Why Freelancers Fail: Common Mistakes That Can Ruin Your Business

Flexibility and Freedom – the two most common reasons that freelancing has become a popular way of working for many people in Kenya, and around the world. However, like any job, there are common mistakes that freelancers make that hurt their operations and success.

In this blog post, we’ll discuss some common mistakes and actionable steps on how to avoid them.

1. Not Setting Clear Expectations With Clients
The most common mistake freelancers make is not setting clear expectations with their clients. It’s important to make sure that both you and the client understand the scope of the project, the deadline, and any other details that may impact the work. This will help prevent miscommunication and ensure that everyone is on the same page. There’s a term ‘scope creep’ that caught my eye. It’s when the client asks you for one seemingly small task from you and then another, and then another. And then, another.

Actionable steps: Define the scope. Simple.
– Make sure to have a detailed discussion with your client before starting any work.
– Ask questions to clarify any uncertainties, and put everything in a contract, including the project scope, timeline, and payment terms.
– Use straightforward and clear language when documenting the scope.

2. Not Establishing Boundaries With Clients
Freelancers often struggle with work-life balance because their work and personal lives can easily blur together. It’s important to set clear boundaries with clients, such as working hours, communication channels, and response times.

Actionable steps:
– Be clear about what you’re willing to do and what you’re not willing to do.
– Whether you go by the saying ‘the client is always right’ or not, there will be points when you have to say no. Don’t be afraid to take your stand, your client will end up respecting you for it.

3. Not Charging Enough
Setting your rates can be tricky, and this results in many freelancers undercharging for their services. It’s tempting to undercharge to attract more clients, but this can lead to burnout and financial instability in the long run. In addition, setting too low of a price can create the image that your work is ‘cheap’ or of low quality which will be detrimental to your long-term growth.

Actionable steps: first remember that every situation and freelancer is different. There is no ‘one size fits all’ pricing strategy.
– You can start by researching what other freelancers in your niche are charging and set your rates accordingly.
– This may be more difficult when freelancing in Kenya, so a good alternative would be to look at current job ads and check for the ones that you qualify for. Using the salary ranges provided in the job descriptions, you should be able to break it down to an hourly rate and use that as a base to determine your rate.
– Don’t be afraid to negotiate with clients if you think your rates are fair.

4. Not Having A Contract
A contract is essential when working with clients as a freelancer. It protects both you and the client and outlines the terms of the project. Make sure your contract includes details such as deadlines, payment terms, and what happens if the project is canceled or delayed. Having a contract can save you from potential legal issues and ensure that both you and the client are on the same page.

Actionable steps:
– Use this simple baseline Freelancer Contract template we’ve created for you and edit it accordingly.

– ALWAYS, make sure the client signs the contract before starting the work.

5. Not Saving for Taxes
Freelancers are responsible for paying their taxes, which can be a significant expense. However, many freelancers make the mistake of not saving for taxes throughout the year, which can lead to a big surprise come tax season.

Actionable steps:
– Keep track of your expenses and limit unnecessary spending.
– Set aside a portion of your income for taxes each month. This will help you stay on top of your tax obligations and avoid any unexpected financial burdens.

Bonus tips:
– Don’t disappear on previous clients. Stay in touch after you finish the job. Clients appreciate this and will be more likely to reuse your services or refer you to new clients in their circle.
– Don’t be deceptive. If you think a job will take 2 days but charge for 5, you will be eventually found out and end up irreversibly damaging your reputation.
– Don’t get too personal with clients, keep things friendly but formal.
– Don’t forget to invest in your professional development to stay competitive and relevant in your field.

Although you may not be able to completely avoid these freelance mistakes, it is crucial to have a positive mindset, concentrate on the lessons you have learned, and continue to progress forward. Making mistakes will only enhance your knowledge and abilities in your occupation.

Comment and let us know which mistakes you’ve made in your journey. What advice would you give to new freelancers?