Freelancing is one of the most common business models where you offer some type of manual labor for a fee. A freelancer is a self-employed individual who takes on temporary projects for companies. In many cases, freelancers work in creative fields such as graphic design, web development, marketing or copywriting.
Why start a freelance business?
Freelancing offers considerable freedom. You decide how, when and where to complete activities and which clients to work with. With no boss telling you which projects to accept or what to charge, you decide which clients to pursue or turn away so you can focus on those projects that interest you most.
You are also in charge of your own training and personal development. If you want to buy a specific training course or attend a conference, you may be able to write it off as a business expense. You can choose which skills you want to master and as you become proficient, you can offer new services to clients.
Requirements for freelancing
- Good project management skills – As a freelancer, you are solely responsible for how a project turns out. This means you have to manage client expectations and guard against “scope creep” – when the client suddenly wants twelve new features included with the initially quoted price.
- Good communication and sales skills – With freelancing, there is no buffer zone between you and clients. Unfortunately, some people see freelancers as “between jobs” so they don’t take your advice or rates seriously. Don’t fall into the trap of competing on price – prospects can always find someone who can do the job cheaper. Instead, focus on the value you provide and the results you get.
- Able to work independently – Also, unless you have partners or mentors, you don’t have a team with different skill sets to bounce ideas off of or talk to regularly. Working by yourself for long periods of time can be lonely, so build a support network and attend regular networking events to meet people.
- Strong financial management skills – Often, you won’t have a regular paycheck and revenue can fluctuate considerably, especially when you are starting out. Some months will be slower than others and you may struggle to attract and keep steady business. Some clients won’t pay their bill on time, or occasionally, at all, which can create a cash crunch for your business. By the time you are finally paid, you may find all of your paycheck going towards expenses and taxes – so staying on top of your finances is critical.
- Business management skills – Finally, you must deal with the business side including project and client management, invoicing, paying your taxes, and finding insurance. This involves learning skills you might not be proficient at or enjoy doing. Many service providers enjoy delivering their services but hate the seemingly menial tasks of running the business.
Freelancing can be a great way to earn cash on the side or as a full-time business. If you are considering becoming a freelancer, make a list of the types of services you can provide and how you might deliver those services. Then, come up with a marketing plan to start attracting clients.
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