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How to Transition from a Freelancer to a Small Business

Freelancing really can give you a ton of freedom. You get to work your own hours and you also get to choose where you work from as well. If your freelancing career is really rocketing however then you may want to consider starting your own small business. When you do this, you have the potential to make more money, work with bigger clients and even better your own business goals as well.


Be Prepared


Freelancing gives you the chance to develop some of the skills and attributes you need to run your own business. You will learn the power of self-motivation, business development and even how to handle your own tax. It is important however to know that running a business isn’t about being self-employed. It comes with a ton of extra responsibilities that will expand on the core services that you provide right now. You are also very likely to face steep learning curves, such as how to handle your own finances, how to hire people and sometimes, how to fire them. You will also have to manage your own brand and juggle responsibilities. This will help you to build up your client base and it will also help you to build your business for the future.




Research


As mentioned above, it is so important that you take into account the extra responsibilities you are going to have to take on when you start your own business. For this reason, you need to do your research before you start. You need to know what is happening in your particular industry and you also need to know what you need to do in order to stand out from other businesses as well. Talk with people who have done it before, and also find out if there is any advice they can offer you. Don’t forget that software can really help you to streamline the entire process as well, and by automating your business as much as possible, you can alleviate some of the responsibility you have.


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Stages


If you have got more work than you can possibly handle as a freelancer, the first thing that you need to do is try and hire a freelancer to support you. This will give you the chance to take a cut of the profit, usually 10-20%, and this will also free you up to handle even bigger projects. You can do this while also developing your process and plans so that you can get ready to take that next step. If you don’t drive then booking your learners driving test might be an option, as being able to drive will open up way more options for you in the future.


Co-Founders


A co-founder is really not required if you want to start your own business. There are however, benefits to having one. They can offer you complimentary skills and they can also help you to make big decisions. You have their moral support, and they can offer financial support if you should ever need it. You do however have to make sure that they are able to do the job and that you are happy for them to handle major aspects of your business.


Define your Offering


As a freelancer, you were probably a technical specialist in a few different key areas. If you are an expert copywriter for example, then you may want to offer a huge range of content services. You could even bring in designers, SEO specialists and more. This will help you to take your offerings to that next level and it will also help you to provide your clients with various package deals. This will help you to make more money and it will also help you to connect with more professionals.


Making your First Hire


If you don’t have employees then you will always be stuck freelancing. Hiring your first team member is an incredibly important milestone that you need to be aware of. Think about the skills you need, based on the business you have. You also need to think about the areas where your co-founder is weaker as well. This will really help you to make the most out of the company you have and it will also help you to go that extra mile where possible.


Your Model


As a freelancer, there is a high chance that you will be great at one activity. You will then be able to charge for the time it takes to deliver that activity. If you can however, you should really try and make your model adjustable. The more you grow, the more your business should grow, and the more money you should make as a result. If you do not give yourself chance to grow then this will really affect you in the future and it will also cause you to stall. When you run a business, this can have a huge impact on your overall success.


Legal Responsibilities


As an employer, you really do need to make sure that you are meeting all of the right legal responsibilities you have. If you don’t then you put yourself at risk of lawsuits and you may even find that you run into even more issues with your employees. They may also turn against you if you do not provide them with the right legal structure and this could be the downfall of your company. If you are just starting out then you really don’t need to hire a lawyer full-time. In fact, you could hire a freelance lawyer who can help you out if, and when you need it. This is a fantastic way for you to save money while also making sure that you are getting the support you need. They can also help you to fill out any paperwork and it can also help you to get started with your business as well. This won’t take long to do, but it could save you a ton of money in fees if you happen to get something wrong in terms of the forms you have to fill out.


Image Credit


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