How to Start Freelancing: 7 Things to Do First
Picture your perfect work environment. Are you sitting in a cubicle 9-5? Or are you working from different spaces in your favorite neighborhood with passion projects up on your laptop screen? If you’re thinking about the latter, then you might be one of the thousands of people turning to remote work.
One of the most popular remote career paths is freelancing! Over 65 Million Americans freelanced in 2020, and the numbers are just going up from there. Freelancing is the perfect way to be in charge of your schedule and make money that fits your lifestyle. Companies rely on freelance writers, graphic designers, digital marketers, and more every day to help them solve problems. If you're a self-starter looking for the ultimate work-life balance, here are 7 things you should do before you start freelancing.
1. Legally Incorporate Your Business
Legally incorporating your business is the first step to becoming a legitimate freelancer. It may feel like all you need is your laptop and an email address to do freelance work, but incorporating your business will help you immensely when it comes to the financial details down the line. Here's how to incorporate your business.
Do a Name Search
You may have the perfect name in mind for your business. But you have to make sure another company isn't already using it. Having a unique name avoids any confusion customers may have when searching for your business.
File an LLC
Once you have your name, the next step is to file an LLC. Although there are a couple of ways to incorporate a business, the most common one for freelancers is an LLC (limited liability corporation). You will have to file your LLC online with your state and pay a fee to secure it.
2. Set Up Your Business Bank Account
Congrats, you registered your business as an LLC! Now you have to apply for an Employment Identification Number. It’s free and quick to do on the IRS website.
Once you have your EIN, you can open up a bank account for your business. Having a dedicated business bank account helps you keep all of your funds for your company in one place. It also makes it easier to accept payments from clients and makes you look professional when doing so. Once you have a business bank account, you can apply for dedicated debit and credit cards. A business debit card and checks will allow you to pay for expenses directly from your business account. It also makes it simple to track your purchases when tax season rolls around.
3. Define Your Target Customer
When you first start your freelance business, you may want to throw your name out to anyone and see who will pay for your services. But to become a successful freelancer, you need to be thoughtful about the customers you want to work with.
Your perfect client may be a person, a small business, or a large company. Start by thinking about who that target person may be. Are they older or younger? Are they single, or do they have a family? Are they also business owners? Asking yourself these questions can help you narrow down who you want to work with and how you can help them with your services.
You can also come up with a list of dream companies as client targets. Aim big! You never know who you could work with one day. Look into what kind of problems these companies need help with and how you can tailor your services to solve those problems.
Putting this thought into defining your potential clients will help you foster professional relationships that can grow over time and lead to other opportunities.
4. Identify Your Key Services
As a freelancer, you are already someone that likes to think out of the box and follow their own path. You may find yourself feeling like a jack of all trades, but you must narrow down your best skills for your freelancing business.
What you are good at and what you can offer clients is a little different. If you're a good writer, you have to turn your writing skills into a service that can solve problems for your clients. A client may be looking for someone to write compelling content for their website. So instead of just being a writer, your service would be a website copywriter. You can narrow it down even more and sell that you are a copywriter that can help drive new traffic to your client's website. Your client then knows what service they are paying you for, and you know how to use your skill profitably.
You can use these steps to identify services in every industry. For example, if you’re a digital artist, your skill is creating art. A company might need help creating compelling visuals on their social media to drive traffic to their website. So as a digital artist, this is the service you could provide. It’s all about figuring out how to turn your best skills into profitable services!
5. Price Your Services
You've landed your first client and they're excited to work with you! But how much should you charge? This is the question that stumps every new freelancer. Rates will vary from industry to industry, but here are the four basic pricing options:
Hourly Rate
Per Project
On Commission
Monthly Retainer
To get a solid idea of what hourly rate to charge, start with research on the job you will be doing. If you’re a writer, you can look up copywriting salaries to get a general idea of what people in your industry are making per year. You can then adjust your hourly rate according to that. Use resources like Glassdoor or Indeed for more in-depth details on rates. You can also scope out freelancing sites like Upwork to see what other people are getting paid for similar services. You can always start at an entry-level rate to get clients, and as you gain more credibility, increase your hourly rate.
For freelancers who work in art or creative fields, you can expect to be paid per project or on commission. You must find a number you are excited to complete these projects for. Don’t ever sell yourself short. Freelance artists are always in demand and provide a skilled service. If clients are willing to pay for it, they will. Look for social media groups for other creatives in your field and feel free to start conversations with peers. This can give you a great idea of the base prices others are charging.
When working on a project or commission, you must communicate with clients regarding their expectations. These include timelines, edits, and how often they can expect to speak with you regarding the project.
6. Create a Portfolio Website to Share With Potential Clients
The perfect way to showcase your work and expertise is to create a portfolio to share with clients.
Many freelancers start out by building portfolios filled with work they have done for free. These projects can include past school work and passion projects. You can also create mock-up projects for real companies. This shows clients what types of companies you are interested in working with. Just make it clear that these projects are for fun, and you’re good to go!
Clients want to trust that you can do the job, and a portfolio can help seal the deal. You can create your portfolio website from scratch or use a third-party site. There’s nothing wrong with building a portfolio using sites like Squarespace or WordPress when you’re just getting started. Make sure to customize your portfolio for the services you are presenting. Get creative with it too. If you work in social media you can make your portfolio on Instagram for example. Creating a clean, personal portfolio is an incredible way to win over clients and show off all of your work!
7. Find a Dedicated Space to Be Productive
The most enticing part about being a freelancer is that you can do your job from anywhere! The only struggle can be finding a productive workspace. Working from home or spaces like coffee shops long-term can make your work feel illegitimate. That’s where a mobile workspace like Nest Vans comes into play.
Having a dedicated workspace makes your business feel professional while still giving you the freedom to work wherever you want, whenever you want. People pick freelancing for the ultimate work-life balance. So having a mobile workstation only makes it easier to create a freelancing business. We customize our van conversions for the remote worker with a swivel work desk, signal boosters, and tons of storage space. When you’re ready to start working remotely and need a workspace to incorporate into your lifestyle, Nest Vans is ready to go.
