Most small businesses start today as a side hustle first. In fact, 1 in 3 Americans is a freelancer or temporary worker in the post-recession era, according to research by the Human Capital Institute (HCI). The majority of contract workers are part-timers, and their ranks are growing at more than twice the rate of full-time employees, the HCI reports.
The reality is that many people who lost jobs during the recession are putting themselves back to work by pitching their skills to companies, including their former employers, as “free agents.”
Your flexibility as a free agent can be appealing to employers who need to get the job done but don’t want to pay for things like health insurance, taxes and retirement benefits — which is associated with full-time employees. You can use this demand to your advantage and build a freelance business to support yourself, stay current in your field and keep moving in an unstable economy.
Here are five key attributes you’ll need to be a successful freelancer.
1. Be Professional. Just because you may be working from a home office doesn’t mean you forget your manners. The same standards of professionalism you used in the workplace apply as a self-employed professional. Set up a work space that is conducive to doing business and working long hours. Make sure you are in quiet surroundings when making calls — your clients should not hear the TV blaring, your child crying or the dog barking while they’re considering whether to give you money to work on a project for them.
2. Be Meticulous About Tracking Your Hours. It’s easy to lose track of the time you spend on a project when you’re not punching a time clock. Often, independent contractors find themselves spending more time on a project than they would have if they were working in a regular office environment. It is up to you to ensure that you’re getting paid for the work you’re putting in and complete projects in a timely manner. To set a realistic hourly rate, Michelle Mangen, president of Your Virtual Assistant, based in Sarasota, Fla., suggests surveying the competition. “When I first started my business as a virtual assistant, I asked other VAs what they charged, and that’s how I figured out my initial pricing strategy,” says Mangen. Be sure to include project management time in your bids; interaction with clients eats up lots of time.
3. Focus on a Niche Specialty. You cannot be all things to all people. Focus on a specific niche customer or industry. Examine your transferable skills, figure out the pain points of your target customer, find out where those skills are in demand, and go after the business. Also, seek out work that may fulfill a passion that you wouldn’t have gone after on a traditional job. For example, if you are a CPA who enjoys cooking, you could specialize in doing accounting work just for restaurants.
4. Build a Web Portfolio. Potential customers and recruiters will search online to find information about you before making contact. That’s why it’s essential to have a website and online presence that displays your expertise. Establish a LinkedIn profile to help you showcase your portfolio. (Read my article Are You Google-able?)
5. Be a Networking Machine. Don’t sit in your house and do all of your socializing online. Seek out local networking events and trade associations in your field and join the chapters in your area. Keep your elevator pitch handy. When you’re out in the community, whether you’re in transit to meet a client or running errands, talk up your business to your banker, your local merchants, and the parent on your child’s baseball team who is an executive at a company that could use your services. Carry business cards at all times. Make sure contact information is updated and includes all places they can find you online.
Finding work: Many websites help freelancers develop their businesses and stay sane in the process. Here are three good resources.
- Elance. Site connects freelancers with companies looking for help.
- Freelancer. Companies and entrepreneurs use this online hub to post their projects and expertise and find good matches. .
- Guru. A freelancer marketplace that also handles payment processing. The site features profiles and websites of 250,000 active freelancers.
Do you have a favorite website for finding freelance opportunities?
This article was originally posted on www.secondact.com and the copyright is held by Entrepreneur Media.
For more tips on how start or grow your small business subscribe to Melinda Emerson’s blog http://www.succeedasyourownboss.com.
Melinda F. Emerson, known to many as SmallBizLady is one of America’s leading small business experts. As a seasoned entrepreneur, professional speaker, and small business coach, she develops audio, video and written content to fulfill her mission to end small business failure. As CEO of Quintessence Multimedia, Melinda educates entrepreneurs and Fortune 500 companies on subjects including small business start-up, business development and social media marketing. Forbes Magazine named her #1 woman for entrepreneurs to follow on Twitter. She hosts #SmallBizChat Wednesdays on Twitter 8-9pm ET for emerging entrepreneurs. She also publishes a resource blog http://www.succeedasyourownboss.com Melinda is also bestseller author of Become Your Own Boss in 12 months; A Month-by-Month Guide to a Business That Works.
Great Article, and amazing timing. I actually and working on the same topic today on my blog.
http://cashflowstoo.com/?p=127
I hope you get a chance to check it out. I’m also linking to this article from my blog because truly I see your work of value.
Have a blessed and prosperous day.
Thanks for the reminders about how to stay professional even if you are a company of one. Good advice and good links to follow up on.
Amen to #2. So many freelancers, and companies for that matter, delve into a project and forget to pay attention to the ROI on their hours of work. Freelancers really need to ensure that they are being productive rather than wasting their time.
Thanks for this great post! I’m keeping this one.
Please keep posting. Thank You.
Great tips. I agree I’ve had to go to freelance work since leaving my full time job. To me it’s more work right now building up my client list up. I know in the end it will be worth it but the struggle is just a learning experience for me.
I love the article. I am in the middle of transitioning. I am building my skills list and trying to build a brand. I love to work on research projects and write. It has been a tough year trying to break out on my own but I am still pushing forward
A great article. I freelance and love it but it does take some determination, patience and courage. Good luck to anyone setting out on the journey… stick with it. It can be truly truly rewarding. All the best. Joanna
Freelancing is undoubtedly a challenging job. But if you follow the rules and market yourself nicely then success is must.
Thanks for the wonderful writing.