How To Start a Freelance Business Today (Tools for Beginners)
Posted December 5, 2008 in Business, How-To
Have you been reading about freelancing for weeks now?
Do you think that freelancing could be an excellent hedge against these harsh times? Have you done your homework adequately, and are you at last you’re ready to start your very own freelance business?
Congratulations!
But, before you start there are a few important things to consider. You’ll need a skill or a product to market, you’ll need some basic equipment, and finally, you’ll need a plan.
What are you selling?
If you’re going to start your own freelance business, then you need to have something to sell. That something could be a skill such as programming, web design, or copywriting. Or, that something could be a product that you make or resell.
In order to decide what you should sell, take a look at your own skill set and match that up with what’s in demand. You can get an idea for what freelancing services are in demand by visiting any of the popular job boards (to get started, try this one).
Finding your specialty is one of the most important parts about freelancing, so take your time and make sure you get this part right.
Equipment Basics
Once you’ve identified something to sell, you’ll need to get the basic equipment. Most freelancers will have the following tools:
- Computer – While there are a few businesses (such as landscaping, pet grooming, or catering) that technically don’t require a computer, most freelancers do rely on a computer to find and produce work. Even if your business doesn’t require that you have a computer, you may wish to have one in order to correspond with clients and keep records.
- Printer – A printer is an excellent tool for producing customer correspondence as well account records (such as customer receipts).
- Telephone – Typically, it’s a good idea to set up a separate telephone number for your business. This allows you to segregate your business and personal calls and also prevents other family members from accidentally taking a business call.
- Internet connection – For many freelancers, the Internet is indispensable. It’s how they obtain and how they deliver their work. Even for a non-computer based businesses, an Internet connection provides another way to communicate with clients. I’d recommend skipping the dial-up connection and going straight to a high speed connection such a fiber optics or a cable modem.
- E-mail – E-mail provides a way for clients to reach you when you can’t be reached by phone. E-mail can also provide a permanent record of client “conversations.” Some services (such as copywriting, graphics, or software development) can even be delivered through e-mail.
- Website or blog – A web presence has become a necessary component of a freelance business. More and more, potential clients are searching the Internet for businesses that can provide the products or services that they need. For technical services, clients are more likely to use the Internet than the phone directory to find a vendor.
- Word processing software – A basic word processing package allows you to correspond with customers as well as create basic reports.
- Accounting software – You will need some means of keeping your accounting records straight. Accounting software can be as basic as a spreadsheet for a small business, or as elaborate as a custom bookkeeping system for a larger business.
After you get all of the basic equipment, you’ll have to get anything else that is required for your specific industry (like design software). You might also want to get some of these other tools when you get the chance:
- Letterhead – Professionally printed letterhead conveys a powerful message of legitimacy to customers and potential customers.
- Business cards – These should be distributed at every opportunity. You never know when you will meet someone who needs your product or service.
- Business bank account – Most accounting experts recommend that you keep business funds and personal funds separate.
- Phonebook listing – If you do a lot of local business, then you may wish to pay for a listing in your local business phone directory.
- Local advertising – Advertisements in local newspapers and magazines can be a great source of new business.
Create Your Plan
The final aspect of starting a freelancing career is to have a solid plan for your business and marketing. You can start to develop your plan by answering the following basic questions:
- What does my business provide to customers and why should they get it from me?
- What is my product or service worth?
- How will my business obtain customers?
- Do I have the passion and desire to stick with the business?
Once you get started freelancing you’ll want to revisit and amend this plan on a regular basis. Keeping up with your strategy and goals is an important part of success.
The Legal Details
Before getting your business up and running, be sure to check out the legal requirements for your area or profession. Local zoning and licensing requirements may apply, and you’ll probably want to look into some form of incorporation. It’s not usually as time consuming or expensive to handle the legalities as it first looks.
Once you’ve read and applied the concepts in this article — you have a specialty, you have your equipment, and you have a plan — then you’re probably read to make the jump and give freelancing a try. Best of Luck!
Are you thinking about starting a freelance business? If you are, make sure to post your thoughts or questions in the comments.
If you’ve been in business for a while, then why not chip in with your own advice for the beginning entrepreneur. What would you tell someone who is starting their own freelancing business (and why)?
Related posts:
- 3 Reasons Your Rates Are Still Low (And How To Start Raising Them)
- Who’s Really In Control Of Your Freelance Business?
- Freelance Web Designer Tools And Productivity Management
- Open Thread: Is Your Freelance Business Incorporated?
- 5 Easy Ways to Start a Productive Day
About the author: Laura Spencer is a freelance writer from North Central Texas with over 20 years of professional business writing experience. If you liked this post, then you may also enjoy Laura’s blog about her freelance writing experiences, WritingThoughts. Laura is also on Google+.
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33 Comments
James Chartrand - Men with Pens
December 5th, 2008 at 11:11 amHere’s what I’d tell people thinking of starting their business:
Do it – and be ready to be realistic.
Creating your small business is feasible, and more so than people tend to believe. With some preparation, some goal-setting and some strategies in place, you can start a business easily these days.
But you have to keep your feet on the ground and keep your head out of the clouds. Business is business, and it takes a realistic mindset that starting up may take some time to get where you want to be.
But don’t let that stop you – because you can get there.
Michele
December 5th, 2008 at 11:27 amThis is a perfect article for anyone considering freelancing, Laura. What a Christmas gift you’ve given to those who don’t know where to begin!
(I’m giving this a Digg.)
*smiles*
Michele
David Hepburn
December 5th, 2008 at 12:06 pmLike James said…Get out there and do it!
As long as you do it smart, the only thing holding you back is your fear of the unknown. Tell that fear to take a vacation and make it happen!
My best advice would be to make friends and network with all sorts of people. For example, it really helps to have a friend who is a CPA who can answer your tax questions.
I’ll end with a great quote from the movie Amazing Grace that I think applies here:
“As your Prime Minister, I urge you caution.”
“And as my friend?”
“To hell with caution.”
Blog Expert
December 5th, 2008 at 12:29 pmThis is a nice layout of how to start a freelance business. A lot of people would like to do this but just do not know where to get started. This is a great guide and how-to.
Cassie Armstrong
December 5th, 2008 at 1:34 pmI have been freelancing for three years now. I have learned a lot but still have more to learn. This article is a gentle reminder for all of us. In the past three years I have had both successes and failures. I have learned it is best to continue to believe.
James Chartrand - Men with Pens
December 5th, 2008 at 1:50 pm@ Cassie – An old coach of mine used to say, “I’ll be learning for the rest of my life. And I’ll never be done.” Works for me!
Wendy Sullivan
December 5th, 2008 at 2:37 pmThank you for this. I think what holds so many people back is fear of the unknown. Most of your tips are just common sense, but when someone is paralyzed with fear, common sense takes a powder. These tips are necessary to calm people into realizing that they can and should begin their business.
Mig
December 5th, 2008 at 3:18 pmAn excellent article, Laura – although I would recommend to start developing a business plan first. In the business plan one should include all the things you recommend. The marketing plan is also part of the business plan. These are some basics aspects any BP should include:
# Executive summary
# Description of Business
# Product Summary
# Business strategy
# Financial Summary
# Market Research
# Market Trends
# External Research
# Market Estimates
# Management Team
# Business Location
# Business Organisation
# SWOT Analysis
# Competitive Analysis
# Customer Segments
# Customer Demographics
# Sales Strategy
# Pricing Strategy
# Marketing Plan
# Advertising Plan
# Objectives & Plans
# Resource Allocation (this includes all equipment basics, car, etc)
# Budget Allocation
# Startup Budget
# Forecast Profit & Loss
# Forecast Balance Sheet
# Forecast Cashflow
# Sales & Profit Forecasts
# Sales Charts & Graphs
# Bank Preferred Format
Laura Spencer
December 5th, 2008 at 6:13 pmWow! It’s great to leave for a few hours and come back to so many great comments.
I’m glad that people are finding this useful. I tried to dump a lot of what I’ve learned over the past few years into this post, but if you’ve ever tried to do a brain dump like this then you know that it’s tricky.
Feel free to comment on anything that you’d add to the suggestions above.
Laura Spencer
December 5th, 2008 at 6:27 pmHi Mig!
We must have been commenting at the exact same time. :)
You are right – I just gave a very basic high level overview of a business plan. One could write many posts on how to create a good business plan.
Your comment would be a great outline for a more detailed plan. Thanks so much.
genuinechris johnson
December 5th, 2008 at 9:27 pmNone of this matters.
You need customers, and you need to know that you’re getting customers. One customer, two, whatever. You need them bad.
Letterhead? Ten minutes and google docs, when you need it. Try and not reinvent the wheel, but come on, this is 08.
Connect, connect, connect. Facebook, linked in, kick ass, don’t make busywork.
Most of this is avoidable busywork that should not be done by a freelancer till they are making $9500 profit/month. Thinking you need to do this is wrong.
Josh Self
December 6th, 2008 at 12:33 amGreat tips! All of these are essential. I am a freelance photographer and blogger and if you are missing any one of these go start it tomorrow!
Laura Spencer
December 6th, 2008 at 12:12 pmHi genuinechris johnson!
Thanks for offering a different viewpoint. You’ll note that the third question for creating a plan was “How will my business obtain customers?”
I would agree that connections are vital – but what you use to make those connections also depends highly on the type of business that you are in. Facebook is one great way, but there are others as well including face-to-face networking.
I still think that I’ve provided a good overview for most people who wish to freelance. Some freelancers may be able to skip parts of the advice – but I really can’t see skipping the question of what are you selling. Without it, you don’t have a business.
Josh, thanks for sharing your customers.
Laura Spencer
December 6th, 2008 at 12:14 pmOops! I meant thanks Josh for sharing your experience. (I must have had customers on the brain today.) :)
James Chartrand - Men with Pens
December 6th, 2008 at 12:17 pm@ Laura – Hey, I’ll take Josh’s customers… Ha, maybe we can trade!
“I’ll give you ‘multiple revisions’ for ‘vague specs’.”
“Only if you toss in ‘picky’ and ‘just make it good.”
Laura Spencer
December 6th, 2008 at 12:35 pmJames,
LOL. I try not to touch vague specs, but I’m all about picky and making it good.
randy bragg
December 6th, 2008 at 6:59 pmTotally agree with that, keeping focused is a big issue for me….
Joe
December 6th, 2008 at 11:59 pmLaura,
You’re timing was impeccable. I had a short but intense conversation with my bosses on Friday morning and the end result is that I am now an official, fulltime freelancer. This was not necessarily a bad thing, it just came a little earlier than expected. The ironic thing is that when I arrived home and plugged into my own computer, your Freelance Folder entry was the first e-mail I received. It was like getting a message that this was meant to be.
I have known for a while now that this was my ultimate destination, and I’m actually glad that I am heading down the right road. I will make this work — and with a ready-made mentor pool such as Freelance Folder and the folks who post here, I feel like I am entering this new stage of my life with the Verizon guy and his network behind me.
I’ll be following this blog closely in the next few months, more so than I have in the past, and if anyone is interested, I will touch base with Jon to see about occasional posts on my progress. Wish me luck.
Joe
Amy
December 7th, 2008 at 3:29 pmExcellent article. The best thing about thinking your freelancing work as a business is that you also dedicate yourself to seeing it through. By the way, what do you think about putting up your gtalk or hotmail chat ID on portfolio? I am putting together my website for my business and I notice that in most websites a lotta freelancers (in their portfolio) have stated how to contact them through chat. Am not sure about stating my ID just yet. What do you think?
Laura Spencer
December 7th, 2008 at 6:19 pmHi Joe!
I’m glad that the post could help you. Sometime timing on things like this is eerie. Congratulations and best wishes and all that!
Amy – You bring up an excellent question.
My take on it is that you should not include your chat ID unless you are going to have it up on a regular basis. (You could publish hours of availability.)
Otherwise, a client who thought that they could get a hold of you might get frustrated when they try to contact you through chat and you are not there.
I’d love to hear what other freelancers think about this.
Amy
December 9th, 2008 at 5:10 amThanks Laura. I like the idea of setting up hours of availability. :) Keeping that in mind, I am also thinking of using Skype as a work contact thing so I can be offline after the my set work hours are over. My normal gtalk etc can be for personal use.
Carla
December 9th, 2008 at 6:09 pmI think it’s a good idea to have freelance projects when you’re employed if that’s possible. Even if you love you job/career, you never know when the shoe will drop and its good to have a few things in place just in case. If you suddenly lose your job, you may not have time to start and intense job search AND start freelancing.
Nikhil
December 13th, 2008 at 7:38 amJust awesome writing. I am happy that i am already following the path you shown. I have just started my blog about freelancing and psd tutorials and for my portfolio.
Once again Great Post
Jayansh
June 19th, 2009 at 2:57 amHi Laura,
I am really very thankful to you. You have shown me a path to start my own business. I am a software engineer, and going to quit my job and start my new business. I have made a checklist for all points you have mentioned. This is very helpful.
Thanks
Jayansh
bestbrandsworldwide
July 11th, 2011 at 3:23 amInternet connection = crucial. Otherwise how could you even find this great article :)
Jitendra Shah
December 21st, 2011 at 7:54 pmAlready following more or less the exact same path right now while I study at the same time
cgilllusion
January 19th, 2012 at 4:13 ami just quit my job.i used to work as a computer technical. i had my boss to tell me what to do ..thinks that i really hate. i have a master in animation and media production and the last half year i have in my mind to stat work as a freelance. i have the fear from the one side and the unknown from the other side . i have all the equipment i need to begin work .but i have no idea how to find client ,how much i must price my job.
and because of these 2 subjects i afraid to do what i really love. be a freelance and work with the subject i love…
any good advice that may help me !!! thanks
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