Minimise hours that don't pay
External contractors can afford the luxury of determining how many hours of work they will perform and at what rate. On the other hand, many self-employed people spend a lot of time a week on work for which they take no pay or cannot charge the client extra. These tasks include e-mail conversations, self-marketing, design preparation, visiting potential clients and networking. Then there are also such tasks as invoicing, bookkeeping and filing various tax returns.
Take steps to reduce the time no one pays you for and maximise your profits. Start by choosing a software program to help you with the financial aspects of your business. These programs are designed to minimise unnecessary time and overheads. At the same time, consider how many extra hours you will spend on projects for each client. Maybe it is time to increase your usual rate.
Organisation of time and priorities
As a freelancer, you don't have a supervisor looking over your shoulder or a team that relies on you. It can be all the more difficult to meet deadlines and work according to the agreement. You may be tempted to promise clients you will deliver their work faster than the competition. However, if you set unattainable goals, you are exposed to excessive pressure and possible disappointment on the part of the client if you cannot deliver the work on time. It is much more important to set realistic time estimates that you can keep, and at the same time communicate with the client on an ongoing basis. Communication is key to long-term and quality relationships. Likewise it is also good to be able to set aside a moment for the client when they need you, without their spending half the day chasing you by phone.
Sell with confidence
Not everyone is comfortable talking about themselves in superlatives. However, if you want to gain a stable clientele and income, you need to get used to it and be able to sell. Gathering references from existing clients, who will do a large part of the promotion for you, will also help you significantly. For example, ask customers to refer you to LinkedIn or post their feedback on your website.
Build a strong portfolio
It is difficult to sell your services if you do not have samples of your work. If, say, you are a consultant, a personal blog will help you, where you will share your knowledge on topics in the field. Writing articles for professional media is another way to make yourself known to a wider target audience that visits these channels.
Pay attention to cash flow
Cash flow is the movement of money into and out of a business and is just as important for freelancers as it is for businesses with employees. If you don't pay attention to your cash flow, you can easily dig a financial hole under your feet if some payment from a client does not arrive on time or at all.
Increase your contingency fund
Do you know how much you can afford to set aside on an ongoing basis from your monthly income for unexpected expenses? If necessary, are you able to finance, say, the repair or acquisition of new work tools or unexpected medical expenses? For how long in advance would this financial cushion cover average monthly expenses if you were to lose your source of income? Create a contingency reserve for at least 2-3 months ahead and also consider the possibilities of long-term savings and investment of your funds. You will appreciate it in the future.
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