8 THINGS YOU SHOULD KNOW WHEN STARTING YOUR FREELANCE BUSINESS

Starting a freelance business can be a rough, scary, fun, exciting,anxiety filled, awesome time in your life. You’ll be bundling 20 different feelings together on a daily basis, from the regular “wow, I love working from home” feelings to the “why can’t this client just get hit by a bus” feeling, so you better get used to it now. However, there are a few more important things you should think about when starting your freelance business and that is what I’ll becovering in todays post.
 
1. The feast or famine cycle is very, very real
A lot of ‘marketing gurus’ will tell a very different story, but I am here to tell you from first hand experience, the feast or famine cycle is a very real concept and you’ll end up going through it as well. Planning properly for these situations will help keep your business and your sanity afloat during the trying times.
 
For those who don’t know what the freelancers feast or famine cycle is, it’s a cycle that freelancers inevitably go through where there are really high pace times with tons of clients and a great amount of cash flow, usually followed by a good solid month or more with little-to-no work whatsoever. You live on the high horse during the happy times and then get crushed. But, by understanding that this will happen, you’re able to plan better and keep better control of your money and spending.
 
2. You don’t need venture capital to start your business
No matter what people tell you, or what you read, you do not need venture capital or back up funding to start your freelance business. For instance, if you read the previous article we wrote here on starting your design business for $25.00 you’ll see that start up cash is not ahuge burden on your freelance start up success.
 
Getting your freelance business set up can be a quick and painless process if you know what you’re doing – and by reading this article, I hope you’re well on your way to knowing what steps you need to take.
 
3. You don’t need a portfolio full of client work in order to land your first client
This doesn’t mean that you need to jump into the crowd sourcing sites and design contests either.
Starting your freelance business doesn’t require you to have multiple client projects under your belt. If you like a specific type of design,writing, illustrating or programming, spend a bit of time building things that play off your strengths and use these as your base portfolio. You won’t be getting paid for them, but you also will have the creative freedom to make it your best work ever.
 
Put together 4-5 pieces and hit the streets running. There are numerous job boards out there that you can contact potential clients through once you get your portfolio together (here, here and here arejust a few - get a mega list from freelance switch here).
 
4. Invoicing and Accounting is easier than ever
In the past, these two things were a brain killer and would put a lot offear in potential freelance workers. Today, there are a vast array of invoicing and accounting apps/websites out there that will help take the pain out of keeping track of the books. I was one of the people who hated the idea of invoicing and keeping track of these things because, at the time, I was highly unorganized and very green to the idea of running my own business. I was amazed at how easy it actually can be. For instance, if you were to sign up for an account at Invoice Machine to send your invoices (which is super easy by the way) and then check out Outright for your accounting (which is also super easy touse), you can be done with this step of your business in a matter of minutes – without any of the extra headaches.
 
On a side note, I would recommend looking for an accountant in your area to go over your books on a yearly/bi-yearly basis just to be on the safe side. You never know what extra savings they can get for you because, after all, this is what they’re best at.
 
5. Your clients will (almost) never pay you quickly
With a lot of freelance businesses, there are net 15-30-60-90 payment plans set up, so you’re semi-aware of the fact that the client will be paying during a certain time period. From the sounds of the payment plans above, you’d think that you can plan ahead for 15-30 days and know when you’ll be getting cash after you’ve submitted your invoices, right? Wrong. Clients will pay on their time. So, having a back up plan together for cash is a great idea.
 
You should also make sure you’ve got things on record properly and that you’re emailing reminders out a day or two before – and after– invoices are due. If you’re not in the clients face, reminding them that they’ve got cash to send you that you’re owed, they’ll forget and move onto something else.
 
6. You’re only worth as much as you charge – or allow yourself to charge
A classic mistake that freelancers will make happens right when they start out, or when cash is unusually low. Reducing rates is a big nono, as well as allowing yourself to be talked down from your original rate you quoted. These are clients you’ll want to avoid at all costs because they’re just ‘looking for something for nothing’ and will (almost) never be of any good use to your business future.
 
Also remember that your rates will dictate what type of clients you attract. If you’ve got bottom end rates of $10-15 dollars an hour, then you’ll be attracting bottom end clients. If your work is worth more than that (and I would assume it is), you need to bump your rates up to are spectable number. Don’t know what to charge? Thats ok. Try a priceon for size for a month or two and adjust it accordingly.
 
In the first year of my freelance design business, I jumped my rates up3 times – almost tripling the original rate I was charging. As I jumpedup, the quality of clients jumped up as well.
 
7. Not everyone with a computer can do it
A hard truth that people will try to avoid is that freelancing isn’t built for everyone. Just because you have a computer, read the biggest freelance advice blogs out there and know what to do and not do, doesn’t mean you’re going to be able to cut it. Spending 1 hour a day working and 23 hours goofing off isn’t going to get you anywhere. Downloading photoshop and reading sites like Tutorial9 will not make you the worlds top designer. Some people have it and some people don’t. It takes discipline and dedication to build a freelance business. Keeping track of clients, payments, open jobs and potential leads can be a daunting task. Add that with the work involved with each client, the countless emails you’ll receive as well as keeping up with the industry you’re in and you’re looking at some solid work days. Can you handle it? I think you can,but you should make sure you can before hand.
 
8. It is the greatest feeling in the entire world
Your freelance business will be fun. Working from home (or your own office) will be great and feel awesome. The freedom that comes with freelancing is amazing and something I would never trade for anything in this world. You’re going to have a blast, and you’ll be able to go as far as your mind can imagine.
 
Remembering the things above and keeping a level head about yourself, you’ll be able to accomplish anything you set out to do, anddo it on your own time. It’s a fun ride – enjoy it to the fullest.
 
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To you success!!!

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