If 2020 has taught us anything, it’s that life comes at you fast. But this year, everything is coming at everyone fast. The economic shutdown has many out of work, and with the lifting of protections looming, many will find themselves evicted from their homes. Several years ago, I was unexpectedly laid-off as part of a restructure. I immediately began freelance consulting. And even though I returned to the company months later, I kept it going on the side.
When life threw me lemons, instead of making lemonade, I planted lemon trees. But man, did I have some tough lessons (mistakes). I’m sharing the four most horrible with you in hopes you won’t be like me.
Freelance Mistake #1 – Didn’t Get Clarity From The Client
Here’s the situation. I landed a five-figure consulting contract with a biotech startup looking for clinical applications and commercialization opportunities for their technology. Once I understood the technology, I was able to conduct a thorough opportunity assessment, create several scenarios and financial models, and make recommendations. The information was presented to their leadership team and the lead investor. The depth of the analysis was enough to point them in the right direction.
To conclude the engagement, I presented them with an Executive Summary to supplement the final presentation and models. Gold star, right? Wrong. They weren’t happy. They thought the summary, coupled with the presentation, was incomplete. Of course, I wanted them to be satisfied. After a tense phone conversation that lasted nearly two hours, I better understood what they wanted. We used the same words, but the words had different meanings to each of us.
I’ll use an analogy to simplify. They asked me to build a box. They said the box should be 4″H x 4″W x 8″D. After saying ‘okay,’ I wrote a Statement of Work to those specifications WITHOUT asking clarifying questions. When we got on our call together, they still kept saying they want a box. And as I probed to understand better what type of box they wanted, they would repeat, “we want a box.”
When you conduct a discovery call, it’s essential to define what terms mean and then outline them expressly in the Statement of Work. In this example, it’s the color of the box, the material from which to construct the box and the use for the box.
They wanted an in-depth report recounting the process, summarizing research methodologies, data interpretations, and so on. If I had asked better questions to start, I would have been able to deliver that on the first go-around versus having to do re-work to produce the report they desired.
Freelance Mistake #2 – No Meeting Of The Minds
On a different project, we didn’t have a meeting of the minds concerning the final payment. During our discussion, I agreed to accept part of my payment in the form of company equity. Meaning, when they exit, I get a small piece of the pie. It’s not unusual for startups to make such an offer so they can preserve their liquid capital.
Except for we didn’t actually have the same understanding of the terms. I wasn’t sure about the company or the technology and wanted the option at the end of the engagement to receive my final payment in cash. When I went to exercise the option to receive cash, I was informed that was not the agreement.
Let’s just go to the contract. Well, I compounded this mistake with poor paperwork hygiene. This was before you could quickly snap a photo with your phone and convert it to PDF. While I had a scanner, I didn’t want to scan the entire document, so I only returned the signature page. Unfortunately, they could say I signed anything at that point.
Practice good record keeping, always return, or insist the entire document be signed and returned. This is much easier now with any number of legally-binding electronic signature platforms on the market. For extra security, the footer should include the name of the contract, the version, and the number of pages (x of y).
Freelance Mistake #3 – Allowing A Change In Payment Terms
I was working with a startup with limited cash flow. The terms of the agreement called for my client to make milestone payments due when invoiced. When the payment came due, they were a little strapped for cash. Wanting to be helpful and understanding, I agreed to split the milestone payment in two. The first half was due in 30 days, and the second was due in 60.
As you can guess, the client was late paying the first half by two weeks and was late on the second payment by two months. To make matters worse, the client didn’t return my calls. When I text them, they said they would take care of it. My system generates a weekly reminder that an invoice is late, so they received weekly reminders for two months.
Eventually, I did receive the payment, but it was without apology. It’s tempting to want to relax the rules, especially to help someone in a tough time. But, I also sent the unintentional signal that I could be manipulated. Sure, they may have been late regardless, but they may have only been three weeks late with the full payment. By negotiating our agreed-upon payment terms, I allowed them to deprioritize paying me.
Freelance Mistake #4 – No Systems
When I first started, I didn’t have any automation tools. I didn’t have a website. And, I had no idea how to do any of it. Looking back, I wonder how I managed without some of my favorite tools.
Systems are your best friend. It’s one of the S’s in my Like A B.O.S.S. framework. Now, I can direct people to my website for information. They can schedule a meeting with me, and receive details about my products and services all without me clicking a button.
Not only is it easier for me, but it also creates a seamless and enjoyable customer experience. Even though I’m a small shop, I want my clients to feel their needs are a priority. I want to remove friction for them, whether becoming a Warrior Jump School member or participating in my Warrior Life Coaching programs. I automate everything I can, so we can concentrate on our time together, taking action.
Don’t fret. Even seasoned professionals make these mistakes. If you’re interested in learning more about common mistakes and how to avoid them, get my Freelance + Side Hustle Quick Start Guide. It’s a FREE course that’s a game-changer when it comes to taking lemons and planting lemon trees.
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