Freelance work enables you to be your own boss, decide your own schedule, and choose your own clients. Additionally, many freelancers who work from home are able to travel or move with ease as they can work from almost anywhere in the world. Freelancing is becoming increasingly popular, and estimates indicate that by the year 2027, most of the working population in the United States will be freelancers. However, that doesn’t mean that when you start a freelance business it will be a smooth, problem-free process. As the business owner, you are fully responsible for the success or failure of your new business, and it takes a lot of time and hard work to get started in your new line of work.
If you’re new to freelancing, the following guide offers the practical tips and pointers you need to boost your odds of success. Adapt these to meet your exact needs and do your own research to have the tools and knowledge needed to start and grow your new business.
1. Decide Which Services You Will Offer
Many freelancers create their own products for sale or buy products made by a third party and resell them for a profit. However, this line of work can be expensive as you’ll have to purchase or make items in bulk in order to turn a profit. What’s more, you could easily get stuck with inventory that no one wants.
Selling services, on the other hand, is fairly straightforward. There is no initial monetary investment as you already have the know-how potential clients need. There are plenty of service-related niches to pick from, including:
- Consulting
- Tutoring
- Creative design (i.e., logo creation, website design, branding, creating advertisements)
- Content writing, ghostwriting, and/or freelance journalism
- Financial services (i.e., freelance accounting, tax preparation)
- Technical services (i.e., working as a freelance IT technician)
- Freelance construction and repair work (i.e., working as a freelance carpenter, plumber, HVAC technician, or home remodeler)
Consider your hobbies, long-term career goals, talents, experience, and areas of expertise when deciding which services you’ll offer. It’s also wise to do some market research to make sure there is demand for your new services.
2. Write a Business Plan
Once you’ve chosen the services you want to provide, it’s time to write up a one-page business plan. This plan should include:
- Your new company name and tagline
- Your manner of operating. Will you offer a guarantee that people will be satisfied with your services? Will you offer your services in-person, online, or both? Do you want to stand out as a trained expert in your field or someone with a new approach to old problems?
- Where and with whom will you work?
- A target audience. Will your services appeal primarily to men, women, parents, the elderly, or individuals from a particular ethnic background?
It’s also wise to set business goals. How many clients do you want/expect to have in one year? How about five years, or ten? Do you plan on eventually expanding your business and hiring employees, or will you work on your own long-term? While you can’t predict the future, you should know the general direction your business is heading in order to create the right business structure and branding.
3. Set up Your New Business as a Sole Proprietorship
There are various business structures to pick from, but sole proprietorship is typically the best option for a freelance business. It’s simple and easy to set up, the tax rate is the lowest of all business structures, and filing taxes is far easier than it is for other types of businesses. What’s more, you’ll have full control over your new company.
If you intend to run the business under your own name, you won’t have to take any action other than creating a website and promoting your services. If you want to pick a name for your new company, you’ll need to register the name to ensure that it’s not being used by another business.
In some cases, you’ll need a license in order to legally start a freelance company. This is particularly true if you offer professional consulting services such as legal or medical services. Requirements vary depending on where you live so be sure to look up local laws in our city or state to avoid future problems.
Be sure to also look up insurance requirements, as you may need one or more forms of professional insurance in order to run your new business. For instance, a freelance business with a business vehicle may need commercial auto insurance. Liability insurance can protect you and others if you have an accident while working.
4. Determine Your Price Structure
Before you advertise your services, you’ll need to know how much you want to charge. When deciding on a price, here are some factors to consider:
- What is the going price for your services? Can you charge more based on your experience, educational qualifications, or the fact you are offering specialized services your competitors aren’t providing? Perhaps, for instance, most people are willing to pay $20 an hour for math tutoring, but parents will pay $30 an hour if you tutor elementary students, many of whom aren’t served by other tutors.
- How much do you need to earn for your services? If you want to limit your work hours, you’ll probably have to charge a high fee for your services. This means you’ll need either a specialized skill set or high demand for what you have to offer.
- Can you realistically offer a lower price than your competitors to attract attention and generate sales? How long will you offer special deals for, and what conditions will you put on your “special rates”?
Your price structure does not have to be set in stone. You can raise or lower prices at a later date. Alternatively, you can add or eliminate services from a price package. However, you don’t want to continually change your prices, or you’ll lose customer trust. It’s best to do careful research before setting a price structure to avoid confusion.
5. Design Your Logo
Every single business should have a unique logo. The type of logo you choose will largely depend on your freelance business and the audience you are targeting. You have different options to choose from:
- The logo could be your business name
- The initial for your business
- A 3D or flat icon
- An abstract image
- Amascot or emblem
You’ll also need to pick a font for your company name even if you aren’t using it as part of your logo. If you’re not sure what style to choose look at your competitors to get some ideas and look at some professional freelancer logo designs for inspiration.
6. Build Your Website
Choose a website host with care, as it’s not easy to switch to a new host at a later date. This is especially true if you have not just a site but also a regularly-updated blog.
Some pointers to consider when selecting a website host include:
- Is it fast and reliable?
- Does it offer responsive, mobile-friendly templates?
- How much storage space does it have?
- Does the company managing the site offer fast customer service and technical help?
- Can I fully monetize the site?
- Can I create a “members-only” section of the site if need be?
Once you’ve picked a host, select a responsive template, customize it if you need or want to, and start building your new site. Use clear, high-quality images, black text on a white background, and create a site structure that makes it easy for visitors to find what they’re looking for. Make sure your call-to-action button is clearly visible so people know how to get in touch with you and use SSL security to protect any monetary payments made via the site.
7. Create a Marketing Plan
If you have a limited marketing budget, it can be best to start with free forms of advertising. Set up a few social media accounts for your business and update them regularly. Write blog posts using targeted keywords to rank well in Google.
Paid advertising on Google or social media does cost money but can be well worth the investment. Pick channels that will appeal to your target audience, use keywords related to your services, and continually monitor your ad performance to ensure it’s hitting the mark.
Offline advertising also works well. Tell family members and friends about your new business, and encourage them to tell other people about you. If you offer services in the local area, print up some flyers and distribute them. Attend local expos to advertise your new business and get to know potential clients.
The above list may seem daunting, but remember that a company isn’t built in a day. It will take time to get your new firm off the ground and bring in your first clients. However, the effort your put into building our new business will be more than worth it, and as time goes on, you’ll be able to look back with pride at the first steps you took to build your brand and make it successful.
