Jess Hill

I have to warn you, folks: this is a RANT!

My story actually begins last night when I tried to deposit two checks at an ATM after bank hours (which as we all know don’t really end at a good time for most people). I managed to reach the outside ATM and get back to my car in between the torrential downpours Philadelphia is experiencing right now, but sadly I did not return with a deposit receipt – only the two checks I wanted to deposit. It’s happened before, sometimes ATM deposits are down, but you can usually go back the next day and they are back up. I then proceeded to my volleyball game no more richer than I was when I left.

Today I wrote up a list of errands to be completed during the day, one of which was depositing my checks in case the ATM was still down. Wanting to get everything done quickly, I set out my route with Wells Fargo as my first stop. Sure enough the ATM deposit was down again today, but this time I headed into the bank (I think I’m only allowed to use a teller once or twice a month anyway unless I want to pay another fee).

Side Note: I loathe using Wells Fargo in the first place. Why do I need to pay a $2.50 Wells Fargo fee to take out my money at non-Wells Fargo ATM machines on top of what I’m already being charged? And why do I need to have a $1500 of my money available to you at all times in a FREE checking account? I’m still with them because they are my longest standing bank account. Financial people, feel free to chime in here if this does not help your credit score/credit history.

Anyway, in I walk and fill out a deposit slip. Lynda the teller deposits my checks and proceeds to tell me – or I should say Jennifer; that’s the name she kept calling me – that Wells Fargo would like to review my financials with me. I say, “No thank you.” She then shakes her head at me, so I say, “Is something wrong?” She tilts her head down at me and begins to mumble something through the bullet proof glass, essentially making it seem like something is wrong. Another women, I’m guessing the supervisor, immediately walks over and says something about needing to review some things with a financial advisor, who is currently available if I just have a minute. I also want to mention that there is now a line behind me because the ATM deposit still isn’t working.

In my head I’m thinking this is really odd. I have my minimum balance, I’m within my balance transfers for the month since it just started, this is the first time I’ve seen a teller in I don’t know how long, I don’t have any investments with them – anymore – what the heck do they want? So I go back with the woman and sit down with a financial advisor. This is the fun part.

After being manhandled to sit down with this guy, he asks for my debit card and license. He updates my permanent address and asks me my employer information – which we all know is me now. Funny side note this time: they had my employer as Citicorp, which was my very first job out of college in 2003. Then he hands me back my cards. Here’s where the “financial review” comes in. His next question is, “Do you use credit cards?” So I appease him and say yes. He then says that I am eligible for for a Wells Fargo rewards credit card for no annual fee. I almost blew a gasket on this guy, but knew he was only doing his job. I said no thank you, as I had to Lynda, and let him know that I have plenty of credit cards. He didn’t really want to take no for an answer and then said all I had to do was verify my mother’s maiden name and I could have the card today. AHHHHHHH!

Not only did I have to go into the bank, they completely did a bait and switch. Bait me in with downed ATM depositing, tell me I need a financial review, update information that could have been done online by me and then try to sell me your credit card! Thanks for wasting my time.

Silver lining – I could have had my first non-fee Wells Fargo product today. /rant

The new American dream of flexible hours, flexible location and no dress code is a reality now more than ever, and startups are popping up everyday. As a neophyte to self-employment, there are certain things I wouldn’t have thought to do. Fortunately for me, I’m good at asking questions and surrounding myself with people who like to help. The following tips are in no particular order, but have most definitely helped me stay organized in the beginning months of working from home on a full-time basis.

1. Get Ready For Work

When working from home it’s easy to remain in your comfy pjs. Don’t do that. Take a shower, brush your teeth, get dressed, and for goodness sake, put on some deodorant!

You don’t need to rush through the morning routine as if you actually have to leave your house at certain time, but it will help you get the day started and differentiate a weekday from a weekend day.

2. Set Up A Business Bank Account and Credit Card

Keeping small business finances separate from your personal finances will help you tremendously when it comes to tax time.

Open a separate bank account so you can deposit incoming payments as a business payment. While all the money you earn is technically all going to the same place, paying the business first to ensure expenses are covered is a safer bet. Then pay yourself.

Also, sign up for a credit card specifically for business expenses. Use this card to pay for everything, and at the end of the year, get a report that categorizes and organizes all of your expenses. Additionally, look for a credit card that gives you rewards where you need them. CreditCards.com has a nice credit card comparison chart to get you started.

3. Set Aside Money To Pay Your Taxes

If you are a 1099 consultant, you are now responsible for paying all taxes to the government. You pay the entire 15% social security and Medicare tax, any state and local taxes and will need to eventually pay your taxes quarterly since your company isn’t taking them out for you.

Depending on local laws, a good rule of thumb is that you will owe about 20% of your earnings after all is said and done. Just like taxes are taken out of each paycheck when you work for a company, take 20% out of each check you receive from clients and put it aside. By getting into this habit early, you’ll avoid scrambling to pay your tax bill in April.

4. Check Local Government Laws

As a resident of Philadelphia, every person who earns income through a 1099 must obtain a Philadelphia Business Privilege License – an initial lifetime fee of $300. I would have never known this one without my accountant’s help. In reading through the website, this even applies to businesses located outside of Philadelphia, but conduct business within the city limits. Who knew?

My advice is to check out the local laws with any client you plan on doing business with, as there may be some unexpected taxes and licenses you’ll need.

As a side note, the ONLY way I could register online for the PBPL was through IE – how antiquated!

5. Tell Everyone You’re Starting Your Own Gig

The biggest fear I had going into self-employment was how I was going to generate business. The best thing I did for myself was to tell all of my friends, people I’ve done business with in the past, family, local coffee shop owner, etc., that I started my own consulting business. One of my friends that I play kickball with who works at a rental car company connected me to one of her customers – completely random, but it might turn into something.

My point is, you never know who will be in need of your services and you never know who might bring about a connection for you, so make sure everyone knows what you’re up to.

6. Create An Environment Conducive For Working

Working from your bed will get old very fast. First of all your back and neck will start to hurt. Secondly, it’s hard to be creative when you’re in an almost sleeping position. Finally, you’ll feel like you never leave your bed and will probably hate sleeping in it.

Find a space in your place, either an entirely separate room or an area dedicated to work, where you can put a desk and call your work area. Next, get an appropriate desk setup. I originally started out with a tiny desk:

I wouldn’t recommend this! I upgraded to a much larger IKEA desk space, but my goal is to build a standing desk, specifically this standing desk. I figure I’ve spent enough time sitting, and we all know that sitting sends you to the grave faster.

The idea is to create an environment where you can concentrate, be creative and then leave when the work day is over.

7. Keep To A Routine

When initially starting your consulting business, you’re going to have a surplus of free time. By creating a routine, you will minimize the temptation to watch TV all day. It starts out like this, “Oh Ellen is on at 3. I haven’t been able to watch her show live since college. I’ll just watch that today.” Then you get excited for Ellen to come on and sit down 30 minutes before her show and find a new show to watch. The cycle continues. I tell you this because I’ve watched TV all day, and it wasn’t the weekend.

I’ve settled into the following routine: Watch the news in the morning while eating breakfast and getting ready (Tip #1 – Get ready). Then I head up to my office (Tip #6 – Create a Workspace) to check my email, check the Twitters and read through industry news. Next I get into any work I need to complete. After a few hours of reading and working, it’s time for lunch (sometimes I throw in an afternoon workout). Then I get back to business. Around 3PM, it’s off to track practice. Finally, I return home and finish up anything I needed to get done for the day.

I feel accomplished and not as bad when I want to sit down and watch evening TV. I’m not saying you can’t watch Ellen at 3PM; I’m saying make a schedule, and stick to it.

8. Schedule Social Interaction

My final tip is to make sure you directly interact with people. It sounds silly, but interacting with people in the flesh keeps you sane. Talking to my cat is not the same as having a conversation with a person – mainly because she gives me a look of death to leave her alone. Exhibit A:

Schedule in time to go to a coffee shop or have lunch with a friend. I joined kickball and volleyball teams Face to face time with people reminds you that you’re human.

While these tips aren’t pertinent to the success of a small business, they are extremely helpful. I’m grateful for all of the advice and help I have received this far and plan to pay it forward when the time is right.

Do you have any tips to add to this list? Feel free to drop me a line in the comments section.