This is an excellent article that covers three common mistakes that freelancers make when building a business for the first time.
Thinking your freelance skill is all you need.
One of my colleagues recently said an awesome quote that left me chuckling. He said, “Freelancers need to understand that a skill does not a business make.”
I chuckled because I was a freelancer who made that mistake for years. I was like, “Oh, well I’m a good writer so the money is just going to show up. I don’t need to learn sales or business management or any of that stuff.”
The good news was I snapped out of it. I figured out pretty quickly after quitting my job that if I wanted to make a living I would have to learn new skills as it pertained to actually running a business.
Unfortunately, many freelancers don’t snap out of this and then wonder why they aren’t making any money. That’s why the idea that your freelance skill is all you need is one of the biggest mistakes freelancers can make.
Not protecting themselves and their businesses.
Another common mistake many freelancers make is forgetting to protect themselves and their businesses. This means they don’t incorporate, they don’t use contracts and they don’t separate the business from personal finances.
This can lead to a very hairy tax situation. It could also have legal implications down the road if they aren’t careful.
This is why freelancers who are looking into growing their businesses should speak with an accountant and an attorney. They can help you figure out how best to incorporate, what insurance you may need and how to plan for taxes throughout the year.
Read the rest of the article here: Due Payments Blog