If you don’t have time to read this post (or finish reading it since you’ve already started) you really should finish this one. In my my book, Blazing the Freelance Trail, I organize my advice around five topics: Money, Measurement, Marketing, Management, and Motivation. The first two relate to managing finances and keeping track of time.
It’s remarkable what you can learn about a firm by simply processing their balance sheets and income statements. Add the data of how many employees they have on staff, and the overall health of the firm becomes clear.
Your Money Knows Where Your Time is Going
Financial underperformance is discouraging of course, but since most creative firm owners don’t go into business to get wealthy it’s not usually a great shock. But evaluating money and time can reveal many stressors in a creative practice. Stresses from project schedules falling apart, over-worked staff, failure to produce quality work, new business stresses—aggravated by desperate underbidding, chasing after overdue invoices, dealing with poor cash flow implications—all of these problems can be predicted and observed by just looking at the numbers. Dollars and hours talk.
Getting control over your time is going to require fixing profitability issues. Most of these problems can be observed from the raw data. The solutions are not as simple as observing the causes. But the first step is seeing where the leaks are coming from.
Start By Tracking Your Time
Here’s some free advice—if you’re caught in a business management time sink—start down the path of getting control of your time by looking at your financials on a monthly basis. This does not take long (especially of you do it regularly). It just requires a smidge of fiscal self-discipline. Second, start tracking your time, all of it from every member of your firm—that includes your project time and internal time. (For some tips on implement that check out this post – The Details of Tracking Time.)
If you start measuring and evaluating your time and money the roots of your other problems with start to reveal themselves—and you’ll have some basic information for how to go about solving them. There will be more to fix, but this is always the best place to start.
Are you ready to take the struggle out of finding new clients?