Set up these 9 things before you get your first freelance client

Before you go out and get clients you need to set up your business systems. That way, once you do get clients, you’re 100% ready to work with them!

There’s going to be stuff in here you’ve worried about, some stuff you never even knew existed, and even more stuff that’s annoying but necessary.

(P.S. some of these items – like taxes – are specific to U.S. based freelancers…)

Buckle up! We’re going to ⚡️ lightning ⚡️ round through this…

Business Bank Account

As a business owner, you need a way to keep your business finances separate from your personal finances. This is where a business bank account comes in.

I recommend using Novo or Found. I’ve used and love both of these options! They offer invoicing, bookkeeping, automation, and multiple checking accounts for free all in one online platform.

You can, alternatively, use your local credit union, local bank, or a big bank instead!

EIN

I recommend you get an EIN, basically a social security number for your business, for free from the IRS if you want to. If nothing else, an EIN protects you from identity theft. Having an EIN also allows you the opportunity to file for bankruptcy if you need to down the line.

It takes just five minutes through the IRS website, and it’s free!

Contracts

There’s a contract template included in my paid coaching options (starting at $33/mo). But if you’re not in one of my programs, there are tons of other places you can get a contract template.

Invoicing & Payment Processing

To get paid, you need to notify your clients of what they owe and how they can pay it.

I recommend using Stripe (3.5% transaction fee but accepts 25 forms of payments) or asking your clients to pay via ACH (free bank transfer).

You can invoice through your business bank, Quickbooks, Freshbooks, Wave, Bonsai, Wise, or a paid CRM like Dubsado, Harlow, Moxie, or Honeybook. I just invoice through my business bank’s online dashboard.

For your taxes, you need to keep track of your business expenses and income. Some banks (like Novo or Found) allow you to track expenses and income directly from your banking dashboard. If your bank doesn’t do this you can use a software like Quickbooks or Freshbooks.

Taxes

Most of you will file as a Sole proprietor for your first year of freelancing. The most basic tax info you need to know is that you’re responsible for paying all of your taxes (in the past, your employer probably paid and/or withheld most of your tax bill).

Each time you get paid, no matter how big or small the payment is, you should set aside 20-30% of that income for taxes. You may or may not need to use all of this money when it actually comes time to file your taxes, but you don’t want to be unprepared when tax season rolls around. This is why we added 30% to your baseline income when we first calculated your rates.

If you want to learn more about whether you should get an LLC, an S-Corp, how to file your taxes, quarterly taxes, and all that jazz, we cover it in-depth in my paid coaching programs.

Proposals & Pricing Guides

Once someone is interested in your services, you can send them a pricing guide to gauge whether you’re in their budget range.

If their project isn’t one the standard offerings in your pricing guide, you can use your pricing guide as a template for a custom proposal.

There are templates you can use for this inside my paid coaching programs. You’ll also get access to my Rates Calculator to determine your rates and 1:1 DM access to me to validate your rates if you’re not sure!

Create a System

Now that you’ve got the essentials put them all together to create an easy system to manage your business and your clients. Here’s an example of the tools I use to manage my business…

• Pandadoc (esigning software to get contracts and NDAs signed online)
• Google Docs (to create the contract)
• Novo (invoicing)
• Cal.com (scheduling)
• Cloud HQ (button extension for Gmail to make emails look pretty)
• Gmail (you can schedule emails in Gmail!)
• Tally (questionnaires & forms)
• Notion (workflow & lead management)
• Stripe (payment processing for credit cards – takes 3.5% of your payment but otherwise free)
• Canva (proposals and pricing guides)

Website

I want to make it clear that you do not need a website in your first year(s)! Maybe this is a controversial take – but I think a lot of freelancers waste a lot of time on their websites when they’re first starting out.

In the entire first 4 years that I was in business, I’d never booked someone based on my website. Only 1 client of mine came from my website’s contact form, and he actually found me via LinkedIn.

Now, I’m not saying you can’t get clients through your website or that you can’t use it as a marketing tool. But when you’re just starting, it’s far more important – in my opinion – to get out and get clients by building relationships and networking.

You can always make a website later - even if you do wait 4 years, it’s better to be fully booked with great clients in the next 3 months than 6 months in making no money and still trying to nail your website.

You do need to have a portfolio somewhere. You can do that via a portfolio website platform or by putting your portfolio pieces as articles on LinkedIn. You could also make a free portfolio site on Notion or Canva. If you want to go all in on a full website – totally cool!

Try This:

This week, I’m challenging you to get all your ducks in a row! Run through this list and set up all the important stuff. Not keen on saving emails or leaving tabs open?

Here’s the list….

1. Set up a Business Bank Account and automate your tax savings
2. Apply for your EIN
3. Set up bookkeeping
4. Get a contract and customize it
5. Create a Pricing Guide
6. Build your client management system