How to start freelancing and win your first clients

Published Thursday 2 April 2026

Table of contents

• Why consider starting a freelance business?
• How much can you earn as a freelancer?
• What you're giving up when you leave employment
• Considerations before starting a freelance business full time
• Freelancing for beginners
• 1. Pick a freelance business idea
• 2. Choose a freelancing career method to get started
• 3. Create a freelancing business plan
• 4. Market your freelance idea
• 5. Choose a freelance platform
• 6. Win your first freelance contracts
• 7. Send your first freelancing invoice and get paid
• How to freelance as a side hustle
• Manage your freelance business with Xero
• FAQs on freelancing

Key takeaways

• Build a financial safety net of three to six months' expenses and grow your freelance income to 50-75% of your current salary before transitioning to full-time freelancing.
• Create a strong online presence by developing detailed profiles on freelance platforms, building a professional portfolio with your best work, and maintaining an active social media presence where your target clients spend time.
• Set clear project expectations by defining scope, timelines, and deliverables in writing before starting work, and communicate proactively with clients to avoid misunderstandings and build trust.
• Track your time consistently using apps or software to invoice accurately, understand how long projects really take, and price future work more effectively.

Why consider starting a freelance business?

Freelancing lets you work for yourself, choose your clients, and set your own schedule. More people are choosing this path as remote work becomes the norm.

Here's why freelancing appeals to so many professionals:

• Financial diversification: Multiple clients reduce your dependence on a single income source.
• Higher earning potential: Freelancers often charge more than in-house employees for the same work, with 78% of CEOs asserting that top freelancers contribute more value than their degree-holding counterparts.
• Faster professional growth: Working across different projects expands your network and portfolio.
• Schedule flexibility: You control when, where, and how much you work.

How much can you earn as a freelancer?

Freelance earnings vary widely based on your skills, experience, and industry. Some freelancers earn more than salaried employees in similar roles, while others supplement their income with part-time work.

Factors that affect your earning potential include:

• Your niche: Specialised skills like software development or financial consulting typically command higher rates.
• Experience level: Established freelancers with strong portfolios earn more than beginners.
• Geographic location: Rates vary by region, though remote work is narrowing these gaps.
• Client type: Enterprise clients often pay more than small businesses or individuals.

In your first year, focus on building your client base and gathering testimonials. Most freelancers increase their rates significantly after establishing a track record of quality work.

What you're giving up when you leave employment

Freelancing offers flexibility and independence, but it also means giving up benefits that come with traditional employment. Understanding these trade-offs helps you make an informed decision.

When you leave employment, you lose:

• Regular income: Freelance earnings fluctuate based on client demand and project availability.
• Employer-provided benefits: Health insurance, pension contributions, and paid leave become your responsibility.
• Paid time off: Holidays and sick days mean no income unless you've built them into your rates.
• Workplace structure: No set hours, colleagues, or manager to provide accountability.
• Employer-handled admin: You're responsible for taxes, invoicing, and business expenses.

These trade-offs don't make freelancing a bad choice. Many freelancers find the benefits outweigh what they've given up. For example, while 55% of gig workers agree their work allows for flexible hours, only 35% feel it provides true work-life balance. But going in with realistic expectations helps you prepare financially and emotionally.

Considerations before starting a freelance business full time

Going full-time as a freelancer requires careful planning. Don't quit your job until you've built a financial cushion and proven you can find consistent work.

A common benchmark is to grow your freelance income to 50% to 75% of your current salary before making the transition. Beyond income, consider these readiness factors:

• Financial runway: Do you have savings to cover three to six months of expenses?
• Consistent client pipeline: Are you regularly winning new work?
• Self-discipline: Can you manage your workload without external structure?
• Isolation tolerance: Are you comfortable working alone most of the time?
• Burnout awareness: Can you set boundaries to protect your wellbeing?

Full-time freelancing offers flexibility and independence, but only if you've prepared for the challenges that come with it.

Freelancing for beginners

To start freelancing, you need to choose a service to offer, find your first clients, and set up a system to get paid. Here are the key steps to launch your freelance business:

1. Pick a freelance business idea
2. Choose a freelance method
3. Create a freelance business plan
4. Market your idea
5. Choose a freelance platform
6. Winning your first contracts
7. Send your first invoice and get paid
8. Common questions answered

1. Pick a freelance business idea

Your freelance business idea should combine your existing skills with market demand. Start by researching which roles hire freelancers most often. In 2023, nearly half of all freelancers provided knowledge services like computer programming, marketing, IT, and business consulting.

In-demand freelance services include:

• Graphic design and visual content
• Writing and content creation
• Web development and coding
• Accounting and bookkeeping
• Virtual assistance and admin support
• Photography and videography
• Social media management

Build on skills you already have from your education or career. If you want to try something new, invest time in training and create sample work for your portfolio.

Online learning platforms can help you upskill quickly:

• Coursera for structured courses
• Udemy for practical tutorials
• LinkedIn Learning for professional development

2. Choose a freelancing career method to get started

Your approach to freelancing depends on your lifestyle, risk tolerance, and goals. Here are five ways to structure your freelance career:

• Independent contractor: Work on specific projects with freedom to choose assignments and build a portfolio that suits you.
• Diversified worker: Offer multiple skill sets (such as writing and design) and juggle different project types simultaneously.
• Temporary worker: Take full-time positions for short-term contracts with more predictable income.
• Moonlighter: Fit freelance work around your regular job while maintaining the stability of salaried employment.
• Freelance business owner: Build your own business, hire other freelancers, and manage operations and staff.

3. Create a freelancing business plan

A business plan helps you clarify your goals, identify your ideal clients, and prepare for challenges. Download our free business plan template and follow these steps:

Do your SWOT analysis

Before anything else, identify what you do well, where you struggle, what opportunities exist, and what threatens your success. Listing these helps you understand where you stand in the market and highlights areas to watch.

Create a value proposition

Write down what you offer and how it makes you unique. It could be your pricing, experience, business model, or distribution system. Clearly articulating how your freelance services stand out from the competition will make applying for work, and winning it, that much easier.

Find your target market

Spend some time identifying and researching your target market. Think about who needs your services, where they are, and what type of business they are. Knowing this helps you to target the right companies and focuses your marketing efforts.

Create your distribution system

Knowing how to share your work and reach potential clients is essential for success. Build a strong social media presence to display your work, and have a clear and well-designed website to reach new clients around the world. Freelance platforms like Upwork or Fiverr can help you get initial exposure.

Streamline your admin

Freelancing requires you to maximise your time. Streamline your business administration as much as possible to minimise your unpaid hours of work. Investing in accounting software like Xero and email marketing tools like Mailchimp can smooth your business admin and keep you organised.

Get funding

Every business needs funding to get going. Having a budget outlined and allocated for essentials like creating a website, marketing materials and working capital will help you launch your freelance business. Cost-effective ways to finance your business, such as personal savings, crowdfunding, or small business loans, can help you get started.

4. Market your freelance idea

Marketing yourself as a freelancer means making it easy for potential clients to find you and trust your expertise. Without a marketing strategy, even skilled freelancers struggle to find consistent work.

Focus on building these three essentials:

• A strong online profile: Create detailed profiles on freelance platforms that highlight your skills and experience.
• An active social media presence: Share your work and engage with your target audience on platforms they use.
• An outstanding portfolio: Showcase your best work with clear examples of results you've delivered.

Create an online profile

Your online profile is often the first thing potential clients see. A strong profile on platforms like Upwork and Fiverr gives you access to a global marketplace of opportunities.

Make sure your profile highlights your professional skills, relevant experience, and examples of past work. Include specific results where possible.

Consider creating your own freelance website as well. A professional website takes time to build, but it gives you full control over your branding, from fonts and colours to how you describe your services.

Learn how to create a business website.

Use social media

Social media helps you reach potential clients and demonstrate your expertise without spending money on advertising.

Here's how to use social platforms effectively:

• Choose the right platforms: Focus on where your target clients spend time, such as LinkedIn for B2B services or Instagram for visual work.
• Share your work regularly: Post updates about projects, insights from your field, and examples of your expertise.
• Engage with your audience: Respond to comments and join conversations relevant to your niche.

Build your freelance portfolio

Your portfolio proves to clients that you can deliver results. It's often the deciding factor in whether someone hires you.

Build an effective portfolio by following these steps:

• Feature your best work: Quality matters more than quantity.
• Include testimonials: Add client feedback wherever possible.
• Use high-quality images: Present your work professionally.
• Update regularly: Refresh your portfolio as your skills grow.

If you're just starting out and lack paid work examples, include personal projects, volunteer work, or sample pieces that demonstrate your capabilities.

5. Choose a freelance platform

The right freelance platform depends on your services and the type of clients you want to attract. Here's how the main platforms compare:

• Upwork: Best for finding varied project work across industries. Create a detailed profile and apply for jobs to build your client base.
• Fiverr: Ideal for offering specific services at set prices. Works well for smaller gigs and productised services.
• Freelancer.com: Offers a wide range of project categories with a bidding system for jobs.
• Toptal: Focuses on top-tier talent in software, design, and finance. Requires a rigorous screening process.

Choose the platform that matches your skill level, service type, and target clients.

6. Win your first freelance contracts

Winning your first freelance contracts requires persistence and preparation. Most freelancers face rejection before landing their first paying client.

Set realistic early goals to build momentum:

• First milestone: Secure one paying client, regardless of project size.
• Income target: Aim for a modest monthly amount you can build on.
• Portfolio goal: Complete three to five projects you can showcase.

Before you start pitching, learn the basics of negotiation and project management. These skills help you close deals and deliver work that leads to repeat business.

Learn how to negotiate before starting your freelance business

Negotiation determines how much you earn as a freelancer. Set your rates too low and you'll struggle to make a living. Set them too high without justification and you won't win work.

Follow these three steps to negotiate effectively:

1. Understand your alternatives: Know what other opportunities you have if this client doesn't hire you. This knowledge helps you avoid underselling yourself while staying competitive.
2. Determine your pricing range: Research market rates for your services. Identify the minimum you'll accept and the ideal rate you want to achieve.
3. State your price first: Lead negotiations with your rate to set the tone. Present your pricing confidently and be ready to explain the value you deliver.

Use soft skills and project management with freelancing apps

Freelancing success depends on soft skills as much as technical expertise. Confidence, problem-solving, and self-discipline help you win work and deliver results.

Strong project management keeps clients happy and leads to repeat business. Focus on these three areas:

• Commit clearly: Clarify project terms before starting work. Get timelines, deliverables, and expectations in writing so both parties know where they stand.
• Stay accountable: Take responsibility for your deadlines and quality. Review your processes regularly and address issues before they affect the client.
• Time management: Track your projects using software like Xero Projects. Monitor progress, anticipate delays, and communicate proactively with clients.

7. Send your first freelancing invoice and get paid

Sending your first invoice is the final step in completing a freelance project. Professional invoicing helps you get paid on time and leaves a positive impression.

Before sending your invoice, check that you've included:

• Your business details: Name, address, and contact information.
• Client information: Company name and billing address.
• Invoice number and date: For your records and theirs.
• Clear description of work: What you delivered and when.
• Payment terms: Due date and accepted payment methods.
• Total amount due: Including any applicable taxes.

Download Xero's freelance invoice template to get started.

If payment is late, follow up with a polite reminder. Most late payments result from oversight rather than intent.

How to freelance as a side hustle

If you want to start freelancing while keeping your full-time job, follow these steps to build your side business successfully.

Check your primary employer's policy on freelancing

Check your employment contract and company policy before taking on freelance work. Many employers allow side projects, but restrictions often apply.

Common policy restrictions include:

• Competitor work: You may be prohibited from working with competing businesses.
• Client conflicts: Direct work with your employer's clients is often forbidden.
• Industry limitations: Some contracts restrict freelancing within your industry entirely.

Review these policies carefully to protect your primary income while building your freelance business.

Freelance in your own time

Keep your freelance work separate from your primary job. This is manageable for many, as research shows 70% of people with side gigs spend less than five hours per week on them. Your employer and colleagues should see the same professionalism they've always received.

Protect your reputation by following these guidelines:

• Work only in your own time: Complete freelance tasks outside your regular work hours.
• Avoid freelance calls at your main job: Handle client communications during breaks or after hours.
• Set clear boundaries with clients: Let them know your availability is limited during business hours.

Find low-budget ways to attract business

You don't need a large budget to attract freelance clients. Focus on free and low-cost strategies that build your visibility and credibility.

If you're starting without a portfolio, try these approaches:

• Search for beginner-friendly opportunities: Look for volunteer positions or entry-level gigs that let you build samples.
• Offer discounted work to your network: Trade lower rates for testimonials and portfolio pieces.
• Host free workshops or training: Share your expertise to create networking opportunities that lead to paid work.

Record your time

Time tracking helps you invoice accurately and understand how long projects really take. Even with flat-fee arrangements, recording your hours improves future estimates.

Track your time using mobile apps like MinuteDock or Harvest. Consistent tracking shows you where your time goes and helps you price future projects more accurately.

Deliver what you promise

Resist the temptation to over-promise when starting out. Unrealistic commitments damage your reputation and lead to difficult client relationships.

Protect yourself and your clients by setting clear expectations:

• Define the scope clearly: Agree on exactly what you'll deliver before starting work.
• Put everything in writing: Document timelines, deliverables, and assumptions in your contract.
• Clarify vague requirements: Ask questions until expectations are specific and measurable.
• Communicate proactively: Update clients regularly and flag delays before they become problems.

Avoid burnout

Burnout is a real risk when you're balancing freelance work with a full-time job. Overworking leads to exhaustion and declining quality, which ultimately hurts your side business.

Protect your energy and sustainability by taking these steps:

• Recognise your limits: Say no to new projects when your workload is full.
• Partner with other freelancers: Share large projects to reduce individual pressure.
• Outsource your admin: Use a bookkeeper or accountant to handle finances.
• Schedule time off: Build breaks into your calendar to recover and recharge.

Create a goal to work towards

Clear goals give your freelance work direction and help you measure progress. Start with a specific objective, such as earning a set amount or completing a particular type of project.

Review your goals regularly by asking:

• Enjoyment: Am I finding the work fulfilling?
• Profitability: Am I earning enough for the time I invest?
• Client fit: Am I attracting the types of projects and clients I want?
• Sustainability: Is freelancing still worthwhile, or do I need to adjust my approach?

Bookkeeping for freelancers: know your tax obligations

Freelancers are self-employed and responsible for their own taxes. Even if you treat freelancing as a side hustle, you may need to register as self-employed and pay tax on your earnings.

Follow these steps to stay on top of your tax obligations:

• Set up a bookkeeping system: Track expenses, plan payments, and monitor accounts so you're ready at tax time.
• Seek professional advice: Work with an accountant or financial advisor to ensure you're compliant.
• Save for taxes regularly: Set aside a portion of each payment to cover your tax contributions.
• Know your deductions: Claim eligible expenses such as home office supplies, work-related travel, and marketing costs.

Manage your freelance business with Xero

Starting a freelance business takes planning, persistence, and the right tools. From choosing your niche to sending your first invoice, each step builds toward a sustainable independent career.

Xero helps freelancers manage the financial side of their business with less effort:

• Professional invoicing: Create and send invoices that get you paid faster.
• Expense tracking: Monitor business costs and stay on top of deductible expenses.
• Time tracking: Use Xero Projects to log hours and bill clients accurately.
• Tax preparation: Keep organised records that make tax time straightforward.

Ready to simplify your freelance finances? Get one month free and focus on what you do best.

FAQs on freelancing

Here are answers to common questions about starting and running a freelance business.

Can I freelance with no experience?

Yes, you can freelance with no experience. Start by choosing a skill you want to develop and build a portfolio through practice projects, volunteer work, or discounted services for your network.

In-demand freelance roles include copywriting, graphic design, accounting, bookkeeping, web design, coding, and digital marketing.

How can beginners start freelancing?

Beginners can start freelancing by following these steps:

1. Choose a service you want to offer.
2. Develop or refine the skills required.
3. Set your pricing based on market research.
4. Build a portfolio showcasing your best work.
5. Market yourself on freelance platforms and social media.

How do freelancers get paid?

Freelancers typically get paid via bank transfer, though some clients prefer PayPal or other payment platforms. You set your own payment terms as part of your client contract.

Decide on these payment details before starting work:

• Payment method: bank transfer, PayPal, or another platform.
• Payment timing: on completion, in instalments, or on a retainer basis.
• Invoice schedule: when you'll send invoices and when payment is due.

Learn about sending invoices with Xero

How do I accept freelance payments?

Accept freelance payments by setting up a payment processing solution that works with your invoicing system. Xero lets you add a 'Pay now' button to invoices, making it easy for clients to pay immediately.

Is freelancing a good career?

Freelancing can be a rewarding career if you're prepared for the challenges. Many freelancers earn more than they did in employment and enjoy greater flexibility and control.

However, income isn't guaranteed, and success requires consistent effort. Gig workers are less likely to say they are living comfortably financially, especially those who rely on app-based platforms for work.

How much can I realistically earn when starting out?

First-year freelancers typically earn less than experienced professionals while they build their client base and reputation. Focus on landing consistent work rather than maximising rates initially. As you gain experience and testimonials, you can increase your prices.

What's the most important skill for freelancing success?

Self-discipline is the most important skill for freelancing success. Without a manager or set schedule, you need to motivate yourself, meet deadlines consistently, and manage your workload independently.

Do I need to register as a business to start freelancing?

Requirements vary by location. In most cases, you can start freelancing as a sole trader without formal business registration. However, you'll need to register for tax purposes and may need specific licences depending on your industry. Check your local regulations before starting.