8 Mistakes to Avoid When Starting a Freelance Business
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Starting a freelance business may not be easy, but it doesn’t have to be super difficult either. Many benefits come with being your own boss and running your own business, and these far outweigh some of the challenges of getting started.
The decisions you make early on will have a big impact on the success of your freelance business, so recognizing which actions to take and which mistakes to avoid is key.
In this post, we’ll go over eight common mistakes:
- Not having a business plan
- Not having a financial plan
- Not marketing yourself consistently
- Setting your rates too low
- Not signing a contract
- Not having an onboarding process
- Managing your time poorly
- Neglecting your mental and physical well-being
Keep reading to find out how to avoid these!
1. Not Having a Business Plan
Creating a well-organized and detailed business plan is important because it will set you up for success as you start your freelance business.
A business plan should be as detailed as possible and cover a lot of the challenges you’ll face as well as the goals you want to achieve. Writing a business plan offers several advantages. It can help you:
- Identify your clients/customers
- Recognize your competition
- Figure out the best way to market your products/services
- Evaluate your costs and estimate your potential income
- Plan for the long-term growth of your business
- Be adaptable to unexpected changes in the marketplace
2. Not Having a Financial Plan
Being your own boss of a freelance business means you have to take full responsibility for all your business-related finances. Having a solid financial plan is necessary because it will help you keep track of your income and expenses so you know how much money you have to spend and how much you need to save.
This process will require more than having separate personal and business bank accounts. We recommend five types of savings to every freelancer.
3. Not Marketing Yourself Consistently
When you start your own freelance business, one of the most important things is to secure work as soon as possible. You need to connect with potential customers or clients by marketing yourself effectively.
Fortunately, the internet has made it easier to promote your freelance business. Here are some tips to help you market yourself.
4. Setting Your Rates Too Low
When starting a freelance business, you need a clear sense of what your services are worth. Do a little research on what other people are charging for similar services and make sure you set a reasonable rate when you start off.
After you’ve gained more experience, knowing when to raise your rates is also important.
5. Not Signing a Contract
When running your own freelance business, you need to be specific about what services you’ll be offering. A good way to do this is through a contract for your clients to sign so no misunderstandings occur down the road.
Here is a good outline of what to include in a freelancing contract.
6. Not Having an Onboarding Process
Client onboarding is a very important – and often overlooked – aspect of being a freelancer. Onboarding is the process of welcoming new clients and outlining the expectations you have of each other.
This process can set the tone for the rest of the business relationship, so getting started on the right foot is important. Several good practices can help make this process easier.
7. Managing Your Time Poorly
Good time management skills are essential when you’re a freelancer.
You need to know when to focus on work and when to take breaks. Working yourself too hard can lead to burnouts, make you less focused, and lower your overall productivity. A few methods are available to help you organize your day and make efficient use of work and break times.
8. Neglecting Your Mental and Physical Well-Being
When you’re running your own freelance business, you have the luxury of setting your own hours. Unfortunately, a lot of people tend to work themselves too hard, especially in the beginning. To avoid this, you need to maintain a good balance between work and your regular life.
Building a good morning routine and having a set schedule for your day are just a few tips to help keep you productive and healthy.
Becoming a Freelancer
While starting your own freelance business may not be easy, the right type of person can find it incredibly rewarding. If you’re mindful of the eight mistakes we’ve listed above and work to avoid them, the process will be less daunting.
Not sure what type of freelance business you want to start? That’s okay. Our courses can help you jump-start an exciting freelance business, whether you’re a complete beginner or you want to polish existing skills.
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