How to Create a Freelance Business Plan

If you want to start your own freelance business, it’s quite tempting to just jump in and get to work. After all, do you really have much time to waste? But actually, taking a step back and drawing up a business plan first can help you create a more successful, sustainable business.

Why do you need a business plan?

When you create a business plan, you force yourself to think through a lot more of your actions. You are able to find potential issues and have a better chance of having a successful plan of attack. For instance, you might realize that you could streamline your services in order to better appeal to your ideal client.

Do I have to create a formal business plan?

The thought of developing a formal business plan can be daunting. You’re probably used to business plans that are tens of pages long and written in formal business jargon. It doesn’t have to be that way when you start. In most cases, you can create a more informal plan.

The main purpose of a freelancer’s business plan isn’t to impress million-dollar sponsors; it’s to think through everything and know what you need to do to be successful.

Note: If you intend on applying for loans or other support, you may need a more formal business plan.

I recommend creating an informal business plan by asking yourself a few questions. Let’s walk through the main ones to think about below.

What kind of services will you offer?

You probably already have an idea of what services you want to offer: writing, graphic design, editing, et cetera. However, flesh it out a little bit.
For example, let’s say you want to start a proofreading business. You could also offer copyediting as well.

Make a list of other services and what they might entail. This can help you realize what works with your business.

Who will your ideal clients be?

You want to attract as many potential clients as possible, right? Yes, for the most part. You do obviously want a lot of customers because that will earn you more money. However, this mindset can actually make it harder to attract any clients.

Instead of saying you want anyone who will hire you to be your client, find out who your ideal client will be. If you offer proofreading services, but your ideal clients may be non-fiction writers. Depending on your interest and experience, it may not be fiction writers. Having an ideal client or a niche can allow you to build authority in your field.

If you enjoy writing about personal finance, you can “niche down” to be a personal finance writer. This will allow you to build authority and credibility in that industry. Over time, people will want to come to you to have their personal finance content written. In addition, it makes attracting your ideal clients easier, as we’ll discuss shortly.

How will you attract your clients?

Knowing who your ideal clients are will make marketing a lot easier. Then, you want to think about how you can market yourself and show that you can help them.

What makes you special in a way your clients will appreciate? For our personal finance writer, do you have any related experience or skills? Asking yourself these kinds of questions will allow you to figure out how you can set yourself apart. You want to be able to highlight this specialness later on.

Next, you need to figure out the specific steps you’ll take to attract your clients.

• Will you create a website? (Almost definitely.)
• What will you include on your website? (Be sure to include your special skills and experience here.)
• Will you engage in social media? How?
• Will you cold-email/call?

All of these are questions that you need to ask yourself. The exact ways that you will market your business will depend on your services and your own preferences. It will also depend on your target clients. Do a little bit of research to see what are the best practices in your field. Those are the marketing steps you should probably start with.

What training, tools, and other resources do you need?

You might already have some experience in your new field. If so, great. Leverage that as much as possible.

However, it may be beneficial to look into additional training and education. You can enroll in official courses that offer certificates to list on your website. Another cost-effective option is to find free courses and books. Your library is a great resource for this. Another option is to look at edX.org and similar websites for free courses. These may or may not give you proof for marketing purposes. However, they still offer valuable skills that will make your job easier. This is a great starting point until you are bringing in an income.

There may also be certain tools that will make running your business easier. Most of these will depend on what services you are offering.

For example, if you are a graphic designer, you may need software such as Adobe InDesign.

Some tools may be a bit of an investment. Figure out what you need and make a plan of how you will access these.

There are also other tools that may be helpful without costing you money. For example, I use free versions of tools such as Buffer, Trello, and Canva. They make the actual running of my business a bit easier.

What is your financial situation?

If you plan on freelancing, chances are you’re bootstrapping your operations by yourself. You need to have a clear idea of what your financial situation is.

• How much will your initial investment cost?
• How soon do you estimate you can earn that back?
• What are your income projections over the next few months to a year?
• How will your income change from month to month? Is it seasonal?
• What will you do in lower-income months?

Since freelancing relies on you bringing in revenue and clients, you should also take a look at your personal financial situation. Take this time to create a budget and save as much money as you can. Freelancing can often be feast or famine. You need to be able to deal with this type of situation.

Creating a business plan as a freelancer may seem unnecessary. However, forcing yourself to think of all the variables will allow you to be more successful earlier. Later on, you’ll have a resource to see exactly what you need to do.

So, take some time and start writing your business plan.

Photo by Brooke Cagle on Unsplash