The gig economy in the US is thriving, and so are freelancers. CNBC’s report on the economy in 2020 states that 75% of freelancers earned the same or more than their traditional counterparts. Besides the alluring pay, freelancers get to enjoy the luxury of working whenever and wherever they want.
You too could have a better pay and more work flexibility by establishing a freelance career. Follow these steps to achieve stability and success through your freelance work.
Set Concrete Goals
Start your freelance career by identifying the goals that you want to achieve. Be as concrete as possible so you can determine the steps you need to take to reach them. Maybe your goal is to make a certain amount of money, land 2-3 major projects in one year, or work with a certain kind of client in your industry.
To add to that, one of the common goals among freelancers is to turn their gig into a full-time career. Before making the switch, it is advisable that you freelance part-time until you can accumulate enough clients and connections. If you want to earn 50% more than your previous salary, also consider how you can scale up your prices in the next few years.
Maintain Your Financial Stability
Though freelance work can be profitable in the long term, it can also be quite unpredictable. Freelancers go through cycles of work, so you need to be financially prepared for the more inactive periods of the year.
Without a steady paycheck or savings to get you through times where projects are few and far between, you could be damaging not just your career but your personal life as well. If, for instance, you can’t pay off your bills on time, your credit score could take a hit. A Petal article on credit scores outlines how late payments on your mortgage, car loans, utility bills, and even cell phone bills can cause your score to drop. While a credit score may not initially seem important it could have an impact on your freelance career. There are some clients who do credit checks as part of their routine background inspection on consultants. A low credit score might make you seem irresponsible and not trustworthy.
You can avoid late payments and reach financial stability by learning how to budget your earnings. Use various methods, such as the 50-30-20 rule. Save for a rainy day and keep your emergency fund untouched unless it’s absolutely necessary for you to dip into it.
Price Your Services Competitively
You can achieve a fulfilling and financially stable freelance career by setting fair prices for your services. Your service fee must be competitive with market rates, but don’t intentionally set yourself as the cheapest option so you could stand out from the crowd.
Set a fair price for your creative work by basing your rates on the services that you can deliver. For example, freelance photographers must consider the amount of time and effort that they spend on shoots and post-processing. On the other hand, graphic designers must consider the cost of the equipment and software programs that they may need to use to deliver the clients’ needs.
Additionally, when setting your rates, don’t forget to account for self-employment tax and other expenses that come with being a freelancer, such as insurance and retirement contributions.
Establish Yourself as a Business
Though you can start your freelance career without filing any papers, it’s recommended that you become a Limited Liability Company (LLC). This business structure protects your personal assets from any kind of liability, according to US SBA’s guide to business structures. Plus, it makes you look more professional to potential clients.
You file your LLC paperwork online or in person through the Secretary of State. Then, you’ll need to go to the Internal Revenue Service and file your employer identification number for tax purposes, legal forms, and documentation.
Build Your Creative Portfolio
You can build your credibility as a gig worker by putting together your sample works into a creative portfolio and display them on your official business website. This would help potential clients gauge if your services and your line of work can align with their own needs.
This topic was previously covered here on Pixpa, and the post points out that you must think of your target clients and services before choosing the works that you want to feature. If you want to be a wedding photographer, then feature shots of a bride’s profile or pictures of emotional scenes during the ceremony. Your portfolio needs to showcase what you can do based on what each client actually needs and wants. Publish these portfolios on visible platforms, such as your professional blog or through social media networks.
Find Your Clients
Identify your target market’s needs and preferences before looking for potential clients. For example, freelance artists who specialize in illustrating food can work with hip and young restaurant owners who want to display art on their menus, food packaging, or restaurant interiors.
Once you’ve identified your target market, you can figure out how to market your skills as a solution to their needs. You can promote your creative services by posting in freelance websites, such as Lensa, Upwork, Flexjobs, or SolidGigs. You can also make your presence known by posting on LinkedIn and social media or by tapping into your current network. Reaching out to prospects through cold emails can be effective too, with proper techniques and accurate targeting.
Create A Work-Life Balance
Though freelance work gives you a lot of freedom and flexibility, it is no walk in the park. ToughNickel’s account on freelancer burnout states that gig workers feel more exhausted when they work and live in the same space. This pressures freelancers to immediately respond to their clients and to continue working beyond normal hours.
Set boundaries between your work and home life by setting a structured work schedule. If you can, create a separate email address for personal and business. This way, you can tune out when on your off days, and manage them together with a reliable email client when you’re on the clock. Communicate with your clients and finish your project within your schedule, so that you can enjoy your hobbies after work.
You can start a successful freelance career by providing fair rates and an impressive work portfolio to your target audiences. Once you’ve established your career, take care of yourself by aligning yourself with your goals, maintaining financial stability, protecting your assets, and practicing work-life balance.
