If you are like many, these common finance mistakes that freelancers make may sound familiar.
Making it in business as a freelancer requires a lot of grit.
You know you have grit already, along with many other required qualities, such as great work ethic and attention to detail.
The thing is, a lot of freelancers and business owners are putting in the effort but not getting much back because of certain pitfalls that pounce on you along the way.
The unfortunate truth is, just because you work hard, it doesn’t necessarily mean you are going to be successful.
Here at Xennial Traveler we want you to work smart.
Success is achievable, and with a few tweaks you can reach it!
Here are 5 business finance mistakes freelancers make with their clients that stop you from becoming financially viable.
5. Not saying no to clients – the right way!
Did you know that you can say no to a client…without losing the gig.
It’s all about maintaining your boundaries and conveying them in a manner that makes both you, and the client win.
Here’s an example:
The client asks: “Can you execute this project for less?”
You respond: “Tell me the amount you had in mind and I’ll develop a deliverable that makes sense for that number.”
Here’s another example:
The Client asks: “Can we get unlimited revisions of this creative?”
Instead of responding with no, respond with this:
“Of course, my quote includes two rounds of revisions. After, you can add as many revisions as you like, we will just switch to hourly billing for any addons.”
If you add value, you get paid.
The key is to respond in a non confrontational way. Make the client feel as if you are on their side, listening to their needs.
4. Not upselling to clients you already have.
Generating leads that pay can be tricky. It takes a lot of effort.
Selling extras to existing clients is a lot easier.
Think about it this way, if you sell an extra service to a client, you are reducing your customer acquisition cost.
If you sell this service on a retainer to a client, you are increasing the lifetime value of that customer.
Winner winner!
So how can you do this?
Assess your clients goals and focus on new challenges they are struggling with.
Find the need and reverse engineer the service that you offer that fits that need.
Present the issue and solution to your client and you are off to a great start!
3. Not Charging more when inflation goes up.
Charging extra can be scary.
Many people have this sense of imposter syndrome.
You may ask questions like:
“Am I worth it” or “Maybe I’m not good enough to charge this much.”
Trust me, it’s a trap!
When inflation inevitably hit’s you need to adjust your prices. And who can blame you?
Sure, maybe some clients will complain. But I guarantee you, if they go somewhere else, that other business will have adjusted their prices too.
If they haven’t, they probably won’t be in business for long.
2. Forgetting to charge rush fees.
Picture this,
You have had an extremely productive week, you are about to head into a booked out weekend of leisurely enjoyment.
That’s when the phone rings.
At 9.30pm at night.
You pick up the phone to a stressed out client.
They ask you for an additional deliverable…
To be delivered by Monday.
Don’t panic.
You have two options.
Option 1: Increase the deadline and charge an upsell price, provided it is a task outside the project proposal agreement.
Option 2: Agree to the deadline, but charge a “rush fee” and include an overtime charge if you don’t usually work the weekend.
Remember, you are in control of what happens in your business. You can always take a step back and evaluate the best course of action.
1. Not speaking the client’s language.
Getting on the same page and understanding what makes the client tick, will give you a better chance of keeping that client.
The more clients you keep, the less you have to find!
If you find that clients are dropping off after a few months it means your income might look a bit rocky from time to time.
Try to tailor client conversations so they feel that they are being listened to, especially when it comes to ROI deliverables.
For example: Is the success of this project based on how much is spent, or how much is made?”
You can store the answer as “data” in the back of your mind.
When you execute the project using that data in your list of deliverables your clients are more likely to be satisfied.
With these strategies you will find that you begin making more decisions that make sense, and actually benefit you, rather than put you at a disadvantage so you can avoid these common finance mistakes that freelancers make. Remember, just because you are a business owner, it doesn’t mean you have to always make sacrifices. The entrepreneur’s life is a journey of ups and downs, and trial and error. We’re here to lessen those things, and empower you to achieve the life you’ve always wanted to live.
