Freelancing gives you the opportunity to work from home full-time or to provide an extra source of income. Here are 6 helpful tips for a freelance business.
What’s your net worth?
For best selling author, Stephen King, it’s an impressive $500 million. However, Stephen’s writing career didn’t start as lucrative. The truth is, Stephen King began as a humble freelancer.
If you’re running a freelance business, the sky’s the limit when it comes to financial opportunities. Nevertheless, whether you’re working independently, or running a team, you have to know how to maximize your money, time, and potential.
Are you ready to learn how to make the jump from being a humble freelancer to being someone on the path to making millions? Read on to learn everything you need to know to make it big in the freelancing world.
- Start the Right Freelance Business
What is it about freelancing that excites you? Is it the opportunity to set your schedule with limitless income potential? While freelancing does come with a ton of perks, you mustn't be just pursuing it for the benefits.
Instead, you need to choose a freelance business or skill, that you're interested in building long-term. To get on the right track to success, you’ll need to decide what your niche is.
Here are a few freelance niches you can choose from:
- Freelance writing
- Freelance virtual assistant
- Freelance web designer
- Freelance internet marketer
- Freelance bookkeeper
- Freelance resume writer
If you have a way with words, an internet connection, and a computer, freelance writing is a great place to start. You'll be able to enjoy a flexible schedule, as you build your income over time.
Virtual Assistant Opportunities
If writing isn’t your thing, consider looking into virtual assistant opportunities. As a freelance virtual assistant, you can expect to have a more stable schedule, with minimum supervision.
Businesses rely on virtual assistants to help streamline their administrative tasks. One day you might be helping your customers learn how to open RAR files on Mac, and the next you may be scheduling conferences.
- Provide Crystal Clear Services
Figuring out what you want to do as a freelancer, is just as important as figuring out what you don't want to do. That's why you must get specific about what type of services you're willing to offer, and what services are off the table.
When you’re clear about the type of work you're willing to do, you’ll create an effective brand for yourself. You'll also be able to build your business more efficiently, as you move in the direction you're looking to go.
For example, let's say you're looking to establish yourself as a web developer. As an aspiring web developer, you'd want to only accept contract offers that align with your web development goals. Taking on any projects that aren't web development related, may earn you money, but it won't help you grow in your freelancing field.
- Find Your Target Audience
If you try to market to everyone, you'll wind up attracting no one. Instead of casting a wide net, you need to know who your target audience is.
Here are a few tips to figure out who your clients are:
- Define what problems you solve
- Research your competition
- Consider your skills and services
- Know your audience is demographics and psychographics
- Evaluate your market
First, figure out how your services will benefit your customers. What problems will you be solving for your clients?
Next, start studying your competition. Who are other freelancers in your industry targeting for business? When you're done researching your competition, take a moment to determine what makes you better than them, or unique.
Finally, once you have a good idea of who your marketing to, start driving into the demographics. What age group are you trying to reach? What type of hobbies do your customers have? The more you know about your target audience, the easier it will be to find them.
- Accounting System
After you begin earning an income as a freelancer, you'll need to set up an efficient accounting system. Here's what your accounting system should include:
- Track invoices
- Track all payments
- Track all freelance business expenses
Your accounting system should track your invoices, as well as when you've received payment for any job. Next, make sure you’re keeping receipts from all of your business expenses. As a freelancer, a lot of your expenses will be deductible at tax time.
- Preparing for Taxes
Don't wait until the last minute to start setting aside money for your taxes. Instead, put aside money for taxes, from every payment you receive. As a freelancer, you're completely responsible for handling your taxes.
If you're working full-time, you'll need to pay your taxes quarterly. If you're only working part-time, you may be able to lower the number of withholdings at tax time.
However, no matter how much or how little you're making, you will owe the government some amount of money for taxes. Don't let the taxes sneak up on you, and instead continuously save for your taxes from every dollar you earn.
- Don’t Quit Your Job Right Away
Are you currently working at a job separate from freelancing? If so, find a way to work your 9-5 job, while freelancing part-time. Here are some of the benefits of working a day job, while freelancing on the side:
- More capital to invest in your business
- Job security in volatile markets
- Ability to make long-term financial plans for growth
As you begin to build your clients and establish yourself in your industry, you can start exploring what leaving your job would look like.
The world of freelance is anything but predictable. You can have a ton of clients one month, and zero business the next month. Play it safe, continue working your regular job, until you have enough money saved up to cover unexpected events.
Enjoy Living the Dream
There you go! Now you know 6 game-changing tips for freelancers, no matter industry you’re in. What one of our tips speaks to you the most for building your freelance business? Do you see yourself setting up an accounting plan? Will you be spending more time finding your target audience?
When it comes to thriving as a freelancer, it’s all about putting your knowledge to work for you. To find more tips that will help you grow, check out the rest of this site!