Freelancing Barriers to Entry - Let’s Solve Them

Freelancing offers unparalleled flexibility and the freedom to take control of your own work life. However, many aspiring freelancers quickly realize that starting a freelance career comes with a unique set of challenges. These "barriers to entry" can feel daunting and will often stop a lot of people from going after their dreams. Especially outside of their 20s, but with the right strategies, they can be overcome.

Let’s dive into a few ways we can overcome obstacles and get you started on your self-employment chapter! 

Lack of a Portfolio

One of the first things potential clients want to see is a freelancer's portfolio—a collection of work that demonstrates their skills and expertise. If you’re just starting out, you likely don’t have a body of work to showcase. This can be frustrating and might prevent you from getting your foot in the door which can lead to self-doubt and with the lack of business coming through the door lots of people have to look for alternative income sources. 

Here’s our solution. You don’t need paid client work to build a portfolio. Start by creating personal projects that showcase your skills. If you’re a writer, publish blog posts on topics you’re passionate about. Designers can create mock-up projects for imaginary clients or dream brands. Web developers can build demo websites. Consider offering your services for free or at a discounted rate to friends, family, or local small businesses. The goal is to have tangible examples of what you can do to present to clients.

You can also participate in open-source projects, volunteer for non-profits, or offer limited free work for testimonials in exchange. These projects will not only fill out your portfolio but also provide valuable experience so you can get booked! 

Inconsistent Income

Unlike traditional employment, freelancing does not come with a steady paycheck. Many freelancers experience "feast or famine" cycles, where they have too much work one month and none the next. This inconsistency can make freelancing seem like a risky option, especially if you have financial obligations.

To mitigate the stress of fluctuating income, start by building an emergency fund before transitioning fully into freelancing. Aim for three to six months of living expenses saved. This will give you a buffer for any slow seasons.

Another solution is to diversify your income streams. Offer multiple services that cater to different client needs in different industries, such as consulting, teaching, or creating digital products (like e-books, templates or online courses) to sell. Recurring projects or retainer clients—where a client pays you regularly for ongoing work—are a fantastic way to ensure a more consistent cash flow. Look for opportunities to build long-term relationships with clients to secure ongoing work and remember to always have solid contracts in place. We have some in The Freelance Shop should you need them. 

Client Acquisition

Finding clients is one of the most challenging aspects of freelancing, particularly for beginners who don’t yet have a network or reputation in their field. You may spend hours pitching to potential clients only to receive no response.

Start by building your network. Join freelance communities, both online and in-person, to connect with other freelancers who can refer work to you. Utilize social media platforms, like LinkedIn, Twitter (yes we’re still calling it that because it’s not X - let’s be honest) and Threads, to promote your services and engage with potential clients. Attend industry-specific networking events, webinars, and workshops to meet business owners who might need your services. Plus walk your neighborhood! Local small businesses are often people who use freelancers the most so have a walk around or join your community Facebook pages. 

A strong online presence is essential for client acquisition. Build a professional website that showcases your work, services, and testimonials. Use SEO (search engine optimization) strategies to make your website easier to find. Social proof, like client reviews and testimonials, can also make a huge difference. Start collecting them early, as they add credibility.

Pitching is also a crucial skill to hone. Rather than sending generic proposals, personalize each pitch and show potential clients how your work can solve their specific problems. Research the client’s business, and tailor your services to meet their needs.

Don’t forget to check out our blog on the best freelance jobs board to check too! 

Time Management

Freelancers are not just responsible for completing the work they are hired to do; they also have to manage their marketing, client communication, invoicing, and more. Without good time management, this juggling act can lead to burnout, missed deadlines and reduced profitability in their business. 

Create a solid routine and stick to it. Set clear work hours, even if you have the freedom to work whenever you want. Use project management tools like Trello, Asana, or Notion to keep track of your tasks and deadlines. These tools allow you to organize your work into projects and assign due dates, helping you stay on top of things.

Time-blocking is another useful technique. Set aside specific blocks of time in your day for client work, marketing, administrative tasks, and breaks. This can prevent you from spending too much time on non-billable tasks. If managing client communication and admin work becomes overwhelming, consider outsourcing some tasks, like bookkeeping or social media management, to a virtual assistant or another freelancer using our Jobs Board. 

Arguably the most important tip - learning to say no is a powerful skill. It’s easy to take on too much work in the excitement of freelancing, but this can lead to missed deadlines or subpar results. Be realistic about what you can handle.

Legal and Financial Setup

As solopreneurs we often need to handle our own contracts, taxes, and invoicing, which can be complicated and time-consuming, especially if you lack experience with the legal and financial aspects of running a business.

Start by researching the legal requirements in your country or state for freelancers. Do you need to register your business? What are the tax implications? Understanding your obligations will help you avoid costly mistakes down the road. We also love using LegalZoom to avoid the headache or heartache if you miss something. 

Consider using tools to simplify the financial side of freelancing. Software like QuickBooks or FreshBooks can help you keep track of income, expenses, and invoicing. When it comes to taxes, many freelancers find it beneficial to consult with an accountant or financial advisor, especially in the early stages. They can help you set up the right systems and ensure you’re making quarterly tax payments as needed.

We can’t say this loud enough. Contracts are essential for protecting yourself as a freelancer!! A solid contract outlines the scope of the project, payment terms, deadlines, and ownership of work. If you’re unsure about how to draft a contract, there are plenty of contract templates available on The Freelance Shop. However, for more complex projects, it might be worth consulting with a lawyer to ensure you’re covered.

Competition

The freelance market can be saturated, particularly in popular fields like writing, design, and social media management. New freelancers often struggle to stand out from the crowd and may feel overwhelmed by more experienced competitors.

To compete effectively, identify and develop your niche. Rather than being a generalist, focus on a specific industry or type of client. For example, instead of being a graphic designer for all types of businesses, you could specialize in branding for eco-friendly startups. By narrowing your focus, you can position yourself as an expert in your niche, making it easier to attract clients who need your specific expertise.

To stand out, personal branding is key. Showcase your unique personality, values, and skills through your online presence. A well-crafted personal brand can make you more memorable and appealing to clients. Consider sharing content that highlights your expertise, such as blog posts, videos, or tutorials related to your niche.

Finally, don’t undervalue your work. Pricing yourself too low in an attempt to compete with others can backfire by positioning you as a lower-quality option. Do market research with tools like our Rate Sheet to understand what competitors are charging and price your services accordingly. Many clients will pay more for a freelancer who specializes in their industry and demonstrates clear value.

Self-Doubt and Imposter Syndrome

We all have those mean girl voices in our head, especially when we start to experience self-doubt or imposter syndrome—the feeling that we’re not good enough to succeed or that we don’t belong in our field. This can prevent freelancers from pitching to high-value clients or pursuing bigger opportunities.

The thing is, building confidence takes time, but there are practical steps you can take to combat self-doubt. Start by celebrating your wins, no matter how small. Keep a journal or log of your accomplishments, client feedback, and successful projects. This will remind you of your progress and reinforce your abilities.

Surround yourself with a supportive community. Join online freelance communities or local meetups where you can connect with others who understand the challenges of freelancing. Having a network of peers to share advice and encouragement can help you gain perspective and stay motivated.

Finally, focus on continuous learning. As you improve your skills and knowledge, your confidence will naturally grow. Take courses, attend workshops, and stay updated on industry trends. The more you invest in your development, the more prepared you’ll feel to take on new challenges.

Skill Gaps

As business owners we often need to wear multiple hats beyond our core skill set. For example, a freelance graphic designer might also need to handle client communication, project management, and marketing. These additional responsibilities can create skill gaps that hinder success.

Identify areas where you need to improve and actively seek out resources to fill those gaps. There are many affordable online platforms like Udemy, Coursera, and Skillshare where you can learn new skills related to freelancing, from marketing and business development to client communication.

Networking with other freelancers can also help. You don’t need to do everything alone—collaborate with others who have complementary skills. For example, if you’re a web developer struggling with design, partner with a freelance designer to offer a complete package to clients. This can make you more competitive and save you time. Don’t forget to chat to your Fellow FF’s in our Slack Channel. 

Finally, consider outsourcing certain tasks that fall outside of your strengths. For example, if managing your finances is taking up too much of your time, hire an accountant or bookkeeper. Outsourcing frees up your time to focus on what you do best, ultimately increasing your efficiency and productivity.

Freelancing offers so many rewards and autonomy over your life, but the barriers to entry can feel overwhelming at first. From building a portfolio to managing your time and finding clients, the journey requires persistence, creativity, and continuous learning.