10 things I wish I had known before becoming a Virtual Assistant
I launched my VA business in 2016, with a baby at home and no money in my back pocket.
I had been searching for a job that would allow me the freedom to work around my daughter’s needs. But the few part time jobs available simply didn’t have the flexibility I required as a working parent.
A lot of planning went into setting up the business with a lot of highs and lows. If I can pass on even a little bit of what I’ve learnt then that will make me happy :)
Below are the 10 things I wish I had known before getting started.
#1 - Being a VA is Hard Work
When I first looked into becoming a VA, I thought it would be a cushy little side hustle I could do in the evenings and weekends to bring in a little extra cash. It couldn’t have been further from the truth.
There is a lot to think about when you become a VA.
You have to be the Administrator, Marketing Manager, CFO, Operations Manager and most importantly Salesperson!
You will have to work hard and be willing to be your biggest cheerleader. If you are shy and having to sell your services makes you feel sick in the stomach, then perhaps contracting to another VA company where you don’t have to do the business development part might be a better fit initially while you find your feet.
#2 - Working from home isn’t always what it’s cracked up to be
In my pre-VA corporate world, the lure of ‘working from home’ was very appealing! When I occasionally worked from home technology meant it was easy to keep up with my work, and I often found I was way more productive without the usual office distractions.
But the thing about working from home on a permanent basis, is that it can get lonely.
It’s definitely not for everyone. When I first started, I had a baby at home, so it was necessary. But once my daughter started to attend childcare part time, I wanted to get out of the house!
If you find yourself working from home and it starts affecting your mental health, then change it up a bit.
There are some great options out there these days. Initially I worked out of a co-working space in Hamilton called Soda. They are based right in the city and were a great casual option for me to be around real live people. Signing up to a casual agreement with them meant I could drop in whenever I felt the need to get out of the house and enjoy some office banter.
These days now that I have a better understanding of what I need to feel happy in my business, I work between a few locations (home, clients’ offices, and if I feel like a more casual creative space I work from a café).
#3 - VA’s need to be able to sell their services in a non-selly way
One great way of finding clients, is to attend networking events.
These could be casual coffee groups, or structured networking groups like Venus or Business Networking International. While it is certainly possible to have an amazing marketing strategy and attract clients online only, when you are just starting out you need to get your face out there wherever possible. People like to buy from people!
Networking events can seem scary, but I just looked at them as being like a party where you are talking to people you don’t know. But be aware - people get turned off by sales spiels so try not to do your elevator pitch too often.
Be yourself. Get to know people and their businesses and you will soon be attracting the right clients.
#4 - Outsourcing is important for VA’s too
In my first year of business, I attempted to do my taxes myself because I thought I couldn’t afford the Accountant’s fees. I also foolishly thought that because I’d done my taxes myself before (when in regular employment) that I could do it again.
There is so much more to doing your taxes when you are self employed. A great Accountant, bookkeeper or tax agent, knows all the things you can claim, that if you are inexperienced, you wouldn’t know about. A great accountant, can also advise you along the way, so you are really organised come tax time.
We even have a fabulous range of Bookkeepers right here in the VA Network of NZ that can help.
Your accounts is just one example of a job to consider outsourcing. Hiring a cleaner, getting your groceries delivered … there are plenty of things on your To Do list that can be outsourced in order to free up time to spend on your business.
#5 - It’s worth considering registering for GST
Until recently I thought I didn’t need to worry about registering for GST because I didn’t earn enough yet.
But I’ve learned that you can in fact register earlier than that, especially if you expect your earnings to increase over time.
There are a few benefits to being GST registered:
Some clients will only work with GST registered businesses so they can claim back the GST themselves.
You can claim back any GST paid on your work expenses.
It looks professional.
The downside to being GST registered is there is a little more admin involved. But if you use a great Accounting system like Xero, it will be smooth sailing.
#6 - Hours worked do not necessarily equal billable hours
When I first sat down and figured out my calculations around expected earnings as a VA, I thought I was going to have the potential to make really great money. And the potential is there! But what I didn’t consider was the un-billable work involved in running your own business.
I thought I could do about 20 – 25 hours a week and it would ALL be billable. What I didn’t realise though, is that it’s impossible to be 100% chargeable when you are a small business owner.
As a freelance VA you’ll have all of your own business admin to keep on top of (as well as your clients’). It’s your bookkeeping, it’s your networking, it’s being active on social media, it’s updating your website …
This is why it is so important you set your hourly rate and packages at a level whereby they cover the time it takes you to actually run your business too. Which leads nicely onto #7!
#7 - VA’s have expenses too!
When I first did my research into being a VA, I did some ground work and looked into what other VA’s in the New Zealand market charged. I wondered why at the time a client would be willing to pay their prices over an employee’s hourly rate.
It wasn’t until I sat down and worked out all the overheads and expenses I would have to cover, that I got an idea of what I would need to charge to cover costs and still make a reasonable profit.
A self employed person has to cover all the costs that an employer would normally cover, hence why engaging a VA is actually a great way for a client to save money in most cases.
With an employee, allowances have to be made for Tax, Kiwisaver, ACC, Annual, Sick, and other Special leave, Training attendance and fees, desk space, IT equipment, Insurance, stationery, tea, coffee … the list goes on!
So I would recommend sitting down and drawing up a basic spreadsheet of all your planned outgoings each month (think website, marketing, software, tax allowances and the other expenses an employee would normally have paid for them), then have a think about an average hourly rate, say conservatively $50 an hour and how many hours a week you have available to do ‘billable’ work, and work out what your hourly rate will end up being once you factor in all the expenses.
This exercise should help you in setting your hourly rate.
#8 - A VA doesn’t need to have a huge list of paid tools & apps to get started in biz
At times I’ve been known to suffer from perfectionism. It took me ages to take the leap into business because I kept thinking I had to know more about everything and have all the online tools and apps before I could launch.
Depending on the services you are offering, there are really only a handful of things you will need to get started, and a lot of them you can start out for free.
Here are my start up recommendations:
Time Tracking - I use Harvest, and it’s free for when you only have a couple of projects/clients. You can also invoice through Harvest. It’s very user friendly.
Microsoft Office 365 – You need to stay on top of technology, so having the most current version of Microsoft is essential. If you can’t afford it off the bat - the GSuite might be the way to go.
Task/Project Management – Trello is free for everything you would need for a beginner and has advanced paid features. It’s also really beautiful to use. Some people I know have also used this to do their ‘business plan’ in.
Video Calls & Screen sharing – I use the free version of Zoom. I’ve never had to do anything fancy in 18 months, so I still use the free version.
Screen Recording – Loom is great for this. You can record your screen (with, or without you on screen) and record your own Standard Operating Procedures for clients, along with instructional videos for clients.
Website – Having a website when you first start out is a nice to have, but not strictly necessary. It’s more important to get out there in front of people and get to know people in your area. If you are more of a remote VA, you may have to do the website straight away though and formulate a really good marketing strategy so you get yourself in front of people digitally. If you do want to have an initial web presence, you can get away with having a really well structured 1 Page website that people can go to when looking for you. I used Rocketspark, a New Zealand based company. A 1 pager with them is $10 a month.
Linkedin – Get to know your way around Linkedin. It’s not just somewhere to put your CV. It’s a really great way to digitally get to know people. You can follow hashtags for your area (i.e. #smallbusiness #wellington #VA etc). People also love authenticity, so if you feel brave enough to do a video, then go for it.
Business Cards – I’ve heard conflicting opinions on the need for business cards these days. I still think if you are going to be going out to networking events, it’s important as if you get asked for one and you don’t have one, it'’s a bit awkward.
Password Security – Hugely important for keeping all your logons and passwords secure and digital. It will also be a tool you should get all your clients to sign up to. No body should be using a little black book to write all their passwords down … ever! My recommendation is Lastpass, another free tool.
#9 - Upskilling is a necessity
As a VA it’s so important that you keep on top of all the latest technology trends.
But don’t worry, there are some fantastic training resources out there for VAs to upskill. And they don’t have to break the bank!
I remember spending ages researching tertiary study that I could attend to upskill in certain areas that I wanted to develop. Nope, not necessary! These days you can learn so much for free or very low cost it’s crazy!
YouTube is a wonderful resource if you can find a good tutorial. Some other sites with paid courses are Udemy.com and Linkedin Learning. Check them out, you’ll be surprised at how much you can soak up.
#10 - You’ll never want to go back to a traditional 9-5
I love my job!
Working for myself definitely has a lot of challenges - it’s no walk in the park! But it’s great to be my own boss and not have to answer to the hierarchy anymore. People now come to me as the expert for advice and I get to offer services that spark joy!
The flexibility self employment has given me is amazing. I get to work with some really amazing small businesses and have helped them on their journeys to greater things. It really doesn’t get any more satisfying that that!
A bit about the Author
Melanie Cosford juggles being a mum to her 3 year old daughter with running her own small business Melanco Consulting.
When not taking care of her daughter and spending time with family, Mel can be found working around client sites in Hamilton, or from her home office.
Mel is really passionate about running events, be it a 1st Birthday cake smash, or a Management Retreat. She also loves implementing systems into businesses to help them run productively.