Annie
March 7, 2025
Reading time: 7 Minute
Updated on March 7, 2025
Setting up a freelance business seems to be discouraging – but you could find your first customers in the next week! In these unstable times, it is an appealing career option for many of us to have a part -time job or to be a freelancer.
A freelance business can cover all sorts of things, from writing and graphic design to cleaning to shops such as woodwork and sanitary. Some may take longer to really get going – but it does not prevent anything from set up their freelance business in a week! As soon as it has been created, you have a solid basis to build your company and find these important customers. Here you can find out how you do it with limited means and in a short time.
Day one: choose your business type
So you want to run a freelance business. What to do? Perhaps you would like to take this knowledge and skills from your daily job to start yourself. Great! Many freelance companies such as marketing agencies, virtual assistants, graphic designers and even customer service advisors begin in this way.
Maybe you want to do something completely different. Are you tired of answering complaints every day, but have a knack for baking? A freelance business as a special occasion, baker, can be done in addition to your main job-or do it in a full job!
Think about your skills, interests, hobbies and passions. Consider the things you love about your current or earlier jobs – and what you would avoid ever to ever do it again. Use this to shape your business idea.
Explore your competitors
If you know what kind of business you want to do, take a look at the competition. Also consider the competition at local and national level. Also take a look at the international competitors – especially if you cannot go into your patch (like if you are a dog hiker!) As you could have some cool marketing ideas or strategies that you could use. If you think about founding a company abroad, there are companies that help you with the establishment, taxes and accounting services.
Spend a day (yes, a whole day of your precious one-week setup destination!) To view the competitors. Also a little goes out: take a look at related companies that would address the same customers as you would address. There can be inspiration for a niche option to close the gap or help you to develop ideas for additional services to offer customers.
Create a list of the advantages and disadvantages of every competitor. What do you offer? What is missing? How can you question your place on the market? This helps you to decide your special business angle, and that helps with the next steps of a business plan and marketing.
Day two: Register with HMRC
Even if you set up your freelance business as a part -time earner, you must register with HMRC as a retailer. You could also become an LTD company – but that takes a little more time and costs. You can switch to an LTD company at any time if you are better established. When you start, it is usually advantageous to stay a sole dealer.
Even if you do not expect you to earn enough this tax year to pay something, you will still pay class 2 national insurance contributions if your profits are over 6725 GBP in the 2024/5 tax year. Therefore, it is really important to register as self -employed at HMRC as soon as you build your company.
Choose your company name before registering. This makes the entire process a lot easier – and helps them when it is time to start their marketing. Use a company name generator if you sit for ideas -and check the house company to ensure that nobody else has the same company name.
Create a business plan
Your business plan helps you to find out how you can get started – and how you can maintain growth in your first year. For example, you have to decide which products or services you will offer customers from the start. How much do you cost for the provision? What profit margin do you need for you?
Also find out the costs of your overhead costs. This gives you a financial goal that you can strive for in your first year – and helps you to praise your services or products. You have to think about rent, invoices, business rates (if you rent a premises), insurance, inventory, etc. Also remember that your first year means investing in assets such as computers or other devices.
Use a business plan template to ensure that you have covered everything. This will help you decide whether your freelance business as a winning manufacturer is viable. Your first year (or two) must not turn the profit if you have to invest in a lot of equipment or inventory. So don't let yourself be disappointed! However, the plan helps you to recognize the costs you need to cover (including your own living costs) – and this will help you know where to contact financing.
Day three: Creating a website
You don't have to be an internet swhiz to set up a website. Nowadays it is really easy to create one! Most popular website hosts such as Wix, WordPress and Squarespace have drag & drop editors and easy to use admin panels. However, it is really important that you even have a basic website so that you can find potential customers.
Your website doesn't have to be expensive or chic either when you start. Remember: you can always expand your functionality and services when your company grows. You have to insert basic information, such as B.:
- Which product or service do you offer
- How the product or service benefits your customer
- A price list
- Contact information
- A page “About You” – people want to know who they buy from!
You should also claim your social media handles. It is often best to concentrate on just one or two platforms (especially on the first) – but it is a good idea to claim the grip for everyone. This keeps people from embodying them online – and also means that they can store the same name on all platforms if they want to expand. A really good page that you can try is Namecheckr – you will tell you which platforms the selected handle is available on. Try to choose one that reflects your website and your company name, which you can claim on as many platforms as possible.
Day four: Set up a commercial bank account
As a retailer, you do not need a separate commercial bank account. However, it is always a good idea to set up you to keep your own finances separately from that of the business.
Starting, you do not have to pay a proper commercial bank account. You can set up a basic checking account in your own name – only keep it for business income and expenses. This really helps when it comes to your annual tax return!
There are specialists for business accounts such as the Tide and the Starling Bank, which are designed for retailers for small businesses, while most High Street banks offer a company account. Check the fees because they differ from a consumer engine account. For example, you may have to pay every time you transfer or receive money.
Many commercial bank accounts have membership or access to accounting software. In the past, it was not an integral part of the establishment of a company – but since Tax is digitally equipped in the next few years, it is important to be ready. This is a grant in tax reporting for all self -reinforced companies (at some point), in which you submit a quarterly tax via the accounting software instead of your annual return – it should make it easier to complete and avoid your accounting.
Search for financial resources and mentoring
There is a lot of help for new business owners – you just need to know where to search.
If you are currently unemployed and receive universal reports, ask your job coach for the new company allowance. This is a program with which you can start with your own business -and opens doors for mentorship for companies as well as start -up loans and financing.
For those who do not receive the services, there are still many ways to finance their new startup. First talk to your local library, advice and job center. You can have all different programs or recommend local services that offer free business consultancy or new freelancers.
And remember that we have some articles that cover funds and services for self -employed as well as sources to find funds for your startup.
Why search for mentoring?
Your local job center or council will probably run programs for new business owners. It is important to search for advice from experienced business professionals, and if you receive free advice, that's even better! Without the guidance of a company mentor, you could fall into the common traps that make the new freelancer-z. B. no budgeting for cross-income months and without profit.
Talk to your local Chamber of Commerce or the Federation of the small companies and also look for “digital hubs” in your region. There are often free workshops and sometimes even reduced or free work areas for new companies if you investigate. For example, Wrexham Enterprise Hub is free – and gives you a place to work, have meetings and also carries out free training workshops.
Day five: identify your marketing channels
When you start, you have a short budget. Marketing for everyone and Sundry is therefore not the most cost -effective way of spending your cent!
However, you have to spend some money on marketing to attract these first customers. As soon as you have you, offer reviews or word of mouth that are free marketing, which also produces much stronger customer relationships.
Think about who you want as an ideal customer. What do you read? Which websites do you visit? Where do you go to your local community? Mix some online and offline marketing to achieve the best results. Try flyers near you and digital displays on social media platforms that aim at your ideal population group.
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