How to become a freelancer and find your first clients

Published Wednesday 1 April 2026

Table of contents

• What is freelancing?
• Why consider starting a freelance business?
• Skills and qualifications you need to freelance
• Types of freelancers and working models
• How to freelance as a side hustle
• How to start freelancing: eight essential steps
• Considerations before starting a freelance business full time
• Start your freelance journey with Xero
• FAQs on becoming a freelancer

Key takeaways

• Start freelancing as a side hustle by checking your employment contract for restrictions, keeping freelance work separate from your day job, and building a portfolio through low-cost marketing tactics like volunteering or offering discounted services to your network.
• Set up proper business foundations by creating a detailed business plan that includes your target market and value proposition, choosing the right business structure for tax purposes, and using professional tools for invoicing and time tracking.
• Build your client base by creating strong profiles on freelance platforms like Upwork or Fiverr, developing a portfolio that showcases your best work with client testimonials, and maintaining an active social media presence where your target clients spend time.
• Manage your finances responsibly by setting aside money for taxes from each payment, tracking all business expenses for deductions, and maintaining three to six months of savings before transitioning to full-time freelancing.

What is freelancing?

Freelancing is working independently for multiple clients rather than being employed by a single company. Freelancers set their own rates, choose their projects, and manage their own schedules.

Unlike traditional employees, freelancers:

• Work on a project or contract basis rather than receiving a salary
• Handle their own taxes, insurance, and retirement savings
• Have the freedom to work with multiple clients simultaneously
• Control when, where, and how they work

Freelancing spans nearly every industry, with research from 2023 showing that 47% of all freelancers provided knowledge services like computer programming, marketing, information technology (IT), and business consulting. You can freelance full-time or as a side hustle alongside other work.

Why consider starting a freelance business?

Freelancing offers independence, flexibility, and the potential to earn more than traditional employment. As remote work becomes the norm, more professionals are choosing to work for themselves, with projections showing that 86.5 million people will be freelancing in the U.S. by 2027, making up over half the workforce.

Starting a freelance business offers several benefits:

• Financial stability: Working with multiple clients reduces your dependence on a single income source.
• Higher earning potential: Freelancers often command higher rates than in-house employees, with one study finding the median income for full-time freelancers surpasses that of full-time employees.
• Faster professional growth: Working on varied projects expands your network and portfolio, and research suggests freelancers accelerate their development by spending 10 times more time learning new skills than full-time employees.
• Work-life balance: You control your schedule, location, and working hours.

Skills and qualifications you need to freelance

Freelancing doesn't require formal qualifications for most fields, but certain skills increase your chances of success.

These core skills help freelancers succeed:

• Professional expertise: Strong capabilities in your chosen service area
• Communication: Clear writing and speaking skills for client interactions
• Time management: Ability to meet deadlines without external supervision
• Basic business skills: Understanding of pricing, contracts, and invoicing
• Financial literacy: Knowledge of budgeting, taxes, and cash flow management
• Self-motivation: Discipline to work productively without a manager

You can develop these skills through online courses, practice, and experience. Platforms like Coursera, Udemy, and LinkedIn Learning offer training in both technical and business skills.

Types of freelancers and working models

You can work in different ways depending on your goals, risk tolerance, and lifestyle. Choose the model that fits your situation best.

• Independent contractor: Works on specific projects with freedom to choose assignments and build a flexible portfolio
• Diversified worker: Juggles multiple skill sets and client types simultaneously, such as combining copywriting with graphic design
• Temporary worker: Takes full-time positions for short-term periods, offering more stability than project-based work
• Moonlighter: Fits freelance work around regular employment, reducing financial risk while building a client base. Research shows 75% of moonlighters report being highly satisfied with their side hustles.
• Freelance business owner: Builds a small business, hires other freelancers, and manages operations and staff

How to freelance as a side hustle

Starting freelance work alongside your main job requires careful planning. Follow these steps to build your side business successfully.

1. Check your primary employer's policy on freelancing

Check your employment contract before starting freelance work on the side. Many employers have policies that restrict outside work.

Common restrictions include:

• Working with competitors or within the same industry
• Taking on your employer's clients directly
• Using company time, equipment, or resources for freelance work
• Conflicts of interest with your primary role

Review your contract and speak to HR if you're unsure. Starting freelance work that violates your employment terms could put your main income at risk.

2. Freelance in your own time

Keep freelance work separate from your primary job. Your employer and colleagues should see no change in your performance or availability.

Set clear boundaries to keep your work separate:

• Complete all freelance work outside your regular hours
• Avoid taking freelance calls or emails during your day job
• Tell freelance clients upfront that you have limited availability during business hours

Most clients who hire freelancers understand these constraints.

3. Find low-budget ways to attract business

Low-cost marketing tactics help you attract clients without significant upfront investment.

Start with these approaches:

• Browse freelance job websites regularly for suitable opportunities
• Maintain an online portfolio showcasing your best work
• Create a simple website to establish credibility

If you lack paid work samples, build your portfolio by:

• volunteering for projects that let you demonstrate your skills
• offering discounted work to people in your network in exchange for testimonials
• running free workshops or training sessions to create networking opportunities

4. Record your time

Recording your time helps you invoice accurately and estimate future projects better. Track your hours even on fixed-fee projects.

Time tracking offers several benefits:

• Accurate invoicing: Bill clients correctly for hourly work.
• Better estimates: Compare actual time against your quotes to improve future pricing.
• Profitability insights: Identify which clients and project types are most profitable.

Use mobile apps like MinuteDock or Harvest to track time quickly throughout your day.

5. Deliver what you promise

Delivering what you promise builds trust and leads to repeat business. Resist the temptation to over-promise when starting out.

Before accepting a project, take these steps:

• Research thoroughly before committing to a budget or timeline
• Clarify any vague expectations with specific questions
• Document the scope, deliverables, and assumptions in writing

During the project, follow these practices:

• Stay in regular contact with your client
• Flag delays early so the client can plan accordingly
• Confirm any scope changes in writing before proceeding

6. Avoid burnout

Avoiding burnout protects both your health and your freelance business. Overworking leads to exhaustion and declining work quality.

Prevent burnout by:

• saying no when you have too much work and declining new projects
• partnering up with other freelancers during busy periods
• outsourcing admin tasks to a bookkeeper or accountant
• taking breaks and scheduling regular time off to recharge

Sustainable freelancing requires balancing income goals with your wellbeing and family time.

7. Create a goal to work towards

Setting clear goals gives your freelance work direction and helps you measure progress.

Start with specific early objectives like these:

• Complete your business setup by a target date
• Reach a monthly income milestone
• Land a project in your preferred niche

Review your progress regularly. Ask yourself:

• Does the work remain enjoyable and fulfilling?
• Are the projects profitable for the time invested?
• Are you attracting the clients and work types you want?
• What needs to change if freelancing isn't meeting your expectations?

8. Know your tax obligations as a freelancer

You're responsible for your own taxes as a self-employed individual. According to the IRS, you must file a tax return if you have net earnings of $400 or more from self-employment, so even side-hustle income may need to be declared.

Follow these essential tax practices:

• Set up bookkeeping: Track expenses, plan payments, and monitor accounts throughout the year so you're ready at tax time. Learn more about how to do bookkeeping.
• Save for taxes: Set aside a portion of each payment you receive to cover your tax obligations.
• Track deductible expenses: Common claims include home office supplies, work-related travel, and marketing costs.
• Get professional advice: A financial adviser can help ensure you're compliant and claiming all eligible deductions.

How to start freelancing: eight essential steps

Here are the essential steps you need to know when starting your freelance business.

1. Pick a freelance business idea

Certain industries and roles rely on independent contractors more than others, like graphic designers and event management, so do some research on freelancing platforms to see which roles align with your interests, skills and freelance business ideas.

Ideally, you should start a freelance business by specialising in a skill that you've already honed during your education and career. However, you can start something new as long as you train and build a portfolio to show off your skills. You might be a keen photographer, an aspiring personal trainer, or want to switch to accounting or web design.

Whether you're starting new or upskilling your existing traits, online courses can help you to master your skills. Check out Coursera, Udemy or LinkedIn Learning to find programmes to help you upskill and to support your freelance business idea.

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

2. Create a freelancing business plan

A freelance business plan maps out your services, target market, and financial goals. It helps you stay focused and win clients more consistently.

Get started with the free business plan template, then follow these steps:

1. Complete a strengths, weaknesses, opportunities, and threats (SWOT) analysis: Identify these factors to understand your market position.
2. Create a value proposition: Define what makes your services unique, whether it's your pricing, experience, or delivery approach.
3. Find your target market: Research who needs your services, where they operate, and what problems you solve for them.
4. Build your distribution system: Set up a website and social media presence, and consider platforms like Upwork or Fiverr for initial exposure.
5. Streamline your admin: Use tools like Xero for accounting and Mailchimp for email marketing to minimise unpaid admin time.
6. Secure funding: Budget for essentials like your website and marketing, using personal savings, crowdfunding, or small business loans.

3. Set up your freelance business legally

Setting up your business correctly from the start helps you stay compliant and avoid future problems. This involves choosing a business structure, understanding your tax obligations, and considering insurance.

Business registration and structure

Depending on your location and business goals, you might operate as a sole trader, form a partnership, or register a company. Each structure has different legal and tax implications, so research what's best for your situation.

Tax obligations and requirements

As a freelancer, you're responsible for managing your own income tax and any other relevant taxes, like goods and services tax (GST). Keep accurate records of your income and expenses to make tax time easier. Set aside a portion of each payment for your future tax bill.

Insurance and liability protection

Consider professional indemnity and public liability insurance to protect yourself from potential claims related to your work. Insurance can provide peace of mind and is often required by larger clients.

4. Market your freelance business

Marketing your freelance business helps potential clients find you and understand why they should hire you. Without visibility, even the best skills go unnoticed.

Build these three foundations:

• Online profile: Create detailed profiles on freelance platforms that highlight your skills and experience
• Social media presence: Post regularly on platforms where your target clients spend time
• Portfolio: Showcase your best work with clear descriptions of what you delivered and the results achieved

Create an online profile and freelance online

Freelance platforms like Upwork and Fiverr give you access to a global marketplace of clients. A strong profile on these sites serves as your digital storefront.

Your profile should highlight these elements:

• Professional skills and areas of expertise
• Relevant experience and qualifications
• Examples of past work with measurable results

Creating your own freelance website adds credibility and gives you more control over your brand. Focus on clear navigation, consistent fonts and colours, and copy that speaks directly to your ideal client.

Find out more on how to create a business website.

Use social media

Social media helps you reach potential clients and demonstrate your expertise. Choose platforms where your target clients are active.

Effective social media use for freelancers includes these practices:

• Regular posting: Share updates about your work, industry insights, and behind-the-scenes content
• Engagement: Respond to comments and participate in relevant conversations
• Consistency: Maintain a recognisable voice and visual style across platforms

LinkedIn works well for business-to-business (B2B) services, while Instagram suits visual work like design or photography.

Build your freelance portfolio

Your freelance portfolio demonstrates your capabilities to potential clients. It's often the deciding factor in whether you get hired.

Include these elements in your portfolio:

• Best work samples: Choose projects that showcase your strongest skills
• Client testimonials: Add quotes from satisfied clients when available
• High-quality images: Use professional visuals that present your work clearly
• Regular updates: Refresh your portfolio as your skills and experience grow

If you're starting without paid work, include personal projects, volunteer work, or spec pieces that demonstrate your abilities.

5. Choose a freelance platform

Freelance platforms connect you with clients looking for your services. Choose platforms based on your target project size and client type.

• Upwork: Best for beginners and experienced freelancers seeking varied project sizes. Create a detailed profile and apply for relevant 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 types with a bidding system for jobs.
• Toptal: Focuses on top-tier talent in software, design, and finance. Requires a rigorous screening process.

Each platform has its own client base and fee structure, so consider testing multiple options to find the best fit.

6. Win your first freelance contracts

Winning your first freelance contracts requires persistence, as finding enough work is often cited as the biggest challenge as a freelancer for 66% of those in the field.

Set achievable early goals like these:

• Secure your first paid project within a specific timeframe
• Reach a modest monthly income target
• Build a base of repeat clients

Before pursuing contracts, develop your negotiation and project management skills to improve your success rate.

Learn negotiating strategies before starting your freelance business

Negotiation skills determine whether you get paid fairly for your work. Setting rates too high loses jobs, while setting them too low leaves money on the table.

Follow these negotiation principles to get fair rates:

1. Know your alternatives: Understand what other work you can pursue if a client declines. This prevents you from accepting unfavourable terms out of desperation.
2. Research market rates: Identify the typical price range for your services. This "zone of possible agreement" helps you set rates that work for both parties.
3. Quote your rate first: Leading with your price sets the tone for the discussion. Present it confidently and be ready to 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 work on time and keep clients coming back. Technical expertise alone isn't enough to build a sustainable freelance business.

Apply these key principles for successful project delivery:

• Commitment: Get project terms, timelines, and deliverables agreed in writing before starting work
• Accountability: Clarify responsibilities for everyone involved and review progress regularly
• Time management: Track your projects using software like Xero Projects to monitor progress and anticipate delays

Strong organisational skills help you meet deadlines consistently, which leads to repeat business and referrals.

7. Send your first freelancing invoice and get paid

Sending professional invoices ensures you get paid promptly and leaves a positive final impression with clients.

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

• your business name and contact details
• client name and billing address
• clear description of work completed
• total amount due
• payment terms and due date
• accepted payment methods

Download Xero's freelance invoice template to get started.

If payment is late, send a polite follow-up reminder referencing the original due date.

Considerations before starting a freelance business full time

Going full-time requires careful financial and personal preparation. Rushing the transition increases your risk of failure.

Assess your readiness by considering these factors:

• Income threshold: Aim to grow your freelance income to 50–75% of your current salary before leaving employment
• Financial runway: Have enough savings to cover three to six months of expenses during the transition
• Work style fit: Consider whether you can work productively alone without external structure
• Self-discipline: Evaluate your ability to manage your own workload and deadlines
• Client pipeline: Ensure you have enough ongoing or committed work to sustain your income

Full-time freelancing offers greater flexibility and autonomy when you've prepared for the challenges.

Start your freelance journey with Xero

Freelancing gives you the freedom to build the career you want, on your own terms. The key is starting with a clear plan and the right tools to manage your business.

Xero helps you create professional invoices, track expenses, and stay on top of taxes, so you can focus on doing the work you love. With real-time visibility into your cash flow and simple invoicing features, you'll spend less time on admin and more time growing your business.

FAQs on becoming a freelancer

Here are answers to common questions you may have when starting your freelance journey.

Can I freelance with no experience?

Yes, you can freelance with no experience. Many successful freelancers started by learning new skills and building portfolios through personal projects or volunteer work.

In-demand freelance roles include copywriting, graphic design, accounting, bookkeeping, web design, coding, and digital marketing. Choose a field that matches your interests, then build skills through online courses and practice projects.

How can beginners start freelancing?

Beginners can start freelancing by following these steps:

1. Choose a service based on your skills and interests
2. Research market rates for your chosen service
3. Build a portfolio with sample work, even if unpaid
4. Create profiles on freelance platforms
5. Apply for jobs that match your skill level

How much can I realistically earn as a beginner freelancer?

Beginner freelancers typically earn less than experienced professionals while building their reputation and client base. Income varies widely by industry, location, and hours worked. You may reach $1,000–$2,000 per month within your first year, with earnings increasing as you gain experience and referrals.

Do I need to register a business to freelance?

In Singapore, you don't need a licence to freelance for most services, though certain trades require business registration. If you're earning income regularly, you should register as self-employed with IRAS for tax purposes. Consult a professional adviser to understand your specific obligations.

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

You'll likely land your first paying client within one to three months of actively marketing your services. The timeline depends on your industry, pricing, marketing efforts, and existing network. Starting with lower rates or offering services to contacts can speed up the process.

How do freelancers get paid?

You'll typically get paid via bank transfer, PayPal, or other secure payment platforms. The specific method depends on what you agree with each client.

Establish your payment terms upfront by specifying:

• Payment structure: Project-based fees, hourly rates, or monthly retainers
• Invoice timing: When you'll send invoices (on completion, monthly, or at milestones)
• Payment deadline: How many days the client has to pay after receiving your invoice

Include these terms in your contract before starting work.

How do I accept freelance payments?

Accept freelance payments through bank transfers, PayPal, Stripe, or integrated invoicing solutions.

Xero lets you add a "Pay now" button to your invoices, making it easy for clients to pay immediately. This reduces payment delays and simplifies your cash flow management.

Is freelancing a good career?

Freelancing can be a rewarding career if you're willing to invest the time and effort. You may earn more than you would in traditional employment, with one survey finding that 75% of freelancers earn as much, or more, than they did in their previous full-time jobs.

Benefits include being your own boss, controlling your schedule, and choosing your clients. Income varies, especially when starting out, so financial planning helps you manage the transition.

Success requires consistent marketing, strong client relationships, and disciplined financial management.