How to start freelancing and win your first clients

Published Monday 30 March 2026

Table of contents

• Why consider starting a freelance business?
• What is freelancing?
• 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
• Considerations before starting a freelance business full time
• How to freelance as a side hustle
• Start your freelance journey with Xero
• FAQs on starting as a freelancer

Key takeaways

• Start by identifying a service you can offer based on your existing skills or learn new marketable skills through online courses, then research demand on freelancing platforms to ensure there's a viable market for your chosen service.
• Create a comprehensive business plan that includes a SWOT analysis, clear value proposition, target market identification, and streamlined admin processes using tools like accounting software to manage invoicing and expenses efficiently.
• Build a strong online presence by creating professional profiles on freelancing platforms like Upwork or Fiverr, developing a portfolio showcasing your best work, and maintaining active social media engagement to attract potential clients.
• Set realistic freelance rates through proper negotiation strategies, track your time accurately to understand true project costs, and establish clear payment terms with professional invoicing to ensure you get paid promptly for your work.

Why consider starting a freelance business?

Freelancing offers financial flexibility, professional growth, and control over your schedule. With remote work now common, more people are choosing self-employment as a viable career path, with freelancers projected to become the majority of the US workforce by 2027.

Here are the key benefits of starting a freelance business:

• Financial stability: Multiple clients and revenue streams reduce your dependence on a single income source, and for a growing majority, this has become a viable primary career, with 71% of freelancers relying on it as their main source of income in 2023.
• Higher earning potential: Freelancers often command higher rates than in-house employees due to their specialised expertise, with US freelancers on average able to earn about $99,230 per year.
• Professional growth: Working with different clients expands your network and portfolio faster than traditional employment
• Work-life balance: Control over your schedule, location, and working hours lets you design a lifestyle that suits you

What is freelancing?

Freelancing is self-employed work where you offer services to clients on a project or contract basis, rather than working as a permanent employee. Freelancers set their own rates, choose their clients, and manage their own schedules.

Common freelance arrangements include:

• Project-based work: Completing specific deliverables for a fixed fee
• Hourly contracts: Billing clients for time spent on their work
• Retainer agreements: Ongoing work for a set monthly fee

Unlike traditional employment, you handle your own taxes, don't receive employee benefits, and must find your own clients. The trade-off is greater flexibility, independence, and the potential to earn more by working with multiple clients.

Freelancing for beginners

Starting a freelance business requires choosing a service, finding clients, and managing your finances. Follow these seven steps to launch your freelance career:

1. Pick a freelance business idea
2. Choose a freelancing method
3. Create a freelance business plan
4. Market your freelance services
5. Choose a freelance platform
6. Win your first contracts
7. Send your first invoice and get paid

1. Pick a freelance business idea

Picking a freelance business idea means identifying a service you can offer based on your skills, interests, and market demand. Start by assessing what you already know and what clients are willing to pay for.

Consider these approaches:

• Build on existing skills: Specialise in something you've developed through education or work experience
• Learn something new: Train and build a portfolio in a field that interests you, such as photography, web design, or accounting
• Research market demand: Check freelancing platforms to see which roles have consistent client demand

Online courses from Coursera, Udemy, or LinkedIn Learning can help you upskill and strengthen your service offering.

2. Choose a freelancing career method to get started

Choosing a freelancing method means deciding how you'll structure your work based on your lifestyle, risk tolerance, and income needs. There are several ways to enter freelancing:

• 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 copywriting and graphic design) and juggle different types of projects simultaneously
• Temporary worker: Take full-time, short-term positions with organisations that need contract staff
• Moonlighter: Fit freelance work around regular employment to build income and experience before going full-time, a path many find rewarding, as research shows 75% of workers with a side hustle are highly satisfied with their freelance work.
• Freelance business owner: Start your own business, hire other freelancers, and manage operations and staff

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

3. Create a freelancing business plan

A freelance business plan outlines your services, target market, and financial goals. It helps you make informed decisions and stay focused as you grow. Get started with our free business plan template, and follow these steps:

1. Do your SWOT analysis
2. Create a value proposition
3. Find your target market
4. Create a system to distribute your services
5. Streamline your admin
6. Get funding

1. Do your SWOT analysis

A SWOT analysis identifies your strengths, weaknesses, opportunities, and threats. This helps you understand your position in the market and spot areas that need attention.

2. Create a value proposition

Your value proposition explains what you offer and why clients should choose you. Focus on what makes you unique, whether that's your pricing, experience, or approach. A clear value proposition makes it easier to win work.

3. Find your target market

Your target market is the group of clients most likely to need and pay for your services. Identify who they are, where they operate, and what problems you can solve for them. This focus helps you direct your marketing efforts effectively.

4. Create a system to distribute your services

A system for distributing your services is how you reach potential clients and showcase your work. Build a professional website, maintain an active social media presence, and list your services on freelance platforms like Upwork or Fiverr for initial exposure.

5. Streamline your admin

Efficient admin processes free up time for paid work. Use accounting software like Xero to manage invoicing and expenses. Email marketing tools like Mailchimp can help you stay in touch with clients and prospects.

6. Get funding

Most freelance businesses need some startup capital for a website, marketing materials, and working capital. Consider personal savings, crowdfunding, or small business loans to cover initial costs. Find out more about financing your business.

4. Market your freelance idea

Marketing your freelance services means promoting yourself to attract potential clients. A strong personal brand helps you stand out in a competitive market.

Focus on building these three elements:

• Online profile: Create a professional presence on freelance platforms and your own website
• Social media presence: Share your work and engage with your target audience regularly
• Portfolio: Showcase your best work to demonstrate your skills and experience

Create an online profile and freelance online

An online profile showcases your skills, experience, and past work to potential clients. Platforms like Upwork and Fiverr give you access to a rapidly growing global marketplace, which is projected to reach 24.16 billion US dollars by 2033, where clients actively search for freelancers.

To attract clients, your profile should clearly highlight:

• your professional skills and areas of expertise
• relevant experience and qualifications
• examples of past work or projects

Consider building your own freelance website as well. A clear, user-friendly site with consistent branding reinforces your credibility and helps clients find you outside of platforms.

Find out more on how to create a business website.

Use social media

Social media helps you connect with potential clients and showcase your expertise. Use platforms like LinkedIn, X (formerly Twitter), and Facebook to share your work and engage with your target audience.

Regular posts about your projects, industry insights, and client results build credibility and keep you visible to potential clients.

Build your freelance portfolio

Your freelance portfolio demonstrates your skills and helps you win new clients. Keep it updated with your best and most recent work.

Include these elements in your portfolio:

• Best work samples: Select projects that showcase your strongest skills
• Testimonials: Add client feedback to build trust with prospects
• High-quality images: Use professional visuals to present your work effectively
• Personal projects: If you're starting out, include work completed in your own time to demonstrate your capabilities

5. Choose a freelance platform

Choosing a freelance platform means finding the marketplace that best matches your services and target clients. Different platforms suit different types of work and experience levels.

Here are popular options to consider:

• : A leading platform for beginners and experienced freelancers. Create a detailed profile and apply for jobs to build your client base
• : Ideal for offering specific services at set prices. Works well for smaller gigs and productised services
• : Another large marketplace with varied project types and competitive bidding
• : A selective platform for experienced professionals in fields like development, design, and finance

Choose the platform that aligns with your skills, pricing approach, and the type of clients you want to attract.

6. Win your first freelance contracts

Winning your first freelance contracts requires persistence, clear goals, and strong client communication. Set realistic targets, such as landing your first paid project or reaching a specific income milestone.

Before you start pitching, learn the basics of negotiation and project management. These skills help you price your work fairly, manage client expectations, and deliver results.

Learn negotiating strategies before starting your freelance business

Negotiating freelance rates means setting prices that reflect your value while remaining competitive. Getting this right helps you earn fairly and win more contracts.

Follow these three steps to negotiate effectively:

1. Understand your options: Know what alternatives you have if a client doesn't hire you. This helps you avoid underselling while staying attractive to clients.
2. Determine your ZOPA: The zone of possible agreement is the price range that works for both you and the client. Research market rates to understand your bottom and top range.
3. Set the price first: Lead negotiations with your rate to anchor the discussion. Present your pricing confidently and justify it based on the value you deliver.

Harness soft skills and project management with freelancing apps

Soft skills and project management help you deliver quality work and build lasting client relationships. Confidence, problem-solving, and the ability to work independently are essential for freelance success.

Focus on these three principles:

• Commitment: Clarify project terms, timelines, and goals with your client before starting. Get agreements in writing so everyone knows what to expect
• Accountability: Take responsibility for your deliverables and review your processes regularly. If you work with others, ensure everyone knows their role
• Time management: Track your projects to monitor progress and anticipate delays. Communicate proactively with clients if timelines shift

Apps like Xero Projects help you quote, track time, invoice, and monitor finances, freeing up more time for billable work.

7. Send your first freelancing invoice and get paid

Sending your first invoice marks the completion of your work and starts the payment process. Professional invoicing builds trust and helps you get paid on time.

Before sending your invoice, check these elements:

• Contact details: Include your name, business name, and contact information
• Invoice number: Use a unique reference for tracking and records
• Work description: Clearly list the services delivered and agreed price
• Payment terms: Specify when payment is due and accepted payment methods
• Bank details: Provide the information clients need to pay you

Download Xero's freelance invoice template to get started.

If payment is late, follow up with a polite reminder. Clear payment terms make these conversations easier.

Considerations before starting a freelance business full time

Going full-time as a freelancer requires financial stability, self-discipline, and realistic expectations. Before leaving your regular job, assess whether you're ready for the transition.

Consider these factors:

• Financial readiness: Aim to grow your freelance income to 50–75% of your current salary before making the switch. This provides a financial cushion during the transition
• Working alone: Full-time freelancing often means working independently. Consider whether you're comfortable without daily colleague interaction
• Self-discipline: Without a manager or structured schedule, you'll need to organise your own workload and hold yourself accountable
• Burnout risk: Managing your time and energy is essential. Set boundaries to avoid overworking

Full-time freelancing can offer better work-life balance and greater fulfilment, but only if you've planned for the challenges.

How to freelance as a side hustle

1. Check your primary employer's policy on freelancing

Check your employer's policy before starting freelance work on the side. Many companies allow employees to freelance, but restrictions often apply.

Common employer restrictions include:

• working with competitors
• taking on clients your employer serves
• operating in the same industry due to conflict of interest

Review your employment contract and company policies to avoid putting your primary income at risk.

2. Freelance in your own time

Freelance only in your own time to maintain professionalism at your primary job. Your employer and colleagues should see the same commitment from you as before.

Keep these boundaries:

• Avoid taking freelance calls during work hours
• Set clear expectations with clients about your availability
• Manage your freelance schedule around your regular employment

Most clients who hire freelancers understand limited availability during business hours.

3. Find low-budget ways to attract business

Low-budget marketing helps you attract clients without significant upfront investment. Focus on building visibility through free or low-cost channels.

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

• Search for beginner-friendly freelance jobs or volunteer positions to build work samples
• Offer discounted or free work to people in your network in exchange for testimonials and experience
• Host free training sessions or seminars in your field to create networking opportunities

Maintain an online portfolio and consider building a simple website to showcase your work to potential clients.

4. Record your time

Recording your time ensures accurate invoicing and helps you price future projects correctly. Track your hours even on flat-fee or retainer work to understand how long tasks actually take.

Time tracking benefits include:

• creating accurate invoices based on actual work completed
• understanding your true hourly rate on fixed-price projects
• improving estimates for similar future work

Use mobile apps like MinuteDock or Harvest to track time quickly and easily.

5. Deliver what you promise

Delivering what you promise builds trust and leads to repeat business. Avoid over-promising to win work, as missed expectations damage your reputation.

Follow these practices:

• Set realistic timelines: Research thoroughly before committing to deadlines or budgets
• Clarify scope in writing: Document what you'll deliver, when, and at what price in your client agreement
• Question assumptions: If expectations seem vague, clarify them before starting work
• Communicate proactively: Update clients regularly and notify them early if timelines shift

Clear agreements and honest communication help you build lasting client relationships.

6. Avoid burnout

Avoiding burnout protects your productivity, health, and the sustainability of your freelance business. Overworking leads to exhaustion and lower-quality work.

Prevent burnout with these strategies:

• Recognise when you have too much work and decline new projects
• Partner with other freelancers to share the workload on larger jobs
• Hire a bookkeeper or accountant to handle your finances
• Schedule regular time off to recharge

Set realistic expectations for yourself and protect your personal time alongside your freelance goals.

7. Create a goal to work towards

Setting clear goals gives your freelance work direction and helps you measure progress. Start with a specific objective, such as earning a target income or completing a particular type of project.

Review your goals regularly and ask yourself:

• Is the work enjoyable?
• Is it profitable for the time invested?
• Am I attracting the clients and projects I want?
• Is freelancing still worthwhile? If not, what needs to change?

Adjust your approach based on your answers to stay aligned with your original purpose.

8. Bookkeeping for freelancers: know your tax obligations

Freelancers are responsible for their own taxes as self-employed individuals. Even if freelancing is a side hustle, you must register as self-employed and pay taxes on your earnings, as the Internal Revenue Service (IRS) requires filing a return for net earnings from self-employment of $400 or more.

Follow these bookkeeping practices:

• Set up a bookkeeping system: Track expenses, plan payments, and monitor accounts so you're prepared at tax time
• Seek professional help: A financial advisor or accountant can help you stay tax compliant
• Save for taxes: Set aside a portion of each payment to cover your tax contributions
• Know your deductions: Common tax-deductible expenses include home office supplies, work-related travel, and marketing costs

Accounting software like Xero simplifies bookkeeping and helps you stay organised throughout the year.

Start your freelance journey with Xero

Starting a freelance business takes planning, persistence, and the right tools. From choosing your services and finding clients to managing invoices and tracking expenses, each step builds toward a sustainable freelance career.

Xero's accounting software helps freelancers stay organised from day one. Send professional invoices, track your income and expenses, and keep your finances ready for tax time, all in one place.

Get one month free and see how Xero can simplify your freelance accounting.

FAQs on starting as a freelancer

Here are answers to common questions about starting your freelance business.

Can I freelance with no experience?

Yes, you can freelance with no experience. Start by choosing a skill to develop, such as copywriting, graphic design, web development, or digital marketing. Build a portfolio through personal projects or volunteer work while you learn.

How can beginners start freelancing?

Beginners can start freelancing by identifying a marketable skill, setting competitive rates, and building a portfolio of work samples. Use freelance platforms like Upwork or Fiverr to find your first clients and gain experience.

How do freelancers get paid?

You typically get paid via bank transfer, PayPal, or other secure payment methods agreed with the client. Set clear payment terms in your contract, including whether you charge per project or on retainer, when you'll invoice, and when payment is due.

How do I accept freelance payments?

Accept freelance payments through bank transfers, PayPal, or payment processing solutions integrated with your invoicing software. Xero lets you add a 'Pay now' button to invoices, making it easier for clients to pay you quickly.

Is freelancing a good career?

Freelancing can be a rewarding career that offers higher earning potential, flexibility, and control over your work. However, income isn't guaranteed, and success requires consistent effort to find clients and manage your business. It works well for self-motivated people who value independence over job security.

What skills are most in demand for freelancers?

High-demand freelance skills include web development, graphic design, copywriting, digital marketing, video editing, and bookkeeping. Technical skills like programming and data analysis also command strong rates. Choose a skill that matches your interests and has consistent client demand on freelance platforms.

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

You can expect to land your first client within one to three months of actively marketing your services. The timeline depends on your skill, pricing, portfolio quality, and how consistently you apply for work or reach out to prospects. Building a strong profile on freelance platforms can speed up the process.