How to Start a Freelance Business
Many people have a dream of working from home and making money in their spare time. And to many, that means leading the life of a freelancer, or starting your own freelancing business. But if you’re wondering how to start a freelance business, you’re not alone. It’s not always clear how to start freelancing with no experience, nevermind how to start freelancing work itself, and that can give you pause just when you’re wanting to get started.
The good news is that being a freelancer has its advantages. However, most people discount the disadvantages, and if you’re not careful it can lead to the common feast or famine trope. Sometimes you have more business than you know what to do with — other times you may not have much work at all. But this is the life of a freelancer, and the freedom it affords you is often much better than punching a clock day in and day out.
How To Legally Start a Freelance Business
For many people, the only thing separating them from working for someone else and working for themselves is starting their own freelance business. After all, if you can set up a freelance business in your spare time, you’ll already have most things in place when you land your first client — or it can help you start bringing in income if you already have a client waiting in the wings.
That said, starting a freelance business isn’t all about cashing checks and enjoying the increase to your free time. You’ll have tax obligations each year, as well as a need to fill your pipeline with work so that you can make a living. If you don’t manage everything properly, you may find yourself in the feast-or-famine trap, and that’s no way to run a freelance business.
Develop Your Freelancing Skills
Aside from taking care of activities surrounding your freelance business, you’ll also need a marketable skill that you can sell to others if you want to start a freelance business. A skill that you can do remotely from home is best, but freelancers can also be plumbers, electricians and mechanics — all of which require on-site work.
But if the most important thing is something that you can do from the comfort of home, then it’s more important to develop or hone in on a skill that allows you to do that. All the other aspects of how to start a freelance business will depend on the skill that you have to offer, so start there and then expand out into how you can help your clients achieve their goals.
What Tools and Equipment Do You Need?
Starting a freelance business is only the first step in your freelancing career. Depending on what kind of work you plan on doing, you’ll obviously need the tools to accomplish your tasks and projects. For example, if you’re engaged in remote services that you offer online, you’ll need a reliable internet connection and a computer, as well as possibly other tools and equipment to get your work done.
However, don’t make the mistake of buying all new tools in anticipation of bringing in more money. Unless you have clients and projects lined up, it could take some time to develop a pipeline and establish your business, as well as your income. But there are some things you will need, such as a way to collect payments and manage your finances. Without that, you won’t be able to effectively bring money in or understand how much you’re making, and that can have huge ramifications on starting your freelance business.
If you’re ready to get started with a software suite that streamlines and makes invoicing and collecting money easy, start your freelance business with our convenient paystub generator. For more information on doing your taxes as a freelancer, check out our convenient guide.