Keys to a sustainable interpreting and translation business for freelancers
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The document provides guidance on developing a sustainable business plan for freelance interpreters and translators. It discusses the importance of creating a business plan that outlines marketing, financial, and operational aspects of the business. It offers tips for networking, finding clients, negotiating rates, tracking expenses and income, setting financial targets, and calculating interpreter schedules and annual appointments. The overall message is that a well-planned business model is key to achieving business goals and maintaining a sustainable freelance practice.
Keys to a sustainable interpreting and translation business for freelancers
- 1. Keys to a sustainable interpreting and translation business for freelancers Helen Eby www.gauchatranslations.com 息 Helen Eby 2016
- 2. Who am I? I attended Colegio Hudson in Vicente L坦pez, Buenos Aires, Argentina. Hudson was a comercial, a high school with a business orientation, so we took accounting and typing classes starting in 8th grade. In 10th grade I had a paid position at the school. Freelance English teacher in Buenos Aires, and applied these Business Plan concepts in my 20s. Keys to a sustainable interpreting and translation business for freelancers- gaucha@gauchatranslations.com 息2016, Helen Eby 2
- 3. What is a business plan? A short definition Definition of 'Business Plan' A written document that describes in detail how a new business is going to achieve its goals. A business plan will lay out a written plan from these viewpoints: marketing, financial, and operational. Sometimes a business plan is prepared for an established business that is moving in a new direction. http://www.investopedia.com/terms/b/business-plan.asp Keys to a sustainable interpreting and translation business for freelancers- gaucha@gauchatranslations.com 息2016, Helen Eby 3
- 4. What is a business plan? (A more complex definition) Investopedia definition of Business plan: A business plan includes a description of a company or small business, its services and/or products and how the business will achieve its goals. http://www.investopedia.com/terms/b/business-plan.asp Keys to a sustainable interpreting and translation business for freelancers- gaucha@gauchatranslations.com 息2016, Helen Eby 4
- 5. What is a business plan? Investopedia definition of Business plan: The plan includes the overall budget, current and projected financing, a market analysis and its marketing strategy approach. http://www.investopedia.com/terms/b/business-plan.asp Keys to a sustainable interpreting and translation business for freelancers- gaucha@gauchatranslations.com 息2016, Helen Eby 5
- 6. What is a business plan? Investopedia definition of Business plan: In a business plan, a business owner projects revenues and expenses for a certain period of time and describes operational activity and costs related to the business. http://www.investopedia.com/terms/b/business-plan.asp Keys to a sustainable interpreting and translation business for freelancers- gaucha@gauchatranslations.com 息2016, Helen Eby 6
- 7. What is a business plan? Investopedia definition of Business plan: The idea behind putting together a business plan is to enable owners to have a more defined picture of potential costs and drawbacks to certain business decisions and to help them modify accordingly before implementing these ideas. http://www.investopedia.com/terms/b/business-plan.asp Keys to a sustainable interpreting and translation business for freelancers- gaucha@gauchatranslations.com 息2016, Helen Eby 7
- 8. Marketing What is our business? Get credentials that are highly respected in the United States: For translation ATA certification for translation NYU certificate in translation MA in translation, etc. Keys to a sustainable interpreting and translation business for freelancers- gaucha@gauchatranslations.com 息2016, Helen Eby 8
- 9. Marketing What is our business? Get credentials that are highly respected in the United States: For interpreting: State court interpreting certification National certification as a medical interpreter (CCHI, National Board) State certification as a medical interpreter (Oregon, Washington) RID certification for ASL interpreters Keys to a sustainable interpreting and translation business for freelancers- gaucha@gauchatranslations.com 息2016, Helen Eby 9
- 10. Business plan development Consult with experts! SCORE is a national network that provides low cost education and mentorship to entrepreneurs. SCORE is a nonprofit association dedicated to helping small businesses get off the ground, grow and achieve their goals through education and mentorship. We have been doing this for over fifty years. Because our work is supported by the U.S. Small Business Administration (SBA), and thanks to our network of 11,000+ volunteers, we are able to deliver our services at no charge or at very low cost. https://www.score.org/about-score Keys to a sustainable interpreting and translation business for freelancers- gaucha@gauchatranslations.com 息2016, Helen Eby 10
- 11. Marketing showcasing our product Develop a nice website. Have the people from SCORE critique it. Hire a professional. Designers are even better if they represent our target clients. Here is a link to my site: www.gauchati.com Get good business cards. Have them reviewed by SCORE. Develop a business plan. SCORE can help with that too. http://www.score.org/ Keys to a sustainable interpreting and translation business for freelancers- gaucha@gauchatranslations.com 息2016, Helen Eby 11
- 12. Marketing finding clients Lets talk about this. Freelancers puzzle over these things on listservs. Where do we find business? How do we establish a relationship with a client when we find one? Keys to a sustainable interpreting and translation business for freelancers- gaucha@gauchatranslations.com 息2016, Helen Eby 12
- 13. Marketing Networking Start local, with your local Chamber of Commerce. Even if you dont get a lot of business initially, you get comfortable with the business world and the networking. My local Chamber has how to network events. Your local Chamber members are an encouraging group that wants to see you grow. Translators and interpreters dont show up: there is no competition! Be committed: keep your relationship-building appointment no matter what. Keys to a sustainable interpreting and translation business for freelancers- gaucha@gauchatranslations.com 息2016, Helen Eby 13
- 14. Marketing finding clients Go where the clients are. Chamber of Commerce. In Hillsboro, Oregon, we have this group: www.hillchamber.org There might be a Spanish network in your local Chamber. If your language is German, join the German-American Chamber of Commerce, or research their members! See how a Russian colleague is developing connections in the chemical field: http://ata-sci-tech.blogspot.com/2014/05/how-not-to-attend-professional.html Keys to a sustainable interpreting and translation business for freelancers- gaucha@gauchatranslations.com 息2016, Helen Eby 14
- 15. Negotiation: it is about meeting the clients needs Start by getting to know your prospective client. How does your product add value to their business? How can your product solve problems their business is facing? If they dont need your services now, they may know someone who does. Leave the discussion of money for last. Keys to a sustainable interpreting and translation business for freelancers- gaucha@gauchatranslations.com 息2016, Helen Eby 15
- 16. ASTM creating a framework for teamwork See my ASTM-based chart for discussing a relationship with a client Translation worksheet: http://wp.me/a5uXWG-8h Interpreting worksheet: http://wp.me/a5uXWG-kb Keys to a sustainable interpreting and translation business for freelancers- gaucha@gauchatranslations.com 息2016, Helen Eby 16
- 17. Accounting: what to keep track of Tracking resources and expenses to make sure resources arent stretched too thin. Two limited resources: Time Money Not tracking these resources leads to not being able to keep our word. Keys to a sustainable interpreting and translation business for freelancers- gaucha@gauchatranslations.com 息2016, Helen Eby 17
- 18. Fixed expenses: Cost of doing business Having a car Training Dictionaries Smartphone Taxes Health insurance Errors and omissions insurance Tax preparation Office supplies Business cards Notepads Internet service Travel to the country where our language is spoken every few years This is not an exhaustive list! Keys to a sustainable interpreting and translation business for freelancers- gaucha@gauchatranslations.com 息2016, Helen Eby 18
- 19. Activity-based expenses Mileage Parking Extra travel time Travel, lodging, meals Other costs These activity-based expenses can be calculated by the contractor and added to the base rate of the product. Negotiations can then take place on an objective basis. Keys to a sustainable interpreting and translation business for freelancers- gaucha@gauchatranslations.com 息2016, Helen Eby 19
- 20. Expenses: Vehicle expenses Cost of ownership Consumer Reports http://consumerreports.org/cro/2012/12/what-that-car-really-costs-to-own/index.htm Over the first five years of ownership, the average car costs more than $9,100 a year to own according to Consumer Reports Cost of ownership Kelly Blue Book http://www.kbb.com/new-cars/total-cost-of-ownership/?r=867527046085658400 Keys to a sustainable interpreting and translation business for freelancers- gaucha@gauchatranslations.com 息2016, Helen Eby 20
- 21. Vehicle expenses Cost of ownership per mile http://www.getrichslowly.org/blog/2006/05/31/the-true-cost-of-car- ownership/ In 2013, the American Automobile Association (AAA) said that, on average, it costs 52.2 cents to drive one mile. The 2013 federal mileage rate for business was 56.5 cents/mile. The 2016 federal mileage rate for business is 54 cents/mile. Keys to a sustainable interpreting and translation business for freelancers- gaucha@gauchatranslations.com 息2016, Helen Eby 21
- 22. Time: Non-billable work The following items are non-billable but are part of the 40-hour week for a contractor. They often take at least 8 hours a week. Networking Billing Following up on clients Negotiating Training Keys to a sustainable interpreting and translation business for freelancers- heby@gauchati.com 息 Helen Eby 2015 22
- 23. Time: Personal Non-billable work during personal time leads to Distracted work during work time, leads to Not keeping work commitments, leads to Poor quality work, leads to Losing clients Keys to a sustainable interpreting and translation business for freelancers- gaucha@gauchatranslations.com 息2016, Helen Eby 23
- 24. Target income Two approaches: What would be the take home pay of someone in an equally prestigious/interesting job? What bills do I want to be able to pay? Why check a target? If we dont know where were going we will never know whether we got there. Keys to a sustainable interpreting and translation business for freelancers- gaucha@gauchatranslations.com 息2016, Helen Eby 24
- 25. Salaries of comparable professions From the Occupational Outlook Handbook list of comparable professions. http://www.bls.gov/ooh/media-and-communication/interpreters-and- translators.htm#tab-8 Keys to a sustainable interpreting and translation business for freelancers- gaucha@gauchatranslations.com 息2016, Helen Eby 25 Adult literacy and GED teachers $50,280 Court reporters $49,500 Kindergarten and Elementary School Teachers $54,550 Postsecondary Teachers $72,470 Technical Writers $70,240 Writers and Authors $60,250
- 26. Salaries of translators and interpreters according to the Occupational Outlook Handbook http://www.bls.gov/ooh/media-and-communication/interpreters-and- translators.htm#tab-5 Please note that the OOH states that about 1 in 5 were self-employed in 2014. However, the ALC survey of 2015 states that 89% of the work is done by freelancers. http://www.ata-divisions.org/ID/review-of-the-alc-2015-industry-surveyc/ Keys to a sustainable interpreting and translation business for freelancers- gaucha@gauchatranslations.com 息2016, Helen Eby 26 Professional, scientific and technical services $49,670 Government $49,660 Educational services $42,350 Healthcare and social assistance $41,440
- 27. Market research 2010 Interpreting Marketplace: 73% of interpreters provide written translation 50% are ATA members Average annual reported income expected $33,515 in 2010. The largest group earns less than 10,000/year. These numbers are from the InterpretAmerica survey of 2010. Keys to a sustainable interpreting and translation business for freelancers- gaucha@gauchatranslations.com 息2016, Helen Eby 27
- 28. Market research Court Interpreting Research survey by Robert Joe Lee: http://www.courtinterpretingresearch.com/ IMIA compensation survey of 2010 http://www.imiaweb.org/uploads/presentations/2010_45.pdf MMIA compensation survey of 2006 http://www.imiaweb.org/about/compensationsurvey.asp ATA compensation survey of 2006 https://www.atanet.org/docs/compensation_survey_2007.pdf Keys to a sustainable interpreting and translation business for freelancers- gaucha@gauchatranslations.com 息2016, Helen Eby 28
- 29. Two ways to figure it out: Start from your target Start from what you know of the market The translator's rate is subject to mainly three factors: How much money the translator wants to earn in a period of time How many units the translator can process in that time What amount the client is willing to pay http://wiki.proz.com/wiki/index.php/Determining_your_rates_and_fees _as_a_translator Keys to a sustainable interpreting and translation business for freelancers- gaucha@gauchatranslations.com 息2016, Helen Eby 29
- 30. Proz.com resources Rate calculator: http://www.proz.com/translator-rates-calculator/ Average rates charged http://search.proz.com/employers/rates Proz wiki article on determining rates and fees: http://wiki.proz.com/wiki/index.php/Determining_your_rates_and_f ees_as_a_translator Keys to a sustainable interpreting and translation business for freelancers- gaucha@gauchatranslations.com 息2016, Helen Eby 30
- 31. Math My personal spreadsheet: a simple way to set a target rate http://wp.me/a5uXWG-5y Expected translated words/hour: 300 Expected reviewed words/hour: 1000 Keys to a sustainable interpreting and translation business for freelancers- gaucha@gauchatranslations.com 息2016, Helen Eby 31
- 32. Interpreter math 1 hour for: Driving to each appointment, Getting in and out of each parking lot, and Time for each appointment to run late Realistic appointments: 8 am, ending at 9, 10 am, ending at 11 12 pm, ending at 1 2 pm, ending at 3 4 pm: administrative time (not an appointment) can be swapped for another block 4 appointments/day x 5 days/week = 20 appts / week Keys to a sustainable interpreting and translation business for freelancers- gaucha@gauchatranslations.com 息2016, Helen Eby 32
- 33. Interpreter math 4 appointments/day x 5 days/week = 20 appts / week 80 appts/month 800 appts/year (10 months/year, discounting vacations, slow times of year, holidays, time for conferences, etc.) The two months off are because summer and Christmas are slow times for interpreters in any field, with schools, courts and businesses on slow schedules. Keys to a sustainable interpreting and translation business for freelancers- gaucha@gauchatranslations.com 息2016, Helen Eby 33
- 34. Math CalPro, published by the ATA: Can go from your target or from what the market will bear. http://www.atanet.org/business_practices/calpro_us.php Keys to a sustainable interpreting and translation business for freelancers- gaucha@gauchatranslations.com 息2016, Helen Eby 34
- 35. Washington interpreter spreadsheet This is a two week report from an actual interpreter. Keys to a sustainable interpreting and translation business for freelancers- gaucha@gauchatranslations.com 息2016, Helen Eby 35 HOURS PAID MILES 78.00 1717.77
- 36. Hes on track to making $60,000/year. Is it worth it? Is it sustainable? HOURS PAID Hours of interpreting 78.00 h Time driving 1717.77 at 35 mph (this counts as time at work) 49.08 h Admin time 10.00 h Total time worked: 137.08 h Hours/day (137.08 hours/10 days for two weeks of work) 13.71 h $32.50/interpreting hour $2535.00 $/hour worked (total dollars divided by total hours worked) mileage money reimburses for car expenses, so it is not included as income $18.49/h Keys to a sustainable interpreting and translation business for freelancers- gaucha@gauchatranslations.com 息2016, Helen Eby 36
- 37. Taxes IRS quarterly estimated tax payment form at http://www.irs.gov/pub/irs-pdf/f1040es.pdf Keys to a sustainable interpreting and translation business for freelancers- gaucha@gauchatranslations.com 息2016, Helen Eby 37
- 38. What if the numbers dont add to what we want? If we cant make the income we want, we can hone our skills and credentials Professional associations list trainings on their sites. www.atanet.org www.najit.org www.imiaweb.org www.ncihc.org www.ostiweb.org www.ohcia.org Keys to a sustainable interpreting and translation business for freelancers- gaucha@gauchatranslations.com 息2016, Helen Eby 38
- 39. What if the numbers dont add to what we want? If we cant make the income we want, we can find another job Worksource Oregon says, on its website: WorkSource Oregon, the state's public workforce system is here to help you get a job, increase your skills, and explore training options. Oregonians looking for work should visit their nearest WorkSource Oregon Center to find staff and services dedicated to helping Oregonians get back to work. The Job Seeker Resources on this website are additional online resources to assist you. http://www.worksourceoregon.org/ Keys to a sustainable interpreting and translation business for freelancers- gaucha@gauchatranslations.com 息2016, Helen Eby 39
- 40. When profits dont meet expectations We start to work longer hours We accept lower rates to get more work We arent available to network to find better clients Our accounting suffers We get in trouble with the IRS We start to work weekends We lose quality because we arent fresh Material gleaned from conversations with colleagues. Keys to a sustainable interpreting and translation business for freelancers- gaucha@gauchatranslations.com 息2016, Helen Eby 40
- 41. Accounting: How to keep track of it There are several accounting systems on the market. I use Quicken and Quickbooks. Others use other products. The issue isnt what product we use. Its just a question of choosing a product we find useful, and sticking with it consistently. An accountant can guide us in that decision. SCORE consultants are available to guide entrepreneurs in these steps. Keys to a sustainable interpreting and translation business for freelancers- gaucha@gauchatranslations.com 息2016, Helen Eby 41
- 42. Professional help The value of an accountant: Set up your accounting software properly They know how to reduce our tax load I had an accountant set up QuickBooks, and I run it myself on a daily basis. A bookkeeper checks my accounts every month to fix problems I have, and a CPA does my taxes. For me, this means I have help when I need it, and I do the daily work without burdening the accountant with the details. Keys to a sustainable interpreting and translation business for freelancers- gaucha@gauchatranslations.com 息2016, Helen Eby 42
- 43. Professional help The value of delegating: A teacher in my teachers training school gave us this advice: Dont delegate the work that must carry your imprint, your voice. Delegate the work that others can do better and will distract you from what must carry your imprint and your voice. I added this: Delegate the administrative work others can do for you so you can do your art, and try to make sure the delegated work helps you generate work that pays better than what you paid! Keys to a sustainable interpreting and translation business for freelancers- gaucha@gauchatranslations.com 息2016, Helen Eby 43
- 44. How to keep a client coming back We asked these questions in the Negotiation step: How does your product add value to their business? How can your product solve problems their business is facing? Its about the client! Clients start small. It can take a few years to develop a good client. Small clients that are very connected with the community are very important clients. They give referrals! Keys to a sustainable interpreting and translation business for freelancers- gaucha@gauchatranslations.com 息2016, Helen Eby 44
- 45. Other resources Blog by Corinne McKay. Post: What is the right rate for your translation services? http://thoughtsontranslation.com/ Jonathan Hine: You are worth it! Cost: $6 http://www.scriptorservices.com/ ATA Savvy Newcomer blog www.atasavvynewcomer.org Keys to a sustainable interpreting and translation business for freelancers- gaucha@gauchatranslations.com 息2016, Helen Eby 45
- 46. Stay in touch! Helen Eby, Gaucha Translations www.gauchatranslations.com gaucha@gauchatranslations.com Resources at: www.blog.gauchatranslations.com http://blog.gauchatranslations.com/some-business-practices/ (site set up for my medical interpreting students) Keys to a sustainable interpreting and translation business for freelancers- gaucha@gauchatranslations.com 息2016, Helen Eby 46