With the current pandemic, many people who are either unemployed or forced to stay home are looking to start freelancing to support themselves. And why not? So many roles can be done online and from a distance these days.
If you’re one of those people considering a move to freelancing, there are a number of things you need to think about—ideally before you start.
What Is Your Pricing Model?
One of the biggest mistakes that many people make when striking out on their own is their pricing. Their employer pays $25/hour, but that’s hardly sufficient to live off of as a freelancer. That’s because the employer also has other costs on top of the salary such as taxes, benefits, and other expenses.
As a freelancer, though, you’re responsible for tracking revenue and paying all your own expenses. And, depending on where you live, those expenses aren’t cheap. For example, if you’re in the United States, you have to pay 15 percent self-employment tax in addition to an income tax. When you’re working for someone else, they pay half of those taxes and automatically take them out of your paycheck. Not so when you’re working for yourself.
As such, you need to consider all your expenses when you’re coming up with pricing, including taxes, the equipment you might need, subscription to software licenses, or other tools you’ll need to perform your work, etc. Once you get a good idea of what you’ll be spending on a monthly basis, be sure to add that into your starting base rate.
Now, some freelancers take a different approach. Some charge by the hour, but others charge by the project. Whatever pricing model you choose, just remember that it needs to be enough to cover your expenses—and pay you a salary you can live on!
Who Are Your Customers?
Building a freelance work or business isn’t too different from building any other type of business. And for any business to be successful, it needs to have a clear understanding of who its customers are.
You might have a background working in a specific field or industry, but it’s probably worth considering other sectors that might be interested in your services. This is important because the types of customers you might be used to working with might not necessarily be in the market to hire freelancers. You need to have enough work to support yourself, and that might mean pushing yourself outside your comfort zone a little.
How Will You Find New Customers?
The main driver of any business is new customer acquisition. If you weren’t freelancing previously, you might not be as well-acquainted with the process of looking for, reaching out to, and securing new customers. This is a crucial part of any freelance business, and spending some time thinking about how you’ll attract and win new customers is essential.
Now, in the past, a lot of new customer acquisition came from in-person networking. But we’re in the age of social distancing, and networking events might not be as viable.
Luckily, that’s where CitronWorks comes in. As an online marketplace, you can find new projects from customers you may not have met in any other situation. Plus, with CitronWorks’ Trust Score, you’ll be better able to judge whether a client will be a good fit for you.
Want more opportunities to fuel your freelance business? Sign up for CitronWorks and get started meeting new clients!
