9 Essentials for a Successful Freelance Writing Business
Welcome back to the 6-week series where I teach you how to become a freelance writer from scratch – step-by-step. Did I underestimate how many newsletters this would take? Yes! Are we learning together? Clearly, also yes. 😅
Okay, so how do you get from your business foundations to actually get clients and run a business long-term?
Well, we’ll talk about getting clients next week. But before we do, we need to set up your business systems. That way, once you do get clients, you’re 100% ready to work with them!
There’s going to be stuff in here you’ve worried about, some stuff you never even knew existed, and even more stuff that’s annoying but necessary.
(P.S. some of these items – like taxes – are specific to U.S. based freelancers…)
Buckle up! We’re going to ⚡️ lightning ⚡️ round through this…
Freelance Friday
We’re just gonna dive right in here…
Set Up These Key Components
Before you can take on clients, you absolutely must have these essentials set up. If you don’t, you won’t be able to accept payments or protect your business.
Business Bank Account
As a business owner, you need a way to keep your business finances separate from your personal finances. This is where a business bank account comes in.
I recommend using Relay. This isn’t sponsored, I just like and use them! They offer invoicing, bookkeeping, automation, and multiple checking accounts for free all in one online platform.
You can, alternatively, use your local credit union, local bank, or a big bank instead!
EIN
I recommend you get an EIN, basically a social security number for your business, for free from the IRS if you want to. If nothing else, an EIN protects you from identity theft. Having an EIN also allows you the opportunity to file for bankruptcy if you need to down the line.
It takes just five minutes through the IRS website, and it’s free!
Contracts
Full disclaimer upfront here, I am not a lawyer. None of this constitutes legal advice. This is simply how I handle contracts in my own freelance writing business. If you need legal advice, speak to a licensed attorney.
This curriculum is only designed for those doing business in the United States. While similar principles may apply in other jurisdictions, please consult a local legal professional if you have any specific legal questions.
You can find contract templates through:
Paid Templates:
Free Templates:
Bonsai (also does bookkeeping!)
RocketLawyer (also offers paid options)
Dubsado (subscription required to use free templates)
Invoicing & Payment Processing
To get paid, you need to notify your clients of what they owe and how they can pay it. I recommend using Stripe (3.5% transaction fee but accepts 25 forms of payments) or asking your clients to pay via ACH (free bank transfer). You can invoice through your business bank, Quickbooks, Freshbooks, Wave, Bonsai, Wise, or a paid CRM like Dubsado, Harlow, or Honeybook. I just invoice through my business bank’s online dashboard.
Bookkeeping
For your taxes, you need to keep track of your business expenses and income. I also track my personal expenses through my bookkeeping software to stay on top of my budget. Some banks (like Relay) allow you to track expenses and income directly from your banking dashboard. If your bank doesn’t do this you can use a software like Quickbooks or Freshbooks. I use Quickbooks.
Taxes
Most of you will file as a Sole proprietor for your first year of freelancing. The most basic tax info you need to know is that you’re responsible for paying all of your taxes (in the past, your employer probably paid and/or withheld most of your tax bill).
Each time you get paid, no matter how big or small the payment is, you should set aside 20-30% of that income for taxes. You may or may not need to use all of this money when it actually comes time to file your taxes, but you don’t want to be unprepared when tax season rolls around. This is why we added 30% to your baseline income when we first calculated your rates.
If you want to learn more about whether you should get an LLC, how to file your taxes, quarterly taxes, and all that jazz, we cover it in-depth in Camp Moxie and Pop Club’s The Whole Six Pack. Doors to Pop Club will reopen in March and Camp Moxie launches in April! Stay tuned if you’re interested…
Proposals & Pricing Guides
Once someone is interested in your services, you can send them a pricing guide to gauge whether you’re in their budget range. If their project isn’t one the standard offerings in your pricing guide, you can use your pricing guide as a template for a custom proposal.
Website
I want to make it clear that you do not need a website to succeed! Maybe this is a controversial take – but I think a lot of freelancers waste a lot of time on their websites when they’re first starting out.
In the entire first 4 years that I was in business, I’d never booked someone based on my website. Only 1 client of mine came from my website’s contact form, and he actually found me via LinkedIn.
Now, I’m not saying you can’t get clients through your website or that you can’t use it as a marketing tool. But when you’re just starting, it’s far more important – in my opinion – to get out and get clients by building relationships.
Before you go making a website, take the time to watch the next video and determine if you’re actually ready to make an effective website. If you’re not, make a free (searchable!) portfolio on another site like Medium, Notion, Contently, etc.
You can always make a website later - even if you do wait 4 years, it’s better to be fully booked with great clients in the next 3 months than 6 months in making no money and still trying to nail your website.
Create a System
Now that you’ve got the essentials put them all together to create an easy system to manage your business and your clients. Here’s an example of the tools I use to manage my business…
Pandadoc (esigning software to get contracts and NDAs signed online)
Google Docs (to create the contract)
Relay (invoicing and payment processing) – alternatively, if you’re using Quickbooks Self-Employed, you might be able to send invoices that way (some accounts qualify, mine didn’t, but some Pop Clubber’s did)! QB does cost money, though.
Calendly (scheduling)
Cloud HQ (button extension for Gmail to make emails look pretty)
Gmail (you can schedule emails in Gmail!)
Google Forms (questionnaires & forms)
Stripe (payment processing for credit cards – takes 3.5% of your payment but otherwise free)
Canva (proposals and pricing guides)
Try This:
This week, I’m challenging you to get all your ducks in a row! Run through this list and set up all the important stuff. Not keen on saving emails or leaving tabs open? Head to The Juicy Stuff for an easy PDF download you can save for later.
Here’s the list….
Set up a Business Bank Account and automate your tax savings
Apply for your EIN
Set up bookkeeping
Get a contract and customize it
Create a Pricing Guide
Build your client management system