The business market has seen a great shift in the last few years, particularly in how services are requested, marketed, and fulfilled. The gig economy is a major example of that. It refers to a market where individuals offer their services for short-term jobs (or “gigs”) as independent contractors rather than being full-time employees. Thanks to its flexibility, the gig economy has also offered freelancers a great opportunity to start and set up their businesses.
1. Pick a niche or an area of work
The first step to starting a successful freelance business in the gig economy is basic but most important – picking the right area of work. One of the biggest benefits of the gig economy is that it has allowed individuals to pursue their passion and pick up jobs they are interested in. So, freelancers can choose their niche of work based on their skill set, expertise, and interests. Those who are unsure can also go through some of the most popular gig economy business ideas in recent times. These include delivery services, personal assistant services, content writing, web development and designing, graphic and logo designing, online selling, and tutorial services.
2. Research the market for rates
Whether starting a gig economy side hustle or setting up a freelance business, one needs to know about the market rates of their services. Without adequate knowledge, one might set a price range that is either too high or too low, either of which would not work in one’s favor. A great way to find the market price range of a particular service is to check out the gigs listed on online portals. Websites such as Fiverr, Upwork, and Freelancer will help one scroll through the listings and profiles of freelancers to get an idea of the average rates for their industry. Apart from this, one can also consider networking with professionals from the same field—via social media or networking events—to get insights into the current market prices.
3. Build a portfolio
For an independent freelancer, their portfolio is their strongest tool. It showcases their skills and expertise through reports and records of their past work. A strong portfolio will help freelancers easily secure gigs from potential clients by clearly displaying their level of experience and capabilities. Freelancers setting up a new business in the gig economy can consider picking up a few small gigs first to create an impactful portfolio for their business. For convenience, individuals can also use online platforms, such as Shorthand, Behance, and Wix, to create an online portfolio.
4. Evaluate the target market
Before one proceeds to market their freelance business or gig to attract clients, it is important to understand their target market, which means figuring out who their potential clients would be and what their needs would be. For instance, if one is planning to start a freelance business as a content writer, one would need to understand what kind of content clients usually request. It could be marketing content for blogs, brochures, video scripts, or ghost-written magazine articles. Scrolling through online listings from clients will help one evaluate the kind of services that are most requested in a particular industry. This is a simple tip for entrepreneurs in the gig economy that will help them efficiently set up their businesses.
5. Market the business
To succeed in the gig economy, freelancers must market themselves and their businesses. A portfolio will do the job of marketing the freelancer, but one would have to take some proactive steps to promote the business. Social media is one of the easiest and most effective ways to market a business. One can use it to spread the word about their new venture and connect with potential clients. Word of mouth is also an effective and affordable marketing strategy. One can talk to friends and family to share their contact details with anyone who might need their services.
6. Use online platforms to find the first client
The building of a business in the gig economy starts with taking small steps. In this case, it would be finding the very first client. This is another aspect where online platforms such as Fiverr and Upwork can be beneficial. These platforms allow gig workers and freelancers to connect with clients and discuss their needs and rates directly. With a strong portfolio and well-written bio, individuals will be able to attract their first client successfully.
7. Manage expenses and earnings
Regardless of how big or small the business is, it will always have some expenses – mainly to create the deliverables or gather raw materials. The same goes for freelance businesses in the gig economy. Individuals will need to calculate their spending, be it for setting up the workspace, having internet access, or gathering raw materials. Having a separate business account will help freelancers manage both their spending budget and their earnings. A business account will help them keep finances organized and track cash flow. Along with that, one will also need to have proper invoices and receipts to manage tax payments.
8. Register the business
It is crucial to register a business even if it is a freelance startup. This will help individuals protect their assets and have the right certifications and permissions for setting up a business. Usually, for freelancers, registering the business as a Limited Liability Company (LLC) can be beneficial. This is because LLC helps protect personal assets from business debts and liabilities, thus reducing financial risk.