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Freelancing is an attractive way to work for many. You choose your own hours, your own clients, and your projects. You’re the boss. But, not everyone is successful. Many people fail at freelancing. The question is, why?
The answer is simple. They lack the right skills, don’t understand how to market themselves, or they’re not prepared for the challenges they’ll face. It’s not enough to be good at what you do. You have to know how to run a business too.
In this blog post, we’ll take a deep dive into why people fail at freelancing and what you can do to avoid the same fate.
Lack of Self-Discipline
When it comes to freelancing, one of the biggest pitfalls that many people face is a lack of self-discipline. Without proper self-discipline, it’s easy to get derailed and fail to reach your goals. The two key aspects of self-discipline that often lead to failure in the freelancing world are poor time management and an inability to set and stick to goals.
Poor Time Management
Effective time management is crucial for freelancers who want to succeed in their endeavors. Unfortunately, poor time management skills can quickly lead to failure. Without a solid plan and the ability to prioritize tasks, freelancers can find themselves overwhelmed and unable to meet deadlines.
How can you improve your time management skills? Consider using productivity tools and techniques such as the Pomodoro Technique, where you work in focused bursts followed by short breaks. By breaking your work into manageable chunks and setting specific time limits for each task, you can stay on track and make the most of your working hours.
Personally, I liked to use my Google Calendar to lay out everything. I keep track of my tasks and meetings using the free tool. Additionally, I find the hours that I work best – you know, that time of day that you consistently get the best work done each day? – and I block those hours off on my Google Calendar as “focus time”.
Inability to Set and Stick to Goals
Setting goals and sticking to them is essential for freelancers who want to thrive in their careers. However, many freelancers struggle with this aspect of self-discipline. Without clear goals, it’s easy to lose focus and direction, ultimately leading to failure.
When setting goals, it’s important to make them specific, measurable, achievable, relevant, and time-bound (SMART). This framework helps ensure that your goals are realistic and actionable. Additionally, breaking your goals down into smaller milestones can make them more manageable and increase your chances of success.
Goals that I like to set my freelance business: how many hours I want to work each month (for some it may be better to do this per week) and how much money I need/want to make each month. Then I can work backward from there to figure out how many projects I need on my plate. This tells me if I need to pitch for new clients or if my current docket is enough. I set my goals 1-2 months out, so I have time to find projects/clients and get the work done.
Insufficient Business Skills
In the world of freelancing, having strong business skills is crucial for success. Unfortunately, many people fail in this area, which can lead to unfavorable outcomes.
Inadequate Financial Management
One significant reason why freelancers fail is their inadequate financial management. Without proper budgeting and expense tracking, it becomes challenging to maintain a healthy cash flow. By not understanding how to price their services appropriately or save for the future, freelancers often find themselves struggling to make ends meet. It’s essential to prioritize financial education and develop a sound financial plan to thrive as a freelancer.
The other major failure I see when it comes to freelance financials is taxes. For every freelance check I get, I put 30% into a savings account and I don’t touch it until taxes are due. Once taxes are paid, whatever is left I either reinvest into my business (new laptop, some VA help, etc) or give to myself as a bonus paycheck – BUT I always leave a safety net of cash in that checking account. For me, having $1,000 is enough – there’s only so much money that I will ever have to spend to freelance. My service offerings require a computer, cell phone, internet, and myself – so I don’t have to have much set-aside. But if my business required a car, for example, I would have a larger savings fund. Or if I had someone else working with me, then I would have 90 days’ worth of expenses saved at a minimum.
(Note – this is business savings, not personal; personally, I like to keep a 9-month emergency fund. I do this whether I am employed full-time with a side gig or working freelance full-time. To calculate the amount needed, I total up my must-have expenses/obligations for each month and multiply by 9. Things like insurance, any debt payments (like car payments), groceries, utilities, rent/mortgage, etc. I don’t add in my investments, because if there was a true emergency, I would likely pause investing during that period and make sure my basics are covered.)
One last financial tip – make sure you are clearly stating your late payment policy and fees on your invoices. Learn more about why freelancers need to charge late fees here.
Lack of Marketing Knowledge
Another prevalent factor contributing to freelancing failures is the lack of marketing knowledge. Freelancers need to know how to effectively market themselves and their services to attract clients. The biggest marketing issue is that freelancers don’t think about what their customer wants. Lots of websites and portfolio sites are focused on the freelancer – when they should be clearly explaining what’s in it for the customer. What is in it for the customer when they agree to work with you? Every headline, every paragraph, and every call to action should be written with this in mind.
Ineffective Client Communication
Building strong relationships with clients is essential for a thriving freelance career. Unfortunately, poor client communication is an area where many freelancers struggle. Effective communication involves active listening, clear and concise explanation of expectations, and prompt responses. Without these skills, misunderstandings arise, deadlines are missed, and client satisfaction diminishes. It’s crucial for freelancers to invest in improving their communication skills to foster positive and productive client relationships.
Don’t forget: the client doesn’t know what your process is or the timeline. So provide a timeline to them from the beginning and provide regular check-ins. You never want a client wondering what you are doing or where in the process their project is.
Lack of Specialization
Freelancing can be an attractive career choice, offering flexibility and independence. However, many individuals fail to succeed in this field due to a lack of specialization.
Being a Jack of All Trades
In the world of freelancing, it may seem tempting to offer a wide range of services to attract more clients. However, being a Jack of All Trades can actually hinder your chances of success. Although having diverse skills may seem advantageous, it can prevent you from becoming an expert in any specific area. Clients often prefer to work with freelancers who specialize in a particular field, as they perceive them to have a deeper understanding and expertise. By trying to do everything, you may dilute your skills and struggle to stand out from the competition.
Fear of Pitching
When it comes to freelancing, one of the most common reasons why people fail is their inability to pitch effectively. Or their unwillingness to pitch at all. Pitching is a critical skill that can make or break your success as a freelancer. Expecting customers to just find you, is not reasonable – you’ve got to let them know you are out there! I promise, with the right pitching system in place, this is relatively easy.
Reliance on Job Bidding Sites
Many freelancers make the mistake of solely relying on job bidding sites to find work. Sites like UpWork and Fiverr are examples of job bidding sites; while these platforms can be a valuable resource, they should not be your only strategy. By limiting yourself to bidding sites, you are competing with hundreds or even thousands of other freelancers in your specialty, which can make it challenging to stand out. Additionally, people who are shopping for service providers on these sites are typically looking for cheap, not quality, and want a quick turnaround. Is that the type of client you want to work with?
Instead, consider diversifying your approach. Explore alternative ways to find clients, such as networking events, social media platforms, or industry-specific websites. By expanding your search, you increase your chances of finding clients who may not be active on job bidding sites.
Not Sending Value-Based Pitches
Another common pitfall for freelancers is a lack of knowledge about value-based pitching. Instead of solely focusing on price, value-based pitching involves highlighting the unique value you can provide to clients. It’s about showcasing your skills, expertise, and the benefits that clients will gain by working with you.
When crafting your pitch, take the time to research your potential client and their specific needs. Tailor your message to address their pain points and offer personalized solutions. By demonstrating a clear understanding of their business and presenting yourself as the best fit for their project, you increase your chances of winning the job.
Remember, freelancing is not just about being the lowest bidder, but about delivering exceptional value to your clients. By mastering the art of value-based pitching, you can differentiate yourself from the competition and increase your chances of success.
Looking for pitching resources? Check these out:
- 5 Steps to Sending Value-Based Pitches
- Why Business Owners Want Freelancers to Pitch Them
- Freelance Success Framework online course
Conclusion
In conclusion, it is evident that many people fail at freelancing due to a range of factors. Lack of discipline and time management skills can lead to procrastination and missed deadlines, ultimately affecting the quality of work and reputation. Furthermore, inadequate financial planning and an inconsistent flow of income can create stress and uncertainty, making it challenging to sustain a freelancing career. Additionally, the absence of effective pitching and networking strategies can limit opportunities and hinder professional growth.
To succeed as a freelancer, it is crucial to address these challenges head-on. Developing strong time management skills, setting realistic goals, and maintaining a consistent work routine can significantly improve productivity and ensure the timely delivery of projects. Creating a budget and setting aside funds for taxes and emergencies can help overcome financial uncertainties. Building a strong personal brand, leveraging social media, and actively networking with potential clients and peers can open doors to new opportunities. Lastly, staying updated with industry trends, investing in continuous learning, and embracing new technologies can keep freelancers relevant and ahead of the competition.
By acknowledging these common pitfalls and adopting strategies to overcome them, aspiring freelancers can increase their chances of success in the ever-evolving world of freelancing. Remember, freelancing offers flexibility and independence, but it also requires dedication, self-discipline, and adaptability. With the right mindset, skills, and persistence, you can thrive as a freelancer and achieve your professional and financial goals.
If you are looking to overcome any of these challenges, I would *strongly* recommend some continued education/learning. The best freelancers continue to learn and grow – and investing in yourself to better your business is a great place to start. The Freelance Success Framework covers all of these common pitfalls for freelancers and more. The course is self-paced and created for B2B (business-to-business) freelancers.
How do you plan to avoid these common pitfalls?
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