PIC Newsletter - March 2015
 
Hope you enjoy the latest edition of The Buzz!

Tax time! Message from the PIC chair, Sharon Aschaiek

When I first started my communication business 11 years ago, and income tax season would roll around, I would do a lot of finger crossing. That is, I'd be hoping and praying that all my receipts and other relevant documents were in order. It took a while to fully understand the intricacies of tracking and claiming my business income and expenses, and preparing the right documents for my accountant. Even now, as I work on my tax filing for 2014, I sometimes feel a nagging doubt about whether I'm covering all my bases.

With the April 30 income tax payment deadline approaching, it's a topic that's likely on most of our minds. Of course, the tax requirements for those who are self-employed or run a small business are unique, and can be complex. So I thought you might appreciate these resources with information and tips on how to optimize your practices.

The Canada Revenue Agency (CRA) offers a comprehensive guide for professionals and business owners on how to calculate the income you will report on your 2014 income tax return. It includes definitions of key terms, suggestions for organizing your income and expense records, important tax filing dates to remember, which expenses you can deduct, new tax filing developments and much more. You can also check CRA's detailed list of qualifying business expenses, and the deduction rules for each expense.

Business News Network
recently published an article on its website called "Five money-saving tips for small businesses." It offers useful information on topics such as tax credits and deductions, non-capital losses and income-splitting. It also explains the penalties of not complying with tax-filing deadlines, and explains the benefits of making expense tracking

a part of your daily routine.  

For new independent communicators, this article from accounting software firm QuickBooks demystifies the tax filing process and highlights the important steps to make it through the tax season. It includes information on understanding your tax obligations depending on your business type -- sole proprietor, partnership or corporation -- explains essential business legal forms, and discusses HST, recordkeeping and other considerations.

A couple of recent stories on the CBC website also offer helpful information for preparing your taxes. "Tax time 2015: What's new this year" covers topics such as the family tax credit, children's fitness tax credit, medical expense tax credit, tax-free savings accounts, the HST credit and more. Meanwhile, "Tax time 2015: How to file your tax return online" explains the new options available when filing your taxes electronically on CRA's website, and lists a variety of software programs available to help you file online.

Finally, if tax time is stressing you out and you'd like some hands-on help, you may want to check out The Tax Relief Diet. This three-hour workshop will take place on April 4 and April 24 at two different downtown Toronto locations, led by Personal Tax Advisors, a firm that serves mainly self-employed individuals, and information management specialists Smart Info Management Services and the Deletist.

Continued success,

Sharon

In This Issue
A message from the PIC chair
March 5: All about pricing
Wording to get paid faster
Company of One fees
April 1: No fooling
May 6: The perfect pitch
Other events in April & May
Welcome new members
Meet Diane Fearn
Need a mentor? Want to be a mentor?
Update your profile
Explore the PIC blog
Quick Links
Newsletter archives
Join Our Mailing List!
We want your talents!
Tidbits of knowledge
PIC 2014-2015 Executive
March 5: (Just about) everything you always wanted to know about pricing
by Sue Horner

Jane Naczynski hadn't been to a PIC meeting for a long time, but was lured out to the panel discussion on pricing March 5. A long-time writer (and founder of PIC's predecessor, Alliance of Independent Practitioners), she was surprised and yet not surprised that we all still had the same questions. 

How much to charge? By the hour or by the project?

If you're new to freelancing, you probably charge by the hour while you gain the experience to accurately gauge your project time. Yet charging by the project is better for both clients and independents, according to the panelists. That's because a project fee puts the focus on value rather than time.

While you likely base a project fee on how many hours you expect the job to take, you don't share that rate with the client. As Sharon Aschaiek said, when you give an hourly rate, clients think "the meter is always running." Plus, saying $X per hour inevitably raises the question, "How many hours?"

Dorothea Helms agreed that "clients want to know where they stand." Both she and Sharon recommended keeping a log of your time so you become comfortable with how long a project takes you. At first, you might get the project fee wrong, but chalk it up to experience and learn for the next time.  

Randal Boutilier said quoting an hourly rate doesn't give a sense of everything that goes into your work. He advised spelling out the stages of what you will do in a creative brief that shows you want to help and are qualified to do so.

So, how much?

  • The 2014 PIC member survey showed the median rate charged was $100 per hour. The lowest rate was $45 and the highest was $250.
  • IABC/Calgary's Company of One surveyed its members in 2015, and found a median rate of $120 per hour. The lowest (which Company of One called "extreme low") was $25 and the highest was $350.
  • Professional Writers Association of Canada (PWAC) suggests up to $80 per hour for newsletters, up to $125 per hour for news releases and reports, and up to $130 per hour for editing and speechwriting.
  • Writer's Market lists up to $125 per hour for newsletters, up to $180 per hour for news release and reports, and up to to $350 for editing and speechwriting.
  • Dorothea suggests up to $100 per hour for newsletters, up to $150 for editing, news releases and speechwriting.
The panelists (and moderator Jane Langille) shared these tips for estimating a project:
  • Ask the right questions. You'll need to know how many in-person meetings or interviews will be required, the type of research needed, how many people will be involved in the review process ("More people = more rewriting," says Dorothea), the deadline and how many pages or words. Is there a project brief, previous versions, supporting/background material?
  • A creative brief outlines your understanding of the work and what happens if/when the scope changes.
  • Quote a range, with a minimum and maximum to account for the unexpected.
  • Ask friends and colleagues what they charge.
  • Track your own time on various projects so you know how long you take to complete them.
  • EAC copy editor Adrienne Montgomerie posts an online pricing calculator, where you enter the word count to get a sense of the typical cost and time required for editing. She also estimates timing for proofreading, copy editing and substantive editing.

The bottom line is this: The clients you want to work for will understand and be willing to pay for the value you bring to a project, which might be your experience in a particular niche or specific skills (such as writing newsletters or producing podcasts) that won't be conveyed by being the lowest. Price by what will make you money and keep you in business.  

Feedback  

PIC member Pamela Bailey said after the session, "Lots of useful, reminder info and such a nice group of people. Most definitely a hugely beneficial way to spend a Thursday evening!"

Member Diane Fearn said, "I have already used some of the insights! My friend called to ask me this morning if I wanted to work for a 'difficult' client and it was easy to say no."

First-time guest John Lashway said, "Just being in a room with 40+ colleagues who do similar work and likely face similar challenges was uplifting. It was wonderful to be in the midst of so many bright and talented people!"

Additional resources:

(A version of this article also appeared on Sue's blog, The Red Jacket Diaries.) 

Want to get paid faster? Use this wording

How you word your invoices can help you get paid faster, as moderator Jane Langille mentioned during the March 5 pricing discussion. According to research done by the FreshBooks "cloud accounting" service, here's what to say:

  • Be polite. A simple "Please pay this invoice within X days" or "Thank you for your business" can increase the percentage of invoices paid by 5%, and gets you paid faster.
  • Saying "21 days to pay" gets you paid more often and faster than using "net 21" (may be confusing) or "upon receipt" (interpreted as "whenever you feel like it"). Recommended language: "Thank you for your business. Please send payment within 21 days of receiving this invoice."
  • Threatening clients with interest on late payments ensures a higher percentage of invoices paid, although it may take longer. Suggested language: "Thank you for your business. I expect payment within 21 days, so please process this invoice within that time. There will be a 1.5% interest charge per month on late invoices."
Thanks again to FreshBooks for providing free copies of Breaking the Time Barrier: How to Unlock Your True Earning Potential, given away at the March 5 session.

  

IABC/Calgary's Company of One shares 2015 fee survey

PIC's counterparts in Calgary, Company of One, were gracious in sharing the results of their latest member survey on fees in time for our pricing discussion. Here are the highlights:

  • The rates on which Company of One members base their fees range from "an extreme low" of $25 per hour (for writing, marketing communication, web communication and social media consulting) to $250 (for facilitation, meeting management and communication training/education).
  • The median* rate across all services was $120 per hour. This is down slightly from the rate of $123 in 2013.
  • The single highest consultant rate was $350 per hour in the coaching category.
  • Most consultants changed their rate in 2014 or 2013, while 25% have maintained the same rate for more than two years.
  • Those newer to freelancing or to communications typically charge less. The number of years worked in communication had more influence on rates than years spent as a consultant.
  • Median rates listed by those without academic qualifications (such as BA and BComm degrees) or accreditation (ABC, APR) were lower on average than those with listed credentials.
  • Of consultants who identified the number of clients they had, the median number was five. There did not seem to be any advantage in having many clients over a smaller number of long-term projects or repeat clients.
  • Consultants who work with charities and non-profits used multiple strategies to set rates. Rather than reduce rates, Company of One recommends charging for fewer hours as a way to affirm the value of the work. The group also counsels against accepting a receipt for a donation. Doing so means paying taxes on the full amount as income and getting a tax credit for at most 21%.
  • The median amount of work time spent on non-chargeable activities such as marketing and administration was 15%.
*The median is the "middle" value in a list that has been sorted from smallest to largest. Median is considered a more representative measure of what is "average" than the arithmetic mean when the sample contains extreme numbers.

April 1: No fooling! Spring is here at last, so get out and socialize

Mark your calendars for our next social event, from 7 p.m. the evening of Wednesday, April 1. We had such fun February 4 at the O+B Canteen that we're going back. O+B Canteen is a casual eatery on the ground floor of the TIFF Bell Lightbox at 330 King Street West in Toronto, not far from our usual Metro Hall meeting spot on John Street. As usual, it's pay-your-own-way for drinks and snacks. Let Jane Langille know you'll be there by email to [email protected].

May 6: Learn how to make the perfect pitch

Wednesday, May 6, 2015, from 7 p.m. to 8:30 p.m.

Metro Hall, 55 John Street, Toronto, Room 308 (closest subway stop: St. Andrew station)

 

You have seven seconds. In your interactions with clients, that's all the time you have to spark interest about what you can do, to get the next 23 seconds to finish your elevator pitch. The ability to do this will make the difference in how many clients you can find and how much work you need to put into it.

In this session, you'll get practical guidance on how to structure and build a perfect elevator pitch. A few lucky participants will get to "trial run" their elevator pitches and get live feedback to make it better. Then you'll get time to work with others to perfect yours. You'll leave this session with a much better way to introduce yourself to and articulate your value to potential clients. It's a session you won't want to miss!

About our presenter: As the Chief Story Architect for Impact Assured (soon to be The Story Architect), Kevin Smith helps startups, small businesses and social enterprises unleash their story by helping them understand what their core customer story is, and then helping them get their story to market. His services include branding, messaging, marketing strategy, SEO, content and social media marketing, presentation and pitch design, web design, lead generation and sales training. Kevin worked at Dell for 14 years in various sales and marketing roles where he gave thousands of presentations and client pitches.

Registration fees*:
IABC members: $16 ($18.08 with HST)
Non-members: $26 ($29.38 with HST)

*Please register and pay for this event in advance. Sorry, we can't accept payment at the door. 
Remember, to keep costs down, we no longer have refreshments at PIC meetings -- sorry, not even water! To give you time to fill your water bottle or grab a quick snack before the meeting, registration and informal networking will start at 6:30 p.m. (half an hour later than previously), and the panel discussion begins at 7 p.m.

Register now!  

Other events in April and May

APRIL 16: Time to SHINE! Communicate to a brighter career

6:30 p.m. to 9 p.m., Thursday, April 16, 2015
Beaver & Bulldog (Waterfront Hotel), 2020 Lakeshore Road, Burlington

Join IABC Golden Horseshoe for a spring social featuring an interactive talk by renowned communications expert, Gerry Lewis. The 30-year communications veteran and author of SHINE will show you how to stand out, get noticed and be brilliant by finding your own authentic voice. In particular, he will focus on two important opportunities you have to set yourself apart in your everyday work: meetings and presentations. Cost to IABC members registered by April 2 is $25; guest of IABC members are $35; non-members pay $45. 

Find out more and register 

 

APRIL 23: IABC/Toronto Westend lunch

Noon to 1:30 p.m., Thursday, April 23, 2015
The Victorian Garden Tea Room, 313 Burnhamthorpe Road, Etobicoke

Join IABC/Toronto Westend members at the Victorian Garden Tea Room for a networking lunch over English high tea. Lunch includes tea of your choice from the extensive menu, finger sandwiches, a scone with jam and cream, and dainty pastries. Price including tax and tip is $34.50, payable to the tea room.

Find out more and register

 

MAY 1: Hands-on social media workshop

9:30 a.m. to 4 p.m., Friday, May 1, 2015
Toronto Board of Trade, 1 First Canadian Place, 77 Adelaide Street West, Toronto

Are you tired of trying to figure out social media on your own? Would you like to get your burning questions about the WHY and HOW of social media answered? Do you want to get better at integrating social media into your day-to-day work so you can meet your goals? Then come to this workshop, where you'll learn more about blogging, Twitter, Instagram, LinkedIn, Facebook and more from presenter and PIC member Donna Papacosta of Trafalgar Communications. Save $20 with the earlybird fee if registered by April 10. PIC members save an additional 15% with discount code iabc2015.

Find out more and register 

Welcome new members

Carolyn Black
647-403-0982
[email protected]

ca.linkedin.com/in/carolynsblack

Carolyn offers freelance writing and editing services to the education and non-profit sectors, building on 15 years of experience in educational publishing and higher education. She writes reports, successful grant applications and sharp web copy.

Ellen Keeble
Tethys Media
403-971-7685
[email protected]
www.tethysmedia.com
ca.linkedin.com/in/ellenkeeble

Ellen specializes in plain language writing, editing and desktop publishing. Ellen translates complex ideas and technical jargon into accessible and creative messages to craft powerful narratives in digital and print.

 

PIC Personalities
Meet Diane Fearn
 
Diane Fearn is a freelance writer and photographer. She works with not-for-profit organizations to share their stories and connect them to their target audiences through web content, social media and event photography. Learn more about Diane online at www.linkedin.com/in/dianefearn/en or reach her at 647-388-3248 or by email at [email protected].

When did you start your independent business?

I began collaborating with another freelancer in 2013 and then launched my own business in April 2014.  

How did it come about?

I had worked in health care at a hospital's in-patient neurological rehabilitation program for 10 years with stroke and brain-injured patients. After having some health challenges of my own, I needed to switch gears and careers. I felt strongly about the power of clear messages and communications and decided on Humber College's three-year advanced diploma program in Public Relations. I had an internship in corporate communications with the Regional Municipality of York and loved it!  

I began volunteering with IABC, to gain valuable experience and connect with other professionals. I worked with the Ovation Awards gala team for eight months and volunteered at the World Conference in Toronto.  

While I was job-hunting, a friend who was an indie kept asking if I wanted to work together. I hadn't planned on being an independent but started collaborating with her. I worked on various projects including biographies, tax tips, newsletters and annual reports. I also began attending events to photograph and record key moments for her clients. So I kind of fell into being an indie.  

What are you working on now?

Right now, I'm enjoying writing, photography, social media and writing for the web. I just finished working on a website where I went to more than 50 locations in the Lake Simcoe watershed, to take pictures and write about these amazing places. My main priority is promoting and improving the Exploring Lake Simcoe website.  

I'm also volunteering with this summer's PanAm/Parapan Am Games. The equestrian centre for the games is near my house and I couldn't miss out on being a part of this. I am with the Press Operations team and online training has begun.  

What do you enjoy most about being an indie?

The flexibility. If I want, I can write first thing or late at night, or take a walk by the Humber River in the middle of the day with my mother.  

I also like variety. I'm passionate about photography, and I like that sometimes work comes in through photography and sometimes through writing. I've been so lucky, I've been paid to explore and write about and take pictures of unique and beautiful places that are dear to my heart. Lake Simcoe is in my soul now and because I was an independent I was able to do this work. I love it!  

What don't you like about being an indie?

I work mostly with not-for-profit clients who deal with financial challenges, so being flexible and adaptable is key. Sometimes I miss working with a fantastic team, so at least once a month, I make a point of getting out to network and connect with others.  

How long have you been a PIC member?

I attended my first PIC meeting, a session on writing killer LinkedIn profiles, in fall 2013, before I was an independent myself. I knew about IABC as a student and had won the Kay Staib Memorial scholarship in my last year, but I didn't know about PIC.  

What advice would you give someone new to independent life?

Join PIC, and the sooner, the better! The level of support, the resources it provides, the panel discussions, the latest fee surveys; it's all definitely worth it. These aren't just case studies or textbook advice. If someone in PIC shares a tip, they're sharing their experience, and that's so valuable.  

We count more than 160 members in PIC, offering a range of talent from coaching and media relations to video production and writing. Do you know everyone? Our PIC Personalities feature introduces new members and randomly profiles existing members. Let Sue Horner know if you'd like to be profiled and she'll be in touch to set it up! You can find previous PIC Personalities posted online.

Need a mentor? Want to be a mentor? Sign up with Sharon

Our mentorship program is live, with two mentorship matches among our members. We're looking for more seasoned communicators to pair with aspiring mentees who may be new to being independent.

If you're willing to be a mentor or would like a mentor, email Sharon Aschaiek at [email protected].  We'll set up the connection and leave you to work out the details of how often to meet and where you want to take the relationship.

For some tips on making the most of a mentoring relationship, see Sharon's column in the January Buzz, recapped on the MentorCity blog.

Make sure your PIC member profile is current

 

As a member of PIC, you can promote yourself at no charge in the PIC directory, located on the IABC/Toronto website. Yes, it's f-r-e-e! Make sure you're taking advantage of this chance to share key details about your services.

If you want to add to your existing profile, or create a completely new one, email PIC's Director of Membership & Events, Sohini Bhattacharya. Sohini keeps a running list that she shares with IABC/Toronto every quarter, using your name, company name, location, email address, telephone, website, blog and a brief description of your business (up to 35 words).

 

Need help with some aspect of the independent life? Check out the PIC blog

Check PIC's IABC eXchange site, listed upper right as "PIC Toronto blog," for the information you need to help you start, run and grow your business. You'll also find past PIC event reviews, promotional podcasts and previously featured PIC Personalities, and you can download the report on our 2014 fee survey.

IABC is transitioning away from the eXchange platform, so we're working with the Toronto chapter to move our content elsewhere. In the meantime, if you run into any snags, please let Sue Horner know.


 
PIC is a special interest group of IABC/Toronto. PIC's mission is to support independent IABC/Toronto communicators through professional development, networking and marketing. 
The Buzz is PIC's e-newsletter, intended to inform independent communicators about our activities, share professional development tips from past meetings and keep us aware of what's going on. Connect with us on the web at pictoronto.com.

As the largest chapter of the International Association of Business Communicators, IABC/Toronto provides access to products, services, activities and networking opportunities in Toronto and around the world. IABC helps people and organizations achieve excellence in corporate communications, public relations, employee communication, marketing communication, public affairs and other forms of communication. For more information, visit the
IABC website.

Sue Horner                                                           Heather West   
Director, Communications - PIC                              Copy editor