How to set up your freelance business in less than a week
- Earn Money Online
- admin_rajeshc
- September 30, 2020
Starting an independent business may seem daunting, but you might find your first clients within the next week! In these volatile times, having a side job or becoming self-employed full time is an attractive career option for many of us.
A freelance business can cover everything from writing and graphic design and cleaning to trades like carpentry and plumbing. Some may take longer to really get started, but there’s nothing stopping you from starting your freelance business in a week! Once it’s created, you have a solid foundation to start growing your business and start finding the most important customers. Here’s how to do it with limited funds AND in a short period of time.
Day one: choose your type of business
So you want to run an independent business. Do what? Maybe you want to use the knowledge and skills from your daily job to start with yourself. Awesome! Many independent businesses, such as marketing agencies, virtual assistants, graphic designers, and even customer service consultants, start out this way.
Maybe you want to do something totally different. Tired of answering complaints calls everyday, but have a knack for baking? Self-employed as a baker for special occasions is something you can run alongside your main job – or become a full-fledged job!
Think about your skills, interests, hobbies, and passions. Think about the things you love about your current or previous jobs – and what you’ll avoid doing again. Use it to help shape your business idea.
Research your competition
When you know what type of business you want to run, look at the competition. Also consider competition at local and national level. Even take a look at international competitors – especially if they can’t encroach on your patch (like you’re a dog walker!) – as they might have some interesting marketing ideas or strategies to use.
Spend a day (yes, a whole day of your precious one-week setup goal!) Watching your competition. Branch a bit too: look at related businesses that would target the same customers as you. This might inspire you for a niche opportunity to bridge the gap or help you develop ideas for additional services to offer to clients.
List the pros and cons of each competitor. What do they offer? What is missing? How could you challenge their place in the market? This will help you decide on your specific business angle, and it will help you in the next steps of a business and marketing plan.
Day two: Register with HMRC
Even if you are starting your independent business as an additional employee, you must register with HMRC as an individual entrepreneur. You could also become a limited liability company, but it takes a little more time and expense. You can still become a Ltd company when you are more established. When you are starting out, it usually pays to remain an independent trader.
Even if you don’t expect to earn enough this tax year to pay anything, you will still pay Class 2 National Insurance premiums. So it is very important to register as a self-employed person with from HMRC as soon as you start setting up your business.
Choose your business name before registering. This makes the whole process a lot easier and also helps you when it is time to start your marketing. Use a company name generator tool if you run out of ideas – and check Business House to make sure no one else has the same business name.
Create a website
You don’t need to be an internet expert to create a website. These days, it’s really easy to create one! Most popular website hosts, such as Wix, WordPress, and Squarespace, have drag-and-drop editors and easy-to-use admin panels. However, it is very important that you have a basic site so that potential customers can find you.
Your website also doesn’t have to be expensive or fancy when you start. Remember: you can always expand your features and services as your business grows. You should include basic information, such as:
- What product or service do you offer
- How the product or service benefits your customer
- A price list
- Contact information
- An “about you” page – people love to know who they’re buying from!
You should also claim your social media credentials. It’s often best to focus on just one or two platforms (especially at the start), but it’s a good idea to claim mastery of each. This prevents people from masquerading as you online – and also means you can keep the same name on all platforms if you want to grow. A very good site to try is Namecheckr – it will tell you on which platforms the chosen handle is available. Try to pick one that reflects your website and your business name, which you can claim on as many platforms as possible.
Day three: write a business plan
Your business plan helps you figure out how to get started and then how to maintain growth in your first year. For example, you will need to decide what products or services you are going to offer to customers from the start. How much will they cost to provide? How much profit margin do you need on them?
Also calculate the cost of your overheads. This gives you a financial goal to aim for in your first year and helps you evaluate your services or products. You will have to think about rent, invoices, professional rates (if you are renting a room), insurance, inventory, etc. Also, keep in mind that your first year means investing in assets like computers or other equipment.
Use a business plan template to make sure everything is covered. This will help you decide if your independent business will be viable as a profit maker. Your first year (or two) may not turn a profit if you have to invest in a lot of equipment or inventory, so don’t be discouraged! However, the plan will help you see what costs you need to cover (including your own living expenses) – and it will help you know where to turn for financing.
Day four: create a professional bank account
As a sole proprietorship, you don’t legally need a separate business bank account. However, it is always a good idea to create one to separate your own finances from those of the business.
Initially, you also don’t need to pay for a suitable business bank account. You can create a basic checking account in your name – just keep it for business income and expenses only. It really helps when it comes to doing your annual tax return!
Seek funding and mentorship
There’s a ton of help for new business owners – you just need to know where to look.
If you are currently unemployed and have universal credit, ask your employment coach to find out about New Business Benefit. This is a program to help you get started with your own business – and opens the doors to business mentoring as well as start-up loans and finance.
For those who aren’t receiving benefits, there are still plenty of ways to fund your new startup. First, talk to your local library, city council, and employment center. They may all have different programs or be able to recommend local services that offer free business advice or help new freelancers.
And don’t forget that we have articles covering funding and benefits for freelancers, as well as sources of funding for your startup.
Why seek mentorship?
Your local employment agency or agency is likely to organize programs for new business owners. It’s important to seek advice from experienced professionals, and if you can get free advice, that’s even better! Without the guidance of a business mentor, you could fall into common traps new freelancers do – like not budgeting for months with no income – and end up with zero profit.
Talk to your local chamber of commerce or the Federation of Small Businesses, and also look for “digital hubs” in your area. There are often free workshops and sometimes even low cost or free workspaces for new businesses if you do your research. Wrexham Enterprise Hub, for example, is free – and gives you a place to work, organize meetings and also conduct free training workshops.
Day five: identify your marketing channels
When you are starting out, your budget is tight. Marketing to everyone is therefore not the most profitable way to spend your pennies!
However, you have to spend a little bit of money on marketing to attract those first customers. Once you have them, they’ll offer you word of mouth reviews or recommendations, which is free marketing that generates much stronger customer relationships. also.
Think about who you want as the ideal customer. What are they reading? What websites do they visit? Where are they going in your local community? Mix online and offline marketing for the best results. Try flyers in your area and digital ads on social media platforms that target your ideal demographic.
Use the MoneyMagpie Marketplace
One option for finding new customers in your area is to advertise on the MoneyMagpie Market! It’s all new – which means it’s currently free to list your ads. After three months, the fees are only 8% of customer spend – which is much less than on other online platforms! Plus, you only pay when someone books your service or purchases your product, which means you don’t pay for the marketing until they’re successful.
More independent advice
Starting an independent business is an exciting time for anyone who is motivated by their career. However, as you grow your business there is so much to consider that it is easy to feel lost. Read these articles alongside to arm yourself with all the vital information you need.
