A Step-by-Step Guide to Transforming Your Freelance Life to a Legit Business
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If you're a freelancer, scaling up your operations to become a full-fledged business entity offers many benefits. You'll be able to hone in on a niche, attract higher-caliber clients, and gain greater financial security. However, for creative types (like designers, writers, and web developers) handling the administrative side of starting a business can be daunting. Don't stress. This guide courtesy of NewBizBlog.Com covers all the need-to-know essentials.
Write a business plan
Before you start scaling up your business operations, come up with a plan. This document should describe your company's services and products, define your business structure and organization, and explicate financial projections and funding needs. Your business plan is a guidebook for your business operations. It can also be used to get investors or lenders on board if you need funding to get started.
Select a business structure
Establishing your business as a legal entity offers various advantages, from protecting your personal liability in case of legal issues to simplifying your bookkeeping and tax filing. There are different business structures. You have several options, such as a sole proprietorship, partnership, limited liability company, or corporation. Each one comes with its own requirements in terms of set up, tax filing, and state and federal reporting needs.
Establish a recognizable brand
If you're going to grow from a freelancer to a legitimate business, you'll need to attract more clients. Marketing is the answer. Start by establishing a strong brand, which sets you apart from the competition. An attractive logo can provide a useful visual representation of your brand.
Start marketing to attract clients
Once you've defined your brand visually and conceptually, it's time to share it with the world. Sprout Social offers an introductory how-to guide for business marketing using various formats, from social media to video. Digital marketing techniques are especially useful because it's easy to track the results. For example, if you create a Facebook ad, you can get concrete figures as to how many people clicked on it.
Invest in useful business technology
Entrepreneurs who come from creative backgrounds often tend to disregard the logistical details of day-to-day business life when setting up a company. Don't fall into this trap. Make sure you are setting up streamlined processes and investing in the technology you need to handle everyday admin, from social media management to web design. Helpful technologies include chat and collaboration apps like Slack or video conferencing tech like Google Meet.
Connect with appropriate clients
When scaling up your business, you'll have to consistently find new clients. Not only do you want to attract more clients, you want to ensure they are better quality clients. Freelance websites are a great place to find work opportunities and grow your portfolio.
Hire help when needed and manage payroll
As your business grows, you'll probably want to hire help. Make sure to vet any applicants thoroughly, checking their resumes and references. For creative roles, make sure to check their portfolio. Before hiring, set up a comprehensive payroll system. Get payroll done fast with payroll services that automate payroll scheduling and tax calculations and filings. Ideally, your system will allow for same-day direct deposits, ensuring your workers are paid quickly.
Scaling up your freelance career to become a full-fledged company can be intimidating at first. Don't let the prospect scare you. By writing a business plan, establishing your brand, developing a marketing strategy, investing in tech, and using payroll services, you can begin the startup process.
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