Becoming Your Own Boss (BYOB, 4.4)

In the first series, Becoming Your Own Boss (BYOB, 1.x) "Introduction, Today's Employment Picture", you learned some of the facts related to the current employment picture and examined some of the choices that were available to you. In the second series, Becoming Your Own Boss (BYOB, 2.x) "Examining Your Situation", you answered some key questions to figure out if starting as an independent contractor was a good idea for you. In the third series, Becoming Your Own Boss (BYOB, 3.x) "Preparing for Business", you examined the numerous topics (from taxes and insurance to your need for equipment and an office) that need to be considered before you take the step to establishing an independent contracting business.

This series of articles (BYOB, 4.x) covers the many requirements involved in operating a business. This fourth article in the series goes into detail about the forms of resume that you should have as marketing-type literature for your business. At a minimum your marketing literature should include an introductory letter and a resume crafted to support your business. The following sections cover the introductory packet and several of the miscellaneous business forms you will need for your business.

Business Marketing Literature - Introductory Packet

The introductory packet serves to introduce you and your services to prospective clients. It is sometimes mailed and sometimes delivered in person. Actually, there are two kinds of introductory packets: one with a 9-inch by 12-inch envelope for unfolded letter-size sheets, and one with an ordinary Number 10 business envelope for folded letters. The contents are the same for both, but the two are intended for slightly different purposes.

Use the packet with the 9-by-12 envelope in instances in which you wish to make a more favorable impression quickly. This packet uses a relatively expensive envelope as compared with the Number 10 envelope, and, if mailed, its mailing cost is significantly higher. Do not use it for general mailing to prospective clients or to purchasing departments. Use it instead to reach certain prospective clients directly; such as in instances in which you know the name and address of the prospective client, or in which you have already talked with the prospective client on the telephone, or in which you meet a prospective client in a cold call or chance meeting. For this purpose, purchase a small supply of plain 9-inch by 12-inch envelopes, preferably white.

Use the packet with the Number 10 envelope for all other prospective client communication purposes.

Each introductory packet should contain your introductory letter, your outline resume (if you have one) or your detailed resume, and your business card. The introductory packet should be arranged with the resume on the bottom, the letter on top of the resume, and the card on top of the letter. If you have prepared both outline and detailed resumes, insert only the outline resume in the introductory packet (or any other first correspondence) unless the recipient has specifically asked for details on your experience. There are two reasons for this: First, it is best not to expect the recipient to read long documents when short documents will do for introductions. Second, the fact that you have not included details offers you an excuse to call in a few days, ostensibly to determine if more information is required.

Do not staple together the items in your introductory packet.

Stapling in this instance is tacky. Instead of stapling the items in your introductory packet, or inserting loose items, use a paper clip. Insert the business card under the paper clip so that your letter-head banner extends from under the card. (Do not use a paper clip that is so strong that it bends the card more than slightly. If the card is bent, it will not lay properly in the recipient's card file, and it might be discarded.)

Remember - what seems to be our obsession with detail might seem like so much ado over nothing, but the concept behind it is to present an impression of professionalism, substance, continuity, and adept planning. The reader might not even recognize that he or she has seen the point, but it is there. Again, these are small points, but small points are important when all that you have are small points of opportunity.

Marketing is a business of perceptions. Small perceptions accumulate to influence overall impressions. Overall impressions bring, or lose, business.

NOTE: As has been stated many times in this series of articles, marketing is critical to your success. The prior articles regarding the introductory letter and resume, and this one on the introductory packet illustrate the seriousness with which that point is viewed. You also must take it seriously.

Pay attention to details. Don't give away anything through carelessness.

Business Forms, Miscellany

Your stock of forms at the start of business must consist of at least two items: an estimate letter, and an invoice form. A desirable third item is an example contract. Again, as you continue in business, you will find that more items become necessary, but the invoice form and estimate letter are absolutely necessary immediately upon start-up.

Estimate Letter: Prepare an estimate letter form, printable on your letterhead. Make it easily customizable so that it can accommodate all of the various facets of the task as required by the client. These might include an estimated time to prepare the project plan, the items to be accomplished during the project, the estimated hours to accomplish each item, a schedule, special conditions, contingencies, and any other items that might affect the project schedule or cost. Figure 1 shows an example estimate letter keyed to show the important areas.

Remember, this letter must be set up so that it can, with modification, address and respond to the needs of various clients. You should store each estimate letter you prepare on your computer. At a minimum, use an estimate letter example as a template, and develop a custom letter (based on the template) for each new estimate.

Invoice Form: Prepare an invoice form. Make your invoice form look professional. Figure 2 shows an example invoice form keyed to show the important areas.

• Include appropriate space for at least the following items on your invoice:
• The invoice number. This number should include a client code to facilitate billing and a year code to facilitate your tax records.
• The date of the invoice.
• The client's name and address. If the client company is large, include the name of the direct client, and the intra-company mailing address if appropriate.
• Your name, address, and telephone number.
• Your federal employer identification number (EIN) or your taxpayer identification number (TIN, your Social Security number).
• The billing rate. If the contract calls for separate rates for different task segments, list all rates.
• A task statement.
• The billing period, including the beginning and ending month, day, and year.
• A short activity description. Include space for a short list of task statements.
• The number of hours expended.
• The amount due.
• An approval signature line.
• The payment interval (10 working days or 14-15 calendar days).
• A notice that interest will be added after 20 days.

A section on "Billing for Services" in the next series of articles (BYOB, 5.x) provides information on fine-tuning the invoice form.

Although the invoice form might include your logo, do not print the invoice on your letterhead stock.

It is not necessary to have invoices printed in bulk. If you use an accounting program, perhaps it includes an invoice form that is customizable, or perhaps the program output can be customized to print on your form. If not, with a bit of clever setup and the use of the line draw feature, you can use your word processor to produce the form as a template document. Then, all you need do is use the word processor external copy feature to copy the template as a new document with the invoice number as its name, and fill in the information.

Store this item in your computer so that you can make changes and print copies as required. On a continuing project, if you used a word processor to produce the invoices, you can even copy the invoice from the last period and modify it as required for the current period.

Client Contract/Agreement: After you and a client have agreed that you will provide agreed upon services, at an agreed upon billing rate, the next step is a signed contract or agreement. In most instances, particularly if the client is part of a large company, the client will have a contract form that is customizable to fit the circumstances. If the client has no such form, you should have at hand a usable form. Figure 3 shows an example client contract/agreement keyed to show the important areas.

In either instance, the form should cover the following items:

• The names of the principals and the names of the organizations, as appropriate.
• The name and a short description of the project.
• Statements of your duties and responsibilities. These statements must be in terms of the requirements for the desired end result by the specified due date; not in terms of how, when, or where you will perform your duties. There must be no mention or even hint of direct supervision by the client. There may be included a requirement for client approval of any person or persons whom you engage to assist you, but there must be no prohibition of such engagement of assistance.
• Statements of the responsibilities of the client. These statements should include such items as the kinds of information or source material that you will receive and the kinds of assistance that will be available to you, and when you will receive these things.
• Statements of the terms of payment for your services. These statements must include the billing rate, the billing interval, and the time allowable for invoice processing.
• In addition, the contract or agreement should include an attorney's fee clause similar to the following:

"If a suit or action is filed over any matter set forth in this agreement, the party not prevailing shall pay any costs incurred by the prevailing party in such suit or action."

Before you start work, make certain that the contract is in writing, that you have read it carefully, that you understand it, and that you have in your possession an original version signed by all appropriate parties.

The next series of articles (BYOB, 5.x) addresses the critical subject of marketing your services as an independent contractor.

To read the rest of the series click here