(Newswire.net — November 22, 2021) —
Over the years, the number of freelancers and gig workers in America has steadily increased. In 2020, that number reached 59 million American freelancers–an increase of two million workers from 2019!
This is not a coincidence. Freelancing is the new way of working, which you know because you’re here wondering how to start your own freelance business.
Before you take the courageous leap, there are some things you should brace yourself for. Here are seven things you should know before diving into the freelance world.
1. It Can Get Lonely
One thing that freelancers of all levels come to find is that freelancing can be a quite lonely endeavor.
Most of the time, you will spend your days working alone in your home or at your designated co-working space. While your freelance work may involve some coordination and collaboration with remote teams, for the most part, you’re on your own.
You don’t interact with many people throughout the day unless you make an effort to, and most freelancers recommend that you do.
Join freelancing groups. They can be a great support system and resource for your freelance business. It helps to have people who understand what you’re going through so that you don’t feel so alone in your freelance business.
Make sure you stay connected to your family, friends, and loved ones. Though they may not understand your freelance struggles, they can keep you grounded through it all.
2. You Pay Your Own Taxes
Taxes are intimidating for anyone, let alone, freelancers. If you’re thinking of starting your own freelance business, you should know all about freelancer taxes.
At the minimum, you should understand that your tax burden increases as a self-employed person. As a freelancer, you become responsible for paying the employer portion of the Medicare and Social Security taxes, in addition to the annual taxes you pay. Working as a W2 employee, your employer shoulders this half of the burden.
However, don’t let this deter you from taking the risk to become your own boss and run your own business.
Those who are self-employed enjoy tax write-offs that W2 workers do not. You can write off any business expense that is ordinary and necessary to running your business, which lowers your total taxable income when the time comes to file your annual tax returns. This alleviates part of the burden of running a profitable freelance business on your own.
3. Always Have a Contract
While a business plan is helpful as it establishes a business strategy for starting your freelance business, a contract is a staple; you can’t go without it. It protects you and your clients against any mishaps that may occur during the working relationship.
Many new freelancers begin working with clients without a freelance contract. They establish informal agreements, innocently believing that all will go well: they do the work and clients will pay on time.
That is the ideal situation. However, the reality of freelancing is not all sunshine and rainbows.
Freelancers who work without a solid contract learn from getting burned. These clients pay late, ask for additional work outside the agreed-upon scope of the project, or worse, renege on payments or projects completely.
A freelance contract helps to keep things professional and official so that both parties are happy with the transaction of the business deal. You can create your custom freelance contract on a site like Hectic. They also have a mobile app for greater convenience.
4. Confidence Matters
A quote by William Jennings Bryan reads, “the way to develop self-confidence is to do the things you fear and get a record of successful experiences behind you.”
Jumping into the freelance world will have you learning new skills and concepts, and doing new things that you’d never done before. For example, you will learn to cold pitch clients for business, and charge rates that you’d never thought you could charge for your work.
Having the courage to step out of your comfort zone and the self-confidence and belief in yourself that you are capable of providing great work is crucial to the success of your freelance business.
If you don’t believe in yourself, your clients have no reason to believe in you. Develop an unshakable self-confidence that lets even the most apprehensive of clients know, you have what it takes. You can deliver on your promises.
5. You Can Fire Toxic Clients
As a freelancer, you enter into mutually beneficial relationships with your clients. You provide your clients with the work that they need and your clients provide you financial stability through monetary compensation. This working relationship serves both parties.
However, when one side of the relationship becomes overbearing or toxic, it no longer serves anybody. The client isn’t happy and neither are you.
You have the power and liberty to walk away from relationships that do not serve your best interest. You can fire toxic clients and look for new ones that are better suited to your freelance company. Do this without hesitation.
6. Raise Your Rates
In the beginning stages of starting a business, you may feel pressured to offer your services for a competitive price to get your foot in the door. While freelancers have controversial opinions about this, the important point is that you are still able to survive, pay your bills, and eat three warm meals a day. Freelancers are human, too!
When you become more confident in yourself and your skills, you can begin to raise your rates. Those who respect you, your work, and your time, understand that these are your boundaries. You don’t take on work that doesn’t meet you halfway.
There’s no reason to have a client feel pressured to pay for work at a price point that they are not comfortable with. Compatibility isn’t only measured by behaviors, but in this case, also by price ranges.
7. You Get Better At Freelancing Over Time
As with anything, enough time and commitment to your freelance business will give you the experience you need to run a successful freelance company. You get better over time and you solidify your freelance identity by backing it with years of experience.
We all start somewhere.
Start Your Freelance Business Today
If you’re scared to start your freelance business, don’t worry. Every single person who has taken the leap and started to freelance has been where you are and, they made it out alright. Some rocked at freelancing!
There’s no better way to guarantee a successful freelance business than to believe in yourself and try!
If you’re ready to run your own business and start working for yourself, follow our blog for more business tips and advice!