A Freelance Business Mindset

Many people start or want to start a freelancing career. Some make it and others don’t. Do you ever wonder why this is?

There are a lot of challenges that a beginning freelancer is facing. If you ask them about the biggest obstacles they face, they will properly give you one or all of the following answers as their biggest challenge:

  • “Competition for jobs is hard”
  • “Hard to make enough money”
  • “Can’t find enough project”
  • “Gaps between projects”
  • “No time to keep knowledge up to date”
  • “Lack of confidence”
  • And so on!

While there is a thought to all those answer, in most cases the biggest challenge or obstacle most freelancers face is not having a business mindset. Most beginning freelancers don’t even realize that they are running a business and they just hop from project to project. They don’t understand what running a business in a proper way really means. They have no business plan or business system, what so ever!

To help to get and keep your freelance business mindset, we have listed some tips below:

1. Time is money
As a freelancer you are in the service business, thus you sell your time to perform the service. Even if you are not working on an hourly basis, but on a project basis, you still sell your time to perform a service.

Everyone has a finite amount of time; there are only so many hours in the day that you are able to work. Time is limited and how you spend it, is of vital importance.

Once you understand that time is your product, then you can begin to understand that how you use your time will determine your success!

2. Plan your time for a high return
Probably one of the reasons you’re a freelancer is that you want to be free in whatever you do. They want to be their own boss and don’t like the structure of a corporate environment.

But also freelance businesses need a structure of some sort, without structure you will waste time. And we determined before that wasting time is loosing income.

You have to ask yourself the following question with every business activity that you do: “Does the time I spend on this activity return money to my business?”

3. Planning is vital
Whiteout a plan almost every activity will fail. Of course there are freelancers that have success without a plan, but in most cases the freelance business will fail in the long run.

So, you need to devise a plan for your freelance business. This doesn’t mean that you write some formal business plan (although it isn’t a waste of time if you did) just write your plan on a piece of paper and most important follow that plan!

Note: every thing changes in time, so you have to update your plan after a few months.

4. Spread the word
Every freelance business should have a message. This message should distinguish you from other freelance businesses. But no one will here this message if you don’t spread it. So, promote yourself!

Start a marketing campaign, get the word out that you are the best (offer proof) and can do it for less then other freelancers in your field. Whiteout the right marketing you will never find new projects or clients and you business will sourly fail!

A freelancer with the right business mindset is not afraid to market their service or talk about their accomplishments in public. People have to nodes you before they can hire you!

5. Manage your money
There are a lot of businesses that fail because they didn’t manage their money well.

If you don’t understand money management then take a course!

Some quick tips:

  • Your income may vary so make sure that you have a healthy savings account. At least enough to last you a couple of months!
  • Keep accurate accounting records (if you can’t or don’t want to do it outsource it! It is of vital importance to your freelance business!)
  • Keep receipts on everything (incoming and outgoing)
  • Remember the taxes. Always set money aside for your taxes (the same as savings.) Tip: use separate accounts (checking account, saving account and one savings account where you put the owed tax for every project in.) This way you don’t have a shock at tax time, you have the money already reserved.

6. Get help
Get or ask for help if you need it. For instance: if you don’t understand accounting, get a professional to do it for you!

Don’t try to do everything yourself! And yes, it may cost you some money, but this is money well spend. You are in business now and businesses spend money to make money.

So, do you have a freelance business mindset?

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