The 2019 Freelance Business Plan
Don’t spend hours, days, or weeks building a business plan; that’s old school. Freelancers need a business plan similar to a young startup; it’s called a lean business model and it takes 15–30 minutes to make. It’s flexible, testable, consumable, & most importantly, it’s actionable. When taken seriously, this short task will have you excited about your business, organized, and feeling much more confident about how you approach your business.
Side note — If you wish to turn the business model into a lengthy business plan, feel free, but it’s recommended to do so after you‘ve built a functional business model, as it will save you time. Why? Your business plan will change as soon as you get in front of a customer, so all of that hard work will have been for nothing.
Building out your business model.
This is how you look at your business now; look it over, memorize it, and then print it out when you’ve finished the exercise so you can reference it often. Please take a moment to read each component & what they mean. Great, now when someone asks you about your business you can answer them by talking about these 9 elements that make up your business.
This can represent your current business or a business plan that is yet to be tested. Understand that each component, when tweaked, has the power to make or break your business. This business model should serve as a flexible plan that can be adjusted once it comes into contact with your customers. Once it does, if you do this right, the plan is going to change a lot.
There are nine components to your business model (as seen above). Think of each component as a new lever which can be adjusted to make your business succeed or improve. If you’re trying to get healthy, you don’t solely focus on your arms, do you? No, you probably adjust your diet, exercise more, and sleep more consistently. It’s the same concept, but for your freelance business.
Soon, you’ll realize how many new opportunities lie ahead that you just couldn’t see before. The world is yours so let’s dive in.
1 & 2| The customer segment with a problem
It’s time to get specific. List 2–3 problems that you think a very specific group of people have. In my theoretical example “up and coming female musicians” are my early adopters. This is by far the most important step of the exercise so make sure to spend a little time digging into a very specific problem you think your early adopters have. Later you can go out and have your early adopters rank which problems are the biggest to help you hone in on your offering.
If you’re having a hard time choosing a customer segment, then do this simple SPA exercise with each segment.
Size: What’s the size of the market? 1=small, 2=Medium, 3=Large
Pay: How much will customers pay? 1=A little 2=Some, 3=A lot
Access: How much access do you have to the customers? 1=Weeks, 2=Days, 3=Hours
Multiply Size * Pay * Access. The highest score will be the customer segment you’ll go with for now.
Remember, if you’re not solving a big problem, then the value you’re producing might not be enough to justify the returns needed for your dream lifestyle. In addition, solving problems for people can often feel more inspiring and fulfilling; keep that in mind if quality of life is your kind of thing….
3| Your Revenue Streams
For freelancers, revenue is pretty straightforward. Below are some examples.
Working hourly is pretty standard and will be crucial if you later decide to build out a passive income stream. The feedback and customer development (if tracked) that occurs when working hourly with your customers will inevitably serve as your passive income foundation. If a flexible schedule and consistent income is your jam, then earning a passive income is the sweet spot.
You’ve completed the most important components of your business model. Take a deep breath and when you’re ready, go on over to “Freelance Business Plan |Part 2” to continue the exercise.
Happy Freelancing
-Freelancers at zaaas.io
