How to Transition from Full-Time Employee to Freelance Entrepreneur

Thinking about quitting your day job to work from home?

The transition from full-time employee to freelance entrepreneur requires the mastery of 5 distinct tasks: planning, marketing, cash flow management, client retention, and an effective pricing strategy.

But before you put in your two-week notice and wave goodbye to your old 9 to 5, here are 5 things every future freelance writer should know to successfully transition themselves from employee to freelance entrepreneur.

An aspiring freelancer should plan for success

A one-page business plan is the road map you’ll need to guide you during the employee to freelancer transition.

Include in your business plan the following components:

• Write down your freelance revenue goals by month and year.
• Make a list of all the potential clients in your city or town that you will target.
• List 5 methods of marketing your business online and offline (including social media optimization), without paying for advertising.
• Determine how much money you need. Multiply this number by 3.
• Create a revenue model built upon hourly and project fees to determine how many projects and consulting hours you will have to work to turn a profit.
• Include in your planning a solid method to retain your most loyal clients.

Consult an accountant or bookkeeper first before you raise funds for your new writing business

You will need to allocate a specific amount of funds to launch your freelance business.

Whether it $50 dollars or $5,000 dollars, hiring a professional to tell you the best ways to keep your money and keep track of your money is crucial.

Raising the funds is not difficult for a small consulting enterprise. How you spend the funds, and why is vitally important to the success of a new freelance business.

Learn how to sell yourself, network with other freelancers and promote yourself shamelessly

Before you take the plunge into the murky waters of freelance entrepreneurship, become a knowledgeable resource in your industry.

How do you build a strong reputation before the transition from employee to entrepreneur?

• Develop a solid reputation in your industry online and offline.
• Offer to write articles for trade journals and online industry blogs.
• Take on opportunities in your current job that require you to sell ideas and generate revenue.
• Barter and trade with other freelancers to help you outsource tasks beyond your areas of expertise.

Develop a minimum of 7 services to be sold individually as well as grouped in packages

Pricing your services is one of the most important tasks in the transition from employee to entrepreneur. Set your hourly rates to include ranges of rates for negotiation.

For example, use $25-$75 dollars an hour as a range instead of a flat fee of $75.

Create multiples package options for your new clients that bundle your services. Set firm revenue goals per month to determine how many packages or hourly services you need to sell, to reach profitability.

Don’t quit your day job until you have landed a minimum of 10 repeat customers or clients

Unless you have a dedicated client base that will sustain you during the transition from employee to freelance entrepreneur, don’t quit your day job

. Build your business slowly and after work hours so your happy clients will refer well-paying clients to when you open your freelance business.

You can successfully move from 9-to-5 land to freelanceville.

Hopefully, these words of wisdom will help you land with both feet firmly planted on the ground as you transition from full-time employee to freelance entrepreneur.