10 things freelancers could do better

I’ve pretty much never had a job and always been self employed/ a business owner plus I’ve had very little formal business training, so I think I’m particularly well qualified to talk about mistakes that freelancers can make

Here’s 10 tips from my own personal experience and from observing other freelancers/small business – learn from our mistakes so you don’t have to make them yourself!

1. Find/Develop Your Niche

   You probably have a number of skills, some better than others and some you enjoy more than others. Establish which ones you are most suited to and make that your niche, rather than being a ‘Web Designer’ become an ‘Expert in Small Business Ecommerce Websites’ or a ‘Specialist in Fashion Portfolio Websites’.

   This allows you to really hone your skills, understand your typical clients needs and you’ll be a ‘no brainer’ choice even if you are more expensive when compared with less niche vedors – If you tooth hurts do you go to a doctor or a dentist?

2. Don’t Work Hard – Work Smart

   This is no secret and especially important for small business owners and freelancers. You have probably heard this idea already and chances are you’ve read The 4-hour Work Week but are you putting this into practice? Do you still often feel you ‘should be working’, do you find that you prefer to bury yourself in tasks and to be busy? Stop, everyday you should be looking at your efficiency, your mood, the bigger picture – this is vital for freelancers and business owners.

3. Make A Business Plan

   What are you going to be doing in 1 year, 3 years and 5 years from now? How are you going to get there? How much money will you make this year? What/Where is your market? Who is your competition? What do you do that is unique amongst your competitors? What are your strengths and weaknesses? These are typical questions you answer with your business plan and if you haven’t given them serious thought stop and do this before you do anything else.

   You may not think so, but as a freelancer you are running a business, and running a business without a business plan is like hiking in mountains without a map. Sure you may be lucky and stumble across a well trodden path, but you may get lost days, fall to your death or be eaten by a hungry lizard.

   Make sure you have a plan – without knowing which direction you are headed, how can you possibly take a single step and know it’s the right direction?

4. Charge The Right Price – Understand Your Value

   In my 10 years of experience, the vast majority of freelancers I’ve come across under value themselves and charge too little even after they are established and in demand. My simple advice is charge more than you think you should. Why?

   • Once you’ve quoted a fee, it’s much harder to raise it later than to lower it
   • If you’re more expensive than other freelancers, then you automatically appear to be the higher quality choice
   • Projects almost always go over time
   • You’ll probably average around 15 days of actual work a month, much of your time will be taken up with non-billable tasks, so set your hourly rate to compensate.
   • Clients want the most for their money – expect them to try and expand the brief without expanding the budget (see “setting the rules” below)
5. Take a holiday

   How many holidays did you have last year? Did you even have a holiday last year? This is one of the reasons you’re a freelancer you have freedom to take time off – take it! And
   it doesn’t have to be a month long trip to the Bahamas, if you’re in a quiet patch with no work (and maybe low on cash) don’t just sit around stressing, go off for a few days walking, climbing, cycling, snowboarding or whatever.

6. Have A Professional Website

   You don’t need a complex, flashy or expensive website. It can be concise or even just one page, but make sure it is made professionally i.e. well designed and branded, excellent usability and accessibility, no technical problems.

   Ideally you should be using your website as a marketing tool and not just an online brochure of what you do. This means blogging, articles, tutorials and anything that is likely to raise your profile and drive traffic to your site, but more on this another time…

7. Good Accounting/Billing Practice

   Firstly, there’s plenty of tools out there now to make the routine tasks of tracking time, invoicing, booking keeping easy and even automated. So there’s no excuse not to be sending invoices and reminders on time, or being late with your tax return.

   Specifically with invoicing, you might want to try a few ideas to ensure your clients pay on time or early – discounts for early payment (5% of next invoice), penalties for late payment, payment up front. And automated email invoice reminders (check this tool) save you the bother!

8. Save For Your Tax Return

   As a freelancer you usually have to declare your income and pay tax at the end of the tax year, so you need to have a rough idea of how much tax you will have to pay each year. If you can’t cover this then you are going to be in trouble! So you need to make sure you have kept aside more than enough to pay this – 25% of your income is a fairly common suggestion, though you’ll need to research the tax laws applicable to your case.

9. Set The Rules

   When dealing with clients, make sure they are operating on your terms or as Bob Marley wisely pointed out “give them a yard and they take a mile”. You should have a terms and conditions document that you include in all contracts, or get clients to sign before you do business.
   It’s up to you what your rules are, there’s plenty of samples online, but here’s some quick random ideas to get you thinking:

   • All new clients have to pay X% up front
   • Any work not mentioned in project brief will be billed at the standard hourly rate
   • Invoices must be paid within 30days or will accrue a 5% penalty
   • Support phone calls will be billed at $X/hour
   • I don’t pick up my mobile after 5.30pm or better still don’t give out your mobile at all
10. Think Big

    You may just be starting out and have little personal experience of great success but don’t limit yourself with your own thinking – the mightiest oak in the forest started from a single little seed.

    A few book suggestions to help your thinking:

    • Think and Grow Rich: The 21st-Century Updated Edition
    • The Instant Millionaire: A Tale of Wisdom and Wealth