Since the COVID-19 crisis, around half of hiring managers have been more likely to hire an independent contractor according to Forbes. This emphasizes the point that a freelance career is a benefit to people who intend to become self-employed in the near future. So do you want to learn how to start a freelance business, but have no idea what to do? Cuprin will provide you with helpful information on how to start a freelance business and improve your own business.
What is a freelance business?
A freelancing business is one in which you are the sole proprietor and are responsible for all business operations. In other words, freelancers are in charge of aspects of their profitable freelance business including setting their own hours, pricing strategy, pursuing contract jobs, and paying business taxes.
There are a thousand options of freelance jobs for you: graphic design, freelance writer, social media manager, virtual assistant, web designer... Unless you're doing business as yourself using your legal name, you should register your small business as a legal entity. Doing so can give your business personal liability protection, legal benefits, and some tax benefits. If you plan on staying as an independent freelancer, then registering as a sole proprietor would be the least expensive and most straightforward option. However, many freelancers choose a limited liability company as they get the benefits of not being personally liable without the complications of a corporation.
There are various aspects to freelance businesses:
To start your new freelance business, the first aspect is time, you must plan your daily schedule in order to get more prospective clients and build strong client relationships.
The second aspect to start freelancing is financial, you must make a budget and learn how to cash management on a monthly basis in order to avoid going into debt or declaring bankruptcy.
The third aspect to build a new business is health, you need to take care of yourself because it will affect your clients.
The fourth aspect is location, you should change your new spaces to work, such as cafes, libraries, or a friend's home. This will provide you with new opportunities to get more clients while also increasing your knowledge.
Why you should own freelance business and become your own boss?
Owning a freelance business may be incredibly rewarding and profitable. There are many advantages to starting freelancing:
First, compared to a full-time job, you have complete control over your schedule, set your own hours and can do whatever you choose. Not only you can avoid a commute and work from home, but freelance work will also help to change your work-life balance. Many freelancers have a better work-life balance than other people.
Second, you are your own boss and can set your own pricing structure. Instead of being forced to accept whatever wage your boss offers, you can set your own rate and only accept work from potential clients who will pay you what you're worth.
Final, there are many freelance services, and you get to develop your freelancing career based on your preferences and your profitable niche. You can also develop a number of new relationships and new business opportunities that will help you broaden your skillset in the future.
Starting a freelance business will transform your perspective on work; you will be accountable for all aspects of your business jobs, and while this may seem overwhelming at first, it means that success is solely yours.
How to start a freelancer business?
Make a detailed plan
To get started a freelancing business, you can think about your freelance income target, based on your living expenses, risk tolerance, and realistic expectations on how long your savings can sustain you. Now you can back into a rough idea of how many freelance clients you'll need for your freelancing business, before making it to the point where you'll be able to leave your day job to freelance full-time.
After deciding to start a freelance business, making a plan will help you stay focused while providing direction on which your business entity should focus its efforts. As a business owner, you will also be able to evaluate if your new business is on the right path. You should establish what you can do as a freelance business, what kind of business you will start, what compelling solution you can offer, and where you should put information about freelance services so that many people are aware of them. This is your own personal business strategy, and every decision you make must be carefully considered.
Make your service more professional than other freelancers:
Freelance work is likewise a very competitive environment. So, how can you get more target clients to use your service and stand out from other freelancers? Most freelancers tend to agree that it is professionalism. Here are some characteristics that distinguish your service as a professional to impress new clients:
The content of the service is complete and specific, including the benefits that your new clients gain while using your freelance jobs, and your obligations.
A professional profile is helpful for attracting potential clients. This is the first section, and it is also the section that more clients are interested in. The personal experience part is where you should pay the most attention to because it influences clients' decisions on whether or not to use the service you supply.
Have your own website/ blog where you may showcase your freelance jobs and share information about your field with future clients. You can do it by yourself with lots of free tools or hire a web designer. This is really important for many freelancers. Take advantage of this possibility to earn a lot of website visitors who can be your potential client, especially if you have good writing skills and know SEO effectively. Regularly update your website to let ideal clients know more about you, and utilize various advertising tools to make it more appealing. Meanwhile, you can also use your existing network and ask your past clients to leave positive feedback on past projects for you so that your target clients can read it and understand more about your business. Using testimonials is the most effective way to help other clients trust more your small business.
Use project management tool to support your freelancing business
As technology advances, a variety of job support technologies become available to help you manage personal assets and company resources. You can save time by using these management tools instead of doing it manually. You'll have more time to concentrate on other projects.
Learn how to handle personal finances
Learning cash management is an important part of being a freelance or running a freelance project. When you're working with multiple clients, it's difficult to keep track of payments and business expenses. You can manage your payments through the platform to ensure paying clients on time. Good record keeping will make your life a lot easier when it comes to tax season, managing your bank account, and keeping your finances in good health. It's also helpful to accept payments with various payment methods (bank account, Paypal, E-wallet...) to create convenience for your new clients.
Also, with each separate business, you should have a business bank account. Don't forget that you also need to register an employer identification number to identify your business entity with Internal Revenue Service and pay self-employment tax.
Cuprin - All-in-one solution for freelancers
As a freelancer, you'll essentially need to hire yourself for your own business entity. That means focusing on a business structure like marketing, networking, personal finances and self-organization in order to maintain your small business and make sure it thrives. Many people who have started out as independent contractor have struggled with this procedure.
With our Customer Relationship Management software, Cuprin, we're here to assist you in making your freelance career more successful. Cuprin contains a CRM platform, an unique homepage, project management, contracts, proposals, and accountancy, all-in-one place to make freelancers' lives as simple as possible. We also develop additional services such as using your own domain, online payment, and customer portal in order to enhance your Cuprin experience.
Above all, it's not going to be easy to start a freelance business, that's why at Cuprin we collaborate with you to comprehend your needs and requirements. Please start a free trial and increase your productivity automatically.