how to start a freelance business: from idea to launch

Dig into our in-depth guide to learn how to start freelancing - from ideas and planning to incorporating and beyond!

The freedom to set your own schedule, choose your projects, and work from anywhere in the world has led many to pursue a career as a freelance professional. But let's be honest- learning how to start a freelance business is just the beginning.

Becoming a freelance business owner takes more than just wanting to be your own boss. It's like stepping into a whole new world, and you need to know how to navigate it for success.

That's where this guide comes in handy. Whether you're a writer, designer, coder, or consultant, the tips and tricks in this guide walk you through everything you need to know, from the moment you get that spark of an idea to the big launch of your very own freelance venture.

Assessing Skills and Interests

Before you dive headfirst into the freelance world, it's important to take stock of your skills and passions. Think of it as laying the foundation for your future success. Start by reflecting on what you excel at-your areas of expertise that set you apart.

Also, consider what truly drives you and ignites your enthusiasm. This blend of proficiency and passion shapes a thriving freelance career. Take the time to evaluate where your strengths lie and what activities bring you the most fulfillment. Think of it as a bit of self-discovery mixed with some good old-fashioned market research.

Choosing a Niche

When you're starting as a freelancer, picking your niche is a big deal because it'll be a significant factor in how you navigate business marketing to get clients. Think of your niche as your special corner of the freelance world where you'll focus your skills and offer your services. Choosing the right niche sets the stage for your success because it helps you stand out and become known for something specific.

Start by thinking about what you love doing and what you're good at. Maybe you're great at writing, designing, coding, or something else entirely. What gets you excited? What could you see yourself doing every day without getting bored?

Then, do some digging. Research various freelance niches to assess their demand, competition, and growth potential. Look for niches that align with your strengths and have a healthy industry market demand. You don't want to pick a niche where there's too much competition, but you also don't want one that nobody's interested in.

Aim to find a sweet spot: a niche that matches your skills and interests and has plenty of opportunities for work. It's all about finding that balance between what you're good at and what people need.

Market Research and Validation

Once you've chosen a niche, it's best to conduct thorough market research and validate your ideas. This means doing some research to understand your potential clients and competitors. Look into what people in your field are offering and what customers are looking for. You can do this by talking to potential clients directly or by using online tools to gather information.

Once you have a good idea of what people need and what's already out there, it's time to test your idea. This could mean offering a small version of your services to a few clients to see how they respond. The goal is to make sure there's a market for what you want to offer and to fine-tune your services based on what people actually want.

Building Your Brand

Building a strong brand is essential for any freelancer looking to stand out in a competitive marketplace. Beyond a logo or business name, your brand is the perception that clients have of you and your services.

Here are the foundational elements to put in place for your brand:

• Unique value proposition (UVP) or Unique selling proposition (USP)
• Logo
• Values
• Mission statement
• Colours, fonts, imagery
• Messaging

Avoid overthinking some of these elements, as this can slow down your progress. Focus on considering what specific skills, expertise, or experiences you bring to the table that make you an attractive choice for potential clients and then how you can communicate this effectively.

Setting up Business Infrastructure

Setting up your infrastructure is crucial for its long-term success and sustainability, when it comes to how to start a freelance business. Firstly, you need to decide on the legal structure that best suits your needs, for example a sole proprietorship or a limited liability company. Be aware that the different forms of business have their own pros and cons.  And certain legal structures may be better suited for remote businesses.

For example, you might opt to apply for e-Residency and start a company in Estonia to run your freelance operations. The vast majority of e-⁠residents, including freelancers and solopreneurs choose a private limited company structure, known as an OÜ in Estonia. It offers a credible way to gain access to the European Union single market, simplified taxation, and a transparent business environment. 

Once you've settled on a legal structure, get your financial systems in order. This means setting up a separate business bank account to keep your personal and business finances separate. You might also want to think about using accounting software or hiring an accountant to help you manage your books. Having clear financial practices from the start will make it easier to keep track of your income, expenses, and profits as your business grows. 

Creating a Portfolio

For freelance business owners, a solid portfolio is your chance to shine and show potential freelance clients what you're capable of. Start by gathering examples of your best work that highlight your skills and talents. Arrange them neatly in a portfolio format, either online or in person, ensuring it's easily accessible for viewing.

Make sure each piece tells a story about what you did, how you did it, and what the outcome was. Include any feedback or testimonials from happy clients to build trust.

Keep your portfolio up to date by adding new projects and removing older ones that might not be as relevant anymore. Consider removing older or less relevant pieces to keep your portfolio focused and showcase your most recent and impactful work.

Pricing Services

Determining how to price your services is an aspect that is challenging for freelance business owners. You want to make sure you're not selling yourself short but also not scaring away potential clients with sky-high prices. One way to figure this out is by considering different ways to charge, like by the hour, for specific projects, or on a monthly retainer basis.

Calculating your costs, including overhead expenses and desired profit margin, is essential in setting your prices effectively. Researching what others in your field are charging can give you a good idea of where to start.

While you might be tempted to lowball your prices to get clients, remember that you deserve fair pay for your hard work. Finding the right balance requires careful consideration and may involve experimentation and adjustment over time.

Finding Clients

Finally, it's time to start bringing in some revenue by finding the right freelance clients to work with. First and foremost, having a good lead generation system is a critical aspect of establishing and growing your freelance business. This is how you create a pipeline of potential clients.

But how exactly do you find clients?

Here are a few ideas to get started:

• Networking on professional social media platforms like LinkedIn
• Attending industry-specific events, conferences, and meetups
• Joining relevant online forums and communities
• Leveraging job boards and freelance platforms such as Upwork, Freelancer, and Fiverr
• Asking for referrals from satisfied clients or industry contacts
• Reaching out directly to potential clients via email or cold calling
• Collaborating with other freelancers or agencies on projects
• Creating valuable content (blogs, videos, podcasts)
• Building an online presence via social media advertising
• Joining local business networking groups or chambers of commerce
• Partnering with complementary businesses to offer bundled services or referrals
• Seeking out opportunities for guest speaking or presenting at industry events or webinars
• Adding your business to the e-⁠Residency Company List

It's important to remember that any tactic can work with the right business marketing strategy. Persistence, professionalism, and a proactive approach are key to securing new clients and building a sustainable client base for your freelance business.

Managing Client Relationships

Building strong client relationships is crucial for freelance success. Start by setting clear expectations for each project, outlining what you'll do and when. Keep communication open and honest throughout, updating clients regularly on progress and addressing any concerns promptly.

Embrace feedback as a chance to improve, and handle conflicts calmly and professionally. By exceeding expectations and providing top-notch service, you'll earn repeat business and referrals, laying the groundwork for a thriving freelance career.

Learn How to Start a Freelance Business to Get Started Today

Figuring out how to start a freelance business is an exciting journey filled with opportunities for personal and professional growth. Following the strategies outlined in this guide and staying committed to continuous learning and adaptation can position you for success in the competitive freelance landscape.

Remember, entrepreneurship is full of ups and downs, but with perseverance, dedication, and a solid infrastructure in place, you can overcome challenges and achieve your business goals.

To become an e-⁠resident, you can apply online. This involves submitting an application with your details, photo, and a copy of your identity document, and undergoing background checks. Upon approval, you can collect your digital ID card from any Estonian embassy. Once you have the card, you can register a company in Estonia and manage your business remotely from anywhere in the world.