My Freelancing Journey
From DCFs for potatoes to a financial modeling gig for a $100m+ company.
Quite a few years ago, I was contacted by a company that needed a simple 5-year financial model and DCF calculation to develop a selling price.
It was a large foreign enterprise franchisee that had done exceptionally well, and the main business wanted to buy out the franchisee owners.
They were doing logistics and growing potatoes. Yep.
They started as a potato farming company but then started using their trucks to make deliveries for this large multinational company, and soon became a franchisee.
However, the potato business was very profitable and brought in healthy and steady cash flows, so they continued. Makes sense.
Anyway, I had a few calls with them, and we decided on the scope of the work and the price. I asked for $600 (excl. VAT), and they said they can only do $600 (incl. VAT). Keep in mind this was a company making millions in revenue. I agreed, we shook hands, and I did the job.
I was pretty happy because $600 was my net monthly salary back then. So, I worked for an additional 20-30 hours spread over a few weeks and doubled my monthly income. Not bad, not bad at all.
And this was the first time I dipped my toes into freelancing. I mean, I used to make websites for money while studying, but that didn't really count.
Anyway, I was now an accomplished freelancer, ready to take on the world.
Funny enough, I wouldn't create another financial model as a freelancer for over 5 years.
But then I started doing it again. At first, it was slow. My ex-employer would ask me to help out with something, and a client I serviced while with my employer would ask me to do some modeling on the side. I worked on larger and larger projects until I got hired as a full-time employee, with 90% of my time focused on developing and maintaining the investor-facing model for a US startup doing $100m+ in revenue.
It has always been hard to find clients and projects. Companies are less willing to share their financials with outside people. Yes, they always use consultants, but they don't get to see the numbers in full detail or learn all the plans and projections for the company's future. I do. Which makes it really hard for a company to take the step.
But some are still willing, especially if someone refers you. Then, it makes all the difference in the world.
Ultimately, companies are willing to do it because it's cheaper for them to hire you for a financial model than to have a full-time employee. You just need to earn their trust. I found it's easier to work with startups because they rarely have confidential financials, so it's easier for them to share data. However, they don't usually have a lot of money.
So, now that the startup I cofounded is winding down (story for another time), I need to figure out what my next steps would be. With the baby and all, I would much rather do freelancing again. However, I don't have the network to find enough clients so that this venture can support my family.
I took on a gig last week, and it pays well. But it's a limited budget, so it won't help me pay the bills. However, I love working on such projects, as they give me freedom and require less commitment. Additionally, switching industries every 3-5 weeks is never boring.
So, as I am looking for a job, I am also looking for those projects. Even with a full-time job, I can take on 2-3 models per month, which is a nice piece of side income, and it keeps my professional life more enjoyable.
Doing this is also helping me a lot with the development of Minty Tools, my Excel add-in for FP&A and accounting professionals (more on this another time).
Freelancing has many benefits, even if it's not your full-time job. It helps you improve your negotiation skills, which can significantly improve your salary progression as you move forward in your career. It also regularly puts you out of your comfort zone in terms of business processes and data you interact with. And we all know that going out of your comfort zone is the way to grow and improve in your profession.
So, if you ask me, figure out what you can offer as a freelancing gig or even as the increasingly popular productized services, then go out and offer it to people. If it solves a real problem, you will eventually find some customers.
It may become your entire spiel, or it may be a nice side income, as it is for me. Nevertheless, working on such gigs will definitely help you become much better at what you do. This always pays off in the long run.
My ultimate goal is to one day charge a retainer for financial modeling and analysis services, where people pay a small (relatively) monthly subscription just to have access to my services, should they even need anything during said month. It gives them peace of mind, and it gives me a predictable income.
And before you judge me for asking for too much, lawyers already do it!
That's all I have for you today. I hope my personal story inspires some of you to take at least one freelancing gig and see how it goes.
Thanks for reading, and have a great weekend. I'll see you next week!
Best,
Dobri