How to become a freelancer

The way we work is rapidly evolving. The 9-5 is no longer the only way, and people are taking their careers into their own hands by going freelance. In fact, it’s estimated that 50% of the workforce will be freelance by 2026.

A secure job with opportunities for growth was a great draw in days gone by, but 21st-century careers are expected to fulfil a wider range of needs connected to impact, autonomy and wellbeing. In short, more people want more balance, they want creative control, and they want to know that what they’re doing matters in the world.

Taking the leap from structured work to self-employment can be challenging, but this article is designed to help you determine your starting point and keep you on track. 

Pros and cons of freelancing

The upside of going freelance is the freedom and autonomy it can bring. Freelancing can mean more flexible hours, choosing how many days per week you work, and being able to work from anywhere.

However, it can also be stressful and takes more hustle than being an employee. In addition, there’s no one there to hold you accountable and keep you motivated. Therefore, understanding how you like to work and what matters to you is crucial before you step out of stable employment. 

How to start freelancing with no experience 

To get started, ask yourself these two simple questions: What do you want your freelance life to look like? What skills or expertise can you offer? 

Getting clear on your ‘why’ will help you see what matters to you in your freelance career. Start by asking yourself:

• What is making you happy/unhappy right now? 
• Why do you want to go freelance? 
• What does your current definition of success look like?

Take time to also think about your needs. These could be financial, mental, intellectual and environmental needs. How are they currently being met, and how these might change if you go freelance. You can make a copy of our free Needs Calculator Tool to help you work through these. 

Recognising what you want out of freelancing is useful as you’ll be going into a working style with less stability than a regular job. Once you have a clear idea of these answers and still want to move forward, you can use them to inform and develop your personal brand. 

How to be a successful freelancer

Finding your niche is important as a freelancer. This means establishing definite, quantifiable skills you can put a price on. Getting clear about what you want to do and offer as a freelancer is crucial.

To figure out what your offer is, start by listing your existing skills, knowledge and experience. What challenges have you overcome? What parts of your work history have really excited you? Perhaps there is a unique blend of skills that you can combine to help you to stand out?

Understanding your market is also important. Consider how valuable your skills are to the clients you’re targeting. What do they want, and what are their worries or skill gaps? What kind of competition is there; how can you make sure you stand out? 

Use your needs calculator as a guide to help you balance your skills against your needs and priorities. You can then set limitations around what you can and are willing to do for money. This will help identify your values and keep you focused on what matters to you most. They’re also key if you want to tailor your brand.

How to become a freelancer online: nurture your personal brand 

Most people don’t realise they have a personal brand. The good news is that you can adapt your narrative in your favour to show clients why they should work with you over anyone else. You can apply these guidelines to every digital marketing channel or platform representing you, including your CV, LinkedIn and website. 

Consider the three C’s when it comes to your brand:

1. Consistency: Making sure your profiles are cohesive with each other
2. Creativity: Making sure you stand out.
3. Credibility: Showcasing your experience, skills and networks. 

Think about what you need to showcase your skills so that potential clients can see what you offer. For example, a personal website and your LinkedIn profile are great ways to attract clients before you make the leap to freelance life.

For more help with understanding your personal brand, check out our online course.

Preparing your escape

We’d advise thinking about the following before leaving your job:

• Getting the essentials in order: consolidate your finances, networks, plans.
• Building relevant skills: what’s missing in your skillset? 
• Find a routine: designing a new working pattern for yourself.

How to start freelancing with no experience

1. Look to your existing network for new leads. Reaching out to people you know and have a professional relationship with to let them know you’re going freelance is a great idea. Even if they don’t need you right now, they may well know someone who does, and they can recommend you.
2. Level up your skillset. Why not take your expertise a step further? Investing in an evening class or a course will be worth it if it means you can charge more for your high-quality work. 
3. Switch up your routine. Looking at what’s working and not working in your existing routine can help fuel the habits you would like to bring into freelance life with you.
4. Future-proof your finances. It’s perfectly normal for new freelancers to worry about money. Irregular income can be difficult to manage when you’re not used to it. So it’s recommended that people save a buffer of at least £3,000 before they quit their jobs to keep the pressure off (though you may need less – or more). Practising living on a reduced budget to reflect the salary you think you’ll start with can help lessen any blow that comes your way, but can also pave the way for some nice surprises financially when (not if!) you have a good month. 

Remember: you’re making a radical change to your life. So prepare now, making sure all your tools and resources are as sharp as they can be, and you’ll transition to freelance life more effortlessly – ready to hook your first clients.

How to find clients as a freelancer

You’ll be surprised where you can find and create connections. You just need to put yourself out there and make yourself visible. If you don’t market your services, nobody is going to know they exist. 

Invest some time into presenting yourself within online platforms such as LinkedIn, utilising your existing contacts, and engaging with the local community. Not many guides would advocate a trip to the pub, but consider this a solid networking endorsement.

Getting a few freelance jobs under your belt before your move will help stabilise your position while you adjust to a change of pace. Reach out to old employers, set up on freelance sites such as Upwork and Fiverr, and join Facebook communities or LinkedIn discussions. Then you can get a better idea of your financial starting point and take it from there.

Reach out to local coworking spaces, attend meetups both in-person and online, and share your story with people you meet. Identify companies in your locale which you think you can help, reach out and set up some conversations. Be prepared with branded business cards so that they can find you easily online. 

An authentic freelance life is about sharing what you can do and being confident in your abilities and value. There's an abundance of opportunities for the brave. It takes practice, but you can do it!

Managing clients as a freelancer

Balancing clients can be tricky. Think of clients as an investment portfolio. You’ll want a combination of:

1. Long-term clients for the core of your portfolio. Set clear boundaries so that you have space and time for your other projects.
2. Profitable opportunities. You may have to adjust your pricing to compete for these, but they can offer a great career stabiliser if you can secure them. 
3. One-shots/long shots. Using freelance hiring platforms such as Upwork, People per Hour and Fiverr should only account for a small portion of your portfolio as they're more volatile. 

Managing finances as a freelancer

One of the greatest concerns around transitioning from full-time work to freelancing is finance. How can you guarantee a certain salary each month when you don’t know where the money’s coming from? This is what your client portfolio is for – but building this is only half the battle. 

As a new freelancer, you should mark your journey by first setting up self-employed or limited company status with HMRC, opening a business account (Starling, Monzo, and Coconut are great for tracking business expenses, which will help you with tax returns later on) and completing an audit of your accounts. What are you earning/spending? Do you have a buffer? How long will that last? Then, try setting achievable goals and actioning them by spending less and saving more. 

For more information about managing your finances as a freelancer, check out our Going Freelance webinar. 

The next step is planning what your basic business model looks like – how you’re actually going to get this money to come in.

How to decide pricing as a freelancer

As a salaried professional, it’s likely you didn’t put much thought into what a single day’s task was worth. You simply show up for your allotted hours, complete the day’s tasks, and get a nice little packet at the end of the month. However, with client work, every task or hour spent on that project is billable, and you have to work out how to put a price on it. 

Finance is incredibly personal, and a rule that works for one may not work for somebody else. There are several ways you could decide your price:

• Cost-based: cover ALL costs plus a markup percentage. 
• Market-based: use competitor prices/community/organisations as a benchmark.
• Values-based: how much it's worth to the client.

Then work out your fee. Would hourly or day rates work? What about a per-project fee or unit/quantity pricing?

If you’re unsure of your basic hourly rate, it should equate to the total of your last annual salary, plus your expenses and annual profit, divided by your billable work hours for the year.

If this is a larger number than you’re used to working with, remember you’re not getting holiday or sick pay included, which the pay increase should accommodate. 

It could be that different methods work for different clients, so don’t be afraid to switch it up – but always be transparent.

Most freelancers start with just one stream of income. But it’s worth remembering that having a single stream of income leaves you vulnerable as a freelancer. Freelance life is full of fluctuations – whether seasonal or determined by changes in the economy – and it’s wise to look into multiple sources of income to safeguard yourself.

If you'd like to learn more about how to become a freelancer, check out our latest events. We often run freelance workshops and other relevant webinars to make the transition easier for you.