, the Vision Statement. As Jessica Honard, co-owner of North Star Messaging + Strategy, a copywriting and messaging company, puts it "A mission statement focuses on the purpose of the brand, the vision statement looks to the fulfillment of that purpose," In most cases, a Vision Statement is shared within an organization, while a Mission Statement is shared with the public. Why do you need a Vision Statement? The primary purpose of a Vision Statement is to give you focus. Many business owners, including designers, start businesses without any focus. And without focus, you can end up all over the place. You know you want to start a design business, but what does that entail? Finding clients and designing projects for them? But what else? Do you want to be still doing the same thing 3-4 years from now that you're doing today? Do you want to be working for the same types of clients? Do you want to be doing the same kinds of design projects? Do you want to be making the same income? Without a proper vision to follow, you may end up being very busy but not accomplish anything. A vision statement creates a clear picture of the future of your business 3-4 years from now. What's the difference between a vision and a goal? Think of a vision as a mindset, a position to strive for in the future. It's something you want to achieve, but it isn't as measurable as a goal. For example, your vision might be to become a recognized design influencer. Your goal to achieve that vision might start with talking at 30 regional and national design conferences within the next three years. Visions are more abstract, something to dream of. Goals are more concrete, something you can measure. Having a Vision Statement makes it easier to create goals. Goals that help achieve your vision. A Vision Statement for your design business. If you don't have one already, you need to write a Vision Statement for your design business. Figure out a destination, a place you want to be in three to four years from now. Then figure out how to get there. The purpose of a Vision Statement is to inspire you, encourage you, to push you. What do you need to do to fulfil your vision? What do you need to stop doing because it's preventing you from achieving your vision? What do you need to learn that will make it easier for you to reach your destination? Who can you partner with to help you realize your vision? Without a vision for your future, it's easy to get bogged down by the day-to-day details of running your business. It's like you're on a boat in a river without oars. You're making progress, but you have no control over the direction you're going. You have no idea how far you'll get, you have no idea where you'll end up down the river, and you have no idea when you'll get there. Do you see why it's essential to have a Vision Statement for your business? Writing your Vision Statement. There are no templates or plans to follow when writing a Vision Statement. It can be as short as one sentence or several pages long as long as it outlines what you want for the future of your business. Things to consider. Set it in the future but write it in the present: Your Vision Statement shouldn't reflect what you are doing now, but where you hope to be 3-4 years down the road. However, you should write it in the present tense as if you've already achieved it. It will help encourage you. Make it challenging: Your Vision Statement needs to challenge you; otherwise, what's the point? Make it attainable, but it shouldn't be so easy that you lose focus over time. Make it clear: Focus on one or two goals for your future. That's all you need. Don't stuff your Vision Statement full of grand ideas. They'll only distract and possibly confuse you. Make it general: Your Vision Statement, although defined, should be general enough to offer direction but not instruction. Meaning, it should say where you want to be, but not how you're going to get there. Make it inspiring: There's no point setting a vision for yourself if it doesn't encourage you to work hard to achieve it. Infuse some passion in what you write and allow it to inspire you. Keep it short: Your Vision Statement should be simple, easy to read, without any fluff. Something you can memorize and repeat to your self as you work towards achieving it. Examples of Vision Statements Here are some visions statements by companies you may know. Patagonia: "Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis." Amazon: "To be Earth's most customer-centric company where customers can find and discover anything they might want to buy online." Ben & Jerry's: "Making the best ice cream in the nicest possible way." Habitat for Humanity: "A world where everyone has a decent place to live." Walgreens: "To be America's most loved, pharmacy-led, health, well-being and beauty company." Southwest Airlines: "To become the world's most loved, most flown and most profitable airline." Do any of these inspire you? How to use your vision statement. Once you've written your Vision Statement, use it as a guiding light in everything you do with your business. Your Vision Statement will help you decide what clients and projects to take on and which ones to pass on. Your Vision statement allows you to identify distractions from opportunities. The better your vision, the more productive you'll be because you know where you're going. Use your Vision Statement as part of your strategic plan, share it with your partners, contractors and clients to communicate where you envision your future. A vision statement can change. Your vision statement is a destination. Sometimes destinations change. It's nice to know where you want to be 3-4 years down the road, but a lot can happen in that time. New opportunities may come your way that will change your vision. Or you may encounter roadblocks that force you to change your plans. And maybe, as you and your business grow, your priorities may change, and you'll want to review and alter your vision statement to fit your changing needs. Trust your gut. If it's telling you your vision of your future needs to change, then do so. It's your business, after all. A Vision Statement should not be a set of blinders to the world around you. Don't let it limit your opportunity to grow your business in a different direction than initially intended. But have one nonetheless. All the best companies have vision statements. Don't you want to be considered one of them? Do you have a Vision Statement for your design business? Share your Vision Statement with me by leaving a comment for this episode. Tip of the week Emoji Shortcut Here's an easy way to type Emojis on your desktop computer. From any text box, press this key combination to open up a pallet of Emojis for you to choose from. Mac = Control + Command + Space Bar Windows = WIN key + "." or ";" (depends on your version of Windows)

Do you have enough of these? When it comes to running a home-based design business, there are some things you can never have enough of. Here's a list of twelve you should consider. 1) Printer supplies You should always make sure you have spare ink cartridges and extra paper on hand. It's never fun when you need to print something, and you can't because one of your ink cartridges is empty of you ran out of paper. 2) Input devices It's always a good idea to have a spare input device for your computer. Perhaps an extra mouse, trackpad, trackball or pen and tablet to operate your computer. Should something happen to your primary instrument, you'll be glad you had a spare. 3) Digital storage space When it comes to graphic/web design, you can never have enough storage space for your digital files. The price of hard drives keeps dropping, so there's no reason not to have extras on hand. As for cloud storage. You are always better off purchasing more storage space than you believe you need. Chances are, you'll end up glad you did. 4) RAM Whenever you purchase a new computer, you should try to maximize the amount of RAM you get. The more RAM you have, the longer your machine will last as software and operating systems become more demanding on memory. The extra cost upfront will be worth it if you can get an additional year or two out of your computer. 5) Backups It's better to be safe than sorry. And that means having backups of your backups. When disaster strikes, you'll be glad for the redundancy. Services such as Backblaze make it extremely easy to backup your computer and physical hard drives. BackupBuddy by iThemes is my plugin of choice when it comes to backing up WordPress websites. 6) Business cards I don't understand people who don't have business cards for their design business. They make a great marketing tool. And at such a small cost to produce, the return on investment is well worth it. 7) Cables You can never have enough cables. Power cables, charging cables, connection cables are just some of the various wires you should have on hand. You never know when you'll be required to connect a new device and not having the proper cable can cause unnecessary delays. 8) Connection ports Most computers come with a limited number of connection ports. I'm talking about USB, Thunderbold, Video, Audio, etc. Devices that add extra ports are convenient in avoiding having to juggle your connections. 9) Internet Bandwidth When it comes to graphic and web design businesses, the faster your internet, the better. Don't skimp on your internet plan. You'll be glad for the faster speeds. Plus, you get to write it off on your taxes as a business expense. 10) physical storage space Your home office should have sufficient storage space to keep all your "stuff." Drawers, shelves, cabinets and closets are a must to keep your work area organized. 11) Suppliers contractors Try to keep a list of people who could help you with your endeavour. Web and graphic designers should keep lists of copywriters, photographers, developers, illustrators, translators, printers and anyone else you may need to call upon for future projects. Even if you have your go-to people. It's good to know others just in case. 12) Peer support Working from home can get very lonely. To battle the isolation, you need to build a community of peers you can connect with regularly. Join clubs, organizations and networks that keep you connected to what is happening in your local area, your niche and your industry. What can you never have enough of for your design business? Let me know by leaving a comment for this episode. Resource of the week Udemy As graphic designers, we need to keep our skills and knowledge in peak form. Udemy is one of the best places to learn new skills or brush up on rusty ones. Udemy offers a wide variety of courses for all stages of your career. I've personally bought courses on SEO, Google Analytics, Facebook Ads and more. Have a look today and see what you're going to learn next.

Are you nervous about video chatting? Without proper video chat etiquette, you and your design business can come off as amateurish and unprofessional. Not the impression you want to present to your clients. I work with design clients from around the world. As such, video chatting is a practice I take for granted as part of doing business. But right now, the world is isolated at home to flatten the curve on the Coronavirus. That means that many people, perhaps yourself included, are only now discovering the intricacies of video chatting. Allow me to share my experiences and make this new practice more comfortable for you and allow you to present yourself in the most professional manner possible. Scheduling a call You should always allow your client to choose a time that suits them for your video chat. However, you should dictate the times you're available. Online scheduling software works really well for this. They show your availability and allow the client to chose the time they want to talk. Here are a few scheduling options you may want to try. Book like a Boss Calendly Schedule Once Appointlet MeetFox If you don't have a calendar booking tool, email your client a range of times you are available and let them choose a time that works best for them. Be sure to let them know approximately how long the video chat will be so they can choose a time appropriately. Once you agree on a time, add it to your calendar and set two reminders, one a couple of hours before to remind you of the upcoming call, and a second reminder five or 10 minutes before so you can get ready. If you plan on recording the call, which I suggest you do for later referral, let your client know in advance. In most places, it's illegal to record someone without their consent. Your equipment To video chat, you need a computer or a mobile device. Although most modern devices have a camera built-in, you may want to use an external camera for better quality. The same goes for the microphone. The one built into your device is acceptable for infrequent video chats. But if you plan to implement regular video chats into your routine, you will want to invest in a better microphone. If you are using a mobile phone or tablet for your video chatting, a stand or tripod will help you keep the camera steady and at a proper hight. The next thing to consider is your lighting. Natural light is preferable but not always available. There are several desktop options for lighting your call. With hardware taken care of, you should next consider your software. There are numerous platforms for video chatting, including the following. Zoom(what I use) Skype Facetime GoTo Meeting Your environment You should video chat from a quiet, well-lit area. Before the meeting begins, make sure your lighting is in place and turned on, and turn off anything that makes noise, including washing machines, furnaces, fans, etc. Close your windows to prevent distracting noises from outside. Examine your background. The person you are video chatting with can see what's in your room behind you. It's ok to have a busy background, so long as it's not messy. If you're unsure about your background, try hanging a drape or curtain of some sort to act as a backdrop. Your setup If you are using a laptop, make sure it's plugged into a power source. Video chatting uses a lot of CPU power. If you're running on battery, your laptop will heat up faster, and your noisy fans will run longer. If possible, plug your computer directly into your modem or router. You want the best internet connection available, and WiFi can be unreliable when video chatting. Close all unnecessary running software during the video chat. Some software connects periodically to the internet without your knowledge and could interfere with your connection. If you are unsure, try restarting your computer and only opening the required software. Turn off all notifications. All those pings and beeps can distract you while video chatting. Set your camera as close to eye level as possible. If not elevated, a laptop camera will force your guest to look up your nose. For best sound quality, external microphones should be as close to your mouth as possible. If you are using your phone or tablet, set it horizontally. Portrait mode is fine for Facebook and Instagram stories, but most video chatting takes place on a computer where landscape mode is preferable and professional looking. If you plan on sharing your computer screen with your guest, clean up your computer's desktop and close unnecessary windows. Preparing yourself When preparing yourself for a video chat, you should dress in the same manner you would if you were meeting your guest in person, including your grooming. Just because you are video chatting from home is not an excuse for not shaving. Be sure to check yourself in a mirror before getting on the call. You don't want to find out afterwards that you had food stuck in your teeth or worse. Depending on your lighting, you may want to remove your glasses as the light reflection in your lenses can be distracting for your guests. Conducting yourself on the video chat When video chatting, you should act as if you were meeting the client in person. Sit up straight, don't fidget and look directly into the camera, not the image of the person on the screen. If you're finding it difficult to look into the camera, try minimizing the video window and placing it at the top of your monitor so that you're looking at the person just below the camera. Avoid looking at distractions outside your window or in other parts of the room outside of the camera's view. Your guest can't see what caught your attention and may feel like you are ignoring them. If you must cough or sneeze, or make any other sound, mute your microphone beforehand. After the video chat It's good practice to follow up with the person after a video chat. Send them an email thanking them for their time and outlining what you discussed. If you recorded the video chat, save the recording in your client file for future reference. You may need to watch it later for clarification on something that was said or as proof in case of a dispute. Conclusion Until the Coronovirus pandemic is over, video chatting will be the norm in our industry. And who knows, once people get used to it, it may become a routine for you in the future. If you follow these suggestions, your clients will appreciate you as they come to know you as not just a professional designer, but as a business person, able to conduct themselves professionally. What's your video chatting procedure? Let me know by leaving a comment for this episode.

Want to use your illustration skills to earn extra income? A conversation I had with Andrew, a member of the Resourceful Designer Community, inspired me to write this post. Andrew is a very talented illustrator and designer. He's created many illustrations for his clients as well as illustrating and publishing his own children's book Heyward the Horse! In his book, children follow along with Heyward, a carriage horse from Charleston, South Carolina, as he takes them on an illustrated tour of local landmarks. Andrew and I were discussing various ways he could use his illustration skills to earn extra income. After our conversation, I started thinking, Andrew is not the only designer with illustration skills. So why not use our discussion as a starting point for a podcast episode? Just to preface, you do not need to be an illustrator to benefit from what I'm about to share. I am not an illustrator, and yet I've generated a decent amount of passive income over the years by putting my design talents to use on things other than client work. Also, these are not ways to earn money quickly. That's not the point of all of this. What I'm sharing today are ways to put things into motion to generate a form of recurring income down the road. Be it a year from now or even ten years from now. Earning extra income. I've always believed that creative people should never lack for work. A creative person has the skills to make money from their creations. As graphic and web designers, you earn your primary income by completing projects for clients. But there are numerous other ways you could make money with your skills. We're living in an unprecedented age for creative people. There are more opportunities today than there has ever been before. Take Etsy, for example. Before platforms like Etsy, a craftsperson could only sell their wares in local bazaars or craft shows. Now, they can reach clients around the globe. The same opportunities are available for illustrators and designers. Here are some ways for you to use your creative skills to earn extra income. Talent Marketplaces Talent marketplaces such as Fiverr or Upwork have a bad reputation amongst designers. However, these are perfect marketplaces for illustrators. Many people search these platforms for illustrators for both small and large projects. If you are an illustrator, you should create an account on talent marketplaces to showcase your services. Don't think of these marketplaces as cheap discount services. You can charge whatever you like for your illustrations. Showcase your portfolio of work, and even if your prices are higher than other illustrators on the platform, clients who love what they see will find it within their budget to hire you. If you're not on these platforms, there's zero chance of being discovered. Stock Image Sites Earn extra income by digitizing and uploading your illustrations to sell on stock image sites. A friend of mine has been doing this for years. He's uploaded hundreds of illustrations to various stock image sites. He doesn't make much money on each sale, but the volume of sales adds up to a nice income. Stock image sites are one and done platforms. Meaning you create something, upload it to the platform, and forget about it. Allowing you to draw your next illustration as the first one earns you money with each sale. The trick to earning extra income through stock image sites is diversification. While some images will sell very little, others will bring in a steady earning each month. The more images you have for sale on these sites, the better your chances of a monthly payout. Add in compounding by uploading the same image to multiple stock sites, and you increase your return for that one image. Design Marketplaces Design market places such as Creative Market and Design Cuts offer a platform for designers and illustrators to sell digital products. Fonts, digital brushes, and illustration bundles, amongst other digital products, provide various opportunities for creative people to earn extra income. Designers and other creative people frequent these marketplaces looking for ways to simplify their process. Make money by offering a solution to their needs. Unlike stock image sites that sell individual images, the benefit of design marketplaces is the bundles they offer. Bundles contain many similarly themed illustrations packaged together for one price. An example of a bundle might be a collection of illustrations of farm animals all drawn in the same style. Floral packages are also trendy. Whatever you enjoy illustrating, try to find a way to turn it into a product to sell. If you're not an illustrator, you can create brochure templates or logo templates that people can use as a starting point for their projects. Print-On-Demand Print-on-demand services allow you to upload your image or design and sell it on merchandise in their marketplaces. Popular merchandise includes T-Shirts, mugs, phone cases, stickers, pillows, leggings, notebooks, wall art, and so much more. You don't have to be an illustrator to make money on these platforms. A well-designed image or a word or phrase written in a beautiful font can also sell very well on merchandise. Not sure what to design, consider Fan Merchandise. Platforms such as Redbubble, CafePress and Zazzle have license agreements with entertainment properties that allow you to create and sell merchandise without infringing on intellectual property. Design merchandise for popular movies such as: A Christmas Story Elf: The Movie Dumb and Dumber the Matrix National Lampoon's Vacation movies The Exorcist, The Hangover movies The Wizard of Oz TV Shows Amazing Race Big Bang Theory Black-ish Breaking Bad Flintstones Friends Grey's Anatomy How I met Your Mother Westworld Star Trek You can also design merchandise promoting the U.S. Military. U.S. Air Force U.S. Marine Corps U.S. Army U.S.Navy Here are links to available licensed fan properties on each platform: Redbubble, CafePress, Zazzle. It's a long game. If you decide to put your illustration skills to use on any of these services, keep in mind this is a long game. You probably won't make much money this week, or this month or possibly for months to come. You are doing this to generate extra income down the road. These platforms work because of compounding. You start slow, with maybe one or two images per week, or possibly even per month. And over time, if you're persistent, you'll end up with lots of designs that bring you money regularly. Even if the payout from each platform is small, they all add up over time. Wouldn't it be nice to know your monthly car loan or mortgage payment was taken care of through the work you created long ago? It only takes time. You've heard the saying, "you need money to make money?" In most cases, that's true. However, for everything I've talked about above, the only investment on your part is time. If you're willing to put in a little bit of time now, it can pay off tenfold in the future. And there's something satisfying when you see that first $1 come in because some random person, somewhere in the world, purchased an image you created. That's when you know you've got something. Because if one random person thought what you created was good enough to spend money on, there must be others out there as well. That feeling should encourage you to keep on producing and uploading. Who knows, maybe one day, you'll be able to retire and live solely off this passive income you've created with your creative skills. Let me know how you earn extra income with your creative skills. Let me know by leaving a comment for this episode. Resource of the week Four Week Marketing Boost The Four Week Marketing Boost! is a free guide I created that will help you strengthen your marketing position, boost your brand's awareness & social presence and ultimately ensure you are in tip-top shape to offer the best first impression to potential new clients. This guide is divided into 20 short actions that comfortably fit into your regular day and are designed to take as little time away from your client work as possible. Although you can complete these exercises quickly, it is recommended you tackle only one per day, spending no more than 30 minutes per task. After completing this four-week plan, you will be in a better position to present yourself to, and win over new clients. You can download the Four Week Marketing Boost for free by visiting marketingboost.net. Or, if you are in the U.S.A., you can text the word MARKETINGBOOST to 44222. Improve your business' image and create the best first impression possible to attract more clients.

Will your design business survive the 2020 Pandemic? Are you worried your graphic or web design business won't survive this 2020 pandemic? With so many clients forced to temporarily close their doors due to social distancing, it's no wonder designers around the globe are lacking for work. We're living in an unprecedented time, and people are reacting and being affected in different ways. As a home-based designer, isolation is part of daily life. We chose this lifestyle for ourselves. And the longer this pandemic goes on, the more evident it becomes that this lifestyle isn't for everyone. Many people are not taking well to being cooped up. Others are embracing this new way of working and may decide it's something you want to continue doing once life gets back to normal. Only time will tell, and only you can make that decision for yourself. But there's a difference between voluntarily working alone and being forced to stay at home day in, day out. For many, the isolation is too much. And unfortunately, the typical remedy for isolation of getting out and being amongst other people is not a solution right now. Even for someone like me, who is used to staying home, it feels strange. But like all things in life, this too shall pass. I heard a great quote today. "In order to appreciate a beautiful sunrise, you first have to live through the darkness." Stay strong and stay the course. You'll get through this. But what about your design business? Is your design business suffering right now because of the coronavirus? Are your clients and projects drying up? Over the past week, I've seen designers at both ends of the spectrum. Some are busier now than ever, while others are desperate for work. How are you going to weather this storm? State of the world today. Around the globe, almost all businesses except for essential services are shut down. And with so many companies temporarily closed, it's no wonder work is drying up for graphic and web designers. Government aid packages created to help businesses affected by COVID-19 may not be enough. Many of the businesses forced to close due to the coronavirus will never reopen. Financially, this is the nail in their coffin. Without money coming in, there's only so long a business can hang on. No matter how much aid is offered. I know this sounds grim, but I assure you, there is a silver lining to this. Back in 2008, when the last big recession hit, almost all businesses suffered. Many of them forced to close, except for designers. in 2008-09, design businesses saw a boom. How can that be? When businesses shut down, their employees start looking for jobs elsewhere. But when multiple companies in the same industry shut down, there are not enough available jobs for the number of people searching for work. This leads to a large number of those people deciding to start their own business. I saw this myself in 2008, especially in the trades field. Layed off electricians, plumbers and construction workers started their own business. Other people started businesses based on their areas of expertise, their hobbies, or other skills they had. All of these people needed a logo, a website, and other branded material to get their business started, and designers everywhere saw an increase in work. I anticipate the same thing will happen once this pandemic has passed. With the inevitability of businesses closing, many of their employees will decide to start their own business, and they can use your help. Pivot your design business. To take advantage of this influx of new entrepreneurs, you may have to pivot the way you do things. 1) Forget about niching. I've talked before about the importance of finding a niche for your design business but now is not the time. Right now, you should focus all your efforts on getting as many new clients as you can, regardless of niche. 2) Focus locally. These new business people are not seasoned entrepreneurs. They don't know about the various resources available to them online and abroad. They don't know about Fiverr or 99designs. What they do know is they need help, and when someone needs help, the first place they look is close to home. And that's why you should be focusing all your marketing effort locally. Create landing pages on your website to attract these new clients. Focus on local SEO and speak to them in a way that shows you understand what they're going through. Use locally targetted online ads to attract clients. Google AdWords, Facebook, Instagram, Twitter, and LinkedIn all offer the ability to create ads targeted to your local area. Increase your social media presence and post local content. Use popular local hashtags in your posts. Join your Chamber of Commerce and other local business groups. You may not be able to meet people in person right now, but there are still benefits and exposure to be gained by being a member. List your design business in Google My Business. You can also contact your local business center and let them know you're available to help anyone who is starting a new business. Do whatever it takes to get your name out in your local market. 3) Review your prices. Raise your prices, raise your prices, raise your prices. So many people who talk in the design space are continually encouraging you to increase your rates. I usually agree with that 100%. I'm always saying that whatever you're currently charging for your design services, you're worth more than that. However, now's not a good time to raise your prices. In fact, and I can't believe I'm saying this, If your design business is suffering right now because of the pandemic, this may be a time to offer discounted pricing. I usually discourage discounts because I believe that discounts lower the value of the service you provide. But these are not regular times. Perhaps you could offer a discount to clients who are starting a new business. Packages. I'm not a fan of design packages, but you may want to create special packages for new business owners. Try anything it takes to get clients on board. And once the world gets back to normal, your design business can get back to normal. Hopefully, with all the new clients you picked because of the crisis. This will pass. You will get through this. You may need to pivot your design business to weather the storm, but you will get through this. And if you're lucky, you may look back and say, 2020 was your best year to date. Remember that quote I said earlier. "In order to appreciate a beautiful sunrise, you first have to live through the darkness." Good luck. What are you doing for your business to survive the pandemic? Let me know by leaving a comment for this episode. Resource of the week Your local library. Have you checked what services your local library offers lately? Many libraries offer free subscriptions to learning platforms such as Lynda.com or Skillshare.com. You can also download audiobooks and eBooks free of charge. Libraries have come a long way since the days of only carrying books. It might be time for you to get or renew your library card and check them out.

What structure are you planning for your design business? In this final instalment of The Definitive Guide To Starting A Home-Based Design Business, I'm covering your business structure. If you haven't heard the first three parts of this series, I suggest you go back and listen to them. Part 1 - Is Self Employment For You? Part 2 - Business Plan and Your Workspace Part 3 - Legalities and Marketing Once you know what you're going to do with starting your business. You need to decide what form or structure it will take. Sole-Proprietorship, Partnership Cooperative Corporation Your business structure will determine how and when you pay taxes. It may affect how you deal with banks, especially if you are applying for a loan or line of credit to help you get started. Different insurance rates may apply depending on your business structure. I'm not a business expert. I highly suggest you talk to your local business center, your accountant, your lawyer and seek their professional advice on the structure that is right for your design business. Plus, the information in this article is based on Canada and the USA. Rules and regulations may differ where in the world you are and may even vary depending on what state or province where you live. That's why it's important to seek the guidance of someone in your local area. Also, your business structure can change over time. It's possible that you start off using one model today, and switching to a different structure down the road. The four business structures. Sole Proprietorship A sole proprietorship is the simplest way to structure your business. A sole proprietorship is a business that is owned and operated by one person, you. Advantages Easy and inexpensive to set up. Flexible - there are few regulations to comply with. The business is directly controlled by you, the owner/operator. Business losses can be deducted from other personal income. Disadvantages The owner is personally liable for all debts of the business. The life of the business is confined to that of the owner. All business income is taxed as personal income. If you are running a sole proprietorship under a name other than your own name, you are required to register the name with your government business registry. Partnership A partnership is an agreement between two or more parties where they combine their skills and resources and share ownership in the business. Advantages Reasonably easy and inexpensive to set up. It allows a group of people to pool their skills and resources without the expense of incorporating the business. Reasonably easy to add or remove partners from the business. More people means more sources of capital. Business risks are shared by all partners. Disadvantages Each partner is personally liable for all business debts. Each partner is responsible for the actions of the other partners, which affect the business. Profits are personally taxable. Slow decision-making and conflict resolutions because the approval of all partners is required. Cooperative (Co-op) A cooperative is an enterprise, or business, owned by a group of people or companies seeking to satisfy a common need. The initial capital for a business cooperative is raised by member shares, and personal liability is limited to the value of each member's share. All members have one vote, regardless of the value of their shares. Advantages More sources of capital due to members' contributions. A higher volume of production and service possible because there are more people involved. Members provide mutual support and pool skills. A relatively flexible structure allows for changes in membership and responsibilities. Disadvantages Members may have trouble making decisions together and resolving conflicts. Some banks don't like lending to cooperatives, so individual members may have to arrange their own financing. Corporation A corporation turns your company into its own legal entity. Meaning the company has the same rights as an individual. It can acquire assets; it can go into debt; it can enter into contracts, etc. A corporation is the most expensive and most complex business structure to set up and operate. However, the majority of big businesses, as well as some smaller ones, are incorporated. In Canada, you have the choice of incorporating provincially or federally. In the USA, a business can be incorporated at the state or federal level. For a home run design business, if you want to incorporate, you're probably going to do it at the state or provincial level unless you regularly do business in a different state or province. For example, if you live in northern Florida and often travel to Georgia to meet clients in person, you may be better off incorporating on a federal level. As an added benefit, if you incorporate on a federal level, you're ensured that no other design business in your country can operate under the same business name. If you incorporate at the state or province level, there's nothing stopping someone in another state or province from using the same business name as you. Advantages Owners are not personally liable for the debts, obligations or acts of the company. There are tax advantages to incorporating, talk to your accountant about them. Capital may be easier to raise, and loans may be easier to obtain for a corporation than the other business structures. The company exists independently of individual shareholders. I most cases, you the designer. Funds can be raised by selling shares of the business with little effect on you as the business manager. Disadvantages Corporations are the most expensive business structure to set up and do require a lawyer. Depending on where you live, the costs could be in the thousands of dollars to set one up. Additional paperwork, including recordkeeping, regular reporting to the government, and corporate tax returns that may result in more expensive accounting fees. Corporations are taxed differently than other businesses and implications vary depending on where you live. Despite limited liability, financial institutions may ask for personal guarantees on business loans. Any time you see the words "Limited," "Ltd.," "Incorporated," "Inc." or "Corporation" you know that the business is a corporation. It is possible to incorporate it on your own. Still, the paperwork and regulations can get very complicated, so it's advisable to hire a lawyer to help you through the process, especially when it comes to the division of and types of shares involved. Plus, you'll need to set out bylaws for your own business, stating how your corporation will operate, how "officers and directors" are chosen, how the business accounts will be maintained, etc. In other words, incorporating can get complicated if you don't have help. Conclusion The majority of home-based designers are individuals who want to run a business all by themselves. For them, a sole proprietorship is all they need. However, if you want the extra protection, and you don't mind the extra work and expense, then incorporating is the way to go. And if you plan on working with someone else, you have the option of starting a partnership or a co-op. Once again, let me stress that you should seek business advice from a professional before making this decision. Good luck. What business structure did you choose? Let me know by leaving a comment for this episode. Resource of the week 101 Ways to get freelance design work & clients looking for websites. If you are looking for innovative ways to get new clients, this article by Flaunt My Design has you covered. They even used my T-Shirt idea.