There’s never been a better time to launch your own consulting career. According to recent studies, experts predict that within five years, freelancers, consultants, and independent contractors will make up about half of the workforce. So do yourself a favor and get in early!
To help you kick off your new career, we’ve compiled a list of 6 Mistakes Freelance Consultants Make so you can spot them before they happen. Unfortunately, there are many more mistakes you could make, but this list will give you a head start.
Accepting Too Many Clients
When you’re just starting as a freelance consultant, you might feel tempted to accept all the work that comes your way. At first, you may need to look for lower-paying clients to build your reputation. This practice can put you in stressful, overworked circumstances.
Often, this situation happens to new freelancers because they don’t have a job history that attracts high-paying clients. This gap in experience leads to working with lower-paying clients, so you may take on more than you should. It’s a vicious cycle that eats away at your motivation. Here, more isn’t necessarily better.
Failure to Define Your Niche
Finding your niche will help you stand out from the crowd as a consultant. Newbies may find it hard to specialize early in their careers. They want to make money today, and the fantasy of working with many clients is appealing. Unfortunately, there are challenges associated with marketing yourself as someone who knows everything.
When people look for a freelance consultant, subject expertise is usually a top priority. You need to know what sets you apart from the competition before you take on new jobs. Some clients will pay higher fees to expert consultants. If you don’t choose a specific area of expertise, you might be too busy to do your best work.
Prioritize your top one to three niches and build from there. Put together some samples of your work to showcase those fields. Having a niche focus will help you gain high-quality clients.
Poor Time Management
Poor time management is a common problem for new freelancers, which leads to missed deadlines. You used to turn in your time to an employer, but now you report to yourself. With this newfound freedom, you can work as little or as much as you want, whenever you want. But there may be consequences that will damage your client relationships.
Don’t wait until you miss deadlines, meetings, or emails. Take control of your time and schedule your tasks as realistically as possible. Don’t forget to schedule rest periods and time off as well. Using social media should be off-limits during work hours.
If you struggle with time management, don’t worry; you can learn it—especially if you miss a couple of deadlines. You can’t help your clients if you can’t manage your own organizational effectiveness.
Losing Track of Your Finances
Lack of attention to your finances could damage your long-term client relationships. As a consultant, you are essentially a problem solver. Don’t let your finances become a problem you can’t solve. Record all expenses promptly so you won’t forget them.
For payroll, make sure you invoice your clients when it is due, accept payment, and transfer the funds into your bank account right away. Making notes or setting alerts for specific days will assist you in staying on top of deadlines.
For taxes, consider getting an accountant to help you. A tax professional can tell you how much you owe and advise you on which costs are tax deductible. If you want to avoid owing a hefty sum in taxes at year’s end, set aside 30% of your income each month and maybe even pay taxes quarterly. It’s not easy, but it’s the safest thing to do.
Failure to Set Limits with Customers
Some consultants don’t realize that the relationship with their clients is strictly business. You are a partner in your client’s business, not their employee. Add boundary guidelines in your agreement if you experience problems. For example, you may not want to receive calls after a specified time at night. Or on weekends.
Establish your guidelines from the start and be sure everyone is aware of them. Put together a strong client agreement that details the job’s duration, cost, charges for additional services, and whatever else you need to be sure everyone understands the process. Make sure they know when you will be available and how to reach you.
Don’t Forget, You’re Working for Yourself!
Work hard to avoid making the same mistakes many new freelancers make now that you know what they are. Consulting can be a great job that pays well and makes you happy, but it is not without problems. If you can avoid making the mistakes covered in this article, your chances of success in your new job will rise dramatically.
