First and foremost - before I get started - can I just say: Congratulations!
By clicking on this link, it’s clear that your freelancing career is at a point where it is now becoming a BUSINESS - which means you are probably making money. *cheers virtually*.
Taking the leap into working for yourself takes courage - but how rewarding is it when the decision pays off, literally. We’re here for your success - and here to help you through it!
There is a big difference between having a side hustle and running a small business. So let’s dig in!
Why should I go from being an independent contractor, to business owner?
The difference between an independent contractor and freelance business owner is generally revenue.
Anyone can be an independent freelancer. Take on work as they please. Work full time, and do some jobs on the side - or work part time and freelance part time. It’s when you hit a certain revenue and number of clients that is just too much for one person to look after, when it is a good time to turn yourself into a Freelance business.
What is a Freelance business?
It’s exactly what the title would entail - it is a freelancer who owns a business. And usually hires or collaborates with other freelancers to manage the workload better!
Whether you’re a freelancer writer, a social media manager, or a virtual assistant, you can transform it into a business. A freelance business is when the workload is too much for one person, so they start hiring others to keep up with their clients.
But when you start hiring other people, you need to set yourself up in the right way.
Must-do’s before starting your Freelance business
Research the rules & laws in your area about business ownership
Start by considering the legalities like registering your business, licensing your business and what taxes that need paying once you transform into a business.
Every state, city and country has different rules. However, I suggest putting aside at least 20% of your income after expenses for those end of financial year taxes and bills that may pop up!
Set your pricing & packages
Now that you will have more expenses as you start hiring other freelancers to assist with your work, your hourly rate may need tweaking. You need to sell your services and still ensure you are going to make profit.
Contracts, contracts, contracts!
If you have people working for you - get contracts in place with them. You’re probably currently used to working for yourself, and only having to rely on yourself to make deadlines.
Now you may have a team of other people working with you on projects. It’s good to get contracts in place around timelines and pay rates before you hire someone - to avoid disappointment!
Learn how to find other freelancers to work with you
There are plenty of freelance websites or social media pages out there for you to find freelancers to start working under your new business. Even networking groups like “Freelancing Females” on Facebook are a great place to find people looking for some contract work. That’s where I got this gig!
Want to look more professional in your work?
Use Indy’s full set of freelance tools to make your proposals, contracts, invoices, and projects look and work more professional.
Time to get ready
Get researching - get networking - and get excited.
You’ve been working hard to get to a position where your workload is even too much for you to handle. Maybe you’re making the move from part-time into full-time, or you’re quitting your day job so you can make this work.
Either way - the life freelancing takes courage. And when you can turn it into a Freelance Business - it sure is something you should be proud of.
I'm proud of you! Go smash it.