Two Solid Tips on How to Freelance Effectively and Profitably

The following is a guest post by Sunil from The Extra Money Blog.

I have written quite a bit previously about freelancing on the side and how working on the side for your own clientele in the same field as your career can triple your effective hourly wage and get you more time off from work too.

If you are in a service related profession, such as an attorney, CPA, clinical psychologist, decorator, logistics planning and similar professions, freelancing is arguably the easiest and most turn-key approach to making more money on the side.

That said, many aspiring freelancers make it a lot tougher to get started than it actually is, and often end up overspending on non-value add expenditures (or garbage) way before their business ever gets a chance to get off the ground.  Other psychological challenges faced are shortage of start-up capital and a dry pipeline of clients.  Without making this an ultra long thesis paper on freelancing, I will briefly discuss two areas of focus that can help you as a freelancer. 
What qualifies me to do so?  Although freelancing is not my main source of income, I have earned tens of thousands of dollars over the past few years taking up selected freelance projects, mainly within the capacity of conducting financial due diligence on business purchase deals, business and life coaching, search engine optimization and internet marketing strategy and implementation.

So without further delay, here are two areas of recommended focus for soon to be successful freelancers:

Line Up Your Ducks

It’s a common tendency for anyone starting a business for the first time to be ultra particular about getting all the start up details right.  While some things are critical to take care of, others can be overlooked.

Business set up is one example.  When first starting out, focus on acquiring your business before you incorporate your business entity.  Investing the time and money to set up your business before you get any business will be a big waste of limited resources.  Remember, one thing busy corporate professionals don’t have much off is time, so make sure to use your time wisely.

Most freelancers typically engage in projects tied to their professional skill-set.  If you are in this boat, focus on getting commitments from clients.  Your service offering should be something you already know and can speak about well enough, so it shouldn’t be any problem approaching potential clients with your skill-set.

One way to start spreading the word is by beginning with your inner circle.  Tell your family, friends and social colleagues about what you are doing, and get referrals when possible.  Set up your business formally only after getting a few commitments in your pipeline.

Some immediate business set-up tasks to consider are the following:  get business cards published, launch a website or a blog, file papers for business entity incorporation (I recommend an LLC to start off), get your Employer Identification Number (EIN), open up a business bank account and start developing a relationship with an accountant you trust (preferably referred through word of mouth).

Remember, while it is good to pre-plan, you don’t have to be meticulous about every single thing, particularly when first starting out.  Avoid the paralysis of analysis and just do it.

Hit the Trenches

The big business deals are made in the trenches, whether on the golf course, cocktail party or the football stadium.  The point is to get out there and network.  Sure you’ve told your family and friends, but as a freelancer, you can’t expect business to walk over to your doorsteps. 

Get out of your comfort zone to network and meet people.  Identify areas where you have the best chance of finding your ideal client and hang out in those areas.  For example, if you are a search engine optimization (SEO) expert, you might want to attend web development seminars and mixers where web masters are likely looking to team up with folks who know SEO.  Connect with local business organizations through the chamber of commerce in your area, or find a business network group to join.

If you are very good at what you do, and given some time and projects under your belt, your clientele will help you acquire more business through word of mouth referral.   To improve your chances of benefiting from word of mouth referral, in addition to doing a bang on job, make it a point to periodically touch base with them. 

It is important to stay in front of your clients so they don’t forget about you, even if it is via an occasional email greeting during holidays.  Marketing and sales is all about frequency of exposure or point of contact. At the end of the day, we are all in the profession of marketing, whether we are pitching a promotion or a raise, or trying to sell a product or service.

Of course, don’t forget Facebook and Twitter, the two single biggest social networking platforms.  If used appropriately, these alone can fetch you more business than you could handle.  Incorporate both of these into your website or blog.  If you have a website, consider attaching a blog to it where you can write more frequently about recent developments in your business and industry.

Concluding Thoughts

Personally, my network and recently my blog have been the most effective tools in bringing me high quality and highly paid freelance work.  I do want to emphasize the fact that as a new business, you won’t be banking big bucks right away.

Developing any business takes time, patience and persistence over an extended period of time.  It may take you weeks or months along with several rejections to get your name out there and secure a gig, but you will eventually if you keep chugging along.

It helps to have a full time job when starting out so that you are not desperate about acquiring freelance business.  But with the right and consistent approach over time, you may grow your part time freelance business big enough where you could quit your job if you wanted to.

Comments

[Everyday Tips]

What stopped me at first from writing was my own self-confidence. I think I will always remember my trepidation when I hit 'publish' that very first time. Now I don't think twice about it, but I think fear is a huge part of why people don't strike out on their own.

[Sunil from The Extra Money Blog]

great point ET. the beauty of doing business over the internet is that it allows anonymity. it is also a relatively forgiving platform where one can keep making mistakes and still end up alright.

[Sunil from The Extra Money Blog]

Michael - we are lucky to be living in the digital age where what you suggest is possible. The tools are out there - we just need to leverage them as best we could

[JFF]

These are some really good best practices for freelancers looking for work. You hit the nail on the head about facebook and twitter being great ways to get your name out there and find work. Also, freelancers should certainly have a website that they can incorporate a blog and their social profiles. Personal branding is key if you want steady work.