10 Advice For Having A Great Freelancing Busines

Freelancing as a contractor can be both fun and rewarding, as you both get to work for yourself and effectively build your own business. But even a profitable freelance career is not without its problems, from client acquisition to financial management. In this blogpost Compare Your Pay experts look at  10 things you need to know if you’re serious about starting your UK freelance career as a contractor and want to succeed long-term.

 1. Define Your Niche and Specialisation  

The best thing you can do the first thing is to find your niche. If there is a competitive market, then specialising can set you apart and help you target the exact demographic. As part of understanding where your niche is, think about your typical client, their needs and how you help them. Once you are clear on that, write about something you love and have experience in, so that your new potential clients can find you easily, whether you are a copywriter, designer, programmer, or an energy consultant. 

For example, if you are a web designer, e-commerce site development or accessible and friendly website optimisation could distinguish you and your services. If you present yourself as a true specialist in something, then prospective customers will trust you as the right person for that service.

 2. Build a Strong Online Presence  

To succeed as a freelancer, it's essential to maintain a professional online presence. Having an up-to-date website and active social media accounts is crucial for attracting customers, especially in the UK, where online networking is prevalent. Your website should clearly describe your services, showcase your portfolio, and include testimonials from satisfied clients. 

Be sure to fill your LinkedIn account with keywords because this is the most important place to find freelance work, especially if it’s for something professional like consulting or marketing. Connecting with communities and networking groups online will increase your visibility too.

 3. Network Like a Pro  

Freelancers in the UK, where networking is a core business activity, have to network regularly. Go to local networking events, industry groups on LinkedIn and network with potential clients, partners and mentors. The best freelancers are always referred, so be sure to build a good network.

The informal networking isn’t to be missed either. Having conversations at community events or even at the local pub is always going to open up doors for you. The more people who know about your freelance business, the more people will suggest you to others.

 4. Set Clear Boundaries and Contracts  

Being upfront with your clients when you’re a freelancer is important. Know what hours you work, when you are available, and the range of your services. That’s especially important if you want a good work-life balance. UK freelancers must also use the right contracts to avoid confusion or unpaid bills.

You should have a detailed delivery agreement with payment, deadlines and allowances for changes or extra work. It’s both beneficial and saves time in case something does go wrong.

 5. Manage Your Finances Wisely  

For freelancers and contractors, keeping track of income and expenses is important for tax purposes, and you also have to put aside money to pay taxes. Have your accounting software or even an accountant do the heavy lifting for you, especially when you get a business.

If you’re working through an umbrella company, the umbrella will handle most of the tax and National Insurance deductions for you through the PAYE (Pay As You Earn) system. However, you should still keep track of your income and expenses for your own records and to ensure everything aligns with what the umbrella company is processing. Some umbrella companies may allow you to claim business expenses, but this depends on the specific rules of the umbrella you work with and regulations.

You’ll also need to set up a budget for personal and business expenses. This is important even if you work through an umbrella company, as it helps to manage your finances efficiently and ensures you’re prepared for any additional costs or income taxes that aren’t covered by the umbrella arrangement. Make sure you have an emergency fund in case you fall behind during times of low pay (freelancing is one of those times). The umbrella company may provide some stability with regular pay, but the nature of contract work can still result in periods of lower income.

By taking these steps, you can ensure that your finances stay organised, even when working under an umbrella company, and you remain compliant with tax laws.

6. Set Competitive, But Offer Fair Pricing

It’s crucial that you get the price for your services right. In the UK, the fee contractors charge vary enormously according to the sector and your experience. Study what other freelancers are charging and be reasonable, taking into account your experience, expertise and results that you deliver consistently for clients. Don’t undervalue your work to get the clients as that can make you burn out and undervalue yourself in the long run.

Try different pricing plans or retainer contracts for long-term customers. This can give you a stable income stream so you can better plan for the future.

 7. Prioritise Client Relationships  

Your clients are your source of income and building them is key to your success as a freelancer. Communication, deadlines, and outperforming are all about earning trust and loyalty. Happy customers will be the ones that tell others or buy again.

In the UK, where word of mouth is highly valued, building strong relationships can help you attract more clients. It's important to be consistent in your approach. After completing a project, always ask your clients if they are satisfied with your work. Don’t hesitate to request feedback or testimonials from them.

 8. Keep Improving Your Skills  

The freelance market is always changing and if you’re commited to staying competitive you need to be as up-to-date as possible. Take workshops, courses online or get certified that will make you a better expert and provide more services. In the UK there are lots of free and paid tools, from sites like Udemy to government-sponsored programmes for training small businesses and freelancers.

If you stay on top of things, you’ll be able to provide services that are worth the clients’ money and ultimately, higher prices and more business.

 9. Stay Organised and Productive  

This is the discipline to freelance, you’ve got to stay in order. Create project trackers like Trello, Asana, or Notion to keep tabs on your projects, deadlines, and client interactions. Not only is organisedness essential for being on top of your game but it will also make you more professional and trustworthy to your customers.

Create a schedule that works for you, whether that be setting time aside for client, admin, or marketing. It can be hard to work effectively as your own boss so try the Pomodoro method and/or time-blocking out to see what fits for your pace. 

 10. Plan for Growth  

At the very last stage, consider the future of your freelancing business. If you are a freelancer, it’s feast or famine, and by growth planning you can stay out of the feast and famine trap. Be business minded and consider how you can grow your services long-term in a way that is both fullfilling and rewarding. 

So, for instance, you may want to begin providing more services, or work alongside other freelancers on bigger jobs, or switch from project work to retainer clients. Think about getting assistants or subcontractors when you get overwhelmed, so you can do more high-level work while outsourcing other areas. 

Conclusion  

Building a successful freelance business in the UK requires time, energy, and careful planning. By identifying your niche, networking effectively, budgeting wisely, and committing to continuous learning, you can establish a sustainable freelance career that generates a steady income. Stay organised, cultivate strong relationships with clients, and remain open to personal and professional development. With dedication and patience, you can successfully grow your freelance business.