By Justine Dixon Cooper AE
Embarking on a freelance editing career is not for the faint of heart. It comes with both joys (working in your slippers) and challenges (managing the ebb and flow of projects). One of the biggest challenges for many of us is developing an effective business plan. And yet this is a fundamental for any freelancer.
“Business planning” is a term that can set even the steeliest nerves jangling. It might seem an onerous task that calls for wide-ranging research and market analysis – not to mention a functioning crystal ball. But a new IPEd workshop with Dr Linda Nix AE has offered us a different perspective.
On 30 October 2024, Linda presented a half-day workshop, hosted by Editors NSW, called “Developing your freelance editing business plan”. Eighteen editors came together to see if Linda could transform this activity from a formidable challenge into – if not a joy – at least a manageable process. We were not disappointed.
Creating a roadmap for your business
Linda set the scene by laying out the key reasons for having a business plan. She said that it serves as a roadmap to show you where you are and where you are heading. Setting targets and making decisions becomes much easier when you have a clear understanding of your current position and your longer term “destination”.
A business plan can also be important for external parties, such as your bank if you’re applying for a loan.
Linda identified two main phases to the process – gathering information then analysing it – but reassured us that this doesn’t have to be complicated. She recommended focusing on 10 key elements but being flexible in the way they were presented based on your own context.
Describing your business and operations
Broadly speaking, the first few elements of Linda’s business planning model relate to what you do and how you do it. We started by jotting down the basics: formal business details like registered name, ABN and trading structure. We then moved on to a short business description. In our first exercise, Linda challenged us to describe our purpose, vision and services in just three sentences, because “if you can’t describe your business to yourself, you will struggle to describe it to your clients”. Not only that, but well-drafted content here can also contribute to good marketing copy later.
Linda’s model also looks at the resources you need to deliver your services (and any products). Mapping out your operations covers everything from the fees you charge to the bookcase you store your reference books in. Team asks you to think about who is involved and what skills they bring. For sole traders, it’s a matter of identifying where you might need to supplement your existing skills with professional development or subcontractors, for example.
Getting to grips with competition and the market
At this point, the workshop headed for the slightly rougher terrain of competition. Where do you even start your analysis when you’re faced with the entirety of the freelance editing profession? How do you quantify the hulking presence of generative AI?
Linda’s approach came as a pleasant surprise. She suggested that your business plan can focus more on what competitive advantage you offer than who your competitors are. In her view, there’s plenty of work out there, so it comes down to finding your unique selling points.
Linda led the workshop through a SWOT analysis of strengths, weaknesses, opportunities and threats. We then directed our attention to our target market and marketing. Business plans can pull in multiple strategies, from lead generation on social media to direct exposure or referrals.
One big takeaway: “Don’t underestimate networking with your editing colleagues. You are competitors in a way, but it helps everyone to be collegiate.”
Managing your finances, risks and business goals
Linda rounded out the workshop with some more heavy hitters. She highlighted the importance of analysing your finances and ensuring that you can earn enough to live on, year-round. IPEd’s resources on fair pay rates came up as handy references here.
Another exercise saw us brainstorming risks – from failing computers to global recessions – and related risk management strategies. It was heartening to see how adopting sensible business practices could mitigate many of the risks we had in common.
We wrapped up with goals for the short, medium and long term – a pivotal part of the business roadmap and its destination. Then, all that was left to add was a quick summary (written last but placed up the front).
On behalf of Editors NSW, I thank Linda for channelling her years of freelance experience into such a valuable PD opportunity and demystifying the business planning process. My crystal ball is going back in the cupboard.