If starting a freelance business is on your list of 2023 goals, you need to get a few things right first.
In this article, I will guide you through the steps you need to take to start a successful freelance business this year.
By the way, I teach an online course on how to do it Be your own bossIt will be very useful when you start on this journey. Live classes start on January 31st, and I’d love to see you there!
Without further ado, here are 23 steps to start a freelance business in 2023.
1. Decide what kind of freelance business you want
Freelance businesses tend to be service businesses such as writing, accounting, web design, coaching, or social media marketing. Knowing your skills will guide you in deciding what kind of business you want to start.
2. Research the industry
You need to do it when you start any business Market research To understand the market and your competitors and find out who your target customers are by talking to people and listening to social media conversations. Look for any gaps in what others have to offer so you can fill that unmet need elsewhere.
3. Focus on a specific niche customer
Who do you want to work with in your business? Who do you focus on serving? Nobody needs a graphic designer. Are you looking for a graphic designer who specializes in learning materials or logos? You need to pitch in a specific service or solution for a specific customer.
4. Name your business
The best way to be taken seriously as a freelancer is to have a professional business name and a great website that looks good and loads quickly from any device. Once you’ve chosen a few names, make sure the URL is there. Fortunately, domain names are very affordable. Consider a second site with the name you want for your business and keywords that identify your specialty, such as SmallBizLady.com, PhiladelphiaSEOExpert.com, Huntsvilleflorist.com, or StLouishandyman.com.
5. Include your business
To truly benefit from a business, you must incorporate that business as an LLC or S-Corporation. There are tax benefits to each, so check with your attorney or accountant about which one is right for you. Never use your social security number to run your business. If something goes wrong with the client, you open yourself up to personal liability.
6. Register your business name
Make sure the name you want is available, then apply Registration of a false name with your State Corporation Office. Advertise the trade name registration in two newspapers. If you want to have sole ownership of the name, incorporate the business.
7. Wait for the EIN number
An Employee Identification Number (EIN) is a unique nine-digit number that identifies your business for tax purposes. It is intended for business related items only. You need an EIN to open a business bank account, apply for a business license, and file tax returns as a business owner. Accessing www.IRS.gov is easy and simple.
8. Build a website
Your website is your #1 sales tool. The best way to get taken seriously as a freelancer is to get a professional website that displays a portfolio of your work. People will judge your website as an indicator of your professionalism, so don’t skimp. Hire a professional web designer to help you build your website. Also, remember that your recent work and credentials should be updated every 12 to 18 months.
9. Build a strong lead magnet
You need to build a list of prospects as soon as possible so you can use email marketing to put your name in front of them. The best way to do this is to create an irresistible free offer on your website that will get people interested in your services to download your resources. (Hint: Give it your best.) Lead magnets It could be a checklist, a mini-course, a video series, an e-book, a solo podcast interview, etc. Make sure it solves an issue for your target customer.
10. Apply for business license
You may not know it, but freelancers are required to have a business license just like any other business. Failure to obtain the proper ones can result in additional taxes and fines down the road, so check to see what licenses or permits your city, county, and state require you to have as a business owner.
11. Open a commercial bank account
You need a separate bank account for your business. Mixing business and personal expenses can make tax and accounting more difficult, so set up a separate business checking account and money market account. (You never want to keep all your money in your checking account.) Remember that your business and personal banking do not have to be in the same bank.
Every good business, freelance or otherwise, should start with a business plan. yours Business plan It should describe your entire business, including the services you offer, your competitors, details on your target customers, how you drive sales, and offer your products or services. You need a detailed marketing plan with sales goals. Take the time to prepare sales projections and a preliminary budget so that you have an idea whether you are making money or pursuing an expensive hobby.
13. Create your budget
Starting a business requires some initial investment, so now is a good time to itemize those costs and any ongoing expenses you may have. Be sure to include marketing dollars to promote your business each month. Don’t forget to include paying yourself as an expense. Even if you can’t afford to pay yourself at first, you should keep a record of what you owe your company.
14. Create profiles on freelance sites
One of the best ways to find freelance gigs is through freelance websites. Freelancer, UpWorkAnd Fiverr. Once you’re ready to start creating profiles on websites that cater to people looking for your services, it will give you a big edge in finding new clients.
15. Build your social media brand
You need to lay a foundation for your marketing efforts. Create social media profiles on sites where you believe your target audience spends their time. Publish content regularly so prospects have ample opportunities to see your expertise in action. Engage with those who like and share your content.
16. Develop a content strategy
A content strategy helps you define your marketing goals and set your priorities. It allows you to plan your content and ensures that all your marketing efforts are goal-driven.
17. Use email marketing
Learn email marketingOnce you have an email subscriber list, you’re good to go. Email marketing allows you to build relationships with prospects, customers, and past customers. It’s your chance to speak to them directly in their inbox.
18. Access your network
Your network is your net worth when you start out in business. Use your personal and professional networks to start getting the word out about your new freelance business. Let them know that you will be starting a job soon and would appreciate any business referrals.
19. See Bartering
You may be able to run your freelance business on lean until your business takes off, so think about how you can network with other freelancers to exchange your services. For example, if you don’t know how to do your own graphic designs, you can offer your accounting services in exchange for marketing help.
20. Plan your online promotions
As a new business, you need to prove yourself to attract new customers. You need to learn How to sell and sell online. Consider offering deep discount promotions to new customers, such as “50% off the first two design projects” or “40% off the first month of service.” This may encourage people to try you. After that, it’s up to you to delight them and convert them into a repeat customer.
21. Plan your launch
It’s important to create buzz around your freelance business launch. You can host a homecoming reception or use social media heavily. Offer killer freebies and giveaways online the first month you’re open for business. Go live on Facebook, Instagram, LinkedIn, YouTube or TikTok. If you target Local customers, you may want to start a direct mail campaign. Don’t just do one thing – do a few things to get the word out. Plan ahead for all the implications of the launch campaign.
22. Let others talk about the launch
The more exciting your freelance business launch is, the happier others will be to spread the word. Ask your network in real life and online to tell others about your business. The more people know about it, the wider the net. Wide networks capture customers.
23. Celebrate your new status as a freelancer
You’ve put in the hard work, and now you’re ready to tell the world about your freelance business. Remember that there are no overnight successes. You have to work hard over time to build a following, but once you’ve proven your skills, your customers will come back again and again. Good luck with your new business!
Do you have suggestions to add? What else should you know about becoming a successful freelancer?
