The current economic situation of the world is no secret to anyone. The staggering inflation rates are pushing prices up, while slow economic growth is restricting investment activities. In these challenging times, people are looking for multiple jobs to foot their bills.
Some employees are starting their business, while others are switching to remote work. After all, the freelance business has become an exciting prospect for making a living – all thanks to technology.
Unlike traditional careers, freelancing offers flexibility to create a modifiable lifestyle. If you have useful skills and knowledge, consider starting a side freelancing business. It is far better than taking up another job and exhausting yourself. Freelancing business is full of lucrative opportunities with minimal expenses. And eventually, you can grow it into a sustainable career in the future.
Undoubtedly, managing a business with a full-time job might get exhausting, but all your efforts will be worthwhile. Learn the time-management tricks to keep up your office performance while putting meaningful work into freelancing projects. If you want to do it, let assist you in this journey. Here we are putting forward six tips to start a freelancing business while working full-time.
1. FATHOM THE FREELANCING INDUSTRY
Before starting the business, it is essential to define your goals. Is freelancing a path to earn extra income, or are you using it as a stepping stone to accomplish your goals? Once you determine your objectives, start learning about this industry.
If you plan to build a long-term freelance career, register your business. Although you can report your freelance work as an additional income on taxes, a registered entity will protect you from personal liabilities.
In addition to this, sort out payable taxes. Unlike conventional business, the tax deduction is quite different for freelancers. You have to pay a self-employment tax quarterly or yearly by filling a schedule C form. Use a freelancer income tax calculator to compare if registering the company offers any tax advantages.
Moreover, you have to get a business license to work in this industry. The licensing requirements depend on the services you offer and where you live. Thus, get in touch with a corporate lawyer and get yourself a license to kick off this endeavor.
2. FIND A PROFITABLE NICHE
Surprisingly enough, the freelancing industry is enormous. From adobe illustrator, photoshop, content writing, to programming – there are countless niches with immense competition. Therefore, instead of chasing the most profitable niche, take a dig at your expertise and what you can do better. If you are a graphic designer, explore this arena, and become the best. In addition to traditional work, concentrate on infographic design for blogs or write eBooks for tech companies.
It will help you land companies who source work and are far more profitable than individual clients. However, it’s better if you had a team to run a business. Start finding web developers, copywriters, SEO experts, and other professionals who will work with you. You can either call out for partnership or form project-based contracts with every freelancer.
3. SET TACTICAL PRICES FOR SERVICES
Do you want to charge an hourly rate? Is it worth to lower charges to win more work? As a freelance business owner, you will come across all these questions while setting prices. The entire freelancing industry is fraught with pricing considerations because there is no one-size-fits-all approach. You have to learn about the different pricing methods and structures before disclosing your charges to a client. Here are the three common pricing strategies.
I. Cost-Plus Pricing: Here, you have to list down all your personal and professional expenses to determine an hourly rate.
II. Market-Based Pricing: This pricing method is riskier but rational. You have to conduct a market analysis and check what prices competitors are charging to set competitive rates.
III. Value-Driven Pricing: With increasing competition, some freelancers charge low prices for the sake of attracting clients. As a result, businesses prefer value-driven pricing methodology. You can set a fee based on the value it holds for the client rather than what it costs to products.
Once you have the knack of these pricing methods, alter your rates with the projects. Remember, successful freelancers, compete on value rather than price.
4. USE THE RIGHT TOOLS
Since you are starting your own freelancing business, surround yourself with tools that help get work done. Most people think that they are leaping forward in the business by using or buying a single tool, but is it true? Unsurprisingly, a tool is only a means to an end that makes you look better when dealing with the clients.
It helps in automating manual processes, saving time. For instance – if you want to craft proposals, use Bid-sketch or Fresh books to generate invoices.
Moreover, choose tools and platforms that you will use to target clients. Either pick standard Upwork, Fiver, or create your website to enlist all the clients’ services. Remember, sourcing new clients is quite challenging. Hence, as you start your freelancing business, get the most out of your clients – financial and portfolio-building viewpoint.
5. LEARN THE ART OF PITCHING
Do you know how to get clients in the freelancing business? In addition to marketing and promotions, learn how to pitch yourself. No matter how many skills you have under your belt, you have to communicate those strengths to clients. You have to convince and convert people into paying clients with the power of words.
As for the mode of communication, always adopt a formal approach. Feel free to attend networking events or trade shows to meet key players in the industry and pitch them your services. Otherwise, you can craft proposals for your clients with these tips.
I. Write a strong opening line that reflects the value and show you have done your homework.
II. Sell your strengths.
III. Answer every question beforehand.
IV. Lean on past work samples and projects that demonstrate your expertise.
V. Pick an eye-catchy layout for your proposal.
6. KEEP YOUR PRIORITIES STRAIGHT
Above all, don’t forget about your full-time job because it is currently your most reliable income source. No matter how much extra time you required for this freelancing venture, sustain your present job. Most importantly, learn about any restrictions your company has regarding starting a side business. Firstly, go through your employment contract to ensure you are not breaching agreements. And secondly, don’t make the mistake of working on your business during office hours.
If you are using your company’s resources, such as computer paid blogging tools for personal use, you will be in trouble. Therefore, keep your priorities straight and distribute your time equally among these two things. During working hours, give undivided attention and ensure maximum productivity levels.
Believe it or not, the traditional 9-5 employment model is collapsing. Millennials and Generation Z are in search of flexible business options like freelancing. Alongside being a dependable income source, it allows becoming self-employed and turning it into a profitable business. Whether you are stepping into this industry to make money or as a passion – understand how things work. Determine what freelancing has to offer and manage your freelancing business successfully with a full-time job.