How to start freelancing and land your first client

Published Thursday 2 April 2026

Table of contents

• Why consider starting a freelance business?
• Understanding the trade-offs of freelancing
• Freelancing for beginners
• Pick a freelance business idea
• Choose a freelancing career method to get started
• How to freelance as a side hustle
• Create a freelancing business plan
• Market your freelance idea
• Choose a freelance platform
• Win your first freelance contracts
• Send your first freelancing invoice and get paid
• Considerations before starting a freelance business full time
• Manage your freelance business with Xero
• FAQs on starting as a freelancer

Key takeaways

• Start freelancing as a side hustle while keeping your day job to build experience and financial security before transitioning to full-time self-employment.
• Create a strong online presence by building detailed profiles on freelance platforms like Upwork and Fiverr, showcasing your best work samples and client testimonials in a professional portfolio.
• Set competitive rates by researching what other freelancers charge for similar services, then price slightly below market rate initially to build your portfolio and reviews before increasing rates over time.
• Track all income and expenses carefully using accounting software, and set aside a percentage of each payment for taxes to avoid problems at tax time and understand your true profitability.

Why consider starting a freelance business?

Freelancing gives you control over your career, income, and schedule. Here are the key benefits:

• Financial diversification: Multiple clients and revenue streams reduce your dependence on a single income source
• Higher earning potential: Freelancers often command higher rates than in-house employees due to their specialist expertise
• Faster professional growth: Working across different projects and clients expands your network and portfolio quickly
• Flexibility and autonomy: Control over your schedule, location, and workload helps you achieve better work-life balance. A survey of full-time freelancers found increased flexibility (60.1%) was their top motive for choosing this style of work.

Understanding the trade-offs of freelancing

Freelancing trade-offs are the benefits you gain and the security you give up when leaving traditional employment. Understanding both sides helps you make an informed decision.

What you're giving up

Leaving employment means losing certain benefits:

• Regular paycheck: Your income becomes variable and depends on client work
• Employer pension contributions: You'll need to fund your own retirement savings
• Paid holiday and sick leave: Time off means no income unless you've planned for it
• Built-in professional network: You'll need to actively maintain and grow your connections
• Employer-provided benefits: Health insurance, training budgets, and other perks disappear

What you're gaining

In return for these trade-offs, freelancing offers significant advantages:

• Flexibility and autonomy: Control over your schedule, location, and the work you accept
• Higher earning potential: Freelancers often earn more per hour than employees in similar roles. One study found freelancers earn more on average on an hourly basis, though this income is pre-tax.
• Multiple income streams: Working with several clients reduces dependence on a single employer
• Faster portfolio growth: Diverse projects help you develop skills and build your reputation quickly
• Direct client relationships: You build your own reputation rather than contributing to an employer's brand

Weigh these trade-offs carefully based on your personal circumstances and risk tolerance.

Freelancing for beginners

Follow these steps to start freelancing from scratch and land your first paying client:

1. Pick a freelance business idea
2. Choose a freelancing career method
3. Freelance as a side hustle
4. Create a freelancing business plan
5. Market your freelance idea
6. Choose a freelance platform
7. Win your first freelance contracts
8. Send your first invoice and get paid
9. Consider going full time
10. Answer common questions

Pick a freelance business idea

A freelance business idea is the specific service or skill you'll offer to clients. Choose something that matches both your expertise and market demand.

Here's how to identify your freelance niche:

• start with existing skills: specialise in something you've already developed through education or work experience
• research market demand: browse freelance platforms like Upwork and Fiverr to see which roles are in demand
• consider upskilling: if you want to try something new, build your skills through online courses. You can find training resources through CareerOneStop or platforms like Coursera, Udemy, and LinkedIn Learning.
• build a portfolio: create samples that demonstrate your abilities, even if they're personal projects

The best freelance business idea combines what you're good at with what clients are willing to pay for.

Choose a freelancing career method to get started

A freelancing career method is the working arrangement you choose based on your lifestyle, risk tolerance, and goals. Here are five common approaches:

• Independent contractor: Work on specific projects with freedom to choose assignments and build a flexible schedule
• Diversified worker: Offer multiple skill sets (such as copywriting and graphic design) and juggle different project types simultaneously
• Temporary worker: Take on limited-duration assignments that may be full-time or part-time, with more predictable income
• Moonlighter: Fit freelance work around your regular job to build experience and income before going full-time
• Freelance business owner: Build a small business, hire other freelancers, and manage your own operations and staff

Choose the method that matches your current circumstances and long-term goals.

How to freelance as a side hustle

Starting freelancing while keeping your day job lets you build experience and financial security before making the leap to full-time self-employment.

Check your primary employer's policy on freelancing

Before starting freelance work, review your employment contract and company policies. Many employers have rules about outside work.

Look for these common restrictions:

• non-compete clauses: limits on working with competitors or in your industry
• conflict of interest policies: rules about work that could affect your job performance
• intellectual property agreements: ownership of work created outside office hours
• approval requirements: some employers require written permission for side work

If you're unsure, ask your HR department or manager directly. Being transparent helps avoid problems later.

Freelance in your own time

Keep your freelance work completely separate from your main job. Working on freelance projects during office hours can damage your reputation and put your employment at risk.

Here's how to manage your time effectively:

• set clear boundaries: only work on freelance projects during evenings, weekends, or days off
• communicate availability: tell clients upfront when you're available to respond and work
• use separate devices: keep freelance work off your employer's equipment and networks
• protect your energy: ensure freelance commitments don't affect your job performance

Find low-budget ways to attract business

You don't need a large marketing budget to find your first clients. Focus on free or low-cost tactics that build your reputation.

Try these approaches:

• use freelance platforms: create profiles on Upwork, Fiverr, or industry-specific job boards
• maintain an online portfolio: showcase your work on a simple website or portfolio platform
• network on social media: connect with potential clients on LinkedIn and industry groups
• offer introductory rates: consider lower prices for initial projects to build reviews and testimonials
• ask for referrals: tell friends, family, and former colleagues about your services

Record your time

Time tracking helps you bill accurately, understand your true hourly rate, and estimate future projects more reliably.

Here's why tracking time matters:

• accurate billing: charge clients for all the hours you work
• profitability insights: understand which projects and clients are most profitable
• better estimates: use past data to quote more accurately on future work

Use time tracking apps like MinuteDock, Harvest, or Toggl to record hours automatically. Review your data regularly to spot patterns and improve your efficiency.

Deliver what you promise

Your reputation as a freelancer depends on meeting commitments. Overpromising and underdelivering damages client relationships and leads to negative reviews.

Here's how to deliver reliably:

• be realistic about timelines: only commit to deadlines you can meet, even if unexpected issues arise
• confirm scope in writing: document exactly what you'll deliver before starting work
• communicate proactively: update clients on progress and flag potential delays early
• build in buffer time: add extra time to estimates to account for revisions and unexpected challenges

Avoid burnout

Freelance burnout happens when you take on too much work without adequate rest. Balancing a day job with freelancing increases this risk significantly.

Here's how to protect yourself:

• set workload limits: decide how many freelance hours you can sustain each week
• say no to projects: turn down work that doesn't fit your schedule or rates
• take regular breaks: schedule time off, even when demand is high
• outsource admin tasks: consider hiring help for bookkeeping, invoicing, or other administrative work
• monitor your energy: watch for signs of exhaustion and adjust your commitments accordingly

Create a goal to work towards

Clear goals keep you motivated and help you measure progress. Without targets, it's easy to drift or lose momentum.

Set specific, measurable goals such as:

• income targets: earn a specific amount per month from freelancing
• client goals: secure a certain number of regular clients
• portfolio milestones: complete projects in specific industries or with notable clients
• transition timeline: set a date for going full-time if that's your aim

Review your goals monthly and adjust based on what you've learned. Celebrate small wins to stay motivated.

Bookkeeping for freelancers: know your tax obligations

Freelance bookkeeping means tracking your income, expenses, and tax obligations. Good records help you understand your profitability and avoid problems at tax time.

Here's what you need to do:

• track all income: record every payment you receive from clients
• log business expenses: keep receipts for deductible costs like software, equipment, and travel
• set aside tax funds: save a percentage of each payment for income tax and other contributions. In the US, for example, the self-employment tax rate is 15.3% to cover Social Security and Medicare.
• understand deductible expenses: common deductions may include home office costs, professional subscriptions, and business travel, but rules vary by jurisdiction
• use accounting software: tools like Xero simplify bookkeeping and help you stay organised

Consider working with an accountant, especially in your first year, to ensure you meet all your obligations.

Create a freelancing business plan

A freelance business plan outlines your services, target clients, and how you'll attract and manage work. It helps you stay focused and make informed decisions as you grow.

Follow these six steps to create your plan:

1. Complete a SWOT analysis: Identify your strengths, weaknesses, opportunities, and threats to understand your market position
2. Define your value proposition: Articulate what makes your services unique, whether it's pricing, experience, or approach
3. Identify your target market: Determine who needs your services, where to find them, and what problems you solve for them
4. Build your distribution system: Create an online presence through social media, a professional website, and freelance platforms like Upwork or Fiverr
5. Streamline your admin: Use tools like Xero for invoicing and accounting, and Mailchimp for client communications
6. Plan your funding: Budget for essentials like website creation, marketing, and working capital using personal savings, crowdfunding, or small business loans

Get started quickly with a free business plan template.

Market your freelance idea

Marketing your freelance business means making it easy for potential clients to find you and understand what you offer. A strong personal brand helps you stand out in a competitive market.

Focus on building these three assets:

• a strong online profile: create detailed profiles on freelance platforms that highlight your skills, experience, and past work
• an active social media presence: share your expertise on platforms like LinkedIn, X, or Instagram to attract potential clients
• an outstanding portfolio: showcase your best work with clear descriptions of what you delivered and the results you achieved

Create an online profile and freelance online

An online profile puts your skills in front of clients actively looking for freelancers. Platforms like Upwork and Fiverr let you showcase your experience and past work to attract paying clients.

To create a strong profile:

• highlight your key skills and areas of expertise
• include examples of past work or client testimonials
• keep your profile updated as you gain experience

Creating your own website can further enhance your professional presence. Learn how to create a business website.

Use social media

Use social media platforms like LinkedIn, X, and Facebook to promote your services and connect with potential clients.

Here's how to make social media work for your freelance business:

• share examples of your work and insights from your field
• engage with posts from potential clients and industry contacts
• post consistently to stay visible in your network

Build your freelance portfolio

A freelance portfolio is a collection of work samples that demonstrates your skills to potential clients. It's often the deciding factor in whether a client hires you.

Include these elements in your portfolio:

• your best work samples: choose projects that showcase your strongest skills
• client testimonials: add quotes from satisfied clients or colleagues
• clear descriptions: explain what you delivered and the results you achieved
• high-quality images: present your work professionally with clear visuals

If you're just starting out, include personal projects, volunteer work, or sample pieces created specifically for your portfolio.

Choose a freelance platform

Freelance platforms connect you with clients looking for specific services. They handle payments and provide a marketplace where you can showcase your skills.

Here are the main platforms to consider:

• Upwork: allows freelancers to create profiles and apply for client-posted projects, suitable for beginners and experienced freelancers alike
• Fiverr: structured around service listings offered at seller-defined prices, well suited to specific, well-defined gigs
• Freelancer.com: a broad marketplace with competitive bidding on projects
• Toptal: a selective platform for experienced professionals in tech, design, and finance

Choose a platform that matches your skill level and the type of work you want to do.

Win your first freelance contracts

Winning your first freelance contracts takes persistence and a clear strategy. Most freelancers don't land clients immediately, so set realistic expectations and focus on building momentum.

Here's how to improve your chances:

• set achievable goals: aim to secure your first contract or earn a modest income within a specific timeframe
• apply consistently: send tailored proposals to relevant job postings regularly
• build your reputation: deliver excellent work on early projects to earn positive reviews
• learn negotiation skills: understand how to discuss rates and scope confidently

Learn negotiating strategies

Negotiating your rates confidently helps you earn what your work is worth. Here are key strategies:

• research market rates: understand what other freelancers charge for similar services
• set your prices first: stating your rate early establishes a strong negotiating position
• know your minimum: determine the lowest rate you'll accept before entering discussions
• understand ZOPA: the zone of possible agreement is the range where both you and the client can reach a deal

Set your freelance rates

Setting your freelance rates determines how much you earn and how clients perceive your value. Price too low and you'll struggle to sustain your business. Price too high without proof of value and you'll lose opportunities.

Here's how to set rates as a beginner:

• research market rates: check freelance platforms to see what others charge for similar work
• calculate your minimum: add up your expenses and desired income, then divide by billable hours to find your baseline rate
• choose a pricing model: decide between hourly rates, project-based fees, or retainer arrangements based on the work type
• start competitively: consider pricing slightly below market rate initially to build your portfolio and reviews
• raise rates over time: increase your rates as you gain experience, testimonials, and demand

Most beginners undercharge. Track your time carefully to ensure your effective hourly rate covers your costs and goals.

Harness soft skills and project management

Soft skills are just as important as technical expertise when freelancing. One study found that 71% of freelancers agree communication is the most important soft skill, as clients hire freelancers who communicate clearly, meet deadlines, and solve problems independently.

Focus on developing these skills:

• clear communication: keep clients informed about progress, timelines, and any issues
• time management: track your hours and meet deadlines consistently
• problem-solving: handle challenges independently before escalating to clients
• accountability: take ownership of your work and deliver what you promise

Use project management apps like Xero Projects to manage time, quotes, and invoices efficiently.

Send your first freelancing invoice and get paid

A freelance invoice is a document requesting payment for completed work. Sending professional invoices with clear terms helps you get paid on time and maintain good client relationships.

Include these elements in every invoice:

• your business details: name, address, and contact information
• client details: company name and billing address
• invoice number and date: for tracking and reference
• description of work: clear breakdown of services delivered
• amount due: total cost including any applicable taxes
• payment terms: due date and accepted payment methods

Use templates like Xero's freelance invoice template to create professional invoices quickly. If payment is delayed, follow up politely with a reminder email referencing the invoice number and due date. This is a common issue: research shows 85% of freelancers have experienced late payments.

Considerations before starting a freelance business full time

Going full-time as a freelancer is a significant decision. You need to prepare financially and set realistic expectations.

Consider these factors before making the transition:

• financial runway: save enough to cover at least three to six months of expenses
• consistent income: ensure your freelance earnings are stable and predictable
• client pipeline: have enough ongoing work or leads to sustain your income
• benefits replacement: plan for health insurance, pension contributions, and other benefits you'll lose
• self-discipline: assess whether you can stay productive without external structure

Growing your side income gradually reduces the risk of going full-time. Many successful freelancers transition only after their freelance income matches or exceeds their salary.

Manage your freelance business with Xero

Freelancing offers flexibility, control, and the opportunity to build a career around your skills. With careful planning and the right tools, you can successfully transition from traditional employment to a thriving freelance business.

Managing the financial side of freelancing doesn't have to be complicated. Xero simplifies invoicing, expense tracking, and financial reporting so you can:

• send professional invoices: create and send invoices in minutes with built-in payment options
• track expenses easily: capture receipts and categorise business costs automatically
• see your cash flow: understand your financial position with real-time dashboards
• stay tax-ready: keep organised records that make tax time straightforward

Spend less time on admin and more time doing the work you love. Get one month free and see how Xero supports your freelance journey.

FAQs on starting as a freelancer

Here are answers to common questions about beginning your freelance career.

Can I freelance with no experience?

Yes. Many successful freelancers started with no client experience. Choose a skill like copywriting, design, or digital marketing that you can perform competently. Build your abilities through online courses and practice projects, then create a portfolio to demonstrate your skills to potential clients.

How can beginners start freelancing?

Start by choosing a service to offer based on your skills and market demand. Build or improve your abilities through practice and online courses. Create a portfolio showcasing your work, then market yourself on freelance platforms and through professional networking.

What is the most important skill for freelancing?

Communication is the most important skill for freelancing. Clear, professional communication helps you understand client needs, set expectations, and build lasting relationships. Technical skills get you hired, but communication skills keep clients coming back.

How do freelancers get paid?

Freelancers typically receive payments via bank transfer, PayPal, Wise, or through freelance platform payment systems. Establish clear payment terms before starting work, including your rate, payment schedule, and accepted methods. Send professional invoices promptly after completing work.

How do I accept freelance payments?

Set up multiple payment options to make it easy for clients to pay you. Use accounting software like Xero to send invoices with 'Pay now' buttons that let clients pay instantly by card or bank transfer. Also consider accepting payments through PayPal, Wise, or direct bank transfer depending on your clients' preferences.

Is freelancing a good career?

Freelancing can be an excellent career if you value flexibility, autonomy, and the potential for higher earnings. One survey found that freelancers were more likely to report being happy with their work life overall compared to full-time employees. However, it requires self-discipline, consistent marketing, and the ability to manage irregular income. Success depends on your skills, work ethic, and ability to build strong client relationships.

How long does it take to get your first freelancing client?

Most freelancers land their first client within one to three months of actively marketing their services. The timeline depends on your skill set, pricing, and how consistently you apply for work or network. Focus on building a strong profile, applying to relevant opportunities regularly, and asking your existing network for referrals.