Hands up if you want to become a freelancer so you can live a more fulfilling life. Do you want it to happen as quickly as possible? Of course, you do.
You may have even put out some feelers, asked around or tried to figure it out on your own.
In this post, I'll share 4 rookie mistakes to avoid (and one bonus tip to do) when it comes to heading out on your own as a freelancer.
It's a pretty chunky guide, so grab yourself an emotional support beverage, something to take notes with and let’s dig in.
What is “freelancing” really?
Before you work on making this work, you need to understand what a Freelancing career actually is.
Freelancing is actually owning your own business. In other words, you are in charge of how, when and by whom you get paid.
And for all of the experts out there, that means submitting invoices directly to accounts payable and not waiting on payroll to hit every 2 weeks.
For you that means:
Having more say over your pay rate
Being your own boss (yes, you’re responsible for everything)
Having more control over your work environment
With that out of the way, let’s look at the top mistakes I see newbie freelancers make, and what you can do instead.
The Number One Rookie Mistake: Not understanding that you have to market yourself
My client Jessie wanted nothing more than to start her own business so she could (in her own words) “Start living a fulfilling life”. When she came to me, she had tried a few different ‘side-hustle’ type, online businesses but nothing was sticking.
She was also ready and willing to go freelance and offer her day-job skills as to anyone who needed them. But, she didn’t get traction there either.
Did you spot it? Can you see where Jessie went wrong in trying to start a business?
That's right, it was the fact that Jessie was not only trying to reinvent the wheel with starting a new business but she wasn’t actually marketing herself. If they don’t know you’ve built it, they can’t come!
Thankfully, after working with me, she ended up with a fully booked freelance business.
Not marketing yourself properly is a common mistake because:
Well, many new freelancers just don’t think about it.
The assumption is that everyone you know (and have ever met) knows what you do and that all they need to do is shoot you an email. Very much not so my friend.
“Marketing” can seem overwhelming and scary to the uninitiated.
Have you been marketing yourself poorly (or not at all) for so long that you don't even know that you can really call yourself a freelancer?
Before you feel like you will never succeed, it’s not your fault!
Remember: Even Coke has to advertise.
What to do instead:
Start with your close network. Your friends, family and colleagues. Let them know that you’re officially embarking on a freelance career.
Decide if you want to post on social media as an official freelancer. It’s free and effective (but can be a time-waster too).
Then reach out to organizations and people you want to work with. Yup. You gotta pitch you.
Mistake #2: Not being clear on what service you offer
None of us is naive enough to think that lack of marketing is the only mistake people make with becoming a solopreneur. If that was it, there'd be a whole lot more freelancers out there!
The next biggest mistake I see people make is not being 100%, crystal clear as to what services they exactly offer.
If you try to appeal to everyone by saying “Oh I can do whatever you need me to! I could make you a chair or a table or refinish old furniture or help you design a kitchen or even pick out tile…” you’re going to loose that woodworking job to someone who says “I can make you a quality wood bookshelf.”
Trying to get any job most likely means you won’t get a job.
What to do instead:
Choose the service that pays you the most and that you enjoy doing the most.
Express what that service is in 2 sentences or less.
Outline what would be and what would not be in scope for a typical job doing that task.
For some help with this, see: 5 CREATIVE CAREERS THAT WILL BE IN-DEMAND IN THE FUTURE
Mistake 3: Not understanding what pricing structure will work for you
This one is easy to make, and I’ve actually done it more than once.
When many (most?) freelancers start out, they infamously under charge. Even if their pricing seems on target, newbies have a habit of letting scope creep in a big way. They say “yes” to the client’s “quick request” one too many times and end up putting an extra 10 hours in on a project they’re not getting paid for.
This happens because for the most part, there is no one rate structure that is set across any industry.
Sure, there might be a little trial and error in the beginning of your freelancing journey, but getting stuck in the undercharging zone can derail your path to a financially successful career.
What to do instead:
It’s not your fault that you’re not sure what the going rate is. Which is why you have to not only research that - but also do your math.
How much do you need to be making and how can you structure your services to make that salary a workable number? You also need to decide if you will charge hourly, daily or per project.
Mistake 4: Not getting official (legally and payment-wise)
Being a freelance means that you are not only your own boss, but that essentially you own your own company.
Most likely that’s not something you’ve done in the past so you can’t be expected to know all the ins and outs of business ownership.
There are two major pieces of business operations that you’ll need to tackle if you want to make freelancing a lucrative, and long term solution.
You need to get legally official. Depending on your state you might need to form an LLC or even get a business license and Employment ID number. For some, all you need is your social security number.
You need to get a way to get paid set up and ready to roll. For most of these transitions, your business entity needs to get set up first so that you can then get a payments system in place.
In my business I attempted to hire a freelancer for a project who asked that I pay them through their personal venmo. For taxes and all that fun stuff, that just doesn’t work for a professional service. I had to give the work to someone else.
What to do instead:
Research! Research what is and isn’t required to be a solo operator/freelancer/contractor in your state.
Get all the required paperwork on file.
Once you have that complete, choose a payment method and software. There are many, many to choose from and a simple Google search can help you find the ones that work for you.
Additionally, if you have a website or contracts, those will need legal protections too!
Bonus! How to Start A Freelancing Career with Ease
When I first started my business, I naively felt like once I had decided to ‘sell’ coaching that all I would have to do was put up my shingle and I’d be in business. I genuinely didn’t think about all the other hats I was going to need to wear: bookkeeper, head of marketing, legal counsel, IT… the list goes on and on.
But look at me now; I’m consistently booked out with a waiting list!
Me as a newbie coach doing all sorts of business things wrong!
Here are the top ways I got to the point of earning money through being my own boss:
Tip 1: Always keep your eyes on the competition. I'm not saying you should copy what they’re doing, but you should always know how they're succeeding! It’s a free masterclass.
Tip 2: Add as much of you to your business as you can. Put your spin on things. Chances are the folx who will be hiring you do so because something very specific to you resonates with them.
Tip 3: Remember to treat every person you meet to be a potential client or connection to a client. You never know who knows who and who works where and needs what.
About EB Sanders
Like you, I have made lots of mistakes on my journey to being my own boss. There were many moments when I thought about giving up and staying in a regular 9-5. I know how many ups and downs there are when it comes to starting something new.
That's why I started my coaching practice, to help other folx achieve their wildest career dreams.
Want more tips and strategies for a successful freelance career? You can get on my list below and each week I’ll send my most actionable tips, tricks and advice straight to your inbox.
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