Last week I wrote about 10 simple things freelancers could do to help their writing business in a bad economy. Most of the suggestions were related to marketing: updating your resume, contacting editors or exploring other ways to expand your business.
As the stock market continues to slide and it looks like we could be headed for a recession, another round of suggestions seems appropriate. Only this time, it’s all about saving money. Here are 10 things you can do right now to cut your business costs and keep more of your hard-earned writing income. They are:
1. Switch to Internet-based phone service. Skype and other voice over IP phone services have improved a lot since they first appeared. Calls to other Skype users are free. Calls to other landline or cell phones start at $2.95 a month. Read more about Skype subscriptions here.
2. Use free software. Rather than buying packaged products, use free, Web-based productivity tools for email, calendars, time tracking, etc. Lifehacker, a Website that specializes in technology for “getting things done,” lists dozens of free software tools and Web apps in has this list from December 2007; be sure to check out the comments section for even more suggestions.
3. Stop using paper. A box of printer paper doesn’t cost that much. Even so, there are lots of simple alternatives to using a printer. Plus if you cut back on paper you’re simultaneously saving money and greening your business.
4. Cancel magazine subscriptions. We freelancers love magazines and we tend to stock up on titles that we’re researching as potential writing markets. But there are other ways to do the same research, such as browsing through back issues at your local public library. Or at a local bookstore with a well-stocked magazine section. Or online. Or consider sharing a subscription with a friend.
5. Stop buying books. Another toughie, only because I’ve yet to meet a writer who doesn’t want a house full of books. Still, if you’re cutting back, this is a good place to start. The best alternative to buying is checking books out from the library. Barring that, switch from buying new to used. If you don’t have a great used bookstore in your town, check out Powell’s. Consider swapping books with friends.
6. Put off major expenditures. These days, a writer is only as good as her computer, so don’t put off upgrading if your productivity is hurting because you’re using an old, slow machine. On the other hand, if business is tight, it might not be the best time to start a major home office renovation project. And if your cell phone, digital recorder, telephone headset or printer are still going strong, wait to replace them until you absolutely have to.
7. Limit non-essential business trips. Traveling to conventions or conferences is a great way to meet editors and drum up new business. But if you normally attend several a year, think of cutting back to one or two. Or if you can only afford one, consider making it a trip to visit editors or to attend a training session instead of your usual writer’s confab.
8. Apply for grants. If you’re considering taking a course, apply for one of the many grants that universities and other non-profit journalism education organizations offer to help fund your efforts. As an alternative, take some of the free online classes offered by groups such as News University.
9. Fund your SEP-IRA. You can fund a SEP-IRA with pre-tax dollars, so whatever money you put into this retirement account can be lopped off of the amount of income you pay taxes on. If you don’t have a SEP-IRA, start one. Even if you can only afford $500 or $1,000, that’s that much less you have to pay taxes on.
10. Speaking of taxes, be sure to take all your business expenses. That includes use of a home office if you have a space in your house that you use solely for work.
Got some other tips for cutting back on business expenses? Please share.
I agree with all of your points except the Internet-based phone service. I went without Internet access for 24 hours a week or so ago. Had I not had phone service through AT&T I would not have had a phone to call and complain to Time Warner about it. When the tech support asked me if I had Internet phone service through Time Warner she seemed surprised when I pointed that out. I guess no one ever thinks of that… I experienced the Blackout of ’95. Had I only relied on Internet phone service – or even cell phone service – I would have been out of luck.
I love my public library! I can order a book or DVD online and get an e-mail telling me to come pick it up. I only buy my absolutely favorite authors now.
Good point on VoIP – if you use it, it’s good to have some type of back up, such as a cell phone.
MVR
I completely agree about the library. Some libraries also offer programs like free yoga classes and movies for kids…plenty of great ways to save money.
On cancelling magazine subscriptions – I always thought that you couldn’t cancel midway through your subscription. My aunt, however, tells me that this is not true and that you can get the balance of what you’ve paid reimbursed. I’ve never tried it, but it could be worth a shot!
Keep buying books, but sell your old books online. You can have all the books you want and make a profit.
But, if WRITERS stop buying books and magazines, how can we expect other people to do so? And if they don’t, how will we make a living?
I want to support my co-workers (i.e. other freelancers) by helping them earn royalties.
Bravo for mentioning the SEP-IRA. I know too many freelancers who don’t save for retirement. They are not only sacrificing their future retirement, but losing out on a great tax-advantaged opportunity.
Margaret: Good points that I hadn’t thought of before.
On SEP-IRAs, I’ve always funded my SEP=IRA, even in years where my freelance income was very small. The tax advantages are too great to pass up.
Michelle R.