Avoiding Freelancing Business Mistakes
Freelancing has been around for quite a long time, but the craze of doing something of your own rather than getting stuck with a 9-5 job seems to be reaching a whole new level these days.
A lot of us have always wanted to try freelancing. But having a stable staff job, with your name and position on your cubicle coupled with regular paychecks beaming into your bank account every month, seems too much to sacrifice. It seems impractical to dive off into something so uncertain Doesn’t it? Well, if that is the case, you surely need to give it a second thought, as we have tried eliminating that reason.
Focus on growing your business rather than managing finances
A lot of freelancers commit this mistake of not achieving their time efficiently. Being a one-man-army may seem tempting but demands unimaginable effort and dedication. You can’t be checking the accounts all day long while completely ignoring client queries and further lead generation.
One of the biggest worries of a freelancer is keeping track of payments and making sure that the finances are in order.
Creating an invoice from scratch, sending it to your client, and making sure that it gets settled on time is an uphill task, especially for someone who has always been into creative stuff like a freelance photographer, or a freelance writer.
Rather than wasting your crucial time, you may turn to expense management or invoicing tools like Clarrow that can let you do what you love doing rather than filling boring spreadsheets day after day. Consider subscribing to a platform that automatically bills your client as and when required. The platform will even track the payment as income, so you don’t have a painful tax season.
A growing business ensures a regular flow of income. More the number of clients, the more financially stable you would tend to become.
Be a tough negotiator
As a freelancer, often the shortage of projects or clients can make one lose hope and make wrong decisions. Make sure that you assess your skills wisely and get paid what you deserve. Setting ridiculously low rates may make clients assume that the service you provide is substandard.
Set a fixed rate and make sure that you don’t let people mess with it. You also have to be aware of dry spells and try saving as much as you can when it is raining projects.
Differentiate company and self finances
When you freelance, you don’t have a boss. You don’t have anyone to decide how much you are going to get paid at the end of the month. Although this brings in flexibility, it may invite troubles as well. You may end up wasting funds here and there.
It is crucial to define boundaries and have a strong wall of separation between funds allocated for your personal use and those for the business needs. This will help you understand how much you are investing in the business and will ensure that you don’t run out of funds for business requirements just because that golden dress was too tempting to buy!
On the flip side, this also makes sure that you don’t invest all of your money into the business and save something for personal and family needs as well. In the unfortunate event of any legal issues or debts, this trick will be a real life saver.
This is true that freelancing is not everyone’s cup of tea. It demands discipline, will power and most importantly, skills. If you do not have skills, you can’t survive in a market where professional teams are offering the same services as you are. Thus, it is vital that you focus on what you love doing, sharpen your skills, grow your business, and channelize your energy in the right direction. Happy freelancing!