3 Freelance Writing Mistakes You Should Avoid

You’re ready to wave goodbye to the corporate rat race, and start your dream freelancing business. But you first need to learn from the costly freelancing mistakes of others.

Armed with the latest SBA’s statistics about small business failures, you dust off the winning business plan you wrote in college, ready to pursue your freelance entrepreneurial career.

With business cards and letterhead in hand, you scream at the top of your lungs, just like Leonardo DiCaprio’s Titanic character, “I’m the king or queen of the business world.”  Well, not yet.

Read my top 3 freelancing mistakes every freelance entrepreneur should avoid. Learn how to turn a profit faster while banishing any fear of failure out of your freelance writing business.

Freelancing Mistake # 1 – Charging too little

Nothing kills your freelancing career faster than under-pricing. When the NY Times reported in early July, that discount clothing store Steve and Barry’s was filing for bankruptcy, I wasn’t surprised. I suspect that the clothiers were victims of a faulty under-pricing strategy and rapid expansion.

How does this example relate to freelancing?

A freelance business owner must itemize every cost into their hourly rate or project fee adequately. In order to turn a profit, freelancers have to perfect the art of determining a fair price, without giving away their services for peanuts.

Freelancing Mistake #2: Choosing the wrong clients or business partners

Collaborating with the wrong people is a common freelancing mistake newbie entrepreneurs make. A freelance business is a serious enterprise, with the goal of making money with the least amount of people, in the shortest amount of time.

That’s why a freelance writer must hire the best, serve the best and collaborate with the best.

• Find the top freelancers in your city and see if you can find and partner with them. (For example, writers should partners with graphic designers. Graphic designers should partner with programmers and web gurus.)
• Seek out the best clients that have similar mission statements, values and goals.
• Patronize vendors who won’t gouge you on their prices and are interested in developing long term relationships with you.

Freelancing Mistake #3 – Not planning ahead for economic downturns

Following up with your clients, managing cash flow, delegating responsibilities and networking are all equally and vitally important to the long term growth of your freelance business.

I am fearful, however, of any freelancer not factoring the loss of business or the need to constantly innovate into their successful business equation.

Why? You won’t always be the hot new freelance writing professional on the block.

Everyday new business owners with better marketing, more connections and faster service are waiting to knock you off of your freelance perch.  In the event of a recession or an economic downturn, freelancers are often the first resources to feel the sting of a budget crunch.

So what’s a freelance writer to do to prepare for a recession? Or respond to a change in the marketplace?

• Plan for money shortages before you launch your business. Don’t overspend on depreciable items like new technology, furniture, fixtures, vehicles and equipment.
• Barter and trade with professionals to keep your cash flow high.
• Don’t decrease your advertising when you lose a client. Find low-cost methods offline and online to reach new customers and assure your current client base, that you’re still open for business.
• Innovate and respond to changes in the marketplace where demand for services and products are high, and budgets are plentiful.
• Don’t let your credit rating or loans go into default. Make arrangements with your creditors.
• Check in with your current clients, and assess any new services and products that may help them achieve their goals.

If you’re ready to take the plunge into freelancing, don’t wait until you’re knee deep into your dream to make costly errors.   Avoid these top freelancing mistakes and ride the entrepreneurial tidal wave to freelance writing riches, like a pro.

This entry was posted on Thursday, January 15th, 2009 at 5:37 pm and is filed under Freelance Writing Business. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.