Entrepreneurs
5 Commandments You Need to Follow to Build Your Freelance Business
For all the freelancers reading this article right now, there are some steps to success you can take to create a profitable freelance company for yourself.
Being a freelancer comes with many perks. You get to enjoy the freedom of working from home all while setting your own schedule. You also get to pick your own clients and choose your desired rate of pay. Freelancing is a beautiful thing, especially when you’re the go-to expert in your industry.
While some freelancers can expect a feast or famine type of business model – where you’re making great money one month and not so great the next – there are certain tasks you should take upon yourself to ensure your success each month.
If you want to build your freelance business, these are the 5 commandments you should be focused on:
1. Acquire Testimonials After Every Job
What’s your most important job? It’s the one where your last customer was so happy they told people about you. Knowing this, each job should be equally important in your business. When you perform outstanding work for a client, don’t be shy, ask for a testimonial.
Have a page set up on your website where they can tell the world how great you are. If you don’t have a page specifically set up for this, you can grab these testimonials in different ways.
You already know testimonials are an important aspect of your business. However, what you may not know is how powerful word of mouth is for your company. A study done in 2014 revealed an astounding 75% of freelance jobs comes from word of mouth.
Your client has colleagues and friends they can share your greatness with. Every successful freelancer will glean these testimonials from their clients and make sure to refer their friends and co-workers back to their business.
2. Be Available As Much As Possible
You want to get the jobs you want? Be there when they come available. Aside from word of mouth and grabbing jobs from the people you know, you can also create expertise about yourself in freelance platforms like Upwork, oDesk, Freelancer, and others like this.
There are always places to go to find jobs online. Not only should you be available for more work to fill your time with, you should also remember the clients you still have and make yourself available for their needs as well. It’s important to keep your current clients happy and when they need you for a rush job, make sure you are there for them.
“A satisfied customer is the best business strategy of all.” – Michael LeBoeuf
3. Be a Communication Machine
Not only should you make yourself available, you should also make yourself accessible. It’s no fun for your clients to have to track you down in order to get an update or ask for more work to be done.
Nathan Hirsch, co-founder and CEO of the FreeeUp freelancer hiring marketplace, says one of the reasons most freelancers lose jobs is because the freelancer was nowhere to be found. It’s important to remember to share every contact detail you have with your clients so you both can work well together.
Successful freelancers have these tools in their portfolio:
- Viber
- Skype
- Phone
- Slack
- Asana
- ClearVoice
With a mix of communication tools at your disposal, even if you’re away from your desk, your client should still be able to get your attention within the span of 30 minutes or less.
4. Extend Your Expertise Through Others
While most freelancers are happy with keeping busy with the clients they have, freelancers who want to build their businesses will take advantage of every talent they come across.
For example, you may be an expert in the social marketing industry, but you keep getting stray clients from the search engine optimization industry. Just because you don’t have the expertise to complete the job doesn’t mean you have to send them away since you can use other freelancers. This is where contracting work comes into play and it can help your overall reach in your business.
Over time, you will come into contact with other freelancers who have multiple talents you do not have yourself. When a job comes your way in which you have no experience in, reach out to someone who does and split the profits.
While this is a whole different ball game for freelancers to pursue, it can become very lucrative if you understand what to do. First, build a community of freelance experts. You can do this easily by setting up a Facebook group. I personally set up a freelance writing group on Facebook and, in the span of 2 months, have added 3,000+ new writers into the space. Here we discuss best strategies, recommend our friends for freelance jobs, and make each other better through discussion.
5. Stay On Track With Taxes
I know this isn’t something you want to think about at the moment, but in April it will come up again. It’s relevant to have something in place to help you regulate the money which you have acquired over the past year with your freelance business.
99designs explains how the government will be taking a percentage of your income out in taxes. In order to prepare for this, they have wisely suggested putting back your governmental portion each month in a savings.
You have to run your freelance operations like a business. While taking care of taxes and fees aren’t something you dream of doing, it is something you need to adjust for because the time will come to pay the piper and you must be prepared.
Take some time and research other tax preparations for freelancers so you won’t be caught with any surprises at the end of the year. In fact, this part plays a huge role in building your freelance company. You want to be able to have a working budget after the government takes their part.
Are You Ready?
In order to create a profitable freelance business you need to be able to stand on the foundational principles of those freelancers who have gone before you and succeeded. This, and your own creativity and imagination can push you towards your goals of success. Don’t fall trap to the “always famine” idea of a freelancer by using these 5 commandments to nurture your business model.
What are some ways you have built your business? Let us know by commenting below!
Image courtesy of Twenty20.com
Entrepreneurs
How Entrepreneurs Are Harnessing LLCs to Launch Successful Startups
LLCs have unique advantages for starting up and growing a successful business
In my entrepreneurial journey, I’ve learned that LLCs have unique advantages for starting up and growing a successful business. But, before delving into the advantages, it’s essential to grasp the fundamentals of what an LLC is and how it operates.
What is an LLC?
An LLC is a hybrid business entity that combines the liability protection of a corporation with the pass-through taxation of a partnership or sole proprietorship. This unique blend provides entrepreneurs with the best of both worlds: personal asset protection and simplified taxation.
One of the most significant advantages of an LLC is its limited liability feature. This means that as the owner, my personal assets are shielded from any liabilities or debts incurred by the business.
In the event of lawsuits or financial obligations, only the assets of the LLC are at risk, offering me peace of mind and protecting my personal wealth.
Advantages of Forming an LLC
Flexibility in Management and Structure
Another aspect of the LLC that appealed to me was its flexibility in management and structure. Unlike corporations, which have rigid hierarchies and formalities, LLCs allow for a more relaxed approach to governance. As the founder, I have the freedom to structure the company in a way that suits the needs and goals of my startup.
For instance, LLCs can choose to be managed by their members (owners) or appoint a manager to oversee operations. This flexibility enables me to maintain full control of the business or delegate management responsibilities to trusted individuals while retaining ownership.
Additionally, LLCs are not bound by strict meeting requirements or extensive record-keeping obligations, reducing administrative burdens and allowing me to focus on building and growing the business.
Pass-Through Taxation and Financial Efficiency
One of the most attractive features of an LLC, particularly for startups, is its pass-through taxation. Unlike corporations, which are subject to double taxation (taxation at both the corporate and individual levels), LLCs pass profits and losses directly to their members’ personal tax returns.
This tax efficiency not only simplifies the filing process but also allows for greater flexibility in managing cash flow and reinvesting profits back into the business. As an entrepreneur, minimizing tax liabilities and maximizing financial efficiency are critical components of long-term success, and the pass-through taxation feature of an LLC aligns perfectly with these objectives.
Enhanced Credibility and Professionalism
Establishing an LLC can also enhance the credibility and professionalism of a startup. Unlike sole proprietorships or general partnerships, which may be perceived as informal or less legitimate, an LLC provides a formal business structure that instills confidence in customers, investors, and partners.
By operating under the umbrella of an LLC, I can present my startup as a reputable and established entity, which can open doors to opportunities such as securing financing, attracting top talent, and forging strategic partnerships.
This enhanced credibility can be a significant advantage, particularly in competitive industries or when seeking to differentiate my startup in the market.
Protection of Intellectual Property and Brand Assets
For startups built around innovative ideas or unique intellectual property, protecting these assets is paramount. An LLC offers an additional layer of protection for intellectual property and brand assets, safeguarding them from infringement or unauthorized use.
By registering trademarks, copyrights, or patents under the name of the LLC, I can establish legal ownership and enforce my rights more effectively in the event of disputes or infringement claims. This protection not only preserves the value of my intellectual property but also enhances the overall stability and longevity of the startup.
Steps to Form an LLC
Let us now look at the general steps to form an LLC for your business:
Step 1: Choose a Name for Your LLC
Selecting a unique and distinguishable name is the first step in forming an LLC. Ensure that the name you choose complies with the rules set by your state’s LLC division. Typically, the name must end with “Limited Liability Company,” “LLC,” or an abbreviation of these terms.
Additionally, the name should not infringe on the trademarks of existing businesses.
Step 2: Designate a Registered Agent
A registered agent is an individual or entity appointed to receive legal documents, such as lawsuits or subpoenas, on behalf of the LLC. The registered agent must have a physical address within the state where the LLC is formed.
For instance, if you are forming an LLC in Texas, ensure that your registered agent has a physical address in Texas.
This role is crucial for ensuring that the LLC remains compliant with legal requirements and maintains good standing.
Step 3: File Articles of Organization
The Articles of Organization, also known as a Certificate of Formation or Certificate of Organization in some states, is a document that formally establishes the LLC. You’ll need to submit this document to the appropriate state agency, usually the Secretary of State or Division of Corporations.
The articles typically include basic information such as the LLC’s name, address, registered agent details, and the purpose of the business.
Step 4: Create an Operating Agreement
While not always a legal requirement, drafting an operating agreement is highly recommended for LLCs. This document outlines the ownership structure, management roles, voting rights, profit-sharing arrangements, and other important aspects of the LLC’s operations.
Even if you’re the sole owner of the LLC, having an operating agreement in place can help clarify expectations and prevent disputes in the future.
Step 5: Obtain an Employer Identification Number (EIN)
An Employer Identification Number (EIN), also known as a Federal Tax Identification Number, is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to identify your LLC for tax purposes.
Even if your LLC doesn’t have employees, obtaining an EIN is necessary for opening a business bank account, filing taxes, and conducting other financial transactions.
Step 6: Obtain Necessary Permits and Licenses
Depending on the nature of your business and its location, you may need to obtain various permits, licenses, or certifications to operate legally. These requirements can vary widely from one industry and jurisdiction to another. Common examples include business licenses, zoning permits, health permits, and professional licenses.
In my entrepreneurial journey, the decision to establish my startups as LLCs has been instrumental in mitigating risks, optimizing financial performance, and positioning my ventures for long-term success.
By harnessing the advantages of the LLC structure, I’ve been able to navigate the complexities of entrepreneurship with confidence and resilience, laying the groundwork for a bright and prosperous future.
Entrepreneurs
Build a Strong IT Team with These Smart Hiring Tips
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Entrepreneurs
5 Important Legal Tips Every Entrepreneur Should Know
With a firm commitment to legal knowledge, you pave the way to grow your business sustainably
While creativity, drive, and strategic vision are paramount, integrating legal insight into your entrepreneurial toolkit can be a game-changer.
This comprehensive guide delves deeper into the five critical steps that can empower you to navigate the intricate legal landscape and propel your venture toward prosperity. (more…)
Entrepreneurs
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