What is freelancing? Steps to become a successful freelancer in India

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What is freelancing_ Steps to become a successful freelancer..

Career choices have undergone a drastic transformation post-2020. 

Payoneer’s Freelancer Report 2023 highlights that the freelancer industry has stood strong despite the economic downturns and uncertainties. The demand for freelance work shows an upward trend, and there’s no sign of slowing down.

People are no longer sticking with their 9-to-5 jobs. They’re exploring their freelance options, whether full-time freelancing or side gigs. 

If you’re someone wanting to join the freelancer bandwagon, you’re at the right place. This guide will discuss freelancing and how it works, freelancing vs. full-time jobs, and the detailed steps to successfully grow your freelance business. 

Content Index

What is Freelancing? 

Freelancing is a type of self-employment in which individuals work on a contractual, per-project, or per-task basis with multiple clients instead of working a 9-to-5 job with one company.

Freelancers are generally independent workers who offer their services as businesses. They conduct operations, set charges and schedules, invoice clients, and collect payments.

Most freelancers offer expertise in different domains, such as IT, writing, graphic design, consulting, accounting, and marketing. They are typically remote workers but might work on-premise if the project requires them. 

Freelancing vs. Full-Time Job: A Detailed Comparison 

While there were 6.8 million gig workers in 2020, India’s freelance market is projected to reach 23.5 million by 2030. This significant growth hints at more and more of the population choosing to freelance over 9-5 jobs. 

Let’s dig deeper into freelancing vs. full-time to better understand the scenario.

Income and benefits

Freelancing offers unlimited earning opportunities. However, freelancers also deal with unstable income issues. They cover expenses like health insurance, retirement programs, etc., from their funds.

On the other hand, full-time jobs offer financial stability and benefits such as insurance, paid time off, retirement plans, and other perks. Unlike freelancers, employees consistently receive paychecks every month. 

Taxes

Freelancers need to manage their taxes. This can be challenging as they must navigate taxes independently and pay them out of pocket.

For employees, companies handle taxes. When someone works full-time, the company withholds and pays their income taxes. Moreover, employers pay a portion of their employees’ social security contributions. 

Working hours

Freelancing gives you the flexibility to set your schedule. You can pick and choose when to start and wrap up. However, this often results in freelancers working long hours or over the weekend.

Full-time employees, on the other hand, follow a fixed 9-5 workplace schedule. They have specific login and logout times based on their shifts. 

Career growth and development

In freelancing, you can choose projects which often equip you with new skills. However, you might not have access to structured training and development programs. So, if you need to upskill, you must take the initiative. 

On the contrary, full-time employees can access free training and mentorship sessions that help them plan and advance in their careers. 

Risk levels

Freelancing comes with risks. You must find clients, handle your money and taxes, manage your business, and deal with inconsistent income. 

While losing your job during a recession, merger, or company re-organisation is possible, full-time jobs have lower risk levels. This is because your taxes are taken care of, there are no administrative burdens, and it offers income stability. 

Flexibility

Freelancing means working independently from anywhere you want. It allows you to work while travelling, from home, or anywhere you like. Plus, you can set your work timing while managing chores at home. 

On the other hand, full-time employees face more rigidity regarding work timing and location. They generally work on-premise or in a hybrid mode, and their work timings are set by their organisation. 

How To Become A Successful Freelancer In India? 

According to the global Freelancer Insights Report that surveyed 2000 freelancers across 122 countries, 70% of the Indian respondents work exclusively as freelancers or for their businesses. 

Here’s how you can start freelancing in India.

Define your service 

It is crucial to identify your skills and set your offering before looking for clients. This will help you reach the ideal prospects. Create a brief description of your services, their charges, and what type of businesses you can help. 

Let’s say you’re a graphics designer. You can specialise in creating brand identity graphics such as logos, style guides, social media templates, etc., instead of generic graphic designing. Additionally, you can niche down to a specific industry such as SaaS (EdTech, FinTech, conversational AI), eCommerce, or healthcare.

Identify your target audience

Find the audience whose needs align with your services. Try to get into their shoes to understand their problems and if your skills can solve them. 

For instance, considering the above example, the target audience for a SaaS graphic designer can be:

  • Tech startups looking to establish a professional brand identity
  • Tech business consultants
  • Tech companies expanding their business or looking for rebranding
  • Digital marketing agencies

Decide your pricing structure

Once you have established your services, create a competitive pricing structure. Remember that the goal is to maximise income without losing out on potential projects. 

Start by looking at what other freelancers in the same industry charge. Based on that and your expertise and experience, set a price. 

Note that several factors, such as industry, deliverables, project duration, complexity, etc., impact the client’s willingness to pay. So, keep your pricing flexible and prepare to negotiate so you can seal deals without being underpaid. 

Here are a few pricing structures you can consider:

  • Per-hour basis: If you charge ₹700/hour and take an average of 7 hours to design a logo, your price per logo would be ₹4900
  • Price per project: This is a fixed amount charged for the project, such as ₹80000 for a brand package including logo, style guides, and business cards

Find clients

When you’re all set with your services, pricing, and target audience, the hunt for projects begins. Remote’s Global Freelancer Report highlights that finding clients is why many people step back from freelancing. 

Here are a few ways to find your ideal clients:

  • Online platforms: Use platforms like Fiverr, Upwork, and Freelancer to bid on projects and connect with prospects
  • Social media: Platforms like LinkedIn help you network with industry specialists and look for clients. For instance, you can use LinkedIn Sales Navigator to find key people like decision-makers within target accounts
  • Networking: Utilize social platforms, communities and forums, and offline events to connect with industry professionals

Build relationships with your clients

To grow as a freelancer, maintain professionalism and follow clear steps such as:

  • Discussing the project’s scope, timeline, expectations, and deliverables
  • Negotiating payment terms
  • Signing a contract
  • Delivering quality work on time

Build a positive working relationship to have more retainer clients than one-time projects. This will also help you get positive reviews and more clients on referrals. 

What Freelancing Services Can You Offer In India? 

Now that you know what freelancing work is and the steps to start freelancing, let’s discuss what freelancing services you can offer in India.

Content writing and editing

If you’re wondering what freelance writing is, it’s creating blogs and copies for business websites and social media. Content and copywriting professionals work across industries like SaaS, eCommerce, retail, healthcare, etc., to write engaging SEO content to increase brand awareness and generate more leads.

Graphic designing

Illustrators and graphic designers create brand logos, website/social media images, and other digital illustrations for advertising agencies, tech startups, etc., to help them establish their brand identity.

Digital marketing

Freelance digital marketers help businesses boost their online visibility to generate more leads and increase sales. 

You can freelance as a digital marketing consultant offering services like SEO and content marketing, social media marketing, Google Ads services, email marketing, etc. Additionally, you can guide businesses in addressing their digital marketing challenges.

Financial consulting

You can offer accounting services as a freelancer that involve managing business accounts and helping companies prepare their financial statements. Additionally, you can offer consulting services that include building an investment portfolio, creating retirement plans, reducing taxes, and more. 

Web development

Freelancing as web developers or programmers involves designing apps, websites, and software solutions for businesses. You can offer front-end and back-end development services, handle tech maintenance and troubleshooting, and use your programming skills to redesign brand websites or apps. 

Data analysis

You can freelance as a data analyst, helping clients analyse the latest consumer trends and historical events to gain insights into customer behaviour. You can help them create long-term strategies and guide them to make informed business decisions. 

How To Manage Your Freelance Business? 

Managing a freelance business is no cakewalk. There are multiple things to juggle with. Here are the main areas you need to plan.

Sales and marketing

One of the main aspects of freelancing is generating leads; you need to promote your services and build positive work relations. Here’s what sales and marketing work includes:

Promotion and lead generation

Choose effective ways to promote your business so you can generate quality leads. Some of the ways include:

  • Creating valuable content on LinkedIn: Share the latest market trends, tips on how you solve your client’s issues, case studies, client feedback, and personal experiences to generate inbound leads
  • Cold outreach: Use CRMs to track potential leads and reach out to them with personalised emails, pitching your services
  • Referrals: Request your existing clients to refer your services to their connections. You can also offer discounts or commissions for these referrals

Pipeline management

This includes establishing a process or workflow to manage your leads. For example:

  • An inbound lead comes in via referral 
  • Scheduling a discovery call within 24 hours 
  • Sending a proposal in two days
  • Following up after 3 days
  • Getting a positive response
  • Discussing the contract
  • Negotiating payment 
  • Finalising the deal

Client relationship management

Believe it or not, maintaining good client relations is a solid strategy to get more clients. So, ensure checking in with your existing clients, maintain transparency and open communication, seek feedback, address concerns promptly, and provide benefits to encourage repeat business. 

Operations

Unlike full-time employees, freelancers have a lot of administrative tasks to do—organising files, managing projects, invoicing, taking notes, and more. Here are a few operational aspects of freelancing:

Project management

Since freelancers handle multiple projects simultaneously, using project management software is essential. For instance, you can use ClickUp to maintain a to-do list, track your tasks, keep up with due dates, and more.

Time management

For freelancers, the lack of a proper routine can blur the boundaries between their personal and professional lives. You can use a time-tracking tool like Toggl Track to track your productivity and billable hours. Plus, you can set a timetable to ensure starting and finishing work within a specific timeframe. For example:

  • 10 AM – 12 PM: Deep work
  • 1 PM – 2 PM: Client calls
  • 3 PM – 4 PM: Admin tasks
  • 5 PM – 7 PM: Marketing tasks

Document management

Freelancing involves a lot of digital paperwork— signing contracts, creating proposals, managing project briefs and materials, and invoicing. You must keep your files organized using Google Drive or OneDrive to do this.

  • Create client folders > Monthly folders
  • Save templates for proposals, invoices, briefs
  • Maintain a folder for tasks you want to showcase in your portfolio
  • Document feedback and brand guidelines

Finance

For many, financial management is the most challenging part of stepping into the freelancing world. Here are a few key tasks:

Choose the right payment method

You must choose the right payment gateway and set your payment terms and prices. 

Nimbbl is a payment gateway that makes it easy to accept client payments. You can use its Magik UPI to receive prompt UPI payments, preventing payment failures caused by UPI ID-related issues. 

You can generate no-code payment links and auto-share them with clients via emails, SMS, or WhatsApp to receive prompt payments from anywhere.

Payment link generation

You want to create a personalised payment page to collect service charges or fees, you can use Nimbbl’s no-code online payment pages. Your clients can pay online using the method of their choice—UPI, net banking, debit/credit cards, wallets, and more. 

Payment Pages
Personalised payment pages

Revenue management

Use an Excel sheet to track your receivables and maintain a separate business account to receive your payments. You can also define clear payment terms such as 25% advance, 25% after first draft, and 50% after project delivery.

Tax management

Understand your tax obligations. Stay current with the latest regulations and pay taxes on time to avoid penalties. 

If your income is above ₹2,50,000, you must pay income tax based on the pay slabs under the Income Tax Act 1961. You must file an ITR (Income Tax Return) for presumptive freelancer taxes. 

Additionally, know the deductions you’re entitled to. For instance, Section 80G excludes deductions made for social causes. 

Expense tracking

Keep tabs on your business expenses, such as internet, software subscriptions, travel, etc., to manage your finances efficiently and claim tax deductions. 

All Set to Grow Your Freelance Business?

Freelancing doesn’t have to be complicated. All you need to do is plan actively—define your services, identify your target audience, and position your services to attract the ideal clients. Additionally, choose the right platforms that make your work easier and seamless. 

For instance, get a project management tool to organise your projects and a payment gateway like Nimbbl to receive payments without hiccups. 

Try Nimbbl to see how it can fit your freelance business. 

FAQs 

What is freelancing, and how does it work? 

Freelancing is self-employment where individuals work independently with multiple clients on a contract or project basis, rather than working a traditional 9-5 job with one company.

How can I start freelancing? 

Start by defining your service offerings, identifying target clients, setting competitive pricing, using platforms like Upwork or Fiverr to find work, and building strong client relationships.

Which skill is best for freelancing? 

Top freelancing skills include content writing, graphic design, digital marketing, financial consulting, web development, and data analysis. The best skill depends on your expertise and market demand.

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