Deciding to go it alone and offer your professional services on a freelance basis is exciting. Opportunities abound, and you have the chance to carve out a business that works precisely for you. That said, it can also be a little bit stress-inducing. Before you launch your services, be sure to read about these six common freelance mistakes.
1. Not Having Sufficient Personal Savings
Launching your freelance business with little to no personal savings is a recipe for disaster. It can take time to build your clientele and to perfect a service that someone wants to pay for.
Six months’ worth of income is generally recommended as a buffer in your personal account in case it takes time to see steady cash flow coming in and in case of an emergency.
If a personal emergency arises — like your oven breaks down or your car goes kaput — and you don’t have sufficient savings, research online options that may be available to get you out of an emergency bind. You might be able to get a line of credit that helps you out in these situations.
2. Not Creating a Mission
Create a mission that clearly outlines what you want to offer and what you want to see from your freelance services. Some items you could include in your mission include:
- the services you deliver,
- the problem you can solve,
- why clients should work with you, and
- your ideal audience.
3. Failing to Devise a Business Plan
Create a business plan covering all your business’s facets and processes. Before you officially launch your freelance services, pre-planning allows you to look at your offerings from every angle. You could include:
- financial planning, including how you’ll stay afloat, especially during the first few months,
- potential challenges and pitfalls, and strategies for overcoming them,
- market research, and
- research on your freelance competitors.
Creating a business plan during the early stages of conception is essential; however, it’s of equal importance to update, edit and revise your plan as your business finds its feet.
4. A Lack of Consistency
Consistency throughout your processes keeps you on track and can also avoid confusion among clients.
Say you have one client discover that you charged them X, and another learn that you charged them Y for the same product. That’s sure to ruffle feathers.
Before you start offering your services, create a pricelist for every service and every eventuality so that you have a clear guideline to stick to — and don’t forget to include taxes.
5. Bypassing Contracts
If legal jargon is outside your expertise, it can be all too easy to skip the official paperwork and move on with your services with nothing officially in writing.
This is a dangerous habit. Contracts can hold clients accountable. They can also offer you recourse should invoices go unpaid. Never skip contracts, and make sure you create one free of loopholes.
6. Taking on Too Much
Last, it can be tempting to say yes to every client and to every project. Know your limits. Only take on what you can. Doing so ensures expectations are met and hopefully exceeded.
Bottom Line
Branching out on your own is exciting. There’s a world of untapped potential to be conquered. By taking steps to prevent these mistakes before they happen, you’ll save time and money while protecting your fledgling reputation before Launch Your Services — setting you up for a fantastic first few months in business and beyond!