How to Write a Freelance Business Plan

Read Transcript

If you’re interested in becoming a freelancer, a sound business plan can provide a great foundation. By creating a freelance business plan, you can prepare to make an outstanding impression on your future customers—all while helping your business become more flexible and resilient. Much like a traditional business plan, a freelance business plan forces you to take an in-depth look at the viability of your business. It outlines strategies that you can reference to build your client base and grow your revenue.

If you plan to raise money to help get your freelancing business off the ground, your business plan can serve as the hook for potential investors. If you don't need investors for your business, the program provides a roadmap that you can reference and revisit for inspiration, guidance, and tracking.

8 essential elements to include in a freelance business plan

Launching a successful new business takes time, dedication, adaptability, and planning. That’s why it’s so important to have a well-outlined business plan in place.

Creating a detailed freelance business plan may seem like a daunting task. However, crafting one now will save you valuable time, minimize stress, and help you maintain a more steady income. 

You can find plenty of business plan templates online that will provide inspiration—and you can even chat with an AI tool like ChatGPT to organize your thoughts and learn more about business plan structure. 

The eight core areas below, though, should appear in any freelance business plan. If you’re using a template or asking an AI tool to generate one, make sure these essential elements are included. 

1. Company summary and purpose

Every entrepreneur has a story; the company summary (also called an executive summary) is a chance to tell yours.

The information in this summary provides an outline for the main points covered throughout the rest of your freelance business plan. Your company summary should focus on offering:

• A short introduction to your brand
• A statement of what you’ll achieve
• An explanation of why you want to do the work 

This establishes the priorities of your small business and sets the foundation for your work.

If you intend to share your plan with potential investors, it’s essential to emphasize the value and uniqueness of your business in this section. You want to hook the reader (potential investors), so they want to keep reading your plan. In other words, get the investors invested.

2. Your services

Turning your skills into a service is the first step to becoming a freelancer. As a freelancer, it’s your responsibility to understand your clients’ problems and position your skills in a way that will resolve their issues. To do this, you’ll need to know how your skills can help a prospective client. You’ll want to use this insight as the foundation of how you package your skills as a service.

In your freelance business plan, develop a brief description of each service you plan to offer clients. Try to concisely explain what you’ll do and outline the process you’ll use to execute that service.

You should also cover how you’ll offer your services to clients. Will you have packages? Will you only do work on a per-project basis? You can also include other details, such as if you’ll charge rush fees or how many free revisions you’re willing to do.

Planning for more than one business income stream can help make your business more resilient.  This doesn’t mean you need to launch something entirely new, though—you can funnel your knowledge into new revenue streams that are complementary to what you already do. For example, you could expand your service offering by applying your existing skills to a new niche or repackaging your services in a user-friendly way that provides clients multiple ways to start working with your freelance business.

(And if you are looking to develop a new skill, check out some of the most in-demand freelance jobs and skills right now.)

3. Target market or target audience

After detailing your unique brand story, your next step is to identify the target market for the services you offer. If you’re unsure about who your target audience is, start by thinking about potential clients. Are they in a specific industry? Do they hold a particular role or level of education or common interests? 

As you think about these potential clients, create a list of their similar characteristics. This will allow you to develop a buyer persona for deeper insight into who they are, what problems they have, and how you can solve those problems.

4. Competitor differentiation (your niche)

In the world of freelancing, you’ll have competition. This section of your freelance business plan is all about getting to know your competitors. You should identify what your competition is doing and how you’ll do things better. You’ll have to be aware of where you stand and how your services compare. Start by conducting a market analysis and asking yourself the following questions:

• How will I be different?
• What is my unique niche of operation?
• What will make my freelance services stand out?
• How can I provide more value than my competitors?
• What are my competitors charging, and how is their pricing structured?
• What unique value do I bring to my clients that my competitors can’t offer?

Keep in mind that competitors aren’t limited to just freelancers offering the same services. You may also face competition from agencies, established businesses, software and technology firms, and more. You could even face competition from AI tools like ChatGPT. 

5. Goals, milestones, and timelines

Every business should define an initial revenue target, as setting sales goals is the backbone of strategic business planning. 

The first step is to ask yourself how much money you want to make inside a specific time frame, such as in the next three to six months. Let’s say your financial goal is to make $12,000 over the next six months. To reach that amount, determine how many clients you’d need to acquire, and at what rate, to make it happen (e.g., four new clients each paying $3,000 for a package of blog posts.)

After determining your target amount and client volume, setting milestones with timelines is an essential part of freelancing success. These timelines can help you focus and use your time more efficiently. Deciding to “go for it” and then improvise as needed may not get you the results you want. Similar to the overarching business planning process, you need to take a moment and get more specific on the things you want to accomplish. Important smaller milestones might include:

• Getting “x” number of followers per week on social media
• Sending “x” number of project proposals per week
• Having “x” number of clients in six months
• Doubling your income in one year

It isn’t enough to simply state a number, either. You’ll want to think through and outline how you plan to achieve these goals. 

• What kind of advertising will help you gain more followers online?
• How can you improve your website to entice more clients?
• What specific industries or niches can you target to hit your goals?

6. Client acquisition and management

If you don’t know how to build a stable client base, your chances of long-term business success are slim. In this section, your objective is to explain how you’ll create a steady stream of ideal clients and how you’ll be able to gain their trust to become repeat customers. 

Freelancing is about forming and strengthening relationships. After meeting a client and agreeing on services, it’s your responsibility to meet or exceed the client’s expectations. Doing so repeatedly builds a strong relationship between freelancer and client. 

How to find new clients

Building a stable client base is your ticket to freelancing success. However, getting clients to come to you, especially when you’re just starting, isn’t an easy task. Your success in acquiring the first few clients comes down to your ability to find the clients in your target market and connect with them in a way that showcases your ability to solve their problems. Consider the following questions about how you’ll grow your business and find new freelance clients:

• What are your client’s problems? How much do you know about possible solutions?
• How can you position your services as a solution to one or more key problems?
• What ways can you represent your past successes (i.e. your portfolio, case studies, etc.)?

If you have a plan for these items, your chances of getting that first and second client increase dramatically. If you’re entirely new to your line of work and don’t have an established portfolio yet, don’t stress. Creating mock-up designs or doing a volunteer project for a local nonprofit can help you build out your portfolio and practice your skills at the same time. 

With that, there are many different places to find those clients. Upwork is the world’s work human and AI-powered marketplace, with thousands of freelance opportunities posted every day.

How to keep clients and grow your business

Long-term growth will usually depend on how well you can keep clients happy so that they’ll come back for more projects. After all, clients tend to stick around with those who consistently provide good results.

How often do you reach out to companies you’ve worked with in the past? Satisfied clients can bring tremendous value to your business through repeat purchases and referrals. To determine how you can keep clients happy, ask yourself questions such as:

• How often can I go the extra mile?
• What are the most effective ways to communicate with clients?
• What is the best way for me to engage new clients?
• How well can I simplify things and make it easier for them?
• How can I reward those who are loyal?

As you grow, it may become challenging to balance the number of clients you have and the number of projects you’re working on at any moment. You don’t want to overcommit yourself and, if you already have a good routine, taking on more work can feel like a risk. However, greater demand gives you the luxury of options such as raising your rates, being more selective about the projects you take on, or expanding into an agency.

7. Marketing plan and sales strategies

The next thing to include in your freelance business plan is a marketing and sales strategy. Marketing isn’t a one-size-fits-all type thing. It’s essential to have your marketing strategies listed in your freelance business plan so that you can track your marketing success and learn to draw in your prospective clients more effectively. Create a practical approach that emphasizes your business strengths and reaches qualified leads, all without taking up too much of your time.

Upwork marketplace and freelance platforms

Freelance marketplaces have served as the starting point for many successful freelancing careers. You can find thousands of projects on these platforms, such as Upwork. These platforms can even serve as the primary source of clients and income for growing freelance businesses.

Getting yourself known in these marketplaces can take time and effort. Setting up an engaging and effective profile and perfecting your proposal pitch should be seen as essential steps in growing your business on these platforms. As you build a reputation, you’ll hopefully get to a point where clients on these platforms are coming to you instead of you seeking them out and applying.

Consider these marketing elements when writing your business plan:

• Website and SEO
• Social media advertising
• Digital search ads (PPC)
• Email marketing
• Traditional advertising – TV, radio, print
• Public relations
  

For more ideas and tips, check out Upwork’s article, “How to Market Your Freelance Business.”

8. Financial plan and expenses

Every business needs a budget to cover its expenses. A good financial plan allows you to utilize your budget and prioritize spending effectively. Going through the financial planning process helps you create a list of expenditures that you can prioritize. 

A plan with good financial projections can tell you if your marketing efforts are getting the returns you intended and can even give signals if you need to change your strategies to produce better results. 

If creating a financial plan sounds overwhelming and outside of your comfort zone, you can always use online resources and tools to assist in this portion of your planning, or you can outsource those questions to an accountant or bookkeeping professional.

Best practices to consider when creating your business plan

Plan for the unexpected

Freelancing can be unpredictable. If your business depends on your availability to do the work, it’s crucial to consider what will happen to your business if you’re unexpectedly unavailable. Ask yourself:

• How will you fulfill your client and business needs if you’re gone for a week, a month, a year?
• Do you have a network of other freelancers whom you can ask for help—perhaps as subcontractors—if you’re unable to meet commitments?
• Can someone else communicate need-to-know information to your clients?
• What processes are in place to keep specific areas of your business running even if you’re not there?
• What safeguards and backups do you have for your business information?
• Do you know what resources are available to your business?

Fortunately, you can plan ahead so that you’re prepared when unexpected circumstances arise.

Start saving and create an emergency fund

Markets experience ups and downs, and in freelancing, what may be lucrative at one point can become scarce in another. Securing your finances before starting freelancing full time will save you from a few bad financial decisions and help you during times of economic uncertainty. 

The standard advice is that everyone should have an emergency fund: enough money saved to cover at least three to six months of expenses, depending on your circumstances. When your business is doing well, it’s always a good idea to boost your savings and grow your emergency fund. That way, during lean times when you lack a regular workflow, you’ll still be able to cover your business essentials.

Review and update your freelance business plan

A business plan should be frequently reviewed and proactively updated. You don’t want to wait for an unexpected event and have your business plan helplessly out of date. The U.S. Chamber of Commerce suggests updating your plan at least annually and any time you’re going through a change—or you suspect your competitors have shifted. Updating your document allows you to keep things organized, track your progress, and let you know how well your business is doing so that you can make better decisions.

Start creating your freelance business plan today

Now that you’ve learned the essential elements that a good freelance business plan needs, it’s time to start writing yours. A well-written program provides a clear roadmap for the future, and how detailed the plan is can either make or break a business.

Hire someone to write your business plan for you

If you want to have your business plan as personalized and unique as possible without writing it yourself, hiring expert freelancer business plan writers or consultants is an excellent choice. These professionals have the experience and skill necessary to create a well-polished document that conveys your business objectives. Just make sure to find one who can effectively express your business objectives and represent your business.

Put your plan into action

Finally, you’ve outlined your business goals, ideas, budget plans, client acquisition strategy, and many other vital aspects of your new freelance venture. Make sure that you understand this plan inside and out. It’s going to serve as your guide when things get complicated and confusing.

After doing all of the hard work and planning, it’s time to make sure that everything is executed the way you intended. Keep in mind that a plan isn’t necessarily set in stone. Your business, the market, and you and your team may undergo some changes along the way. It’s essential to update your plan regularly so it always aligns with your goals, objectives, and the things you value the most. Remember your motivation for starting your freelance business journey—this will give you energy, and your business plan will give you focus.  

Once you’re ready to launch your business, you can find your first client on Upwork! Sign up now to begin offering consultations, sending proposals, and building a great name for your brand.