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How to Turn Your Epic Freelancing Job Into a Business


Introduction


If you're a freelancer, you may be itching to make the leap and start your own business. But with so many things to consider, it's essential to take the time to make sure that going solo is right for you—and your wallet. Here's what I recommend:


This is how to Your Epic Freelancing Job Into a Business


Do your homework.


Before you start your business, do some research. If this is a brand-new venture and you don't know what you're doing, take time to learn about the market and the competition. This will help you determine what price to charge for your services, which also helps determine how much profit can be made from them.


Researching will also give you valuable information about licensing requirements and taxes related to your particular line of work.


Such as whether or not a license is required for someone (like yourself) who does not have formal training or certification may still legally offer their services if they follow specific guidelines (such as only performing certain procedures under particular conditions).


Make a business plan.

business plan

When you're just starting out, it can be hard to know when you should start thinking about turning your freelance job into a business. You can use this checklist as a guide to determine whether or not it's time:

  • Does your current client base consist of more than one client? You may consider turning your freelancing job into a full-time business. Having multiple sources of income from different clients will make it easier for you to survive during slow months or bad weather days when work is scarce—if one client goes away, others will still pay for your services.

  • Are you growing at the rate that makes sense for someone in their field? If this question doesn't really apply to what type of work you do (for example, if your area of expertise isn't subject to rapid expansion), then don't worry about it too much—just focus on keeping up with demand and maintaining good relationships with existing clients so they'll keep coming back again and again!


Learn to manage your money.

Learn to manage your money.

Once you've decided to take the leap into business, it's time to start managing your money.

Here's a simple breakdown of what I do:

  • Create a budget and stick to it. This means setting aside money for taxes, savings, retirement, vacation funds, etc. It might be easier if you spread these funds into smaller accounts so that spending is easier to track and monitor when necessary (e.g., don't put all of your savings into one account).

  • Invest in yourself by researching ways that will help you grow your business.

For example: reading books about freelancing or marketing yourself online; buying professional-quality equipment like cameras or microphones, or even going back to school may be worthwhile if it helps get your name out there as an expert in whatever field/industry you want to specialize in as a freelancer (and for those who just want some sort of change from their current situation).


People often think of marketing as an activity for a large company or product, but that's not always the case. As a freelancer, you should be thinking about how to market yourself — and your services — on an ongoing basis.


An effective marketing plan is one of the most essential pieces of any business. If you take action now to start building your brand and reputation in the marketplace, it will pay off over time! Having a business plan, signs, and an address for your business is also essential. A dedicated phone number can be helpful, too, so clients will have a way of contacting you if they need anything.


And finally, having a website is essential in today's world—people expect businesses to have freelanced as a great way to do what they love, but it's not always easy. While there are plenty of upsides to being self-employed, such as flexibility and independence, there are also some downsides.


For example, you'll have more taxes to pay than a typical employee because you don't have an employer withholding them. One of the freelancers' biggest obstacles is staying on top of their finances. But if you really want to get ahead in this business, you need to learn how effectively manage your money.


Get ready for the tax, man.

Get ready for the tax, man.

As a freelancer, you're responsible for paying your own taxes. But don't worry—the process isn't as hard as it sounds. To ensure you don't get behind on your payments, set aside some extra money each month to cover the estimated taxes due at the end of the year.

If you're not sure how much to set aside, use this formula:


Estimated Tax Due = Self-Employment Income – (Standard Deduction + Exemptions)

To find out what these numbers are for your situation, visit IRS.gov and enter "Schedule S.E." into its search box. The resulting screen will show how much self-employment income must be paid each quarter (i.e., April 15th through June 15th).


Have your paperwork in order.


As a freelancer, you may not have the same paperwork as a business. You can use your personal email address to send invoices and accept payments from clients. But once you decide it's time to make the leap into running your own freelance business, many steps need to be taken for the transition to occur smoothly.


In general, you'll want to make sure that all of the following items are in order:

  • Business License

  • Business bank account (can be at an existing personal account)

  • Insurance policy (if applicable)

  • Tax return/tax ID number

  • Tax deductions (can be complicated)


Work on marketing.

Work on marketing.

One of the most important things you can do is develop a marketing plan, which will give you a roadmap for how to grow your business.


You'll need to decide on a budget (and stick with it) and determine how much time and energy you want to put into marketing activities.


Marketing isn't just advertising — it's all the activities that help customers find and learn about your products or services. It's not something that happens once; it should be continuous and long-term because that builds brand awareness, customer loyalty, sales growth, and profits over time.


There is no correct answer for everyone. Each person has different needs, values, and preferences. Before setting up your business, think carefully about what those are so you can decide which options make the most sense based on your situation.


If freelancing, consider all aspects of running a business before deciding whether to transition to one.


If freelancing, consider all aspects of running a business before deciding whether to transition to one.


Many things need to be considered when making this decision. For example, suppose you become a business owner. It's not just about the money: it's also about the type of work you do, how much time you want to spend on business activities, and what kind of risk level is acceptable for you.


In that case, there are more tax responsibilities—including reporting your income and expenses annually—and keeping your records up-to-date throughout the year. In addition, as an independent contractor who is responsible for his or her own taxes (unless he or she has opted into payroll), it's essential not only that all employees pay their fair share but that they understand how taxes impact them personally so they can make informed financial decisions throughout their careers to achieve their goals and objectives now and in the future.


Conclusion


Suppose you're freelancing and are considering the transition to a business. It may seem overwhelming initially, but there's no time like the present to make your dreams happen! In that case, we hope this article has helped you better understand what it means to operate as a company.

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