Successful Freelancing: 50 Tips For Running A Freelance Business

If you are starting a freelance business, chances are you want the freedom to be your own boss. However, there are a lot of responsibilities that come with this freedom and if you want your business to be successful, you’re going to need to get some management techniques in place. It’s essential that you get to grips with the fact that no matter what kind of freelance business you’ll be running, you will only be successful if you can be a good boss of yourself.

So with that in mind, here are 50 tips to help you make sure that your freelance business is successful and, most of all, profitable!

Planning

Probably more so than any other business, being a successful freelancer has effective planning at the core. Plan everything. Plan for lean times as well as for success.

1. Set up a schedule: Although you now have the freedom to work when you feel like it, you will need to have some sort of schedule in place to stay productive. It is all too easy to shirk your duties when you’re working for yourself.
2. Set up a home office: You can greatly improve both your productivity and your state of mind if you have a set space for your work. This is also important for tax reasons, since you can write off this portion of your home.
3. Manage your family: You may want to spend more time with your family, but they will also need to understand that work time is sacred. Set boundaries so that you have enough peace and quiet to function.
4. Keep your office space sacred: Sure it’s tough when you’re in your own home, and toys or other stuff can easily migrate to your office. However, you need to keep this space sacred by keeping it work related and free from clutter.
5. Communication: If you don’t have a separate phone line for your home office, you should get one installed. You’ll sound a lot more professional if your kids aren’t answering the phone.
6. Set up a break time: This is similar to your lunch hour at work. You need time to recharge during the day and although it’s tempting to eat lunch at your desk, separating the two is very beneficial to your state of mind.
7. Set boundaries on work time: When you work at home you quickly find that it starts encroaching on all areas of your home life. Set up specific work times and don’t let the two overlap on a regular basis.
8. Dress the part: Sure, working at home means that you can stay in your pajamas as much as you want. However, studies have shown that making an effort with your appearance can greatly improve productivity.
9. Learn to be flexible: There may be times when home life interferes with work life and vice versa. You’ll need to be flexible to avoid stressing out. Even though a schedule is important, you may not always be able to keep it.
10. Master the art of the deadline: Part of being a freelancer is burning the midnight oil to make a deadline. Learn not to procrastinate so that you’ll get your projects done on time.

Finding Work

One of the biggest worries about freelancing is actually getting enough work to pay the bills. Fortunately there are a multitude of places online where you can pick up writing, programming, graphical and other gigs. Here are some of the best.

11. Freelance work sites: Now that you’re on your own, you’re going to need to be proactive. There are numerous freelance sites that will assist you in connecting with employers. Research the ones that are appropriate to your field.
12. Elance.com: This is a great place for several fields and you can easily find steady work here.
13. Guru.com: There is a hefty fee for joining, but it pays for itself. There are a lot of high quality jobs on this site in numerous fields.
14. Craigslist: This is a great place to find freelance work. Try searching outside of your metro area for more possibilities as many freelance jobs are listed in a local city but allow telecommuters to apply.
15. Job forums: There are numerous forums that are divided by area of expertise such as Digital Point (webmaster) or Graphic Design Forum (graphic design). Research the ones that are right for you and frequent them often.
16. Tech blogs: If you are in the tech field or you are a freelance writer, there are numerous tech job boards, such as CrunchBoard that offer free job listings. This is a great place to find a steady job.
17. RentACoder.com: This is a very busy site but it is incredibly competitive. If you’ve got a great portfolio, you’ve got a good chance of getting some really good work here.
18. Be persistent: When you are freelancing, always remember that feast or famine is the name of the game. Never get complacent because a client can flake at any time, leaving you high and dry. Always try to have extra work lined up to get you through the dry spots.
19. Set up your own blog: You can use your site as a portfolio in progress and as a way to attract new clients and show them your capabilities. Now more than ever it is crucial to get online and start promoting yourself and what you can do.
20. Develop lead sharing relationships: Some freelancers are inundated with work and will pass off leads to people who they know do good work. Getting onto other’s list of recommended freelancers is a great way to get good gigs.

Managing Time

Anyone who has ever freelanced knows the importance of time. The amount of money you will make is directly proportional to time, so it is essential that you manage it well and make the most of it.

21. Be strict with yourself: It is all too easy to let things slide when you don’t have someone else breathing down your neck. Remember, you are the boss now and if you wouldn’t let an employee goof off, don’t allow yourself to either.
22. Limit web surfing: One of the greatest time eaters of all is the internet. It is incredibly easy to get caught up ‘researching’ or just plain reading so (unless absolutely necessary) avoid sites that are addicting, like Digg, and make sure you focus on your job.
23. Treat this like a real job: Your boss wouldn’t let you play hooky for hours at a time, and you shouldn’t let yourself either. You need to remember that this is an actual job, even though you do have more freedom.
24. Set boundaries: If you do need to take a little time off during the day, keep it short. Ten to fifteen minutes for a break, no more than an hour for lunch. It is all too easy to let ten minutes slide into half an hour.
25. Learn how to budget your time: When you are working on jobs, you will need to monitor how much time you spend on them. This will help you estimate how long it will take to finish future projects that are similar.
26. Set up specific hours for specific tasks: One of the best ways to manage your time effectively is to block out certain periods of the day for certain tasks. For example, if you work more effectively in the afternoon, use mornings for checking in on job boards.
27. Don’t let your communication slide: It’s easy to start focusing on your jobs and stop communicating with your freelance employers. You will need to make sure that you set aside enough time each day to answer emails and follow up on your projects.
28. Try project management: If you are not familiar with project management, take the time to do a little research. This can help you structure your day much more effectively.
29. Know what times work for you: If you are a nightowl that can’t function during the day, work up a schedule that allows for this. You won’t be very effective if you can’t focus on the task at hand.
30. Become a taskmaster: You had the benefit of set deadlines at your old job and you had someone that made sure you got your work done. You’ll have to become that person now to stay on top of your time and projects.

Staying Organised

Being an effective and ultimately successful freelancer relies heavily on being organised and staying that way. If you are naturally organised, great! Unfortunately, many freelancers are not and lose out on revenue because of it.

31. Set aside ‘cleaning time’: Your office is your sanctuary and you’re going to be spending a lot of time in there. This means clutter! Take fifteen minutes every day to clean up your office before you quit for the day.
32. File everything: It is very tempting to let paperwork take over your desk, but the best way to handle it is to stop and file whatever you are done with so it doesn’t get lost.
33. Keep a paper copy of essentials: While it’s easier to store everything in your email program or online, you need to have a hardcopy of important project notes or files that you can access if something happens.
34. Keep a hard copy portfolio: One of the best ways to organise your work is to print out hard copies of past work into a real portfolio. You’ll also have the benefit of having a tangible book of your accomplishments.
35. Record the hours you spend at work: You may not have a time clock, but you do need to keep track of your billable hours. Even if you’re not paid by the hour, if you keep track of your time, you’ll be able to adjust your rates so that you’re not working for peanuts. Harvest is one time tracking application that’s worth the investment.
36. Set up a no trespassing zone: We touched on this briefly above, but you really do need to make sure that toys and other objects are not left in your office. It adds to clutter both physical and mental.
37. Carve out a slice of your home: If you don’t have an actual office, create one by picking a corner with the necessary outlets you need and a few partitions. It really helps keep you organised when you have your own space.
38. Keep a log of all past clients: This is very important and can be used to help you fish for new work if you’re going through a dry spot. It will also help you keep track of those you would rather not work with again!
39. Create a virtual in and outbox: Whether you use your mail program to organise your projects or an online utility like Basecamp for project management, it is very useful to keep track of your ongoing projects. Set up folders for what you need to do and what has already been completed.
40. Use to do Lists extensively: Whether they are on paper, on your desktop or online, a to do list is an incredibly effective tool at managing time and keeping track of what you need to accomplish that day.

Managing Finances

At the end of the day nobody works for thin air, and that includes freelancers. In fact, because you are a self employed individual it is even more important to stay up to date with your finances because there is no accounts department to keep track of it for you. It’s very easy to fall into the trap of working every hour in the day and still not making enough money, so ensure you stay on top of your earnings and outgoings!

41. Set up a PayPal account: A great many of your potential employers will offer the option of paying you via PayPal. This is a great way to accept payments via credit card and you’ll have the added benefit of generating easy and detailed reports at tax time. Yes the fees are atrocious, bit it is the de facto method for payment online.
42. Keep track of all of your expenses: Although most freelance jobs don’t require a lot of extraneous supplies, whatever you purchase for your business needs to be documented. This will help you at tax time when you are figuring out your deductions.
43. Use an escrow service: There will be times when a client does not want to pay you until you have completed the entire project. If it is small project that is inexpensive, it’s not that big of a deal. When it’s a big project worth a few thousand dollars, that is a whole other story. To avoid the problem of employers that don’t pay, ask them to deposit the funds in an escrow account.
44. Utilise independent financial tools: Many freelance sites (including Guru.com) offer their own escrow service, as well as project payment tracking. This is very helpful in keeping your finances organised.
45. Send out invoices: Even if it is for a small job, having an invoice is very important. You’ll be working on a ‘for hire’ basis and usually for cash. In order to document your income you’re going to need to have a way to prove what you have made. Invoices solve this issue nicely.
46. Use accounting software: There is nothing worse than having to do your taxes, desperately trying to remember what such and such employer paid for such and such job. Use accounting software and keep it updated constantly.
47. Set up an emergency fund: As we mentioned before, freelance work is often a situation of feast or famine; you’re either too busy or twiddling your thumbs. Unfortunately, thumb twiddling does not pay very well. It is a good idea to set aside funds in an emergency account to use when work dries up.
48. Consider using a tax professional: As a self employed freelance you’re going to need to fill out all sorts of complicated and time consuming tax forms. It is best to have a professional help you with this to avoid risking an audit.
49. Make sure you are charging enough: When you first get started, it’s easy to get caught up in undercharging to get work. However, once you’re established, it’s going to be harder to get paid more money. While it’s fine to be competitive, there’s not much point in working harder for less.
50. Avoid debt at all costs: Again, this sort of touches on the idea that freelancing is often an unreliable form of employment in terms of revenue. So it is absolutely essential that you do not get in debt during lean times!

While every freelance business is different, these fifty tips will get you well on the road to success. You may need to modify a few of them to suit your own needs, but these are a great starting point. Remember, freelancing is a lot of work and you’ll need to wear many hats if you are going to make a real go of it. Keep your priorities in line and never forget that even though you are your own boss now, you will need to be good at it.