As a freelancer, I’ve been able to create my own business but it’s not just about having a cool job title with the word “freelance” in it. I’m also able to afford my rent, and I’ve managed to save up for vacations and retirement at the same time.
That’s because I treat my freelance life as a business: I have goals, deadlines, savings plans, and even a mission statement (which is just the lyrics to that Jason Mraz song). If you want to get into freelancing, here are some tips on how you can build your own successful freelance business!
| Takeaways |
|---|
| 1. Establish a strong online presence through a professional website or portfolio. |
| 2. Prioritize building long-term relationships with clients for repeat business. |
| 3. Diversify your income streams by exploring different freelance opportunities. |
| 4. Continuously update and upgrade your skills to stay competitive in the industry. |
| 5. Set clear boundaries and manage your time effectively to maintain work-life balance. |
| 6. Focus on providing exceptional customer service to build a positive reputation. |
| 7. Create a financial plan and manage your finances wisely as a freelancer. |
| 8. Network and collaborate with other freelancers to expand your professional network. |
| 9. Stay organized and keep track of important deadlines and deliverables. |
| 10. Adapt to changes in the market and embrace new technologies or trends. |
| 11. Seek feedback from clients and learn from constructive criticism to improve. |
| 12. Continuously market and promote your freelance services to attract new clients. |
| 13. Cultivate a growth mindset and embrace learning opportunities throughout your career. |
| 14. Develop effective communication skills to clearly convey your expertise and ideas. |
| 15. Stay motivated and persistent, as freelancing can have its ups and downs. |
1. Always Put The Client First
Putting the client first is a good way to build trust and goodwill.
You’re probably thinking, “Duh! Of course, I’ll put my client first. That’s the ethical thing to do.” And that’s great! But it’s important to remember that this is more than just a moral imperative it’s also a strategic business decision.
When you put your clients first, you build goodwill and trust with them that will last for years or even decades. And when you’re building a sustainable freelance business (which we’ll talk about in Step 4), goodwill and trust from your clients are invaluable assets.
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2. Be Realistic About Your Rates
To determine your rates, it’s important to be realistic about what other freelancers in your field are charging. If you’re new to the industry, don’t be afraid to ask for lower rates than what established freelancers would charge (but not so low that it seems like you’re desperate for work).
On the other hand, if you have a lot of experience under your belt and strong references from prior clients, feel free to charge more you can justify it by saying that “I’m worth it.”
When I started as a freelance writer, I charged $25 per article no matter how long the piece was or how much research I had to do. Nowadays I charge between $100-$500 per article depending on who is reading them (some employers are willing to pay more than others). My rate has gone up over time because my skillset has improved along with my reputation.
3. Create A Viable Business Plan
A business plan is a document that outlines the goals, strategies, and actions you need to take as an entrepreneur. A good business plan should be clear enough for anyone to understand without having a Ph.D. in economics or business. It should also be detailed enough so that you can use it as a framework for future decision-making about your freelance career.
A good place to start is with the SBA’s Business Plan Outline – This outline has everything from step-by-step instructions on how to write your plan all the way down through specific details like choosing an accountant or finding tax resources.
Some other useful resources are Small Business Administration (SBA) guides: How To Write a Business Plan; Quick Tips For Writing A Great Business Plan; How To Write A Winning Funding Proposal For Grants And Loans From The Small Business Administration (SBA); How To Create And Keep Track Of Your Budget As A Small Business Owner; What Is An Annual Report?
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4. Set Up Your Business As A Separate Legal Entity
If you’re serious about growing your freelance business, set it up as a separate legal entity. It’s not just so that you can hire employees, but also because it’ll give you more credibility with clients.
If they see that you’re registered as an LLC or corporation, they’ll feel more confident in doing business with you. Plus, there are some tax benefits if your state allows it (and most do). Here’s how:
Register your business name with the state this costs less than $100 and can be done online. Donate $100+ to charity every year this is another way of showing commitment and responsibility beyond what’s required by law.
Open a bank account for your company under its name so all incoming checks will go into one place where only YOU have access to them! You can also open credit cards under there too so if anyone wants payment info…it’ll come directly from this account instead!
5. Perform Well And Consistently
You can’t expect to build a long-lasting business if you’re not performing well and consistently. You have to deliver on time, with quality work that meets your client’s expectations.
Be clear in your communication with clients, so that they know what’s going on and are satisfied with the progress being made. Keep them informed about what’s happening, and always be professional in your interactions.
Also make sure that you’re responsive when people need to get in touch with you (your clients), as this will help foster trust between the two parties involved. A bonus: being polite helps too!
Finally, don’t let anything go unnoticed or unanswered by clients it’s important for all parties concerned that any problems be resolved as soon as possible so everyone can move forward peacefully together towards their goals
6. Know Your Worth And Stand By It
You’re a freelancer, and that means you have the opportunity to set your rate. But what’s the right amount?
There are two schools of thought on this: 1) charge based on what you think your time is worth, or 2) charge based on how much work you can deliver. The first is easy but not necessarily accurate; it’s hard to know if you’re charging enough when there are so many variables involved in pricing things out (what amount should I get paid per hour?
What is my overhead cost per job? How long will it take me to do this project?). The second strategy requires more effort since it requires some math how many clients am I taking on at once? but ultimately gives you a better idea of whether or not your rates are competitive in the marketplace.
It doesn’t matter which strategy works best for you because both require an understanding of how much money needs to come into your business before other expenses eat into profits too much or before too little income leaves nothing left over for taxes and savings.
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7. Keep Learning
There are a lot of things you can do to expand your skills, knowledge, and understanding of the community. Here are some ideas:
Learn new skills and tools for your industry. If you’re a graphic designer, learn about the latest design trends and learn how to use them in your work. If you’re an SEO expert, keep up with SEO news so that you can be on top of any new changes or updates to Google’s algorithms.
And if you’re in business management consulting, keep learning about best practices for running businesses and keeping them profitable!
Keep up with what’s going on in your area of expertise by subscribing to blogs by smart people such as Buffer’s content marketing blog (http://contentmarketingformula.com/) or Moz Pro (https://moz.com/blog). You’ll get fresh ideas every day without spending time searching for them yourself!
Stay current on technology trends and even better yet, try out some new technologies yourself! It will help make sure that when clients ask questions about whether something is possible (or not), then they’ll know where their limits lie too which could mean saving both time and money down the road.”
8. Register With The Right Government Organizations
It’s important to get your taxes right as an independent contractor. The IRS requires you to pay self-employment tax if you’re making more than $400 per year in income, which is the equivalent of having a full-time job.
Even if you don’t earn enough to be required to file taxes, it’s still wise to do so (and there are some tax benefits for doing so), so that way when your income does cross that threshold, you’ll be ready!
You can register with the IRS using their 1040-EZ form and filing through TurboTax or H&R Block. This process takes about five minutes and should only take longer if your bank account needs more than two days for processing before they send the funds over.
Once that’s taken care of, it’s time for state registration. In most states, this will mean registering with both your secretary of state and/or the Department of Revenue (depending on where you live).
You’ll need business licenses from both these agencies as well as any utility companies or municipalities where work will be performed on an ongoing basis (which could include things like plumbers’ permits).
9. Work Hard To Build A Solid Reputation
You can’t build a long-term freelance business without hard work, but it doesn’t have to feel like a job. Here are some tips for getting the most out of your days:
Build your reputation. Your reputation is what will keep clients coming back and hiring you again and again. It’s also what will help you land those first few clients in the first place.
Building trust with them is key and one way to do this is by showing that you’re reliable, knowledgeable, and consistent when it comes to delivering on time!
Be patient! It takes time for clients to realize how valuable having an awesome freelancer like yourself on their team can be (especially if they’re not familiar with working remotely).
So don’t worry about whether or not someone’s going to hire you right away; just focus instead on doing good work so that when they do decide that they need someone like yourself around full-time then there won’t be any hesitation about hiring them full-time instead of just part-time like before.”
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10. Be Upfront When You Mess Up
As a freelancer, you need to be honest with your clients. You can’t expect to keep them around if you are not upfront when something goes wrong.
The same goes for yourself. If you don’t know what is broken, how can you fix it? If you don’t know where there is room for improvement, how will you ever grow as a freelancer?
The most important part of being honest is that it allows us to grow and learn from our mistakes so we can avoid repeating them in the future.
11. Choose Your Clients Wisely
You need to think about all of these things when you’re choosing a client. Choose the clients that will be the best fit for your skills, strengths, and personality. Then choose the projects that will give you exposure and experience in those areas.
If you’re just starting as a freelancer, it’s not a bad idea to take on some small projects with low budgets so that you can get some experience under your belt before taking on larger projects with higher stakes and potential rewards (money).
If you have questions about any of this or want more information on how to build lasting business relationships with clients who will refer others to work with them too.
12. Outsource Where Necessary
Outsourcing is a great way to avoid burnout or at least make it less likely. With outsourcing, you can focus on what you do best without worrying about the rest.
Outsourcing also helps you save time and money by having someone else handle tasks that are not your specialty. This allows you to scale your business more easily and get ahead of others in the industry who don’t do this or who try it but fail due to bad communication or miscommunication with the outsourced freelancer.
13. Get An Accountant To Help You With Your Finances
Getting an accountant to help you with your finances is critical. Taxes are complicated, and filing your taxes incorrectly can have serious consequences. An accountant will also help you plan for expenses, which is essential if you want to build a sustainable business that’s profitable over time.
An accountant can be helpful in other ways too. For example, they can advise on how much money to set aside for tax payments throughout the year so that it doesn’t catch you off guard when tax season arrives and they’ll even do this for free!
14. Set Aside Funds For Taxes, Healthcare And Other Benefits, And Savings (Emergency Fund)
While you don’t need to put aside money for taxes, healthcare, and other benefits, it’s a good practice. While I don’t have the exact amount figured out yet, I do know that my main goal is to be able to pay for health insurance and any emergency that comes up without having to touch my savings account.
I set aside funds in a separate account from my business checking account so it’s easy for me to track how much I’ve saved each month toward these expenses.
15. Don’t Be Afraid To Say No To Work That Doesn’t Jive With You Or Is Below Your Skillset
I’m going to let you in on a little secret: I am not a machine. I’m a human being, with feelings and emotions and thoughts and opinions, just like you. And because of that, I can say no to work that doesn’t jive with me or is below my skillset.
I started freelancing in high school as an artist (I was doing comics at the time), but even then, when I was 15 years old, my parents were still trying to convince me that it wasn’t something “real” people did for money that it would never pay off or be worth the effort since there was no “guarantee” of making any money at all.
So what’s changed? How did this change from being something “not real” (or not worth pursuing) turn into something that now it’s acceptable for someone like me who has been working as a full-time freelance graphic designer for over three years?
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Conclusion
It’s hard to believe that ten years have passed since I set up my first business. It was scary at times, but the hard work has been well worth it in the end. Some of these tips might help you if you’re just starting on your journey as an entrepreneur.
If you’re still unsure about whether freelancing is for you, then try it out and see how it goes! There are lots of resources available online that can help get your freelance career off to a great start.
Further Reading
Here are some additional resources to further explore the topic of freelancing:
The Freelance Hustle: Best Freelance Business Ideas: Discover a curated list of the best freelance business ideas to inspire your entrepreneurial journey.
Entrepreneur: 25 Things I Learnt from Freelancing in a Year: Gain valuable insights from an experienced freelancer who shares 25 important lessons learned during their first year of freelancing.
Wethos Blog: Best Freelancing Skills: Explore a comprehensive guide that highlights the best freelancing skills to develop and enhance your freelance career.
Frequently Asked Questions
Why Did You Start Freelancing?
I started freelancing because I wanted to make my hours, work from home, and travel more. I was sick of the 9-5 grind.
How Much Do You Charge Per Hour?
I charge $100 per hour. My clients are always happy to pay it because they get a lot out of working with me.
How Many Hours Do You Work A Week On Average?
On average I work about 15 hours per week. It varies depending on what projects I’m working on and how busy my clients are!
Do You Have Any Tips For Finding Work?
Yes! My top three tips for finding work are:
1) getting recommendations from people who know you well;
2) Use LinkedIn to find connections within your field;
3) reaching out to people directly (especially if they don’t know each other).
How do I find clients as a freelancer?
To find clients as a freelancer, you can utilize online platforms, network within your industry, leverage social media, attend industry events, and build a strong online presence through a professional website or portfolio.
How should I set my freelance rates?
Setting freelance rates depends on several factors such as your experience, skillset, industry demand, and location. Research market rates, consider your expenses and desired income, and evaluate the value you bring to clients to determine your pricing.
How do I manage my finances as a freelancer?
Managing finances as a freelancer involves keeping track of income and expenses, setting aside money for taxes, budgeting, invoicing clients promptly, and considering retirement and insurance options. It’s advisable to consult with a financial advisor or accountant for personalized guidance.
How can I maintain work-life balance as a freelancer?
Maintaining work-life balance as a freelancer requires setting boundaries, establishing a dedicated workspace, managing your time effectively, taking breaks, prioritizing self-care, and learning to say no to excessive workload or requests that may disrupt your balance.
Costantine Edward is a digital marketing expert, freelance writer, and entrepreneur who helps people attain financial freedom. I’ve been working in marketing since I was 18 years old and have managed to build a successful career doing what I love.