Plutio - Starting a Business: 7 Important Things to Consider When Starting a Freelance Agency
Freelancing

7 Things to Consider When Starting a Freelance Agency

April 23, 2021

So, you want to start a freelance agency?

Becoming a freelance is one of the easiest ways to augment your income stream. As such, it can pave the way for you to start a business.

After all, you can start a business within the comforts of your home. This means that you do not have an overhead cost to think about, other than the tools you use, electricity, and internet connection.

Moreover, starting a freelance agency is an excellent way to upgrade your skills. This includes enriching the skills you already have and expanding them to client acquisition and project management. 

That said, we will discuss the six things that you need to consider when it comes to starting your own freelancing business:

1. Determine your goals

Without clearly defined, measurable goals, you could find it has a hard time deciding where you want to go. 

It also helps that you ask yourself the following questions:

  • Is freelancing just a way for you to earn extra income on the side?
  • Do you eventually want to transition as a full-time freelancer because you wanted to be your own boss? 
  • Do you see freelancing as merely a stepping stone into achieving an entirely different goal? 

No matter what your goal is, you have to have to make things clear. You also need to understand why you wanted to start a freelancing business in the first place. 

By identifying why you wanted to start a freelance agency, you can determine what steps you need to take. This also includes the milestones you should achieve and celebrate. 

2. Learn your finances

The entire idea of dropping everything to pursue your passion usually daydream material. 

Although it's a great idea, don't be carried away. You need to understand that personal finances play a crucial role here. 

Know your personal and business-related expenses and how these savings can sustain you in the long run. Take a good look at your freelancing business's current finances. 

According to Michelle Dipp, the co-founder and managing partner of Biospring Partners, "By understanding your agency's finances, you'll get a clearer idea of what you need to expect going forward. This includes knowing if you have sufficient funds to run your business or it's time to look for investors."

This gives you an insight into handling client problems should they arise. 

3. Have the necessary permits

You also need to apply for licenses and business permits both on the federal and state government levels. 

You might also need to obtain special licenses, depending on the industry you are working with. 

Usually, on a state level, all the licenses, permits, and fees that are owed depend on your location and what your primary business activities are. 

Know the requirements needed for every state or local level based on where you will do your business. 

4. Create buyer personas

Usually, a buyer persona is somewhat a semi-fictional representation of your ideal customers. This is generally based on market research or the data you have of your current customers. 

Meaning, this is the ideal customer that you'll be selling to. 

Start by doing general research about your target audience. Then, start to get to know your customers and prospects at a much deeper level. You might also consider reaching out to them for any interviews or surveys. 

Doing so lets you understand what kind of buyers they are and whether they are suitable for your freelancing business or not. 

5. Build a pricing strategy

When determining the pricing, consider how much you plan to charge your clients. 

Is it on an hourly basis, or will you be charging a flat fee? Will you have quotas for these projects? It would be best to settle how you can start to make money before actually setting clients for it. 

After you develop your pricing structure, you need to settle on how much these services will cost. Chances are, you'll find some pretty solid figures online. 

6. Establish an online presence

If you plan to launch a freelance business soon, you also need to get your website running. 

A potential client will usually connect with you through your website. 

Therefore, an intuitive and user-friendly website assures people that your business is legit. 

A well-structured site will also differentiate you from the rest of your competitors. So, utilize it to give your prospects an idea about your pricing and services. 

Similarly, you also need to ensure that you will be creating a solid social media presence online. 

Social media outreach is essential to every business, and freelancers are not an exception. 

7. Leverage business tools

If you want your freelance agency to run smoothly, consider using business tools.

Your business tools do not have to be fancy and expensive. However, it should provide you with convenience. Meaning, your business tools should help you streamline your processes, just like what Plutio does.

This app allows you to track your projects, create business proposals, send and pay invoices, and many more.

Regardless of the business tools you want to use for your freelance agency, what’s important is that you can keep it running without hassle. 

 

Starting and scaling a freelancing business sounds a lot of fun, but it does require a lot of work and effort. With the factors listed above, you now have a better grasp of starting your freelance agency. Thus, it is time to take the leap.

Good luck with your entrepreneurial adventure!

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