How to Start Freelancing or Consulting
Selling your skills, such as writing, design, development, bookkeeping or consulting, to clients on a project or retainer basis.
> Results vary. Many freelancers earn little or nothing at first, and no income is promised.
Who it suits
Self-starters who manage time well, communicate clearly and can handle finding their own work.
How people get started
Most freelancers start with skills they already use at work, land a first client from their network and build from referrals.
Step-by-step plan
- Define your service and ideal client.
- Check whether your field needs a license.
- Build a few portfolio samples.
- Set your rate from your own costs, taxes and unpaid time.
- Write a proposal and agreement template.
- Tell your network what you offer.
- Set up invoicing and bookkeeping.
- Plan estimated taxes (irs.gov/businesses/small-businesses-self-employed/estimated-taxes).
Skills to learn first
Setting a rate that covers taxes and unpaid time, writing proposals, retainers and tracking your hours.
- Rate setting
- Proposal writing
- Scope management
- Time tracking
- Self-employment taxes
Licensing pointers
Most freelance work doesn't need a special license, but some professions do. Check your state and local rules for your field.
Most freelance work needs no special license, but some fields do. See the IRS on self-employment tax and estimated taxes.
Rules vary by state, county and city. Confirm with your state board or agency before you start. This isn't legal advice.
Insurance to ask about
- Professional liability (errors and omissions)
- General liability if clients ask
- Computer and software for your field
- Invoicing tool
- Time tracker
Week-by-week getting-started plan
Week 1
- □Define service
- □License check
Week 2
- □Portfolio samples
- □Rate from your numbers
Week 3
- □Proposal and agreement
- □Bookkeeping setup
Week 4
- □Network outreach
- □First proposals
How people find their first customers
- Former employers and coworkers
- Your professional network
- Referrals
- Portfolio and profile sites
Common beginner mistakes
- Underpricing to win work
- No written scope
- Forgetting taxes
- Relying on one client
Quality red flags
- Scope creep
- Late payments
- Missed deadlines
Questions to ask yourself before you commit
- □Do I have a safety net for slow months?
- □Which clients do I want?
- □Can I sell my own work?
Questions to ask a licensing board
- Which license or registration do I need for exactly the work I plan to offer?
- What education, hours or exams are required, and in what order?
- What can I legally do while my application is pending?
Questions for an insurer
- Which coverages are required by law for my work in this state, and which are just recommended?
- What isn't covered by the policy you're quoting?
- Do I need different coverage when I hire my first employee or subcontractor?
Questions for a mentor
- What do you wish you'd known in your first year?
- What mistakes cost beginners the most time or customers?
- How did you find your first customers?
My worksheet
Use only your own numbers and research.
- My service: ________
- Ideal client: ________
- My rate inputs: ________
- Unpaid hours per week: ________
- Tax set-aside plan: ________
- Agreement template: ________
- First 10 contacts: ________
- Portfolio pieces: ________
My startup checklist
- □Structure chosen and business registered (and a DBA if needed)
- □EIN from irs.gov/ein
- □Business bank account open
- □Licenses and permits confirmed for my state and city
- □Insurance quotes in writing
- □Pricing built from my own numbers
- □Estimate and agreement templates ready
- □Bookkeeping and tax set-aside set up
Your next step
Back to the free starter guide
General education only. Not legal, tax, financial or licensing advice. Rules vary by state, county and city, so confirm with the official sources named here and a qualified professional. No income, earnings or business results are promised or implied. Published by Ryan Via, doing business as The Collective.
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