2 Years Down, 0 Regrets
Ahh the ups and downs of running an online service-based business. While 2020 was particularly tough to own a small business, it was prime time to have an online business. And pledging to be a purpose-driven business has never mattered more. This year came with plenty of tears, lots of rejection, and tons of learning. All worth it.
Even if you’re “not a numbers person” I think it’s super useful to go back over the year and think about what went well and what didn’t. If you’re anything like me, you get lost in the weeds of the day-to-day to-dos and can miss the huge amount you accomplished over the course of the year. I recommend doing mini reviews each month and quarter, keeping track of stats that represent growth and success to you. This makes year-end reflecting easier. Regardless, you can probably do an annual review in a few hours like I did.
2020 Purpose-Driven Business Stats
I’m so thankful that my business grew 140% in terms of revenue this past year. Although it is constantly evolving, it feels much more stable and sustainable than my first year. In part due to referrals, but mostly because of the confidence that comes with time and experience.
Here are a few snippets of 2020. Of course, these figures can’t capture everything. But it’s nice to have concrete stats because running a business can feel so nebulous and personal. (Especially when you buy into that dreaded comparison game and fall prey to imposter syndrome.) Plus, it’s fun to compare year-over-year.
What Worked in 2020
As time goes on, I get more clarity about how I like to work, who I like to work with, and what I’m best at. I love working with purpose-driven founders because they have that *particular* energy and vision. 28 of my clients this year were founders. That’s 50%. I want to work even MORE with founders in 2021. One of my upcoming projects (a super exciting collaboration) helps freelancers become founders, which hits really close to home and will be my first scalable venture.
I finally realized I DON’T like being tied to my inbox or reacting to “urgent” tasks that come up on the regular. My days functioned better when I was able to batch work so that my brain didn’t have to switch gears. When I could plan and batch, I wasn’t forced to push deliverables to their max deadlines because something outside of my control popped up. This epiphany means taking on fewer retainers in the future. The retainer model was wonderful when I first transitioned away from a full-time job because it meant steady, predictable income. But it also means being on-call when I don’t want to be, or putting up firm boundaries that make me feel difficult or inaccessible.
Although niching down is still something I’m working on, I did figure out that messaging is what I’m best at. I feel like I have the most impact when I’m working at the high level, connecting words and ideas for people. I also found that the idea of purpose-driven business resonates with lots of founders and customers, so I’ll continue to learn and share more about impact through enterprise. And while I should probably specialize a bit, I’m proud of all the sectors I touched this year—we’re talking CPG, fashion, finance, nonprofits, tech, lots of other service providers, and more.
Things To Improve Upon
First and foremost, pricing. I avoid hourly billing now (barring a client I’ve been with for almost one year). I’m still not a pro at pure “value-based pricing,” but I offer project-based partnerships because they’re more transparent for both sides. Still, I think it’s a useful benchmark to calculate your hourly rate internally to see how well your time, energy, expertise, and earnings align. (Note: To do this, you actually have to track your time for each project and client. Super easy, as long as you remember. I’ve been using a free version Toggl for years. There are lots of options out there, many of which integrate with other software you might already be using.)
Pricing Gut Check Tips
The reason it’s so valuable to check your *actual* hourly rate is to benchmark how well you’re pricing yourself. For example, my lowest hourly rate came out to $20 for packaging copy. It was meant to be an edit and turned into a full re-write, plus some “extra insight.” My next lowest was $22/hr for a blog post that took tons of time to research, but especially to source, resize, and manage photos. These earnings DON’T factor in taxes, admin time, and the costs of running a business. So while this is moderate pay for a staff member or a side gig, it’s not at all sustainable for a full-time contractor and business owner.
On the flip side, my highest hourly rate came out to $471. This is skewed extra high because the client ended up paying out the contract for 4 months of email copy and performance analysis, then cut the project short. A more accurate runner-up is $200/hr for a complete brand messaging, media, and social strategy package. We hit a really good flow and I understood her vision, so I spent less time to deliver the result she was after. Hundreds of dollars per hour might sound wild. But think about what they’re paying for: someone who knows what they’re doing and can do it both well and quickly. The client can focus on their strengths by bringing in much more in sales than what they’re spending on an as-needed contractor.
So yeah, my earnings ran the gamut. In full transparency, I averaged $65 per hour. This is middle-of-the-road for online service providers, verging on the low end. Part of the variability of my revenue came from scope creep and mismanaged expectations. Some of the lower earnings boiled down to it being really hard to get pricing [and other factors] just right. But it does get easier with practice and the confidence that comes through trial and error. A full-ish client pipeline also helps, because that way you can price your packages a bit higher and not worry if someone says “no” or “not now.”
Proactive vs Reactive Offerings
Another thing I want to change in 2021 is taking on less content creation and more strategy work. Not only is content really time consuming, it’s also a bit of a grind. (There’s no light at the end of the content tunnel…) Churning out posts also doesn’t feel particularly impactful to me. Of course, content is important to grow a business and reach customers, but it’s hard for me to see the immediate results of producing great content. (That said, I want to start creating more content for my own business in 2021!)
Strategy on the other hand, allows me to equip founders for growth. In theory, my messaging touches every part of their business, as well as their mindset. In my opinion, it takes a special type of brain to craft a strong strategy, so I should leverage mine. I’m eager to try new methods in the new year. Done-for-you-deliverables might still be my core offering, but I want to mix in templates, education, and “VIP Day” intensives.
Moving Forward With Optimism
We should do more of what feels good, right? I want to continue with workshops and other educational resources, which gave me energy, rather than draining me. The feedback I received was really positive too. I also LOVED networking online with people who care about their personal and entrepreneurial impact. I plan to stay active in Slack groups and other online communities. As a new member of 1% for the Planet, I hope to dive deeper into any community-building they offer.
Maybe it’s the anthropologist in me, but it’s the people I met this year that have me most excited about 2021. Not only staying connected with them and spreading the word about their businesses, but also meeting more visionaries. I’ve put a stake in the purpose-driven business and social impact space, and I’m ready to move full force ahead.
So tell me, what was the biggest thing you overcame in 2020 or the accomplishment that made you most proud? What are your goals for 2021? I’d love to know!
