about 4 weeks ago now, i lost my job.  i got to be one of the half a million peeps who lost her job in this current recession.  i got to be a statistic.

i have been meaning to put together either a separate site, some entries here, or both, on my progress report while i sat back for a bit to absorb fully what had happened when laid off, and to figure out what my next step(s) would be.  somehow, about a month went by and i couldn’t get myself back to blogging regularly here at FWP for some reason.  (sure, i hosted a handful of blog carnivals, but those don’t count as ‘personal’ posts..)

there were many reasons, i know.  during the past several weeks i experienced a plethora of emotions and states including but not limited to:

• anxiety
• glee
• joy
• confusion
• frustration
• dismay
• mild apathy
• stoicity
• determination
• mild depression
• .. and other

and while i was going through all of the above, i found it too overwhelming(?) to divulge what i was going through.  i was in my own little world, i was experiencing a big change in my life, i was working on ‘coping’ or ‘dealing’, planning, strategizing, deciding.

so i was set free.  free!  i could finally pursue my dream to freelance, to work when and how and where i felt like and/or saw fit!  i could be ‘independent’, my own boss!  i would have clients, but no supervisor other than myself.  it was a dream come true!

but as i have mentioned in an earlier post, i was not certain that i was ready.  i wanted to become a freelancer under my own terms — when i was ready to become one, when i chose to step away from the fulltime working world.  not when i was ‘discarded’ by my employer due to lack of funds, not by surprise.

but alas, there i was.  and although i could not deny that i was a bit perplexed among a host of other states of being, it was time for me to move forward and take action.

over the next several days or few weeks, i hope to recapture what i have been doing the past month as i entered the world of independent contracting, and to better chronicle my progress moving forward.

larry winget's* book

a few months ago i wrote, crafts as a source of income? as i toyed with the idea of selling my handmade, crocheted products in order to earn extra money to help pay off my debts.  i knew that this would be small supplemental income from a side hobby, that i would not be able to earn serious income from any sales.  well, not yet at least.

admittedly, i was a bit skeptical that anyone would actually buy my products.  similar accessories can be had for cheaper prices most often than not, easily factory-made and mass-produced.  also, while looking around the etsy site, i noticed the plethora of amazing handiwork there.  as such, i did not feel that as a relatively new crocheter, i could even compare or compete with the other sellers.

much to my delight and surprise, i made my first crochet sale last week online! my first real customer!  she was a girl in another state who bought a crocheted purple ninja amigurumi toy/doll from me!

only several hours before, a friend of mine in the east coast noticed my ninja somehow also, and requested an order of 4 ninjas of various colors!  the next day, someone bought my multi-pink bamboo-handles fringed handbag!  wow!

admittedly, i did not make very much at all in terms of profits.  at $7.77 for the ninja with shipping, i made about $3.  this is after i took out the cost of supplies.  as for the handbag, i took quite a loss.  i estimated the shipping so incorrectly — it turned out to be $6+ for shipping instead of $3.  as a result, while the customer paid about $8 total, i had to dish out an extra $3+ for shipping, and the dollar of two remaining is immediately gone because it cost me about $10 to make the bag in the first place (cost of supplies)!  it was like giving it away as a gift, really.  since the shipping miscalculation was my own fault, i did not press the buyer for the shipping difference.

i have priced the 4 ninjas to my friend in the east coast at $5 each.  i suspect offhand that shipping might be $5-$7 at most.  so $20 minus the cost of supplies at $6? leaves me around $14.  i guess that’s not too bad — i’m learning!  i will get the package weighed at the post office before billing her.

a few days ago, i sold my first pair of black armwarmers at $10 including shipping!  after shipping and supplies costs, i would say my profit is about $5.  not much at all, but it is something.

i also have another order for a ninja doll for another of my friends!

when i initially had posted the ninja and pink handbag for sale, i had them priced higher: the ninja at $3 more, and the bag at $7 more.  but they sat around in my store for about a month, before i decided i might try reducing the price.  i didn’t mind too much for the ninja, but i knew that i was losing money on the pink handbag.  why did i even bother selling that one then?  if someone else found it appealing to own, i would much rather that s/he use to to his/her heart’s content, whereas at my place it would just sit around gathering dust awaiting use.  and i was doubtful that any of my few friends who like pink would like and use it.

i should also mention the $ i lost for fees i paid to etsy and paypal.  i had to ‘upgrade’ to the paypal ‘premier’ account too, in order to accept 2 of the buyers’ debit/credit card payments.  in the past, when i used to sell things online at ebay, i would request the buyers to not use debit/credit card payments, to please make payments via paypal from their bank accounts.  but alas, it was inevitable that i would have had to ‘upgrade’.

here are the money-related details, in cents and dollars:

so far then, it appears i am in the negative (or, ‘in the red’), at a total loss of -4 (when including the costs of supplies).  with the other two ninja orders, i will be able to go into the positive numbers.

i’m learning a lot while entering the world of entrepreneurship:

• fees bite, but are somewhat inevitable
• i must sell at prices that reflect the state of the eonomy and appealing lower prices from consumers’ point of views
• selling crafts CAN be done!
• positive feedback from customers is coveted
• items may occasionally be sold at a loss
• handcrafting things for sale is a slow-going business (it takes time to make each item)

this small endeavor is preparing me for the world of freelancing my web coding skills hopefully in the near future!

the holiday season is coming up.  although i’m not personally that big into the christmas spending sprees these days, i know that there are many others that still are.  i want to ramp up my ‘production line’ so that i can have a handful of products ready for selling before december.  at this time, i only have this one red handbag available for sale.  i’m actually quite proud of this bag, what with my painstaking effort with the lining and the macrame fringes*.

due to the state of the economy, i suspect that i must price my crafts at lower than optimal prices in order to entice buyers.  perhaps someday later on, once i have a rhythm going and many more customers and feedback, i can raise the prices a bit thereby making closer to minimum wage :p

* did you know that larry winget, author of you’re broke because you want to be, used to sell macrame for extra income??  that is awesome.

how about you?  have you also been selling stuff you’ve made or built for a bit of extra income?  how have you been faring in that endeavor?  are you enjoying the journey?

a little while ago, i wrote a freelance switch? as i struggle with the decision of whether or not to leave my day job in order to go freelancing full-time.

to assist me in my decision making, i thought,

what better way for me to learn more than to go and ask others about freelancing?  surely there are fellow personal finance bloggers that happen to freelance as well?

and i soon realized that there were quite a number of individuals indeed who had been working for themselves for quite some time now.

over the next several weeks, i’d like to present a handful of interviews to you highlighting a few freelancers i’ve met online, and who have graciously agreed to be interviewed to give us a peek into their lives as freelancers.

this week, we learn a little bit about mary from simplyforties, a virtual paralegal and network admin.

i met mary online after a comment she left at my site.  over time, she has left a handful here.  i have visited her own blog, and learned from reading a few articles of hers that she happens to freelance!  in fact, i found her excellent article, the downsides of freelancing, which appeared in a recent issue of the working at home on the internet carnival.

1. When did you know that it was time to go freelance? How did you know?

I had been working for several years as a network admin for the U.S. Border Patrol and as a virtual paralegal for a liability expert on the side. The liability expert had been after me for awhile to give him more time. I had been struggling with how to make that happen. My son went off to college in the fall of 2004. Home alone I felt like it was time for a change. I contacted my liability expert client and made a deal with him to change my fee structure from hourly to a flat monthly fee. When he agreed to it, I decided the time was right to make this big step.

2. What was your biggest trepidation about going solo?

My biggest concern was a stable income. Although my son was out of the house I was single-handedly putting him through college. I was worried that I would not be able to fulfill my increased financial responsibilities.

3. Can you describe what your life was like for the first few months of going solo?

At first I felt like I was on vacation. Finding the right balance between free time and getting my work done was a little tricky for me. The temptation to go outside and play was pretty overwhelming at the beginning!

4. How long did it take you to achieve the minimum level of income you desired?

I was pretty lucky in that I already had my main income lined up before I left my regular job. I had the added benefit of a lot of old computer clients who had missed me during the time I was working for the Border Patrol. I contacted several of them and several agreed to hire me on as a contract IT person for their small businesses. So I actually had quite a good income almost immediately.

5. How much time elapsed between the time you left your full-time job to when you began to actually freelance?

I actually was working immediately.

6. Were there serious moments of struggle? If so, what were they like? What did you do, say, or think during those times?

I assume you mean times of financial struggle and I’m happy to say I did not wrestle with that issue too much. My moments of struggle relate more to the pleasure I derive from not working and the need to earn an income. As soon as I figure out how to get paid for doing nothing I’ll be in clover!

7. Were your family and friends supportive of this endeavor?

My family was worried about my ability to make it outside the security blanket of a government job. Four years later, my dad still worries that I’m on the brink of ruin!

8. When do you think you started to feel a sense of freedom, peace, or contentment with your new path?

Almost immediately I knew I had made a good choice. I love being in charge of my own time.

9. If you had to do it all over again, would you still? Do you anticipate or see yourself joining a fulltime employment (not self-employment) anytime in the near future?

I would definitely do it again in a heartbeat. I hope I never have to go back to the working world. Now that I’m 47, I have some concerns about being employable in the real world. I am continuously looking for additional revenue streams to insure that I never have to take a job as a greeter at Wal-Mart!

10. What is your favorite feature of being a freelancer?

Free time! No question. Working freelance has taught me the value of time over money. I would sacrifice a great deal to retain my current level of unencumbered time.

11. What do you do now that you weren’t able to do before, when you were employed fulltime?

I do a lot more volunteer work. I volunteer at my local library bookstore every Thursday afternoon. I’m a Court Appointed Special Advocate for foster children through the auspices of the CASA program and I walk dogs at the local Humane Society shelter. I would not have been able to be involved in any of these activities if I were limited to Saturdays and Sundays.

12. Is there anything you miss at all about the full-time employed/salaried life?

I miss some of the people I used to work with. There are probably just as many people who I’m happy not to see anymore!

13. How/what did you tell your boss when you were giving notice? How much time did you give?

I was pretty well-liked at work. My superiors were very sorry to lose me but also very supportive. I gave a month’s notice and then took phone calls from them for quite awhile afterwards.

14. How have things been going lately?

Things are going great! I’m contemplating a move from West Texas to upstate New York within the next year or so and am working very hard to ensure I can keep working freelance when/if that happens.

15. Any particular recommendations of reading, resources online for aspiring freelancers?

I would highly recommend checking out http://www.virtualvocations.com for anyone thinking about making the leap. They charge $15.99 a month and are an excellent source of employment leads.

My other recommendation is to scrutinize your fee schedule. If you charge hourly and have regular clients, consider changing to a monthly flat fee. If you price yourself correctly you will end up with a good steady income that you can count on and not have to work too many hours for it. It also saves a lot of bookkeeping time!

Mary@SimplyForties

* * *

thank you for sharing this with us, mary!

if you have a question for mary, please feel free to post it here in the comments!

please be sure to visit mary’s site at simplyforties to learn more about her adventures as a freelancer!

other resources:

• what/who is a virtual paralegal?
• freelancing within the law
• 101 essential freelancing resources
• the monster list of freelancing job sites
• how to be a rockstar freelancer