Sorry for the hiatus folks! I recently finished up grad school (congrats to the class of 2009) and started a new company. In all of the preparation for getting it off the ground, landing our first client, and doing all of the things you need to do to successfully start a company, I came across some things I didn’t really expect. I’ve been a freelancer for quite some time (as you might recall) so I have at least a pretty good handle on running a business. However, when entering the realm of running a small company, some things change. Here are some of my observations.

• You have partners, board members, or investors you have to answer to. As a freelancer, it’s pretty much I decide to do something and run with it to see how well it goes. It’s low cost (usually just time), and I’m the only one at stake. In a company you talk to your partners to see what they think- make sure everyone is on board, and set the wheels in motion. I’m not saying it’s a bad thing by any stretch of the imagination (so far it’s only been good as a matter of fact), it’s just different.
• Costs of running a company are much higher. As a freelancer, you may not even have an office outside your home office, your equipment is your everyday computer, you don’t have a huge marketing campaign. In short, your costs are relatively low, so you have some flexibility in your prices. The biggest lesson I’ve learned (as is usually the case for me) is that costs are higher and prices need to account for that. You have office space, advertising, costs of goods, more than just you to pay, etc. Set a price by taking these things into account, as well as market value of your product and stick by them. If you don’t you won’t make money.
• Make a brand and stick to it. In freelancing, you are your branding. Your portfolio is your recognition. In a company, you need to make a brand that is recognizable, so put some thought into it. As a freelancer I changed logos, names, brands several times without some adverse effect on my business. With a company, that might not be the case because you’re trying to develop a reputation bigger than just one person. Changing your brand will cost your money if you want to maintain the same reputation.

Don’t get me wrong here- these may read with a negative connotation, but I don’t see them as negatives. Some rules are good to follow because you’re forced to really think about the decisions you make. A little added pressure helps business. I’m putting them here because these are the main differences I’ve observed in this stage of running the company. And don’t worry; while this might be a recurring theme from time to time, this blog isn’t going to change to how to run a company. I still plan to freelance- I have clients, how could I not- and I will still write about my lessons, trials, and tribulations.

Tags: cognition media, company, tips | Posted in Lessons, Stories |