Ready to build your freelance business? Here are 3 steps to launch with success.
The etiology of the word “freelance” comes from Sir Walter Scott’s novel Ivanhoe. It’s two words combined to refer to medieval mercenaries who would fight for whichever nation paid them the most—mercenaries yielding a lance. Today the word is used to describe pursuing a career free of long-term commitment, and not unlike its origin, many freelancers work for the highest bidder.
Freelancing as a career is growing. A Fiverr study reported that 73% of US workers plan to freelance in 2023, and 31% of full-time freelancers make more than $75,000 per year. In fact, Google hires more freelancers than permanent workers. As companies tighten the reins to prepare for a potential recession, more will turn to freelancers to avoid the costs of hiring full-time staff—one employee typically costs 1.25 to 1.4 times base salary, according to the Small Business Association.
But what is the most successful way to launch a freelance business? In the simplest terms: decide on a niche, get the word out, and ask for reviews.
1. Find your niche.
Begin with a list of 10 to 15 of your top skills—think about your soft skills and your hard skills. Soft skills include communication, problem solving, and project management. Hard skills include tactical capabilities such as website design or programming. Prospective clients will hire you for your skills, not your passions. If you’re an incredible copywriter but love writing fiction, consider saving fiction writing for your free time; choose copywriting as your niche. And by the way, social media marketing is the most sought-after freelance marketing skill!
Once you have your list, narrow your options by identifying the problems you solve. You will ultimately develop your marketing message from this step, so dive deep. Ask potential clients what their pain points are, visit forums, and research Google Trends to identify problems your ideal customer faces. For example, if one of your skills is website design (the most in-demand tech skill), find out exactly what challenge your ideal customer is facing. Is it back-end, design, SEO?
Research the competition within your niche. Learn whether you need to tweak your niche to find work or to stand out from the crowd. Competition isn’t a bad thing—it can mean that there’s an unfulfilled need where you can make an impact.
Most importantly, you can change your mind, so don’t stress out about finding the perfect niche off the bat. Often your niche evolves anyway.
2. Get the word out.
Once you find your niche, spread the word. Use your customer’s pain points to develop your marketing message … this is the problem you fix. There are platforms where you can market your services, like Upwork and Fiverr. While you may get some work from using those sites, you will get a lot more work and for better pay by going after the jobs you want. The hardest freelance job you get will be your first one. After that, it gets easier.
Begin with your current or former employer, especially if you’re one of the hundreds of thousands recently let go. Just because you were handed a pink slip doesn’t mean your job is extinct. And if you did a great job, who’s better to fill that role than a freelancer?
Reach out to your network. Let them know you’re available for work as a freelancer. Remember your customer’s pain points. Send personal messages to your most trusted colleagues. Don’t be shy. Ask for the work you want.
Notice who is hiring for full-time employees on LinkedIn, and reach out to the hiring manager offering yourself as a freelance solution, in case they’re interested.
Broadcast on the web. You don’t need an elaborate website, but you do need a place to showcase your work and post client raves. Depending on your niche, you may also need an Instagram site or other appropriate social platform. And, of course, don’t forget to update your LinkedIn profile.
3. Ask for reviews.
It can be hard to ask someone to give you a review, but today our economy is driven by stars– and the more the merrier. Google My Business is an optimal place to get reviews online. It’s a multi-step process to sign up for a business profile on Google before you can ask for reviews. Google My Business is location-specific and requires face-to-face business, but that doesn’t restrict what other services you can offer. For example, a fitness studio that offers in-person and virtual classes or an IT business that meets clients face-to-face and online are both businesses that meet Google guidelines. If you’re having trouble, here’s a great tutorial to get started with Google My Business.
LinkedIn also offers several tools, including endorsements and recommendations. You can ask for endorsements from colleagues and reviews from clients. Ask for permission to use reviews on your website. Which is one more place to post kudos.
The purpose of asking for reviews is to create trust with potential clients who do not personally know you. If someone else can vouch for your work, other people are more likely to do business with you.
Building a successful freelance business takes time and refinement. One underutilized technique is to send a follow-up survey to clients asking them to rate your service, tell you what they liked and did not like, and ask for suggestions for improvements. Most importantly, once you have a client, but sure to keep in touch! It’s much easier to keep an existing client than continuously market to new prospects.
There are few final issues to consider. The IRS classifies freelancers as independent contractors, meaning you need to be mindful of handling your taxes. And in some localities, you may need a business license. Those are out of scope here in this article, but something to know. Even so, freelancing is an excellent option to bring in extra income.
Believe it or now, you may be able to go back to work for the company that laid you off for more money than you were making as an employee.
