What to invest in as you develop your freelance business

You may not be climbing a corporate ladder anymore, but there’s still room for growth within freelancing.

Raising your rates, finding more high-level clients, becoming a recognized expert in your industry — all highly possible situations that could help you move into the next tier of freelancing. At every stage of your business, you’ll find that your goals change and, with them, your needs. This begs the questions: what do I need to get started as a freelancer and what should I invest in as my business grows? If you’re not sure, or just want a nudge in the right direction, this guide can help.

What to invest in when you’re just getting started

One of the first things you’ll learn as a new freelancer is that, despite what some say, you still have overhead costs and monthly expenses. As is true for any business, investing in the right tools can help set you apart from those who want to be freelancers and those who are freelancers.

A quality website

Behind every great freelancer is a great website. You don’t need anything fancy but a well-designed website that clearly outlines who you are, what you do, and why someone should hire you is a must. This is especially true for web developers, graphic designers, and anyone else who works in a visual medium. If you don’t have a stunning website, your potential clients won’t believe that you have what it takes.

Professional headshots

Your Facebook profile selfie is cute and all, but does it really scream, “I’m a pro!”? Not likely. Find a local photographer and set yourself up for success with headshots that make you look like the expert you are.

Business cards

Having a business card ready when you unexpectedly meet a potential client could very well land you the job. Not having one could make you look like a total newbie which, even if you are, is not the impression you want to give.

A new computer

Every freelancer needs a new computer. Apple, Google, whatever. Just get yourself a computer that runs quickly and has the right amount of storage. It’s a worthwhile investment and can make all the difference when you start to get client work flooding in.

Essential software

If you’re a graphic designer, you probably need Adobe Creative Suite. If you’re a writer, you may want to invest in a tool like Grammarly. Figure out which software you need to get the job done well and go ahead and buy it. In addition to trade specific software, you’ll want to get accounting software and a customer relationship management (CRM) tool, at a minimum.

Health insurance

Not only does having health insurance mean you’re covered if you get sick or injured, it also helps you avoid unnecessary fees from the IRS. Win win. You can use Stride Health to find a health plan that works for you.

What to invest in after a few years of freelancing

At this point in your business, you may be thinking about how you can expand your services, get higher paying clients, and see the light of day every once in awhile. Here’s where you should consider investing money back into your business:

Continuing education

As a freelancer, your skills are your secret weapon. Keep them fresh by signing up for workshops, classes, or other events that will help you perfect your craft and continue to grow.

Conferences

Industry-specific conferences and summits are a gold mine for finding new clients, especially once you’ve been freelancing for awhile. Go prepared with business cards, a smile, and some confidence.

A co-working space

When you first start freelancing, it’s tempting to shell out a few hundred dollars a month for the luxury of having a co-working space. But it might be best to hold off until you’re bringing in the income to justify it. Having a dedicated desk can run you around $400 a month, while sharing a common workspace can be upward of $200, depending on the co-working space. Wait until you’re not strapped for cash before you invest in this.

An accountant

Accounting software is absolutely necessary but, once your business finances become more complex, it might be time to consider hiring out your accounting to an expert. This can get pricey, depending on whether you go with an accounting firm or a licensed individual, but if it saves you the headache of making a mistake on your taxes it’s well worth the expense.

While you’re weighing your options on the above, it might also be time to refresh all the things you got as a new freelancer — headshots, website, business cards, and computers all go out of date eventually.

What to invest in as a veteran freelancer

You’re in deep now and, hopefully, loving every minute of the freelance lifestyle. As your business has grown, you’ve likely been faced with this wonderful dilemma: having more work than you can handle on your own. Many freelancers get to this stage and resist outsourcing but, if you want to keep growing, it’s something to look into. Here are a few ways you can outsource work and life tasks:

Hire people to work under you

When you hire people to help with your workload, it’s important to make sure they are capable of producing the quality of work that your clients expect from you. Essentially, you’re acting as a small agency, where the client pays you and you pay the people under you. If done right, this can free up your time to work on projects that excite you, without leaving money from less thrilling work on the table. Be sure to dial your accountant in on this one — there are certain tax laws for paying independent contractors.

A virtual assistant

Making the time to do administrative tasks when you’re busy can be a challenge. This is where hiring a virtual assistant can save you a ton of time and money. You can have them update your social media, publish blog posts, send invoices, among other things. The value here is that you’ll be paying your VA far less than your hourly rate (but still a fair, livable wage), so that extra time you have is freed up to take on more client work or go on vacation.

A housekeeper

Before you dismiss this idea, think about it: say you calculate your hourly rate at $80. It costs $15 an hour to hire a housekeeper. You could hire a housekeeper for 4 hours a week and still pay less than what 1 hour of your time is worth. You can apply this to any service that could make your life easier: grocery delivery, yard work, a limo driver (kidding!). If their hourly rate is lower than your hourly rate, it could be a life-changing move.

There is no one size fits all when it comes to investing in your freelance business. What works for someone else may not for you. It’s all about gauging where you’re at, what your goals are, and which investments will help you achieve them.

How are you investing in your business? Let us know in the comments below.