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#Freelancetips
Thereโs a lot to like about being a freelancer. You set your own hours. You choose your own clients. You work independently, control your workload, and vacation whenever you like. Who wouldnโt want a job with all those perks?
But just like any other career, being a solopreneur โ especially if you work remotely from home โ has its downsides. There are occupational hazards just like with any other job. And if you're not aware of the dark side of freelancing, your physical and mental health will suffer the consequences
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#Freelancetips
Itโs really bad when random people on the internet make it seem like the transition into life as a freelancer is a cakewalk. It's not. There will be times when you feel like you're doing everything right, and you'll still struggling to keep the bills paid. Why are we telling you this? Certainly not to make you think freelancing isn't for you โ quite the opposite.
It's important to be prepared for those freelancing dry spells because they happen to all of us. And when these freelancer dry spells occur, having the right mindset is what will get you through.
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#Freelancetips
We all know that having a client referred to you is the most cost-effective way to grow your business. But many new freelancers still struggle to ask for referrals, which can usually be traced back to every freelancer's frienemy, imposter syndrome.
Did you know that 89% of freelancers name "referrals" as the best way to get new projects? For comparison, less than 25% rely on "cold pitching" or "job boards." Another study of independent workers found that 84% of solo business owners who earn more than $100,000 per year get most of their work through word-of-mouth recommendations. TL;DR: If you're going to thrive as a freelancer, you need to ask for that referral
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#Freelancetips
Never ever start delivering a service before you put things in writing. Period. A work contract is a mutual agreement on the scope of work, payment terms, and obligations of both parties. It should be ironed out in advance to avoid any unsavory questions like โWhat happens if the work gets delayed from your end or the clientโs side?โ, โHow many revisions are allowed?โ, โWhen will I get my money?โ.
If the engagement goes awry, you have a legal document, which protects your right to getting paid. Plus, itโs a document you can always point toward when the client makes unreasonable demands.
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#Freelancetips
As a new freelancer, you may be tempted to lowball your offers. Thatโs a rookie mistake 60% of beginners make. But being new to freelancing doesnโt mean youโre new to the job market. Donโt undervalue your skillset and past work experiences. Likewise, donโt go with the recommended hourly rate for your profession, since such employee hourly rates donโt factor in self-employment taxes and business operating expenses.
If youโre unsure what to charge for this or that, browse recommended rate guides or post a question in a freelancing community to get some peer feedback.
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#Freelancetips
Freelancers may want to avoid the hassle of opening a new bank account when they start out, and rather channel funds to a personal account.
If youโre registered as self-employed, this is legally allowed. But commingling business and personal funds will likely make the end of a financial year a nightmare. Youโll have to sort through countless transactions to highlight client payments and business expenses, then do a painful tally of those.
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#Freelancetips
Itโs normal to go through a feast and famine cycle in your first year of freelancing. Whatโs problematic is when you donโt plan ahead for the rainy day. Donโt spend your entire income each month. Create a system of pockets where you set aside extra money to cover:
- Monthly business expenses
- Tax payments
- Delayed client payments
Itโs important to maintain a business bank account, with a minimum of one month's worth of personal and business expenses as your safety net.
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#Freelancetips
Late payments are not acceptable. If a delay happened once, give the client a polite, but firm reprimand. If late payments somehow become the norm, fire that client.
To avoid late client payments:
- Be upfront about acceptable payment terms
- Introduce contract clauses for charging a late fee on overdue invoices
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#Freelancetips
Youโre in charge, and you must be proactive about business management. This means being intentional and somewhat selective about the work you accept.
By accepting unsuitable projects โ low-paid, irrelevant, or plain boring tasksโ youโre limiting your ability to pursue more rewarding work, and to grow your personal brand. Donโt accept every request falling into your lap. Create a set of criteria for evaluating different clients and projects. Stick to it.
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#Freelancetips
No vacations, long working hours and no time for other personal commitments arenโt the way to go. Freelancing is about flexibility and freedom to focus on things you love the most.
Sure, growing your income is a great goal. Itโs not worth the sacrifice of your physical and mental well-being. There are many things you can take advantage of to help in avoiding the burnout train.
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