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How to Understand the Numbers of Freelancing

Jan 18, 2019

 

Freelancing has become a game changer in how people work. It affords you the unrivalled opportunity of being able to give you an income but not at the expense of your lifestyle. Flexible working hours, control over the jobs you accept and the clients you work for, plus the ability to choose where you work from, are some of the many benefits. However, no matter how creative your work is and how much you thrive at home or in a startup office space, numbers play a significant part in influencing your success.

Timings

Freelance planning in coworking spaceYou may have thought that you had escaped the trap of clock watching when you began freelancing, but timing is everything! You are in a continual loop of juggling projects, clients and identifying prospects.

You need to know how long you spend completing the different aspects of your job. This is essential for calculating fees to charge clients, accurate invoicing, and prioritising your work. In short, time management gives you the ability to work more efficiently and productively. 

Ensure you keep an accurate diary, digital calendar, or a time tracking Desktop/Phone App like Toggl.

Profit Margin

Many entrepreneurs and freelancers focus on the revenue that they are creating as a way of measuring success; however, this can be a critical error. 

Revenue is the income generated from your work, but it does not consider the expenses that you have to run your business; such as rent for your flexible office space, travel, equipment or outsourcing. 

The profit margin is the profit divided by the revenue and multiplied by 100. Profit margin is always expressed as a percentage; the higher the percentage, the more efficient your business. It can be useful to calculate the profit margin for the different categories of projects and for individual clients. This way, you will have a clear understanding of which jobs are more profitable and who your ideal client will be.

Website Visitors

While your website is the visitor’s window into your business and often the most valuable tool you have for identifying the more delicate details of how to grow your business. Website analytics can be used to develop a deep understanding of the visitors to your site; who they are, where they come from and their age; how they found you; what content is most popular, and how many visitors convert into consumers

This information should be used to shape every business decision that you make. You can use it to enhance the user experience, improve your content to promote your goods or services more efficiently and boost your website’s position in the search engines’ results pages. Website analytics are the key to boosting your business’s performance.

Conclusion

Paying attention to the numbers of your business may not be the most exciting part of your job; however if you fail to give them due care and attention, you are missing out on potential opportunities and financial rewards. 

 


About The Brew

The Brew has co-working spaces and private offices for teams from 1-100 people in Shoreditch, very close to Old Street underground station.

We offer free-to-use meeting rooms, a five-star member experience, regular business seminars, events and wellbeing sessions, a fantastic global network, membership benefits - and lots more!

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