Running a freelance business can be as challenging as it is rewarding.
However, you shouldn’t be under a constant barrage of stress and anxiety or forever worrying about where the next client will come from or when your outstanding invoices will be paid. That’s no fun!
Here are 3 areas to review to help reduce money stress, take back control and keep your freelance business profitable and rewarding.
1. Review clients and pricing model
A lot of freelancer anxiety stems from working with clients who, for whatever reason, are not the right fit. It could be a mismatch in freelancer/client expectations, skill sets and experience, or you simply don’t enjoy working with a particular client. All this can contribute to feelings of anxiety, so make sure you attract clients who are the right fit for you and who you love to work with and pay you accordingly.
It may be that your ideal client persona or niche has changed, so it pays to review it from time to time.
You can also consider reviewing your pricing model. It might not be what you charge that is an issue, but how you charge. For example, if you currently charge hourly, would a project rate better suit your business? If you are doing a lot of short-term jobs and are constantly on the lookout for work, look to attract projects of a longer duration or long-term clients that pay you on a retainer basis to help reduce your exposure to slow months.
These strategies can lessen some of the anxiety around cash flow and fear of the freelancer feast or famine scenario, where you experience periods of buoyant finances and lots of clients and then no work and no income during dry periods.
Firming up your client acquisition strategies, ensuring you are marketing to the right people, and making sure you consistently apply them to attract and work with great clients will help reduce stress in this key area.
2. Make good use of automation tools
Using automation tools to leverage your productivity can not only free up time but considerably reduce stress. Most repetitive processes can be automated, and nowadays, there are plenty of low-cost and free online tools on the market to choose from. These tools can save you time that could be better used elsewhere, for example, focused on making the most of your number one profitable skill. Automation tools range from writing tools to scheduling and, of course, to invoicing.
Invoicing software can help reduce the risk of your invoices not being paid on time. It can speed up the payment process and send automatic reminders before (or after) the invoice is due, saving you the cost and stress of getting paid late. A money worry you definitely don’t want to deal with if it can be avoided.
Invoice Ninja is a leading free invoicing software for small business invoicing, online payments, recurring invoices, tracking expenses and billable tasks. Try it for free here.
3. Diversify income sources
It’s probably best not to have all your eggs in one basket or rely on just one source of income because even with the best will in the world, nobody can predict the future.
For example, if you have just one client, you could find yourself with no income if the contract ends or something happens to the client’s business. Conversely, if you have too many clients, you need to be mindful of how much work you can realistically take on.
One way to help combat this over-reliance and help future-proof your business is to have several income-generating assets. These could be online courses, productized packages, paid email newsletters, affiliate and referral programs, consultancy, etc. You could even offer a subscription service to your services or products.
Knowing you have more than one source of income makes you less likely to take on unsuitable work just for the money, and when dealing with prospects, you’ll come across as more confident and in control.
One less thing to worry about!
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Naturally, when freelancing, it’s super important to be mindful of your work/life balance because this will have a significant impact on your performance and stress levels. This isn’t just about the hours you work but how you approach your day and manage your time.
For example, movement is essential not just for our physical health but also for our overall well-being, so make sure you are incorporating some form of movement into your day. You’ll be surprised at how much better even a short burst of exercise can make you feel. A quick walk in the fresh air to top up your vitamin D can boost mental clarity and even help solve problems you’ve been mulling over.
Likewise, getting proper rest and a good night’s sleep is vital to our general health. Poor sleep can result in tiredness throughout the working day, lower our mood and enthusiasm, and even result in poor decision-making.
All these strategies combined can help keep the financial worry and overwhelm sometimes associated with freelancing at bay.
