Every year more and more people are developing their freelance businesses. Freelancers have made a huge chunk of the economy, and their growing presence is proof that freelancing provides job security to the people and helps them sustain themselves, maybe even more than normal jobs.
However, a lot of freelancers don’t understand the steps involved in scaling their freelance businesses. They are often unable to extract gains that they would have generated if they learned the importance of building a financial runway for their business first.
Our article highlights some tips for freelancers to scale their freelancing business and build a financial runway in no time.
The Importance of Building a Financial Runway
With the loss of job security and the uncertainty of not being paid, freelancing is not an easy option for a lot of people. The key to owning a successful freelance business is being to build a financial runway with it as well. A financial runway is having adequate funds in your bank account so that you can take on freelancing projects without having to worry about the money you need to pay to outsource people.
Let’s try to understand the importance of a financial runway with the help of an example. Suppose you provide cleaning services to people, and you just got your hands on a big carpet cleaning project that would require you to hire more resources and buy more equipment.
Unless you don’t have a financial runway, it would not be possible to accept the project. This would hamper the growth of your freelance business and limit your development as a freelancer.
Tips to Scale up Your Freelance Business
Now that you have understood the importance of a financial runway for your freelance business let’s discuss some tips to help you scale your business.
1. A Software That Boosts Sales
Having good software can help boost your freelance business to new heights. Hiring new resources to scale your business is not always the answer to growing your business. You don’t have to hire staff if you feel you are not ready. Instead, you can invest in software that helps you automate procedures and boost performance.
There are many software that you can get for free. You may get software that helps fulfill your business goals and boosts sales. However, if you are looking for software to improve customer relations, then there are plenty that provides this service as well.
2. Developing Multiple Income Streams
As a freelancer, it is important to have more than one stream of income. This is something the COVID-19 pandemic has also taught us. Having one income stream is not enough. Regardless of how secure you feel every business has its good days and bad days. You can’t simply rely on one income stream. Moreover, as a freelancer find an income stream that is not consuming too much of your time. This is why it is useful to have a team of freelancers that you can rely on when there are more projects in line. This brings us to our next tip below.
3. Hiring a Reliable Team of Freelancers
It is not always possible for freelancers to hire full-time resources as they are unsure about the influx of projects. At the same time, it is also important for freelance business owners to have resources to help them with their projects. An easy solution is to hire freelancers. Hiring freelancers is not an extensive task, and they bring a great deal of talent to the company. Moreover, they are less demanding than the employees you hire full-time.
Working with freelancers is better if you are looking for resources to help you with short-term projects. They will work with you at their own pace and provide instant results as generally, they are paid right after they submit the tasks. This keeps freelancers motivated, and they readily produce results and fulfill deadlines.
4. Take Expert Advice When Needed
Big companies are built around multiple departments with hundreds of people working for them, with each having their expertise. Unfortunately, small business owners and freelance business owners don’t have expertise from different fields. An expert’s opinion can help you make your freelance business better and expand it more.
Moreover, advice that is specifically for your business is something that will naturally have a good impact on your business. You will feel more confident when making decisions and eventually be able to make decisions that are well-informed and calculated. Therefore, consider hiring a consultant or an expert who will help you make better business decisions.
5. Be Flexible but Goal-Oriented
Nowadays, trends are changing almost every day. The only way for a businessman to become successful is for him to be able to adapt to changes around him. There are several ways through which you can be more adaptable towards changing trends. One of these is to change your business plan frequently. Having an iterative approach to your business model can prove to be beneficial for your business.
As the outside world is evolving, your business should also evolve with it. List down your business goals and list down all the internal and external factors that will help you achieve those goals. Being too flexible is also not a good thing; it is important to be focused at the same time to have a more balanced approach.
There is nothing sweeter than the returns from your own business. Even if you get promoted to the highest position at someone else’s company, the feeling is not the same as seeing your own business grow. Leaving your full-time job and moving towards an unstable stream of income may seem like an unwise choice, but as you learn to scale your freelance business, you will be happy about your decision to leave your full-time job. No matter how tight things get, always have some cash in your account; that is the only way you will ever be able to make progress. Moreover, follow the tips above to improve the health of your business in no time. Good luck!
Arslan Hassan is an electrical engineer with a passion for writing, designing, and anything tech-related. His educational background in the technical field has given him the edge to write on many topics. He occasionally writes blog articles for Dynamologic Solutions.