Can you obtain the required skills for small business management and running a small business though freelancing? See our guide to learn more today.
Did you know that there are more than 58 million freelance workers in the United States alone? Many people think that once they enter the freelancing niche that they are more or less stuck in that niche, but that is not quite true. Freelancing, especially freelancing for several years, can actually be very helpful when it comes to small business management.
So, if you're thinking about moving from freelancing to running a small business, you might already be on the right track. But what kind of skills to run a small business do you need, and how can freelancing help your goals of having a successful small business become a reality?
Keep reading and learn more with these small business management tips.
Freelancing Helps Hone Your Communication Skills
If you want to run a small business, then you should know that good communication skills are essential. Suppose that you just open a new business. Soon after opening up for business, you will find that you will need to communicate with all sorts of people and not just your customers.
You will need to talk to people to advertise your brand, people to fine-tune your brand's products and services, people to help design your brand's website, and so on. If you want to make it through any of these hurdles, you will have to have good, if not excellent, communication skills. Not only will you need to have patience with all of these different people, but you will need to be very clear and concise about what you're trying to say.
This is important because if you don't know how to communicate in a persuasive and direct way, you will find that it will be very difficult to get what you want out of your business. This is especially true when it comes to dealing with customers. Needless to say, some customers can be quite picky or unhappy for one reason or another.
Making Customers Happy With Good Communication
The last thing you want is to have an unhappy customer give your business a bad online review to stop your business in its tracks. Good communication skills can help soothe even the most irritable of customers. This can not only make your business a success, but it will make it more likely for your customers to return to your brand in the future.
Repeat customers, of course, are the foundation of any good business. The great thing is that freelancing can easily teach you about communication skills. Most freelance jobs require you to deal with people in one way or another.
You might have to call your clients once in a while. This will help you better understand what your client wants and how you can make your client happy. Some freelancers might only need to occasionally chat with clients, but even so, this little bit of communication is better than nothing.
The big factor is that freelancing helps you better understand how to keep customers satisfied. This, of course, is essential when it comes to how to manage a small business.
The Balance of Pricing for Services and Products
As a freelancer, you should know that you can't just give away your services for free. You also should know that you can't give away your services for a very low price. Instead, to survive on a freelancer's salary, whether or not you freelance full-time or part-time, it is important to charge the right amount for your services.
Knowing how much to charge for services and products is an essential skill for those looking to start a new business. The worst thing you could do is open a business and charge far too little for your goods. Doing this would quickly run you out of business before you even had a chance to get your business started.
When opening a business, whether for the first time or for the fifth time, you will need to understand how much you should charge for your goods. To understand this, you will also need to understand how much money is required to keep your business open in the first place. How much money are you spending on advertising, web design, wholesale products, and so on?
More than that, how much time are you putting into your business every day? As the old saying goes, time is money. This is especially true for business owners.
Every minute you put into your business, you should be figuring out ways to improve your brand and make more money, lest your business soon becomes extinct. So, when it comes to putting a price on your goods and services, you will need to make sure that the prices make up for whatever you're spending to keep the business open.
What You Need to Know
If you plan on opening a brick-and-mortar business, this price will likely be much more expensive than a simple online business. In that case, you will need to charge much more for your goods and services. This is one reason why many people prefer to keep their businesses completely online.
But whatever you choose, your freelancing skills will undoubtedly come in handy. As a freelancer, you should have the tools on your side to help understand how much money is worth your time and labor. You can easily translate this to a new business.
It is always important to add up every dollar that you require to keep your business open if you want to make sure that your calculations are right. If you underestimate this number and you undercharge for your goods, you'll find that you'll never quite make enough money to keep your business open.
On the other hand, if you set the right prices in the first place, you will find that keeping your business open and having a bit of extra money on the side will be a much better outcome for your business.
Creating an Online Presence
For both businesses and freelancers alike, having a prominent online presence is essential. Freelancers need to get their names out there; otherwise, no one will know that they exist. This, of course, would not be good for your earnings since your very job depends on people knowing about the services you provide.
Freelancers can create an online presence in various ways. Social media platforms are some of the most prominent options. Instagram, Twitter, and Facebook are all very popular platforms that millions, if not billions, of people use every day.
Once you start to get your name out on social media, it will be inevitable that people will start discovering you. As a result, you will be able to rake in more business and make a successful career as a freelancer. Opening up a new business works in the same way.
If you open a small business and don't make it known on the internet, people are never going to know that it exists. If this is the case, you will find that no one will come to your business and no one will buy anything. This, of course, is a recipe for disaster.
You can solve this problem by getting your brand's name out on social media and other areas of the internet. By knowing all about the details of this process as a freelancer, you will find that it will be quite easy to do the same task as a small business owner.
Social Media and Engaging Content
Once you start posting on social media platforms, YouTube, and other areas of the internet, at some point, people will start to see and remember your brand. From there, people might be interested in what your brand has to offer and explore your website. If you're really lucky, you might get new customers right away.
There are also other ways you can get your brand's name out there, such as by creating engaging content. Many freelancers specialize in creating content for others, such as blog posts, home pages, and so on. If you take these skills and move them from your freelancing career to your new business, you will find it very easy to create promotional content for your business.
All you need to do is make sure that your brand stays active. You can do this by creating and posting content for your business several times a week. Posting only once a week isn't going to cut it.
Search engines will skip right over you if your brand isn't consistently active on the internet. If this happens, it will be very difficult for potential customers to find your brand at all. Posting three or four times a week, if not every day, is a good place to start.
It will show search engines that your brand is active, but it will also put your brand's name out there much more frequently. That way, it will be much easier for people to stumble across your brand and give your goods and services a second look.
Both freelancing and businesses require good organizational skills. As a freelancer, you will mainly need to organize your time. You don't want to work 10 hours only to get a small amount of money.
Instead, you'll want to organize your schedule so that you work a certain amount of hours for a certain amount of money. That way, you can optimize the time and labor you're exerting so that you get paid what you want to be paid. And, of course, organizational skills are not only limited to time management.
You also need to keep your workspace organized. If it's messy, you'll find that it will be difficult to find the things that you need to complete simple tasks, such as a pen or a paperclip. On the other hand, if you keep everything organized, you can speed up your work ethic substantially, and a lost pen will never get in the way of your work again.
When it comes to a new business, you will want to organize yourself similarly. However, when you own a business, you will have many more things to look after and organize. For example, you will need to keep track of how many customers visit your site (or store) every day, how much money you earn in a month, how much you pay your advertisers, the number of products you need to order, and so on.
Keeping Your Business Together
All of this can be quite overwhelming for someone who doesn't have any organizational skills. But fortunately, as a freelancer, you should have at least a small idea (if not a big idea) of how to keep things organized. Spreadsheets and certain software are very important in this aspect.
Without the right software, it will be virtually impossible to keep track of every aspect of your business. Certain software types are very talented at doing much of the heavy lifting for you. This makes it much easier to use software rather than writing everything down with a pen and paper.
Once you get everything together and in its place, you will find that running a business doesn't have to be as hard as many make it out to be.
How Freelancing Can Help With Small Business Management
Small business management is no small task, especially for those who aren't business-savvy. But for freelancers, managing a small business can be a much easier task. This is because freelancers already have the right skills to take on a small business, including communication and organizational skills, along with the ability to create an online presence.
Certain tools, of course, can help the process along even more. Contact us here to learn more.