If you want to start a freelance business, here are the exact first steps

There’s a saying: you can’t control the world, but you can control yourself.

This perspective is critical when navigating an uncertain economy.

I learned this lesson the hard way, right out of college, when taking my first steps into the full-time workforce. The timing was around the 2008 Recession. Despite being lucky to land a job that I loved, the economic instability pushed me to realize I could not depend on a corporate role for my livelihood long-term.

So I started exploring freelancing in 2010, when I went on Craigslist and searched for freelance writing roles. That’s how I landed my first client. In 2011, one year after building my portfolio, I earned an extra $20,000 on top of my full-time job. In my second year, that number grew to $90,000 at about 10 hours per week. That was only the beginning.

Almost two decades later, my freelance business is my full-time foundation. It consistently sustains six figures in annual revenue and has helped insulate me from economic uncertainty.

If you’re curious to start your own journey, balancing full-time work and freelancing, here are the exact first steps I’d recommend if I were getting started again:

Approach it like a business, not a series of gigs

The average freelance income in the U.S. is around $99,230 per year in 2025, with top earners making over $200,000, according to Investopedia’s freelance income analysis. 

But those numbers don’t come from chasing one-off gigs. They come from building repeatable systems: clear offerings, reliable clients, and predictable revenue. Where gigs are fleeting and irregular, businesses provide true infrastructure as engines for revenue.

Starting a business is about building something durable. When you’re looking for a full-time job, your goal is to get hired based on your individual capabilities. When you’re building a business, you’re creating a service entity with defined value, pricing, processes, and delivery.

That foundation is essential for a stable footing.

Choose a freelance business focus that brings you true fulfillment

Freelancing takes motivation, especially on top of a full-time schedule.

That’s why it’s critical to pick a focus that inspires you. 

Ideally, when you freelance, the work should complement the high demands of a full-time role. It should not add additional stress or pressure. If you’re a marketing strategist in your full-time role, consider freelancing as a designer, influencer program strategist, career coach, or fitness instructor. 

Done right, with a formula that works for you, freelancing can be enjoyable and fulfilling. Keep in mind, according to Upwork, 78% of skilled freelancers report satisfaction with their pay compared to 64% of those employed full-time.

Establish strict and clear boundaries with your full-time job 

This means reading your employment contract to identify potential conflict of interest and disclosures, along with potentially consulting with an attorney to understand the laws in your region. 

It also means being mindful not to freelance on company time or to use your work laptop for client projects. Keep in mind, cross-pollinating intellectual property has the potential to cause legal problems for your employer and your freelance clients. 

Separation is key.

Protect your personal time: family, friends, and wellness

Learn to recognize the early signs of burnout, and make sure that you’re taking the best possible care of yourself.

Taking these steps early-on is critical, as working a 40-plus hour week in addition to self-employment has the potential to lead to long-term health consequences.

Balance looks different for everyone, and your routines may ebb and flow as your life situation changes.  

Define a clear, focused offering that you can package up and sell 

One of the strongest ways that a business, especially a one-person freelance operation, can gain efficiency is through a clear offering that customers want to buy.

If you’re not sure what this offering should be, start networking through meetups and associations both in real life and virtually. Share your ideas and ask for feedback.

You might find that it takes time to lock down what you’re offering—you may spend your entire first year or two figuring out what you’re selling, exactly. Take your time.

Be open with your employer and clients 

The timing for this conversation will be when you’re ready to publicize your self-employment ambitions. Approach the discussion from a stance of humanity and mutual-empowerment. Here’s how:

• Mention, specifically, what you appreciate about your job and your intention to stay at the company.
• Discuss that entrepreneurship is of interest to you, so you’ve started a freelancing practice.
• Share that you’re maintaining strict professional boundaries in accordance with your employment contract. Emphasize that you are not freelancing on company time or with company equipment.
• Keep the dialogue open, and welcome your employer to share concerns.

Likewise, ensure that your clients know that you’re employed, so that they do not expect immediate responses or phone calls during work hours. 

Consult with legal, accounting, and tax advisers

When you begin generating revenue, you will need a contract to onboard your clients. You may also need licenses and registrations, depending on your area of specialization.

When you earn money through your freelance practice, you will need billing infrastructure to collect those funds, which you will need to pay taxes on.

Connecting the dots

About one year into my freelancing journey, I honed in on several productized services that my customers valued. 

The asynchronous nature of this work means that I could build my business after hours and on weekends. It was hard, commuting three hours a day in Los Angeles traffic. But it was doable.

Above all, I was respectful to and open with my employer. When I told my managers and the executives at my company, they were supportive. I asked them to write a short note to acknowledge and approve the situation to HR, and they did. 

I stayed in my full-time role for almost three more years and was promoted twice, along with pay increases that doubled my salary.

My after-hours freelancing practice taught me to have an owner’s mindset, which was a valued skill in my full-time role. I quickly grew into higher levels at the company. Thanks to disciplined time management, I prioritized time for family, health, and wellness. 

It’s an asset that continues to grow with me.