Daryl Close, an entrepreneurial and small business coach, discusses what freelancers need to do in order to thrive and develop their businesses in today’s economic climate. He also believes that the old business revenue models used by freelancers is dead and that a new set of competencies will be needed for them to effectively compete against the increasing number of small businesses competing in the traditional freelance space. Embracing this change will allow the freelancer to take their business to the next level.
The freelance environment is changing and requiring a lot more of freelancers then ever before. Competition is increasing, clients are becoming more demanding and it’s imperative that you can differentiate yourself from the rest of the market. Some of the following principles will help you make that change successfully:
To survive in today’s environment the first thing freelancers need to do is to think of their freelancing practice as a business. Let me be clear – there is no real difference between being a freelancer and a small business owner. There are some administrative differences but if you are running your practice as a limited company, as you should, then there is no difference.
You must also become the complete professional – both in person and online. This means focusing on your area of expertise only and obtaining professional advice in all other areas. All other tasks, such as accounting, IT, sales and business consulting advice, personal development must be outsourced. This will maximize your earnings potential. Take me for example; I receive marketing and IT advice on a regular basis and outsource all of my accounting obligations. Why? Because it is of more value to let someone else undertake those tasks. If you don’t have a business model that allows you to identify what tasks add value to your business and which ones you need to outsource please feel free to send me an email at daryl@dynamiclifecreations.com or twitter @daryljasonclose. More than happy to give you some tips.
A business should do a number of things on a regular basis. Firstly, know why you are in business. Secondly identify the skills and competencies required to make the business work. Lastly, put an action plan in place to develop the identified skills so the business can develop. Freelancers must also do the same otherwise you will not be able to compete with the competition or provide a service that is at the standard required by your potential customers.
This could be and will be a forthcoming article in it’s own right. No matter how boring this topic is for some of you it is crucial to understand how you make money as it impacts all areas of your professional and personal life. When it comes to business revenue models I believe the traditional freelance model of Time and Materials is dead for those freelancers who want to expand and grow their practices. There is too much competition and the level of skill in the market is so high (not even including competition from India) that you will struggle to grow in any meaningful way for the effort required. You need to become innovative and learn to sell your knowledge by a means other than the time spent. Spend some time thinking about this and I will address in more detail in an upcoming article.
Image by United blue ~ cc
