How to Turn Your Side Gig into a Business

There are more than 53 million freelancers — 34 percent of the U.S. workforce — in America today. The rise of the internet and proliferation of social networking have revolutionized how we find employment, and it’s not slowing down anytime soon. Whether it’s as a source of supplemental income, a way to satisfy creativity, or an opportunity to build their portfolio, more and more people are turning to a side hustle — gig work that they pursue in addition to their day job. Tapping into a passion project can be lucrative and fulfilling, but turning it into your only venture is no easy feat. Here, I’ve gathered a few tips to help you get there.

1. Set SMART goals
Before you jump feet first into freelancing, it’s important to develop short term and long term goals that set you up for success. For best results, goals should be SMART — specific, measurable, attainable, realistic, and timely.

A few guiding questions to ask yourself before setting freelancing goals:
- What type and size of business has the problems I’m solving with my services?
- What does my ideal client look like?
- How will I find and connect with potential clients?
- How many hours can I dedicate to each client?
- How do I define success?

Once you’ve answered these questions and have nailed down your goals for full-time freelancing, you’ll be in a good position to get your feet wet by taking on a few gigs while you’re still employed. To stay on the safe side, content marketing consultant and startup influencer Ryan Robinson recommends growing your side income to at least 50–75% of your total current income before leaving your full-time job.

2. Specialize (but differentiate) your services
Once you’ve decided what you want from — and what’s realistic for — your freelancing career, you’re well on your way to focusing your services. Everyone admires a Jack of all trades, but when looking for a freelancer, most clients want someone who does one or two things exceptionally well. By specializing your services and building your portfolio with niche projects, you can become an expert in a specific field and charge more competitive prices for your services.

Let’s say you’re a full-stack developer who feels comfortable working with databases, JavaScript, PHP, HTML, CSS, and everything in between. While you might be tempted to take on a project working with back-end technologies one day and front-end the next, by focusing on one of the two, you’re likely to attract more competitive clientele. This isn’t to say that you shouldn’t advertise your skills on other technologies, but you should make it clear where your strengths lie.

3. Set your rates
Technology lets people work from anywhere, which makes freelancing a particularly desirable industry. In 2015 alone, 2.9 million full-time independent contractors were making more than $100,000 per year in the U.S. That’s more than 16 percent of the 17.8 million full-time independent contractors in the U.S. However, it’s not uncommon for budding freelancers to undercharge for their services or work for free. By using reputable platforms that allow you to connect with entrepreneurs who compensate fairly, freelancers can ensure they’re working on projects of mutual interest, and can even bid on projects of interest in exchange for equity compensation in the business.

Before setting your prices at the bare minimum, think of a rate that satisfies your financial needs. You can always increase your rate in the future, but set yourself up for long-term success by starting at a price point that satisfies you. One way to do this is to divide your current paycheck by the average number of hours you work per pay period to determine how much you’re making per hour. When determining a rate for clients, it’s also important to factor in health care, as well as providing for yourself during vacation, and any resources you’ll need to get the job done.

4. Market yourself
You’ve established your goals, defined your services, and set your rates — now it’s time to market yourself. Whether you’re attending the latest freelancers’ meetup or leading a new developers’ workshop, freelancers must consistently make new connections both online and offline to keep projects rolling in. Common practices include: leveraging current networks to see if your contacts have any recommendations, staying in touch with past and current clients to stay top of mind, and continuously refining your portfolio and online freelancing profiles with your latest projects and skills.

Your online presence is key to launching your brand as a freelancer. To quote USA Today, “If a freelancer builds a personal brand and no one can see it, did they even build it all?” Developing an online portfolio of your work is a simple, visual way to show off your skills and establish credibility with potential clients. You don’t have to be a web designer to create a beautiful site, either. Website builders like Squarespace allow you to pull in different elements to build a modern, beautiful, responsive website for desktop and mobile. Be sure to link to your digital portfolio in your freelancing profile, and the rest will happen naturally.

5. Go above and beyond
Finally, the most important thing to do when freelancing is to go the extra mile for your clients. Exceeding client expectations, especially on your first project together, is a surefire way to build trust and draw in highly-competitive projects and clientele. When feasible, deliver projects early or provide clients with small, extra services free of charge. Chances are, you’ll earn a referral or new project from your client and the cycle will continue.

With the proper vision and dedication to goal-setting, specialization, and hard work, you can effectively turn your freelancing hobby into a full-time career.

At Loom, we take a freelancer-first mentality to the on-demand services economy to ensure that you get the opportunity to build quality products you can stand behind. Your next project is just a click away.