Freelancing can start out as a lucrative side gig, but many independent contractors soon find that their freelance work is growing into something more. If you’re ready to evolve from freelancing into small business, there’s a lot to know about business management, finances, and maintaining a productive workflow. Check out these tips to upgrade your business from freelance to small-scale company in no time!
1. Cultivate a growth mindset
When you started freelancing, you probably picked up gigs here and there to fill gaps in your schedule. But when you decide to scale up into full-time work as a business owner, there are more administrative (and mental) tasks to handle.
Transitioning from freelancer to small business owner requires a shift in mindset. Instead of focusing solely on completing individual projects, start thinking about the bigger picture—how can you grow and scale your business over time? Cultivate a growth mindset that embraces challenges as opportunities for learning and development.
2. Keep learning
Stay up to date on industry trends and innovations, continuously seek feedback, and be willing to adapt and evolve your business strategies accordingly. Remember that entrepreneurship is a journey filled with ups and downs, and setbacks are inevitable. But by maintaining a positive attitude and a willingness to learn from failures, you'll be better equipped to overcome obstacles and achieve your long-term goals.
3. Help clients find you (instead of finding clients)
When you freelance, you might apply for open jobs or list your services on a hiring platform. But evolving into a small business model means you need to spearhead your sales and marketing efforts solo. You can grab gigs on freelancer platforms, but a better method is encouraging clients to come to you.
Set up a company website, outline your marketing goals, and start advertising your services. A bonus? GoDaddy’s research suggests that 79 percent of small businesses with a website feel more confident about their business’s growth potential, regardless of niche. That’s because a professional website is a vehicle for all your marketing, sales, and customer service activities.
4. Focus on Finances
Making money is the cornerstone of your business operation, but it’s not always easy to navigate the financial side of things. Staying on top of what you’re earning and spending — and ensuring you’re actually getting paid — is an essential step as a business owner.
As a new business owner, you might not have a budget for a lot of extras. But prioritizing software that suits your financial needs means you won’t miss an invoice ever again. The right software can make the process simpler, from generating customized invoices to reminding clients that they still owe. Whether you need to create an invoice or tally up your income for the month, an online software suite like Quickbooks can help. Tracking your income also helps you prepare for estimated taxes and other obligations.
5. Delegate and Collaborate
Administrative tasks can easily take up a ton of your time. While they’re essential, you still need to make time to actually work. Consider setting a schedule so you don’t work on the business’s back end so much that you neglect the nuts and bolts. If you still can’t seem to find time to get it all done, consider hiring others for help. This could include hiring contractors or employees to handle administrative tasks, marketing, or other specialized functions. Collaborating with other freelancers or small businesses can also open up new opportunities for growth and expansion while allowing you to focus on what you do best.