So, you delved into freelancing. You jumped head first (or first dipped your toes, whichever works for you) into being your own boss and now nothing can stop you from working in your pyjamas. First of all, big hearty congratulations.
Not many make it past opening a freelancing account somewhere, let alone enlist clients. And now that we have gotten the pleasantries out of the way, let us get into the nitty gritty. The big girl stuff. Mogul business.
It is essential that you realise that like any business out there, freelancing has its peak seasons and its really, and I mean, really low seasons. This being said, it is essential that finances line up throughout these seasons. Let’s get to it.
Know your market
This is the basis of any business, and it applies even in online businesses. Knowing when the seasons’ peak and when they fall is essential in managing your money.
In academic writing, for instance, seasons pick at around March-April, August-September and in December, which is the end-of-semester months. If one is freelancing designs for say, at a corporate company, it is essential that you understand their fiscal year and how they pay or contract employees then.
Know your worth
Some people may have you believe that since you are freelancing your services, they have to pay less that is required.
Knowing the pricing on your product and service is crucial in you making profits, in the long run. So, do not undervalue or overvalue yourself.Know your worth as a freelancer, do not undervalue or overvalue yourself Click To Tweet
Factor in your expenditure
Granted, there is not much revenue that you put in when freelancing unless you are renting office space. Your internet plan, however, will straight out flatten your morale if you are not careful.
Choose an internet plan that is affordable for you, and that you know you can easily manage even when literally no clients are coming through because it will happen.
Ride the wave
High seasons in freelancing are really high, and what goes up will hit rock bottom with the same momentum. When that tide comes in, ride it like your life depends on it.
Work through the day and night, stock up on coffee or energy drinks, never see outdoors, whatever it takes, stock up on that money (just remember to factor in self-care, of course).
Stock up on some emergency cash
Yeah, things happen. Your regular client finishes school, your contract ends, life goes on. Set aside some money for an emergency just in case your bank account is depleted.
This actually goes for all businesses. It is standard.
Follow the 50/30/20 rule on cash
Personal financing is basically what will take you through freelancing. Know what you are spending your money on, track your receipts, cut down on the ‘for show’ products, and follow the 50/30/20 rule.
50% of your income is used on basic expenditure (like rent, food), 30% settle your debts and maybe a few luxury products, and invest with the 20% that remains. Or, follow this SLA guide prepared to cushion you from spending everything.
Network, network, network
Even in the low seasons, remind your clients that you are available, and ask them to refer you to other clients. Networking and good service are crucial in this business. If you are working in your pyjamas and at the convenience of your home all day, something has to give.Even in the low seasons, remind your clients that you are available Click To Tweet
That said, like in any business, consistency and good product/service will bring you the money. Personal financing will ensure that the money sticks with you. Happy freelancing #MotherlandMoguls!!