Starting a Freelance Business: A Comprehensive Guide to Success

Many industries wouldn’t be able to exist if freelancers weren’t around and the good news is that if you are one and thinking of starting a business, you’ve come to the right place. 

There are around 1.57 billion freelancers in the world. The number only keeps on getting larger and the good news is that if you are thinking of starting your own business, everything is on your side. 

In this guide, we’ll cover everything you need to know about starting a freelance business and what other actions you need to take. 

1. Define your niche 

Finding your niche is the main goal when it comes to starting a freelance business. A niche is the area you are willing to share your expertise in. If you are still stuck in this part, we recommend you follow three important steps: 

1. Assess your interests and skills: What do you enjoy doing? What are you good at? 
2. Research market demand: You can use tools like LinkedIn and Google Trends to learn more about in-demand skills.
3. Conduct a competitor analysis: Who are your competitors in the market? What can you offer that is different from them? 

As of now, some popular freelance niches that are trending include Copy/content writing, graphic design, web development, virtual assistance, consulting, etc. 

2. Create your business plan 

A business plan is your road to success and if you want to know which path you are heading when starting your freelancing business. Your business plan should consist of the following components: 

1. Executive summary: A brief overview of your plan. 
2. Your company’s description: Here, you need to clarify what your business does and why it’s considered unique from the rest. 
3. Market analysis: Research the industry you want to do business in, your target market, and who your competitors are. 
4. Management and organization: This requires you to provide in-depth details about your business structure and the people running it. 
5. Product and services: A description of what you will sell and how it’ll benefit your customers. 
6. Customer segmentation: A breakdown of your target audience into different groups. 
7. Marketing and sales plan: This strategy is for selling and promoting your product and service. 
8. Logistics and operations: Shows how your business will run its daily activities. 
9. Financials: An overview of how income and expenses will come and go. 

Your business plan will show you where you are headed and what you need to do in the long term. 

3. Legally register your business 

Before taking on clients, it’s important to legally register your business and make sure it’s compliant. The most important steps to legalizing your business include: 

1. Choosing your business name. 
2. Registering your business legally (sole proprietorship, LLC, or any other structure.) 
3. Obtaining the necessary licenses and permits. 
4. Creating your business bank account for financial transparency. 

Of course, it’s important to follow these procedures because if you don’t, you might encounter a range of compliance issues if not followed. 

4. Build up your online presence 

Your online presence serves as a virtual storefront for your freelance business. The larger your online presence is, the better it’ll be for you and your freelancing business. In order to build your online presence, we recommend you follow three practices: 

1. Creating your professional website: Professional websites are becoming crucial for freelancers to attract clients, build credibility, and showcase their skills. Your website serves as your main tool in your freelance journey. 
2. Create your social media channels: The social media channels you use will strongly depend on where your target audience is most active. Regularly post content that showcases your skills and why clients should consider your business. 
3. Use freelance platforms: You can gain more exposure through Upwork, Fiver, and other freelancing platforms. 

It’s always best to set up your online presence on all platforms to ensure you are gaining traffic from all possible sources. 

5. Create your freelance rates 

Pricing your services can sometimes be challenging, especially when starting. To effectively determine your freelance rates, it’s best to set your rates on three circumstances: 

1. Hourly pricing: The most common way new freelancers are setting their rates since this model is simple. Whichever rate you set here, you can come up with an hourly rate for your work and multiply it by the number of hours you work. 
2. Project-based (fixed) pricing: Project-based pricing includes a fixed rate for the entire project. Instead of charging for the amount of hours you worked, your payment will be based on the results you deliver. 
3. Value-based pricing: Valued-based pricing is when a freelancer charges based on the perceived value of the service they give. However, this strategy requires you to understand budgets, project expectations, your client base, and the needs of the business you are providing services for. 

Each freelancer has a different way of setting prices, but you need to see what is most suitable for you and what works best. 

6. Build up your portfolio 

A strong portfolio is what will attract clients in the long term. Even if you are new, you can still create sample projects to showcase your skills. You may be wondering what’s the best way to showcase your portfolio. Well, here’s what we recommend you do: 

1. Start with personal projects: Building a portfolio can successfully be done when you show your projects. 
2. Show your best work: If you want to leave a good first impression, it’s always best to show your best work. Especially if you don’t have lots of experience, but still want to start a business, your top achievements are what will help you leave a good first impression. 
3. Add client testimonials: As we have already mentioned before, one of the most important purposes behind creating a freelancer portfolio is to show your clients what you are made of. Show all of your testimonials from past and current clients. 
4. Include your contact form: Your contact form is what will turn readers into clients. Therefore, include important information like your social handles, email, and website. 

Contact forms give visitors a good first impression when you show them that you are available. Therefore, include all of the contact information available to make sure they have all available options required. 

7. Focus on time management 

Successfully creating your freelance business requires you to save time and use it in the most effective way possible. The best way to effectively manage your time is to prioritize your tasks and clearly define your goals. 

Moreover, the next important step is to create your daily schedule. How can you do this? 

Well, our first piece of advice would be to block out any disturbing activities that take up too much of your time and make sure you are taking short breaks when needed. 

Also, you can create your work hours (from what time to what time), and in between them, write down what you are going to do during a specific time period. For example, here’s a table we created to clarify this part for you: 

If you find it challenging to effectively manage your time, you can always use time management tools like Trello, Toggl, and Google Calendar. 

8. Scale your freelance business 

Starting your freelance business doesn’t only mean being successful, but to make sure you scale your business over time. 

After you clarify everything you need to start your freelance business, it’s now time to learn how you can scale your freelance business over time: 

1. Define your vision: What are you planning on achieving by next year? 
2. Optimize your pricing strategy: Over time, it’s important to raise your rates as market demands rise and experience levels change. Your best bet is to charge for value and not time. 
3. Invest in marketing: Scaling will require you to leverage your online presence even more over time and this is best done through social media. Interact more with others on social channels, or even consider using paid ads. 
4. Build authority: This can be done through content marketing, whitepapers, and videos that demonstrate your expertise. Additionally, you can use certifications in your field to increase your credibility and even apply for industry awards to gain more recognition. 

It’s not important to start a business, but to make sure you are scaling it over time. 

You are one step closer to starting your freelancing business

As a freelancer, you have every right to start a business and what better way to do so than to start your own business. 

Starting your own business is a new step towards building a successful career on your terms. While starting a freelance business has its own challenges, if you follow a structured approach, you can definitely succeed in the long term. 

Always remember that freelancing isn’t only about securing clients, but creating fulfilling work, life balance, delivering value, and refining your craft. It’s always important to treat your freelancing businesses as a marathon and not a race.