6 Things A Freelance Artist Needs To Know Before Opening A Company
Opening your own freelancing business can be a daunting task. There are so many things to think about- from setting up the proper legal paperwork, to marketing your new company, to finding the right clients. But don’t worry, if you know about these six things, you will be on your way to a successful freelance business.
Have A Business Plan
This is probably the most important thing to have before starting your own business. Without a business plan, you won’t know where you are going or how to get there. Your business plan should include information about your company- such as its purpose, target market, and goals- as well as your personal financial information and projections.
A good and personalized business plan can be beneficial to any business owner, be it a freelancer or not. You could use it as a foundation to get financed, and it will help you keep your business on track.
If you’re not sure how to write a business plan, there are plenty of resources online that can help you.
Once you have your business plan in order, you need to get your business registered. In the words of gurus at www.sleek.com, this includes registering with the state as a business, registering for taxes, and getting a business license. This process is getting much easier and simpler, as you can hire a business consultant or an agency to help you digitally with the process, including filling out the necessary paperwork, getting support and experts’ advice.
Professional registers often offer full accounting and corporate secretary support, which comes in handy if you’re not familiar with all the ins and outs of running a business.
Protecting Your Intellectual Property
As a freelancer, your work is your intellectual property and you need to take measures to protect it. This means registering your copyrights with the Copyright Office and getting trademarks for your brand or logo. You can also include a contract between you and your clients that stipulates that all work created by the freelancer is their intellectual property and cannot be reproduced without their permission.
This can help protect you from someone stealing your work and passing it off as their own. It can also help you in case of a legal dispute with a client. Pay attention to who you are working with and make sure to have these protections in place.
Manage Your Finances
Freelancing is not always the most stable form of income, so it’s important to be mindful of your finances and budget accordingly. Make sure you have a savings account to dip into in case of a dry spell and track your expenses so you know where your money is going.
It’s also important to factor in taxes when budgeting. You will need to set aside money to pay your taxes as a freelancer, and you may also be able to claim certain business expenses on your taxes. For example, you can deduct expenses such as office supplies, travel, internet and phone bills, and the cost of advertising and marketing.
On the other hand, you may also have to pay self-employment taxes, which is a tax that freelancers have to pay in addition to regular income taxes. The amount of self-employment tax you have to pay depends on your income and how you file your taxes.
As a freelancer, it’s important to build a good network of clients and professionals by attending industry events, meet-ups, and webinars. Join relevant online communities and forums. You can also offer free consultations or tutorials to help you get your name out there. For example, you could offer a free two-hour consultation to potential clients or do a tutorial on how to use your services.
By networking and building relationships with other professionals, you can create a strong support system that will help your business thrive, find new clients, get advice and support, so make sure to invest time and effort into building one.
As a freelancer, you’re not protected by an employer if something happens to you. This is why it’s important to have freelancer insurance, which can help protect you financially in case of an accident or illness.
There are many different types of freelancer insurance, so make sure to do your research and find one that best suits your needs. Some types of freelancer insurance include health insurance, liability insurance, and property insurance. Usually, the more risks you’re taking as a freelancer, the more insurance you’ll need.
Every freelancer should know before starting a company is to have a business plan, get registered, protect your intellectual property, manage your finances, network, and get insurance. Following these tips will give you a good foundation for starting your own freelance business.