Starting your own business is risky in any economic climate, especially if you are a freelancer. Once you figure out what it is you have to offer, you need to come up with an execution plan. However, let’s learn what not to do beforehand. These top mistakes to avoid when starting a freelance business will help you move in the right direction.
Mixing Business With Pleasure
Often, new freelancers use their savings accounts as business accounts. This might be the biggest mistake to avoid when starting your freelance business. You can mix up your finances, and you’ll end up not being as organized as you should be. Create a small business bank account to help you keep track of your business expenses, budget, and taxes.
Not Setting Up a Payment Plan
As a new business owner, you’ll probably have multiple ways of accepting payments. Cash payments are always nice to receive, but card payments get more popular every day. Accepting credit card payments can be intimidating for all business owners, especially new ones. You need to pick the option that is best for you. Wireless credit card processing works to receive payments, and the setup is simple.
Lack of Communication
Don’t assume that everyone is on the same page regarding your goals. Make them clear with all your clients and ensure you understand what they want. Create a plan of action that is acceptable for both of you. Once that’s set, reconfirm and establish communication lines early to avoid confusion.
Overdue Payments
Of course, establishing a rapport with your clients is a plus, but you must remember this is a business first and foremost. Not following up on overdue payments will cause some serious financial issues. Your business will be over before it even starts. You don’t need to contact your clients like you’re their debt collector, but make it clear when payments are due in the beginning and send small reminders as the due date approaches. If your clients miss the due date, make sure you follow up personally.
Throwing in the Towel
Rome wasn’t built in a day, and neither will your business. You will fail as much as you succeed, but the trick is never to give up. The mistakes will start to pile up, but it’s never good to dwell on the negative. Look back at your failed attempts and learn from them. Most importantly, take note of all your successes. Write them down and place them somewhere for you to see every day. Constant motivation and positive reinforcement will give you more drive.
