Freelancing can offer a range of perks and benefits that you won’t get working a traditional nine-to-five, including flexible hours, the power to be your own boss, the ability to set your rates and fees, and zero limit on how much money you can make in a year. Whether you’ve been freelancing for years, just made the leap, or are wondering if it’s right for you, there are some important considerations to keep in mind when building your business. Let’s take a look at some of the big ones services.
Building your network
Developing a wide network of prospective clients is a crucial component of freelancing. Depending on the type of service you’re offering, you might consider using a freelancing website to get started. Remember that word-of-mouth goes a long way. Referrals from friends, family, and past clients can help you build a robust funnel and keep you booked and busy.
Marketing your services
There are many opportunities to market your services and let people know you’re available for hire. Social media has made it easier than ever to create targeted ads and campaigns and reach specific audiences. It doesn’t hurt to set aside a monthly marketing budget, especially when you’re just beginning. You might try starting small so that you can gauge the results of your efforts—you can always scale up from there.
Pricing and budgets
Deciding how to price your services can be tricky. If possible, talk with other freelancers who offer similar products and services. You can also try to gauge what a client is willing to spend at the outset, but don’t underprice your work—this can be harmful not only to you but to freelancers offering similar services, as well. If someone isn’t willing to pay you what you’re worth, trust that there’s always another client who will be happy to.
Planning for taxes
Tax season comes up quickly, especially when you’re freelancing. Determine the tax rate in your state and start setting aside money at the beginning of the year. Depending on your income level, you might have to pay quarterly estimated taxes. You might also look into setting up an LLC or S Corp, which can offer certain advantages to those doing freelance work.
Having a safety net
When freelancing, it’s often best to expect the unexpected. One month you might be doing exceptionally well, and the next month, your work might taper off. It’s important to be financially prepared for these ups and downs by doing things like building up your savings, budgeting, and always looking ahead to what your income and workload might be. You might also consider a life insurance policy, such as whole life insurance. The guaranteed death benefit can replace lost income for your family if you pass away unexpectedly. Permanent life insurance policies also come with a cash value component, which can provide extra flexibility for freelancers. You can borrow against the cash value for any reason—including to cover unexpected expenses or increase cashflow.
Having a safety net can help to give you peace of mind while allowing you to continue doing what you love and enjoying all the rewards your freelancing lifestyle has to offer.
The primary purpose of permanent life insurance is to provide a death benefit. Using permanent life insurance accumulated value will reduce the death benefit and may affect other aspects of the policy.