How to Become a Freelancer: Start Your Freelance Career

Published Monday 26 January 2026

Table of contents

• What is a freelancer?
• Why consider starting a freelance business?
• Freelancing for beginners
• Marketing your freelance idea
• How to 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
• How to freelance as a side hustle
• Start your freelance journey with confidence
• FAQs on freelancing

Key takeaways

• Develop a comprehensive business plan that includes a SWOT analysis, clear value proposition, target market research, and streamlined administrative systems to establish a solid foundation for your freelance career.
• Build multiple income streams by establishing relationships with several clients rather than depending on a single source, which provides financial stability and reduces risk in your freelance business.
• Master essential negotiation skills by understanding your zone of possible agreement, setting prices confidently first, and learning to balance your worth with market rates before launching your services.
• Create a professional online presence through freelance platforms like Upwork or Fiverr, maintain an updated portfolio showcasing your best work, and use social media strategically to attract potential clients and demonstrate your expertise.

What is a freelancer?

A freelancer is a self-employed person who offers services to clients, with the legal distinction often based on the totality of the relationship, not just the contract.

Instead of working for one company, you work on projects for different businesses. This gives you control over your schedule, where you work, and the projects you take on.

Why consider starting a freelance business?

Freelancing offers self-employed professionals the flexibility to work on their own terms while building multiple income streams. The benefits include:

• Financial stability: Multiple clients and revenue streams reduce dependence on a single income source
• Higher earning potential: Freelancers often command higher rates than in-house employees due to specialised expertise
• Professional growth: Working with diverse clients expands your network, portfolio, and skill development
• Work-life balance: Complete control over your schedule, location, and working hours

Essential skills for successful freelancing

Certain skills are in high demand for freelancers. Consider developing your abilities in areas like digital marketing, content creation, web development, or video editing. Strong communication and time management skills are also vital for managing client relationships and projects effectively.

Freelancing for beginners

Here are the key steps you need to know when starting a freelance business.

1. Pick a freelance business idea

Choosing a freelance business idea starts with identifying skills that match market demand. Popular freelance industries include graphic design, event management, writing, web development, and consulting.

Start with existing skills: Build on expertise you've developed through education or your career. This gives you immediate credibility and a portfolio foundation.

Explore new skills: You can enter new fields by completing training and building a portfolio. Consider areas like photography, personal training, accounting, or web design.

Skill development options: Online courses through Coursera, Udemy, or LinkedIn Learning help you master new skills or strengthen existing ones.

The most important thing is to find the best business idea that suits you and the freelance job market.

2. Choose a freelancing career method to get started

Freelancing career methods vary based on your goals, risk tolerance, and current situation. Choose the approach that fits your needs:

• Independent contractor: Work on specific projects with complete freedom to choose assignments and build a custom portfolio. Tax authorities offer specific guidance for classifying workers to ensure compliance.
• Diversified worker: Offer multiple skill sets (like copywriting and graphic design) while managing various projects simultaneously
• Temporary worker: Take full-time, short-term positions with organisations for steady income and defined timelines
• Moonlighter: Maintain your regular job while building freelance work on the side, providing income stability during the transition
• Freelance business owner: Scale beyond solo work by hiring other freelancers and managing operations as a small business

3. Create a freelance business plan

A freelance business plan outlines your strategy, target market, and financial projections to guide your success and attract potential funding. This roadmap helps you make informed decisions and stay focused on your goals.

You can get started quickly with this free business plan template from Xero, then follow these key steps.

Step 1: Do your SWOT analysis

Before anything else, figure out what your strengths, weaknesses, opportunities, and threats are. A list of these helps you understand your position in the market and highlights areas you need to keep an eye on.

Step 2: 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.

Step 3: 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.

Step 4: Create your distribution system

Knowing how to share your work and reach potential clients is central to your 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 to get initial exposure.

Step 5: Streamline your admin

Freelancing is all about maximising your time. Streamline your business administration as much as possible, so your unpaid hours of work are kept to a minimum. It's also important to be aware that clients in certain industries may be required to report payments made to contractors through a Taxable Payments Annual Report.

Investing in accounting software like Xero and email marketing tools, like Mailchimp, can smooth your business admin and keep you organised.

Step 6: 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 get you on your feet.

Marketing your freelance idea

Marketing your freelance services involves promoting your skills and expertise to attract potential clients. A strong marketing strategy combines personal branding, online presence, and portfolio development.

Why marketing matters: Finding freelance work as a beginner requires consistent self-promotion to build visibility and credibility in your chosen field.

To do this, build:

• A strong online profile
• An active social media presence
• An outstanding portfolio of your past work

Create an online profile and freelance online

A strong resume and portfolio on freelance platforms like Upwork and Fiverr are a great base from which to sell your skills and create interest, and give you access to a varied, flexible and global marketplace.

To attract clients, your online freelancing platform should highlight your professional skills, experience, and past work. creating your own freelance website is an extra way to help do this.

Building a clear and user-friendly website takes time, but it is worth it. Decisions about fonts, colours and copywriting style will have a big impact.

Find out more on how to create a business website.

Use social media

Having social media is expected for businesses, and the same goes for freelancers. Use social platforms like X (formerly Twitter), Facebook and LinkedIn to directly market your freelance business. Posting updates about your work and engaging with your core audience helps build a strong online presence and gives clients a sense of your work.

Build your freelance portfolio

Your freelance portfolio is your calling card to win new clients and demonstrate your expertise. So put up your best work and regularly update it to reflect your growing skills and experience.

It's great if you can include testimonials and high-quality images from your latest projects. You might be lacking paid work examples if you're starting out, so include other work you've completed in your own time to show what you can do.

How to choose a freelance platform

Deciding where to promote yourself as a freelancer depends on the clients you're targeting. Fiverr and Upwork, two popular freelancing platforms, are good places to start.

Upwork is the leading platform for finding freelance jobs online for beginners and experienced freelancers alike. The key to freelancing with Upwork is to create a detailed profile and apply for relevant jobs to build a strong client base.

But if you're looking to start a smaller freelance business, Fiverr could be better for you as it's great for those looking for smaller gigs. This freelance website lets you offer specific services at set prices, making it easier for clients to hire you.

It's also worth checking out freelancing platforms like Freelancer.com and Toptal for more opportunities. Each platform has its own unique features and client base, so choose the one that best aligns with your own skills and interests.

Win your first freelance contracts

Winning your first freelance contracts requires preparation, realistic goal-setting, and key business skills. Success comes from combining technical expertise with strong negotiation and project management abilities.

Essential preparation steps:

• Set realistic goals: Aim for your first contract or a modest income target to build momentum
• Learn negotiation basics: Master pricing strategies and contract discussions before launching
• Develop project management skills: Understand how to deliver work on time and within scope

Learn negotiating strategies before starting your freelance business

Strong negotiation skills are essential when you freelance. You'll be setting your own rates, and getting them wrong means being underpaid or not getting the job at all.

To negotiate your fee successfully, follow these steps:

1. Understand your options. If a client does not hire you, know what other options you have and how many other streams of revenue you can pursue. Aim to avoid underselling yourself while still offering good value for the client. Strike a balance between what your work is worth and what alternatives your client has.
2. Determine your zone of possible agreement (ZOPA). ZOPA, the 'zone of possible agreement', is the range in which agreements can be made that benefit both parties. Understand the market and know the bottom and top range for your work to help you secure your first freelance contract.
3. Set the price first. Begin negotiations with your rate to set the tone of the discussion. Present your pricing confidently and be prepared to justify it based on the value you offer and current market rates.

Harness soft skills and project management with freelancing apps

Being a freelancer isn't just about perfecting and selling your professional skills; you'll need to develop and hone your soft skills too. Confidence, problem-solving skills, and being able to work autonomously all help you win and deliver your work.

Also, strong freelance project management, organisational skills and time management help you meet your contractual obligations and secure repeat business.

To keep on top of it all, remember these three things:

Commitment

Before starting a project, make sure both you and the client are clear on the project's terms. Clearly communicate any expectations and get commitment from the client to the project's timeline and goals in writing so you all know where you stand.

Accountability

Set clear responsibilities and regularly review progress so you can deliver the project successfully. So regularly review processes, make sure everyone involved in a freelance project knows what they're responsible for, and hold team members accountable.

Time management

Tracking a project, either manually or by using software, helps you monitor its progress, anticipate delays, and let the client know in advance.

Apps for freelancers that quote, track, invoice and monitor money, such as Xero Projects, free up your time so you can spend more of it on your work. Time management for freelancers is the bedrock of a successful career and will help keep your business on track.

Get these soft skills right and you'll deliver your best work, helping you satisfy your clients and secure more work from them in the future.

Send your first freelancing invoice and get paid

Freelance invoicing is the process of billing clients for completed work and collecting payment. Professional invoicing practices ensure you get paid promptly and maintain strong client relationships.

Before sending your invoice:

• Include all necessary details: Client information, project description, hours worked, and total amount due
• Set clear payment terms: Specify due dates and late payment policies for easier follow-up

Download Xero's freelance invoice template to get started.

And if the client is slow with payment, follow up to give them a polite nudge.

Considerations before starting a freelance business full time

Full-time freelancing means leaving traditional employment to work exclusively as a self-employed professional. This transition requires careful financial planning and risk assessment.

Financial readiness indicators:

• Income replacement: Build freelance income to 50-75% of your current salary before transitioning
• Emergency fund: Maintain 3-6 months of expenses to cover income fluctuations
• Client base: Establish multiple reliable clients to reduce dependence on single income sources

While matching or increasing your regular income is an important consideration, there are others too. For example, you're likely to be working alone for most of the week; is this something you can cope with?

You'll also need to have self-discipline and hold yourself accountable: there's no one to organise your workload. Can you be sure you'll regulate the time and effort you put in to avoid burnout and deliver what your clients expect?

Becoming a full-time freelancer can give you a better work-life balance and provide a greater sense of achievement, but only if you've considered all the implications first.

How to freelance as a side hustle

1. Check your primary employer's policy on freelancing

Employer policies on freelancing vary by company and industry. Many employers accept side freelancing, especially in creative roles.

Common restrictions include:

• Competitor work: Prohibitions on working with direct competitors
• Client conflicts: Restrictions on serving your employer's existing clients
• Industry limitations: Complete bans on freelancing within the same industry

Action required: Review your employment contract and company policies before starting any freelance work to protect your primary income.

2. Freelance in your own time

No matter how busy you get, only ever freelance in your own time. Your primary employer and colleagues should get the same professionalism from you as they always have. You'll have to work out how to effectively manage your time outside of your primary work hours.

Perceptions are important, so avoid taking freelance-related calls at your main job. Make it clear to your clients that they'll have limited access to you during regular office hours. If they're used to hiring freelancers, they should understand this.

3. Find low-budget ways to attract business

Checking freelance job websites, maintaining an online portfolio to showcase your work, and having your own website to showcase your previous projects are all low-cost ways to secure work.

If you're just starting out as a freelancer and don't have a portfolio of work, you could:

• Search online for freelance jobs for beginners, like volunteer positions, to build your portfolio
• Offer to do free or lower-paid work for people within your network in return for experience
• Offer free training or seminars in your field to create networking opportunities for freelancers that could lead to paid work

4. Record your time

Time recording tracks exactly how long tasks take, ensuring accurate invoicing and better project estimation for future work.

Benefits of time tracking:

• Accurate billing: Create precise invoices based on actual time spent
• Better estimates: Compare actual time against initial projections to improve future quotes
• Project insights: Understand which tasks take longer than expected, even with flat fees or retainers

Recommended tools:MinuteDock and Harvest offer mobile time tracking for easy recording on the go.

5. Deliver what you promise

When you first start your freelance business, you may feel tempted to over-promise to win a job. But that can be damaging. Be realistic about what you can deliver and when, then convey that clearly to the client.

You both must understand the scope of the job from the beginning and agree on the outputs you're expected to deliver.

Do your research before agreeing to a budget or timeline, and protect yourself by confirming what you've agreed to in writing. If expectations seem vague, make an effort to straighten them out. Question every assumption you made when scoping the project, and document the scope and assumptions in your client agreement.

You'll also need to manage expectations. Stay in touch with your client regularly and tell them if something is taking longer than expected so they can plan accordingly.

6. Avoid burnout

When you're freelancing on the side, life can get hectic. Even if you enjoy the extra income and new projects, set realistic expectations so you do not overwork or miss out on family time and protect your mental health.

Overworking can eventually lead to exhaustion and a dip in productivity which can be detrimental to your side hustle. You can avoid burnout by:

• recognising when you have too much work and saying no to new projects
• partnering with other freelancers to share the workload
• getting a bookkeeper or accountant to take care of your finances
• taking time off

7. Create a goal to work towards

Give yourself a clear, defined objective when you're starting out, to give you incentive and purpose. This could be setting up the business or having the chance to work on a pet project.

Once you're up and running, keep reviewing your goals along the way. Make sure the type of work you're doing serves those aims and ask yourself the following questions:

• Is it fun?
• Is it profitable?
• Am I attracting the sorts of jobs (and clients) I want to work on?
• Is freelancing still worthwhile for the time I'm putting in? If not, what do I need to change?

8. Bookkeeping for freelancers: know your tax obligations

As a freelancer you are classed as self-employed and are responsible for your own taxes. Here are some key tax tips for freelancers to take the headache out of your bookkeeping:

• Set up a bookkeeping system. Bookkeeping for freelancers is essential as it helps you track your expenses, plan payments and monitor your accounts, so you're ready at tax time.
• Seek professional help from a financial advisor to help organise your bookkeeping and to make sure you're tax compliant.
• Set aside money from each payment you receive from clients so you have enough saved for your tax contributions.
• Know which expenses you can claim, and which you can't. Common tax-deductible expenses are home office supplies, work-related travel, and marketing costs.

Even if you see your extra work as a side hustle, you may still need to sign up as self-employed and pay taxes on any money you make; for example, in New Zealand, you must register for goods and services tax (GST) if you earn over $60,000 in a year.

Start your freelance journey with confidence

Starting as a freelancer is a big step, but with the right preparation and tools, you can build a successful business. By following these steps, you can manage your finances, find clients, and grow your career on your own terms.

Take control of your business finances from day one. Try Xero for free.

FAQs on freelancing

Here are answers to some common questions about freelancing.

Can I freelance with no experience?

If you have no experience, first consider what you'd like to do. Some of the most in-demand jobs for freelancers include copywriters, graphic designers, accountants, bookkeepers, web designers, coders and digital marketers. Once you've decided on a job, you can start learning and gaining experience in this field.

How can beginners start freelancing?

When starting a small business and looking for your first client, first establish what kind of work you'd like to sell and then make sure your skill set is relevant. Once you know what you'll be doing and how much you're going to charge, you'll need to market your business and build a portfolio that showcases relevant and high-quality work.

How do freelancers get paid?

You can get paid in several different ways, depending on what you have agreed with the client. Most freelancers are paid via bank transfer but some clients might prefer to pay by cheque or secure payment portals like PayPal.

As a freelancer, you have flexibility with how you're paid and how often. You'll need to establish your payment terms – will you work on a project basis or a retainer? When will you send invoices, and when is payment required? Include this information in the contract you send to your client.

Learn about sending invoices with Xero.

How do I accept freelance payments?

If you're starting your freelance journey and need a way to accept payments from clients, it's worth considering a payment processing solution. Solutions like the option to accept payments online in Xero enable you to send your invoice with a 'Pay now' button to make it easier for your clients.

Is freelancing a good career?

Freelancing can be a great option, with the opportunity to earn more than you would in employment. You'll also be your own boss, manage your own time, and have more control over your work-life balance. But income isn't always guaranteed. So while freelancing can be a good career move, it takes a lot of time and hard work to become a successful freelancer.