Currently, I write all of the contracts. If it is a new client, I may request a payment down at commencement of work, then bill them twice monthly as the project progresses. As you work with client you learn which ones that you trust (even without a contract). I have found that a contract proposal is best because it insures that everyone understands what the scope of work is and what payment terms are expected. The proposal can contain optional services that your client may not have considered. If there is any objection to the contract, this is not a bad thing it helps refine the business relationship.
I work in AEC (Architecture, Engineering and Construction) industry, but I can't believe that the 'basics' of freelancing would be much different in the software industry. Just to give you some perspective, I have 15 years experience in the Computer Aided Drafting, Architectural Design, Structural Design and Construction Project Management. About 80% of my work is done in front of a computer. I also operate a website that gives my clients access to their projects.
I always dreamed of working for myself and believed that it was the only way that I would ever get paid what I thought I was worth. Last March, my employer that thought it would be a good idea to offer me a reduction in salary by $10 an hour. It was actually a good time for me; I developed many business contacts and relationships. I also had some money in savings (for the first time in my life). When I presented this 'offer I couldn't refuse' I quit on the spot. I felt really good about it!
Shockingly, over the first few months I became extremely busy, yet the lag in time from work to getting paid became a problem. A few times finances were really tight.
Once you get cash flow moving, things become really great! I had to learn to see projects as Investments and Risks. As any investment, there is no guarantee of return (or that you'll get paid). There are things that you can to minimize the risk, but there is always risk.
The benefits are great: I have an extremely flexible schedule, yet I work many hours. I love not having to check in with a supervisor. I am free of office politics. The tax benefits are extremely good, except for FICA; your employer pays half of that now. (You'll be expected to pay all of it; 15% of your income, quarterly).
Some clients like to treat you like an employee. Some ask, "What kind of work you have on your plate?" Sometimes it may be honest curiosity, but remember that all you owe your clients is first-rate fulfillment of what they contracted you for.
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Currently, I write all of the contracts. If it is a new client, I may request a payment down at commencement of work, then bill them twice monthly as the project progresses. As you work with client you learn which ones that you trust (even without a contract). I have found that a contract proposal is best because it insures that everyone understands what the scope of work is and what payment terms are expected. The proposal can contain optional services that your client may not have considered. If there is any objection to the contract, this is not a bad thing it helps refine the business relationship.
Yes, but the tax advantages are better. For instance milage and expenses reduce your Gross Income. You can also incorporate to limit the Fica.
I work in AEC (Architecture, Engineering and Construction) industry, but I can't believe that the 'basics' of freelancing would be much different in the software industry. Just to give you some perspective, I have 15 years experience in the Computer Aided Drafting, Architectural Design, Structural Design and Construction Project Management. About 80% of my work is done in front of a computer. I also operate a website that gives my clients access to their projects.
I always dreamed of working for myself and believed that it was the only way that I would ever get paid what I thought I was worth. Last March, my employer that thought it would be a good idea to offer me a reduction in salary by $10 an hour. It was actually a good time for me; I developed many business contacts and relationships. I also had some money in savings (for the first time in my life). When I presented this 'offer I couldn't refuse' I quit on the spot. I felt really good about it!
Shockingly, over the first few months I became extremely busy, yet the lag in time from work to getting paid became a problem. A few times finances were really tight.
Once you get cash flow moving, things become really great! I had to learn to see projects as Investments and Risks. As any investment, there is no guarantee of return (or that you'll get paid). There are things that you can to minimize the risk, but there is always risk.
The benefits are great: I have an extremely flexible schedule, yet I work many hours. I love not having to check in with a supervisor. I am free of office politics. The tax benefits are extremely good, except for FICA; your employer pays half of that now. (You'll be expected to pay all of it; 15% of your income, quarterly).
Some clients like to treat you like an employee. Some ask, "What kind of work you have on your plate?" Sometimes it may be honest curiosity, but remember that all you owe your clients is first-rate fulfillment of what they contracted you for.
Also, learn how to write contract proposals!