Easy-to-follow video tutorials help you learn software, creative, and business skills.Become a member

Funding your startup

From: Freelancing Fundamentals

Video: Funding your startup

Once you've figured out how much money you'll need to get your business going, it's time to look at how to get it. If you have savings to cover the gap, you're all set. Put it in a separate account right away, so it's clear that the money is for the business. If you don't have savings, there are basically two ways to get the money. Either sell stuff in the usual way, or take out loans. You could also get the money in forms that you don't have to repay, such as, gift sponsorships or grants, but by and large, loans are the biggest source of startup funds for freelancers.

Funding your startup

Once you've figured out how much money you'll need to get your business going, it's time to look at how to get it. If you have savings to cover the gap, you're all set. Put it in a separate account right away, so it's clear that the money is for the business. If you don't have savings, there are basically two ways to get the money. Either sell stuff in the usual way, or take out loans. You could also get the money in forms that you don't have to repay, such as, gift sponsorships or grants, but by and large, loans are the biggest source of startup funds for freelancers.

Institutional loans are straightforward, but they can be hard to get. Loans are likely to either be from friends and family or from credit cards. Each source has its advantages and disadvantages. In either case, work the figures into the funding spreadsheet, to figure out your monthly payment. Friends and family is a group that includes any individual that makes a private loan or investment in your business. The advantages are that the loan is specifically for your business; it's sized to your needs and such loans usually have simple terms.

On the other hand, the money comes from an inexperienced lender, so you'll lack such nice at ease as a monthly statement. The lender might also want things besides money, such as free work or a piece of the business or a control over how it's run. If such a loan goes wrong it can ruin the relationship you have with that friend or family member. Credit cards, on the other hand, have their own pluses and minuses, as do credit card like loans, such as equity lines of credit. On the plus side, you can borrow as little or as much as you like, the lender is well regulated and professional, and monthly statements make repayment clear, while automatic deductions make it easy.

On the minus side, there's no chance the credit card company is going to give you a break for long, unlike say, your Uncle Arthur. Credit card loans can be expensive with both high interest rates and big penalties if you miss payments. Finally, having ready access to a variable amount of cash can ruin you if you're not disciplined. If you do decide to borrow from credit cards, I recommend you use one specific card and only take out one loan on it. It's possible that you will get an institutional loan or make some other arrangement. But whatever route you take, figure out what the repayment plan will be and budget for it, including interest.

This is part of the calculation on the funding exercise file. So, now you know how much you need to borrow, and how much you have to pay back each month. It might seem intimidating, but making such arrangements is necessary to pull together enough money to stay in the game until business picks up.

Show transcript

This video is part of

Image for Freelancing Fundamentals
Freelancing Fundamentals

42 video lessons · 24639 viewers

Tom Geller
Author

 
Expand all | Collapse all
  1. 10m 50s
    1. Welcome
      1m 53s
    2. What is freelancing?
      2m 53s
    3. How freelancing and employment differ
      2m 33s
    4. Preparing your mindset
      3m 31s
  2. 9m 24s
    1. Defining career goals
      2m 48s
    2. Sharpening your market focus
      3m 18s
    3. Transitioning to freelancing
      3m 18s
  3. 16m 11s
    1. Preparing your portfolio
      3m 11s
    2. Estimating costs
      3m 10s
    3. Funding your startup
      2m 42s
    4. Establishing your workspace
      3m 35s
    5. Building your professional network
      3m 33s
  4. 8m 51s
    1. Getting licenses, permits, and insurance
      2m 15s
    2. Creating contracts
      4m 23s
    3. Finding professional service vendors
      2m 13s
  5. 12m 54s
    1. Setting prices
      3m 13s
    2. Establishing payment systems
      1m 36s
    3. Invoicing and getting paid
      3m 50s
    4. Keeping the books
      2m 32s
    5. Managing taxes
      1m 43s
  6. 14m 41s
    1. Announcing your availability
      3m 16s
    2. Finding work through agencies
      2m 2s
    3. Onboarding clients
      2m 59s
    4. Avoiding scams
      3m 25s
    5. Choosing assignments
      2m 59s
  7. 11m 27s
    1. Interacting with clients
      2m 11s
    2. Delivering quality work
      2m 28s
    3. Getting referrals and recommendations
      2m 34s
    4. Losing and firing clients
      4m 14s
  8. 10m 48s
    1. Deconstructing big jobs
      3m 34s
    2. Adopting time-management tools
      2m 35s
    3. Creating schedules
      2m 30s
    4. Turning off the clock for "me time"
      2m 9s
  9. 20m 6s
    1. Staying motivated
      3m 3s
    2. Increasing your rates
      2m 52s
    3. Marketing beyond your professional network
      2m 56s
    4. Growing through hires and partnerships
      3m 30s
    5. Building passive income
      3m 48s
    6. Changing focus
      3m 57s
  10. 4m 52s
    1. Case study: Publishing a book
      2m 47s
    2. Next steps
      2m 5s
  11. 12m 42s
    1. Freelancing Q&A
      12m 42s

Start learning today

Get unlimited access to all courses for just $25/month.

Become a member
Sometimes @lynda teaches me how to use a program and sometimes Lynda.com changes my life forever. @JosefShutter
@lynda lynda.com is an absolute life saver when it comes to learning todays software. Definitely recommend it! #higherlearning @Michael_Caraway
@lynda The best thing online! Your database of courses is great! To the mark and very helpful. Thanks! @ru22more
Got to create something yesterday I never thought I could do. #thanks @lynda @Ngventurella
I really do love @lynda as a learning platform. Never stop learning and developing, it’s probably our greatest gift as a species! @soundslikedavid
@lynda just subscribed to lynda.com all I can say its brilliant join now trust me @ButchSamurai
@lynda is an awesome resource. The membership is priceless if you take advantage of it. @diabetic_techie
One of the best decision I made this year. Buy a 1yr subscription to @lynda @cybercaptive
guys lynda.com (@lynda) is the best. So far I’ve learned Java, principles of OO programming, and now learning about MS project @lucasmitchell
Signed back up to @lynda dot com. I’ve missed it!! Proper geeking out right now! #timetolearn #geek @JayGodbold
Share a link to this course

What are exercise files?

Exercise files are the same files the author uses in the course. Save time by downloading the author's files instead of setting up your own files, and learn by following along with the instructor.

Can I take this course without the exercise files?

Yes! If you decide you would like the exercise files later, you can upgrade to a premium account any time.

Become a member Download sample files See plans and pricing

Please wait... please wait ...
Upgrade to get access to exercise files.

Exercise files video

How to use exercise files.

Learn by watching, listening, and doing, Exercise files are the same files the author uses in the course, so you can download them and follow along Premium memberships include access to all exercise files in the library.


Exercise files

Exercise files video

How to use exercise files.

For additional information on downloading and using exercise files, watch our instructional video or read the instructions in the FAQ.

This course includes free exercise files, so you can practice while you watch the course. To access all the exercise files in our library, become a Premium Member.

Join now "Already a member? Log in

Are you sure you want to mark all the videos in this course as unwatched?

This will not affect your course history, your reports, or your certificates of completion for this course.


Mark all as unwatched Cancel

Congratulations

You have completed Freelancing Fundamentals.

Return to your organization's learning portal to continue training, or close this page.


OK
Become a member to add this course to a playlist

Join today and get unlimited access to the entire library of video courses—and create as many playlists as you like.

Get started

Already a member?

Become a member to like this course.

Join today and get unlimited access to the entire library of video courses.

Get started

Already a member?

Exercise files

Learn by watching, listening, and doing! Exercise files are the same files the author uses in the course, so you can download them and follow along. Exercise files are available with all Premium memberships. Learn more

Get started

Already a Premium member?

Exercise files video

How to use exercise files.

Ask a question

Thanks for contacting us.
You’ll hear from our Customer Service team within 24 hours.

Please enter the text shown below:

The classic layout automatically defaults to the latest Flash Player.

To choose a different player, hold the cursor over your name at the top right of any lynda.com page and choose Site preferencesfrom the dropdown menu.

Continue to classic layout Stay on new layout
Exercise files

Access exercise files from a button right under the course name.

Mark videos as unwatched

Remove icons showing you already watched videos if you want to start over.

Control your viewing experience

Make the video wide, narrow, full-screen, or pop the player out of the page into its own window.

Interactive transcripts

Click on text in the transcript to jump to that spot in the video. As the video plays, the relevant spot in the transcript will be highlighted.

Are you sure you want to delete this note?

No

Your file was successfully uploaded.

Thanks for signing up.

We’ll send you a confirmation email shortly.


Sign up and receive emails about lynda.com and our online training library:

Here’s our privacy policy with more details about how we handle your information.

Keep up with news, tips, and latest courses with emails from lynda.com.

Sign up and receive emails about lynda.com and our online training library:

Here’s our privacy policy with more details about how we handle your information.

   
submit Lightbox submit clicked
Terms and conditions of use

We've updated our terms and conditions (now called terms of service).Go
Review and accept our updated terms of service.