Freelancing start up advice please!
Hey guys! I'm just moving from in house marketing to give freelancing a go due to covid set backs - any advice on starting up please? Especially around setting up as a sole trader / ltd company and contracts?? And any other super useful tips for a total novice! Thanks! :) x
Replies6
- @Tanel S This is loads of great advice for freelancing mindset - thank you for sending this over!
- @Abigail Baldwin Brilliant advice - thank you! :)
- @Diane Taubenhaus This is really helpful - thank you! I'm going to research more into the differences betweel a sole trander and ltd company and then hopefully get things moving. If/when I have questions I'm sure I'll get in touch :) thank you!
- Hi Georgia,I'm just finalizing the process for setting my own ltd company...First thing would be to decide if you want to be a sole trader or setup a ltd company and how much time & resources you can give (more for the latter).From there it's several steps but first thing is first your company name and proposition! If you go down the ltd route then there are online companies you can use to help you incorpate it and get the docs sorted from companies house. You may also want to look at biz bank accounts, accountant, insurance (depending on the work you look to provide), website etc.Happy to connect and chat through any questions or ideas you have as I am still finding my way :)diane@curiosacommunications.com
- Find yourself a mentor or a group of contacts whom you can bounce ideas off! They need to be people you can trust, but have experience of the industry your within.Also, really know your numbers! I know it can be seen as the "boring" side of business, but it is essential. You have to make a living from it somehow. :-)
- I don't know if covid time is perfect for freelancing however I wish you luck.I can share a bit of my own experience. Depending on a day I am freelancer / small digital studio owner.Setting up a company and contracts. Again not my strong side and probably depends about country you are working from. I have basically LLC set up in EU - actually it is small digital studio as we operate it with 2 people. Designer + developer = 99% of our projects are separate. Accountant will do reports etc. Make sure you choose good and trustworthy one and set up things correctly at first. Think about taxes and even if you don't have to pay them straight make sure you have mone put on the side.Contracts. Yeah I don't do them much. I believe in mutual benefits and long term cooperation. I have made contracts sometimes when other side is bigger company / institution and they need it. So they have their own contracts. What I have found out that it is 100% ok to send your updates and improvements or ideas and mostly if they are reasonable they are being accepted.Instead of contracts spend time before accepting any work. Discuss all details. Try to find red-lines and if something feels off don't take it.Take projects what you know you can do.Don't over promise. Over deliver. Doesn't mean you need to do free work. Never work for free unless it is for friends or good cause.Don't work for friends. Meaning don't do free work. You should get paid for what you do. Also when problems come up you may lose friends. I have never worked for friends but I have seen good friendships ruined by money. You may help your friends and refer them to someone else and give feedback and lead the way. If you find friends through work it is nice however try to keep emotions separate.I probably suggest not to work for equity or late payments. Depending on what you do result based paiments are ok however in this case do contract and make sure that everything is crystal clear. Equity + lower payment is ok. As an example some startups or founders can't pay your full rate then you can lower it in return of equity. Base payment should still be reasonable.Save some money. If possible have at least 1-2 years of minimum living money on the side. Invest it somewhere secure (probably bitcoin is not the best idea) where you can access it fast. This gives you great freedom to choose projects and you don't desperately have to take any works.Find your whale. Or better 2-3. Try to find some bigger client who will bring you minimum 40-50% of work every month. Try to fit in monthly billing cycle or even 2 weeks if it is not too much trouble. It is always easier to work with people and brands who you know and who trust you.Getting new clients can be exiting however negotiating and sales take time. Also you don't know how fast you can start working and how good is new relationship. You may find your dream client or not.Start with smaller steps. Test new clients always. See if it is a good fit. If it works out good you can increase work. You don't know where your next whale is.Sales, management + administration take time. You shouldn't do it from your free time. Make sure your work doesn't take over your life. Same time it can be though. Be ready to invest your time if needed.Make sure your friends and family understand what freelancing means. If you are good at time planing and don't want to stick to schedule you can be flexible. I am pretty much but it is not so always. People expect that if you are freelancer you don't have boss and working schedule and you are pretty much free all the time.
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