You’re considering going freelance and while you’re looking at your option, you’re asking yourself:
What should I know before freelancing?
There are several things to consider before going freelance and it is SO important to keep them in mind.
It’s plain simple – freelancing is not for everyone. Some people do better when they work for a company and if that’s your case, take a look at these remote job websites.
While there are many freelancing benefits, this business path comes with downfalls too.
Here are the things you must know and consider before you start freelancing. All these things include tips to make sure you learn from common mistakes made by freelancers.
Save Money
If you’re going freelance, you should save up some money first. It might take time to land clients and when you do, you will be juggling with short-term and long-term clients.
Freelancers must be able to cope with volatility because they don’t have the job security of full-time employment.
On top of this, some clients might be late when issuing payments. Unfortunately, it happens often. If you know that this can be the case, you should always have a Plan B.
Having a safety net and savings is going to reduce your stress level.
That said, you could ask for 50% upfront before the work is commenced. Having a contract would also be a great way to protect yourself (and your bank account).
Set Up your Rates
Freelance work also means that you’re going to set your own rates. While this is great, you need to make sure not to forget important elements.
While setting up your rates, you need to consider the following things:
- Do you need to add taxes?
- Do you need to pay Paypal fees or banking fees?
- Do you need to pay any fees related to the software you need to complete the job?
- Do you need to add fees related to a platform you’re using? (Upwork, Fiverr, etc.)
With your answers in mind, you should include these within your rates.
Many freelancers, especially at the beginning of their journey, are struggling to set a fair rate when they land their first gigs. I’d suggest you compare the different rates associated with your industry and see how is your level of experience compared to your competitors. This should give you an idea of how much to charge.
You should also think about the type of rates you wish to have. Are you going to charge on an hourly basis or will you charge a set price?
Remind yourself that a new client will always take more time than a recurrent one. You’re going to have to adjust to your new client’s needs and guidelines.
Invest in Yourself
Many freelance jobs are evolving and so should your knowledge.
Are you a marketing specialist? A copywriter? An SEO?
Can you keep up with the newest best practices in your industry/niche?
At some point in your freelance career, you’re going to invest in yourself whether it’s to learn a new skill or to scale your business.
People are willing to pay for expertise, and while you may invest in coaching, some people will also invest in your own services.
Make sure you are able to offer real value by investing in your skills, your business and your mindset.
Make a Business Plan and Set Goals
Don’t start your journey as a freelancer without a plan.
What are your business goals? How much money do you need to support yourself and to live the life you’ve been dreaming of? How many clients do you need to book to reach your income goals?
Knowing these details is going to ensure you’re working on the right steps to achieve your business goals.
Once you know the details, you can prepare your action plan – What strategies will you use to land a client? Will you build your portfolio? Will you go through job boards? How will you find out about job opportunities?
Learn How to Pitch and Market Yourself
Whether you are going after potential clients you already know or sending out 100 cold pitches via email, you must learn how to sell, how to pitch and how to market yourself.
What are your offers? How are they valuable to your ideal clients?
Freelancers must pitch and sell their services in order to make money.
You must learn how to handle objections and how to sell your expertise according to your sales funnel.
Check-In on Your Mindset
Every successful freelancer has one thing in common – a solid mindset. They believe in their offers, they know how valuable they are and they know how much their work is worth.
Many freelancers are dealing with the infamous imposter syndrome. Having self-doubts is normal. (And it happens to me too.)
You must work on your confidence and more importantly, you must believe in your offers.
When you believe in your products/services, it’s going to be easier to sell them. Find ways to facilitate the process. Should you add testimonials? Do you have a portfolio? What steps can you take to get closer to a sale today?
Find a Way to Stay Organized
Freelancers must be organized in order to succeed. They may be dealing with deadlines and several clients.
Find a way to create discipline in your life that works for you. Do you need to set up reminders on your Google Calendar? Do you need to create a proper schedule for the whole month? Are you more productive in the morning or at night?
As a bonus, delivering your work on time may result in referrals from your clients.
Diversify
Diversification is key, especially for freelancers. If one of your clients brings 75% of your revenue, it may feel good, but isn’t it a bit risky?
What is going to happen the day your client has to cut on its budget during a pandemic?
Diversify your clients and make sure your eggs aren’t all in the same mini basket. Instead, secure work from several clients and work on different projects.
This may sound counterintuitive, but many freelancers are losing big when they lose a client. Make sure your safety net is wide.
Get a Community
Whether your community is online or offline, having a strong support network is life.
Network like if your life depended on it because you may end up closing more deals AND get referrals from your new freelancing friends.
Ask friends for help, ask friends if they need help with something, and ask again. These questions could bring you further than you think.
Final Thoughts On Things To Know Before Freelancing
Before you start freelancing, it’s important to know what you’re getting into. Education is key, so keep learning about freelancing to ensure a smooth transition.
Make sure to take a look at this list featuring the best blogs for freelancers.
