Can I make it on my own?

Communication World, Feb, 1997 by Robert A. Parker

* Martha has two small children. She wanted more control over her daily schedule.

* Lee's company merged and moved. But life in New Jersey appealed to him, and so did an early retirement package.

* Joli was stressed out by the ad agency pace. She needed emotional distance and more freedom.

* Gary's agency downsized, then lost his major client. He took the severance package as a bridge to his next job.

* Maureen's boss was fired. She took a generous early retirement package before the bloodletting came.

Each of these professionals gave up a staff job. Yet they still shared one desire, to remain creative, and one need, to maintain their standards of living.

The question of whether to become an independent communicator crosses the mind of many a staff person as the world around them shrinks, hours lengthen and security loses its meaning.

When the inevitable happens to me, many wonder, can I make it on my own? These five did. And here are the key questions they faced: What were your concerns? What mistakes did you make? And what advice do you have for those thinking of a similar move?

The First Concern: Money

Going independent means an immediate drop in cash flow, the reduction or loss of benefits, and the need to spend - for stationery, computers, printers, phone lines, etc.

"You have to begin with money in the bank," says Martha Voss, Voss Communications, Bernardsville, N.J. "I built a nest egg of $5,000. I didn't feel comfortable in leaving my job until I had that in place for start-up costs." Her husband has his own company, and she also waited until she was eligible for benefits under his policy.

Joli Furnari, on the other hand, applied for COBRA (a U.S. program allowing her to keep her health benefits for a specified time - but paid by her, rather than her former employer), at U.S. $300 a month, because her husband was not working when she left her marketing firm. "We had been saving for a house and had around $20,000," says the West Paterson, N.J., writer. "We had no children or mortgage, so I thought we would be okay."

Writer Lee Bland of Mendham, N.J., found another source for the $6,000 he needed for start-up costs. "My severance package," he says. "I invested it in myself."

"You need at least six months of cushion on hand to pay bills," says designer Gary Ghezzi of Denville, N.J. That's about how long it takes to find clients, do a few jobs, and expect to be paid. "Someone told me that if you can last 18 months, you'll probably make it." While single then, he also bought catastrophic health coverage for $125 a month.

Where else did the money go? The largest expense was an average $3,000 for computer hardware and software. Another expense was sta-tionery. Printing costs can range from $250 to $750, depending on how many letterheads, envelopes, business cards, invoices, mailing labels, etc., are ordered. Other costs were for phone lines, furniture, copiers, fax machines, etc. None of the five invested in a fancy promotional kit or marketing program, and none took an outside office for their work.

The Second Concern: Temperament

A freelancer's lifestyle is like riding a rollercoaster. "It's boom or bust," says Voss. "The boom is great, but the bust is scary."

Temperament is key, says Ghezzi. "Do you have an entrepreneurial spirit? Do you like to talk to clients? Can you adjust to the crazy hours? Can you make your own decisions, instead of having a boss do it for you?"

Freelancers must also have self-discipline. Can you meet deadlines while working at home with no one looking over your shoulder? Or, must you dress up and go to an office? Also, are you self-reliant? Do you still need a clerk or secretary to type a letter or make 20 copies?

If you pass that test, Furnari says, there is nothing like being independent. "I have much less stress. I can sleep at night. I eat normally. I have time to do things I want to do." She doesn't miss going to an office "where you have to dress up, play politics and all that nonsense."

But while they may be more productive at home, given the fewer interruptions, three of the five felt the loss of "schmoozing" at the office. "I missed the interaction, bouncing ideas off people," says Bland. "Or a draft may seem okay, but someone can give it a spin to make it better." And, of course, others drop by to test their ideas.

But Bland has noticed that the schmoozing is less vital today. After a few clients accept your work, he says, "you gain confidence in yourself and in your ideas."

The Final Concern: Clients

Before offering a lance for hire, it's wise to develop a small client base. Every experience, however, is different.

"I'd like to say I had a great master plan," says designer Ghezzi, "but I didn't." Leaving his job, he took freelance work while looking for a new staff position. "I had my foot in both camps. Then came a job offer and a revelation. I didn't want it. I really wanted to be on my own."

Maureen Dillon hedged her bet. No sooner did she take early retirement than she became a contractor for her company, American Express. On the other hand, Voss tried to work part-time for her company and segue into a freelance career. "But I found myself doing the same job for less money, with no time to find other clients," she says. "So I made a clean break."