How to start a freelance business in 2025? 6 Important Steps
It was the best of times to be a student and finally receive my much-awaited diploma. And it was the worst of times to be a graduate with no work experience. I knocked on the doors of numerous employers, but no one opened. If only I could keep knocking to find my dream job, but I had to make ends meet. So, I started freelancing.
This type of employment wasn’t popular back then. But COVID-19 changed everything. Workers discovered that freelancing can be even more rewarding than having a traditional job. About 60% said no money would convince them to get back to the 9 to 5 schedule.
If you are thinking of starting a freelancing career but aren’t quite sure what to do, read this article. You’ll find out if becoming a freelancer is still relevant in 2025, the key benefits and drawbacks of being your own boss, and the essential steps to start your freelancing business.
Is Freelancing a Good Idea in 2025?
My answer is “Absolutely!” But if you’re unsure whether to start freelancing in 2025, I can provide some statistics to help you decide.
The trend for freelancing is on the rise again. In 2023, freelance workers added about $1.27 trillion in annual earnings to the U.S. economy. This growth is expected to continue, and projections suggest that freelancers will comprise almost 60% of the U.S. workforce already by 2027.
In Europe, interest in freelancing is growing, too. About 61% of freelance workers say they don’t plan to switch to a full-time role.
As people want more time for themselves and their families, dream of traveling the world, and wish to live on their own terms, freelancing definitely hits the spot.
What Is the Best Freelance Business To Start Right Now?
There is no particular business for freelancers that will be successful no matter what. Everything depends on your skills, expertise, and goals.
Given that my education is related to English philology, it wasn’t a problem for me to find my niche. But it doesn’t mean your freelance business should depend on your diploma. Think about what you like to do and what you are great at. If you feel like writing, start a blog or offer writing services to clients on Upwork. If you can do great designs, create website templates or graphic materials to sell them online.
The more expertise you have in a particular area, the easier it will be for you to start freelancing. However, if you're completely new, don't be discouraged. You can develop marketable skills right from home through professional online courses. And if you don’t feel like paying for a course right now, use the free educational resources offered on Coursera, Udemy, and YouTube.
I also recommend taking a course related to AI - lots of them are offered for free. Understanding how to prompt LLMs will help you do your job faster and with the same high quality.
Take your time to build skills until you feel confident enough to start charging for your work.
Benefits of a Freelance Business That Will Convince You To Switch
If you seek helpful information on starting a freelance business, I assume you already have a couple of benefits in mind. Still, I’d like to tell you more about the key advantages that I have experienced myself.
Flexibility
Freelancing gives you more flexibility than a full-time job. You can choose when to work and plan your workload and also have enough time for your other responsibilities.
It’s funny how some friends of mine who never did a freelance job get surprised when I tell them I sometimes work on Sundays or late in the evening on workdays. But that’s only because I’m going to spend Monday afternoon playing Baldur’s Gate or enjoying the outdoors (or both!).
Better Mental Health
I mean it. I feel significantly better when I’m not dependent on someone else for my day-to-day work. Sure, working for a company comes with perks like free snacks, team-building events, and some fun corporate swag. But all of that comes at a cost.
In a corporate job, you’re tied to answering endless messages, sitting through meetings, and making revisions to your work — sometimes for inadequate reasons. I often have headaches because of this and wake up in a bad mood before the day has even started.
In contrast, freelancing gives you the freedom to set your own schedule, which reduces stress and allows you to align work with how you feel today.
Control Over Career
A fixed salary at a full-time job sounds secure, but you don’t have any control over it. Once you say a sum to a company’s HR, you won’t be able to change it — at least, not significantly, as salary reviews rarely exceed 20% of what you already have. Besides, before asking for a raise, you need to prove you are worth it.
When you freelance, you set your rates, take on as many clients as you can handle, and increase your income based on your expertise and demand. Many freelancers earn more than they did in traditional jobs with the same workload.
Work-Life Balance
I know this sounds obvious and overused, but it’s pure truth. No more commuting, unnecessary talks, or rigid hours. As a freelancer, you can structure your work around your life and have more time for family, hobbies, and personal growth.
Drawbacks of Freelancing To Consider Before You Start
Freelancing offers freedom of choice, but it also comes with challenges that aren’t always obvious at first.
No Guaranteed Income
Unlike a traditional job with a steady paycheck, freelancers must constantly find clients and projects to maintain their income. Some months may be great, but others can make spend you’ve saved so carefully earlier. On the other hand, you can stick to a big company as a freelancer (just the same as I did for a whole year) and have a steady workload but on your own terms.
No Employer Benefits
Freelancers don’t get company-provided benefits like health insurance, paid time off, or retirement contributions. You’re responsible for setting up these benefits, which can be costly. However, you can easily cover them if you make more money as a freelancer compared to a corporate job.
Managing Everything Yourself
It’s cool to be your own boss, but this also means handling everything — finding clients, negotiating rates, managing deadlines, and taking care of taxes — by yourself. It requires strong organization and time management skills.
Isolation and Loneliness
Well, this isn’t a drawback for me — I’m not a highly social type. But if you’re an extrovert and can’t stand the silence for a long time, freelancing is probably not for you.
How To Start Freelancing: 6 Steps To Take
There are more opportunities for freelancing in 2025 than there were when I landed my first freelance job. However, the competition is growing, too, and you need a plan to become a successful freelancer. I suggest that you approach freelancing gradually and take one step at a time to start your remote career.
1. Find Your Niche
Before you attempt to promote your freelance services, you need to identify your best skills and match them with a desired niche. Think about what businesses need right now and what you can offer them, such as
This can be writing, coding, marketing, consulting, or whatever you have expertise in. It’s important not to be too general here. Instead of just being a content writer, position yourself as a B2B SaaS content writer or a creative copywriter. This will help attract the right clients and build lasting relationships with them.
2. Build a Portfolio To Prove Your Expertise
There are many freelancers out there, and clients won’t hire you without proof that you can deliver great results. To be competitive, you need to build a strong portfolio that includes samples of your work. It would be even better to create case studies, share project results (preferably with numbers), and add client testimonials.
It’s perfect if you can create a portfolio website (you can use free website builders like Wix or Webflow for that). If that’s not an option, just use popular platforms to showcase your expertise:
- LinkedIn — for marketers and strategists (although other specialists can benefit from it, too);
- Behance and Dribble — for designers;
- GitHub — for developers,
- Medium — for writers.
If you decide to work on freelance platforms like Upwork or Fiverr, upload examples of your work to your profile and connect your social accounts to let clients see that you’re a real person with real expertise.
3. Set Your Payment Structure
Figuring out how much to charge can be tricky, especially when you're just starting out. Pricing too high may scare off potential clients, while setting rates too low can undervalue your work and make it harder to stay motivated.
Factors That Impact Your Rates
To set correct rates, you need to consider three things:
- Research industry standards: check platforms like Upwork, Fiverr, or industry-specific job boards to see what other freelancers in your field are charging;
- Evaluate your experience level: beginners often start with lower rates, but don’t worry. As you gain experience, you can increase your prices;
- Factor in your costs: account for taxes, software, tools, and the time spent on client communication.
Add these to your desired payment, and you’ll get freelance rates that are competitive and sustainable for you.
Choosing a Pricing Model
Another thing to think bout is a
- Hourly rate: suits best for ongoing projects or tasks with uncertain timeframes;
- Pricing per project: perfect for well-defined tasks where you can estimate the time you need to deliver the work;
- Retainer model: a great option for long-term clients, where they pay a set fee each month for a guaranteed number of hours or deliverables;
- Per-character pricing: if you write, you can get paid depending on the number of characters you deliver.
Summing up, it’s normal to start with competitive pricing. As you gain experience and client testimonials, you can increase your rates gradually every 3-6 months.
4. Find Clients Through the Right Channels
Getting clients is the hardest part of freelancing. The competition is huge, but there are multiple ways to land your first projects.
Freelance Platforms
I’ve already mentioned marketplaces like Upwork and Fiverr, but there are many more you can try. These platforms allow you to bid on projects that match your expertise and payment expectations. It's a great way to access a broad base of clients who seek freelance services.
Social Media
You can promote yourself on platforms like LinkedIn, Twitter, or Facebook to connect with potential clients. Join industry-specific groups, participate in discussions, and share your work to showcase your expertise, build visibility, and attract clients.
Networking
Spread the word of mouth by informing friends, family, and former colleagues about your freelance services. Personal recommendations can lead to valuable client relationships. You can also attend industry events online and offline to meet potential clients and exchange expertise with other freelancers.
Cold Outreach
Identify businesses or individuals who need services similar to what you offer and reach out to them directly via email. Avoid being spammy and generic, and clearly highlight how your skills can be useful to potential clients.
Note that all modern businesses aim for customization and personalization. Follow their example and personalize your proposals to show clients that you understand their needs and can fulfill them.
5. Deliver Quality Work and Earn a Reputation
Customer feedback is what makes people trust you. The first feedback is the hardest to gain, and your work needs to be flawless.
Here’s a short checklist for you to make sure you get positive reviews from your clients:
- Always meet deadlines: clients often value reliability more than raw talent;
- Be clear: keep clients updated on progress and set expectations from the start;
- Be honest: don’t take a job you can’t deliver — this can hurt your reputation;
- Overdeliver when possible: small extras like a quick report or suggestions can help build long-term trust.
Earning a reputation means that people recommend your services to their friends or repost your offers on social media. Being patient, understanding, and polite is what you need to become a successful freelance entrepreneur.
Freelancing in 2025: Bonus Advice
A positive attitude is more important for your freelance business than you may think. Things don’t always go as expected, and sometimes you will face obstacles. In such moments, you need to remember that giving up is the last thing you need, and those who climb the mountain will master the road.
Practice positive thinking and learn to accept things that happen on your way to success. May your freelance career be awesome and rewarding.