If you have skill or talent to spare – but not a whole lot of extra cash – starting a freelancing business may be just the thing for you. Unlike other types of businesses, freelancing does not require a great deal of startup capital. In fact, all that’s really needed to get the ball rolling on a freelancing business is a little spare time, a specialized skill and a few connections. You don’t even have to quit your day job to embark on a freelancing career; it’s flexible enough to be used for making extra money on the side.

Common Freelancing Jobs

A freelancer performs work for individual clients on an as-needed basis. Although many freelancers accrue long-term clients and projects, the bread and butter of any freelancer is the once-off project. Technically, a freelancer can provide virtually any service to his clients. A few freelancing careers are more common than others, though. They include copywriting, editing, graphic design, web design, bookkeeping and online marketing consulting. A client gives a freelancer a specific task; the freelancer completes the task and gets paid. If you have specialized skills that are in demand by others, you already have the building blocks of a successful freelancing business.

Building a Portfolio

As a freelancer, you can’t market yourself without being able to show others what you can do. Every freelancer needs a portfolio of work that can be shown to prospective clients. Most portfolios include examples of work that has been done for others. In the beginning, you won’t have any completed projects to place in your portfolio. If possible, then, work on a few projects for yourself. Pretend that they are for an important, high-paying client. Whether you’re going into freelance writing, photography or graphic design, you should be able to whip up a few decent samples to place in your portfolio.

Gaining Experience

With any luck, your portfolio will be enough to get you a few nibbles. In the beginning, you will have to differentiate yourself from your competition by offering rock-bottom rates. Don’t undercut the lowest prices out there by too much, though – doing so devalues the work of all freelancers. Still, keep your rates at the lower end of the spectrum at first. This will get you your first few clients. Perform above and beyond the low rates that you are charging; this will make for very happy clients, which will help generate all-important word-of-mouth.

Generating Buzz

Without a doubt, word-of-mouth is a crucial part of developing and maintaining a successful freelancing business. One great rule of thumb is to always deliver more than what the client expects. That doesn’t mean that you should give them 1,000 words of copy when they’ve only paid for 500; instead, it means that you should strive to deliver work that’s clearly worth more than the rates that you are charging. Put the same amount of effort into large projects as you do into tiny ones – you never know when a seemingly small-time client will turn around and reward you with a boatload of work.

Growing Your Reputation

As clients consistently get more than they were expecting, word about your skill and prowess will quickly spread. Since you’ll be delivering your very best work at all times, many topnotch examples of your skill will start appearing. One of the most common ways for freelancers to gain new clients is through word-of-mouth and client referrals; one person may see the great work that you’ve done for a client and ask for your contact info. Before you know it, you’ll be getting contacted by people without having to reach out to them first.

Volunteering Your Services

Another great way to kick-start your freelancing business is by giving a little bit away for free. The best place to do this is in your local community. Look for prominent businesses and agencies that could benefit from your help. Approach them and offer them free services; in exchange, you’ll gain plenty of great exposure. You’d be surprised by how effective a single free project can be. Furthermore, doing this type of work will put you into contact with an even wider circle of people – and that will enhance your networking efforts considerably.

Networking to Grow Your Business

The importance of networking to a freelancing business cannot be overemphasized. Every day, you should do at least one or two things to network with others. Social media sites like Twitter are excellent ways to do this. Get your name out there; be actively involved in ongoing conversations and discussions. As your reputation rises, your ability to network will grow. Cast as wide a net as possible so that you’re never without work. In the rare instances when there are no projects on your plate, you’ll just have to reach out to your network to find more.

Ditching Your Day Job

If you play your cards right, you should eventually have the option of quitting your day job and switching to freelancing on a full-time basis. Of course, that’s not for everyone; if you decide to do so, though, you’ll have even more opportunities to expand upon your success. When it comes to freelancing, the sky really is the limit. The more effort, energy and enthusiasm you put into your work, the greater the rewards will be. Unlike a traditional job, a freelancing business affords incredible opportunities for making a really impressive living.