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How to Develop a Freelance Marketplace like Upwork and Keep It Competitive

The article was updated on September 22, 2023.

Freelancers are currently a force to reckon with. Their number is constantly expanding: according to the recent stats, in the US alone the number of professionals working independently has already reached 67.6 million . Companies, big and small, are leveraging the remote workforce and are making work flexibility a part of their daily existence.

The COVID-19 pandemic has forced many businesses to start hiring freelancers even if they previously hadn’t considered it at all. As a result, many organizations have recognized the benefits of remote personnel.

Independent contractors, in turn, are enjoying flexible schedules and improved work-life balances. Moreover, the Gen-Z workers seem to prefer freelancing over other employment models. By 2027, the share of freelancers in the US is predicted to reach 50,9%. Obviously, the demand for freelance marketplaces is currently higher than ever.

Freelance sites like Upwork are offering both employers and workers convenient platforms for finding work and hiring new talent. Yet, despite a large number of the existing freelance online platforms, none of them are perfect. That represents an opportunity for a business to join in and develop a freelance marketplace that can close the existing gaps.

If you are considering developing a freelancing website, keep reading. In this article we explore the main features of freelance sites like Upwork and share our experience on how to build one from scratch.

• What is a freelance marketplace and how does it work?

A freelance services marketplace is an online platform where businesses can find and hire individual contractors to do some work remotely. Websites like Upwork (previously known as Elance) are very popular among digital businesses. They act as an intermediary providing a safe and convenient way to contract remote experts for one-time projects.

How Upwork works for clients

As a customer, you can use a platform to look for freelancers and agencies that deliver a wide range of services, such as design, marketing, copywriting, and software development. Upwork uses big data algorithms to analyze a job you’ve posted and offers you a selection of likely candidates before you hit the Search button.

Here’s a complete list of options that clients get through websites like Upwork:

Posting jobs and hiring personnel

As a client, you can create tasks and post them on a website, and wait for responses from freelancers from different parts of the world.

As a rule, sites similar to Upwork will leverage algorithms helping you select the most interesting candidates, compare their skills, prices, and testimonials about their work.

Checking out available proposals and picking the right one for you

Alternatively, you may start off by looking at proposals offered by different professionals. If you need to build a website, for example, you may browse through the offerings of freelancers and pick the most suitable one for you. 

Hire talent scouts to choose the right talent

If you need to hire the best of the best for your job, but have no time for recruiting tasks, you can ask Upwork scouts to choose the candidates for you. Running professional talent appraisals will ensure that the professionals you hire are 100% qualified and reliable.

Request a talent package for enterprises

Upwork Enterprise is a plan created specifically for large companies looking for flexible ways to hire and manage their freelance workers. Apart from finding the right talent, enterprise clients also get a set of tools for project management, payroll, reporting, and tracking workers’ progress.

How Upwork works for freelancers

For service providers, Upwork algorithms offer matching jobs based on their profiles. Freelancers and agencies can also search for projects and respond to client invitations. As the number of successfully completed projects increases, so do the chances of service providers to attract more clients.

More specifically, here’s how Upwork helps freelancers attract clients:

Detailed user profile

Freelancers can create user profiles including their complete work history and the list of skills. They can even add videos, to make a stronger impression on their potential employers and showcase their expertise.

A range of communication channels

Upwork offers freelancers different ways of contacting potential clients: bidding for jobs, creating and advertising their projects, or contacting Upwork recruiters for career advice, and matching them with potential employers.

On Upwork, freelancers stand the chance to start working for renowned companies, such as Microsoft, Nasdaq, and Airbnb, and expand their professional portfolios.

Secure payment processing

Instead of figuring out complex ways of accepting international payments, Upwork offers freelances direct and legal payment transfers. Freelancers can go for fixed-price payments or set hourly rates. They can contact their clients through the platform, invoice them and track their earnings.

Business-building opportunities

On top of that, Upwork enables freelancers to partner with each other and create virtual agencies. The freelancing platform offers them an agency structure and an opportunity to move from being standalone professionals to business owners by collaborating with other freelancers.

• Benefits of online freelance marketplaces

As freelance online platforms offer convenient and thought-out functionality for all parties involved in the process of organization and execution of work, sites like Upwork are often a priority choice for both clients and contractors.

Companies and individual talent seekers may go for a freelance marketplace like Upwork for several reasons:

• Service availability — Freelance marketplaces act as aggregators for all talents who want to offer their services. This may include different skills, experience levels, prices, etc. So, you can always find a contractor you need, no matter what task you have.
• Flexibility — No need to find a regular employee for a single task or delegate the job to other workers who are not experts in the field. Instead, you can always reach out to a professional with a one-time offer.
• Quality guarantee — On websites like Upwork, you should not worry about possible scams and frauds, as the platforms may give companies and individuals an opportunity to cancel a payment to a freelancer if he or she has done his or her job irresponsibly and with bad quality.
• Diverse price range — By choosing a contractor on sites similar to Upwork, clients can avoid additional expenses associated with hiring an expert, such as insurance, office space, etc. All they need to cover is the price for the service, and these vary depending, for instance, on the country the contractor is located in.

Similarly, freelancers can also benefit from cooperation with clients via the Upwork marketplace or similar platforms:

• More job opportunities — Freelance sites like Upwork are gaining huge popularity, which opens up opportunities to work for many different clients and companies, constantly trying out new formats, topics, etc.
• Professional experience — A variety of work allows freelancers to practice their skills constantly and gain multifaceted experience, improving their level of expertise without getting bogged down in routine job responsibilities.
• Adaptable working schedule — On platforms similar to Upwork, contractors can accept or reject offers based on their current availability. Freelancers have the freedom of choosing when they want to work and when they don’t, as well as the amount of tasks they can handle in a particular period.
• Extra income — Not only can pure freelancers use features of Upwork and its alternatives; they are also available to full-time employees who want to earn a little extra cash when they feel they can combine it with their main occupation.

On top of that, a professional freelance marketplace is a safe space for each party, as their interests are insured by the platform provider. Also, both contractors and clients can benefit from geographically unbound cooperation.

All these advantages make websites similar to Upwork extremely popular for all participants of the labor market, which, as a result, creates a huge demand for such platforms.

• Overview of existing Upwork alternatives

If you want to build a freelance marketplace, one of the first things you should do is explore websites similar to Upwork. There are many alternatives to Upwork for freelancers, and in this section, we will take a closer look at the direct Upwork competitors.

The main Upwork competitors

Below is a list of websites offering freelancing opportunities to digital professionals of all trades:

1. Freelancer

This platform has been in business for over 10 years, offers over 180 job categories, and has over a million users, making it the largest talent marketplace in the world. The scope of this marketplace and the diversity of the options available makes Freelancer immensely attractive for clients and self-employed workers. There are many payment options available since the platform works with most of the popular payment systems.

On the downside, clients have to manually sift through the profiles of less-skilled candidates and the hiring price is higher than on Upwork. Independent contractors have to pay a fee if they accomplish more than eight jobs on a monthly basis.

Fiverr is a popular marketplace for digital professions. The prices can be as low as $5 per job, and excellent usability and affordability are attracting platform users.

However, there are some shortcomings. Fiverr enables clients to quickly find freelancers for their jobs for optimal pricing, yet, the quality of work is often questionable.

Freelancers, on the other hand, are discouraged by fierce competition, 20% fees, and a 14-day wait time for receiving payments, and there is no encouragement whatsoever for working with the same company.

3. PeoplePerHour

This platform is inarguably one of the best Upwork alternatives on the European market. Its creators offer a combination of the most attractive features of a talent marketplace: self-employed professionals can bid for jobs that clients post on the website, or they may offer their services for hourly rates. Clients can enjoy free job postings and reduced time-to-hire, while workers have lots of job options and can withdraw money through a range of payment services.

On the downside, the number of job applications feels overwhelming for clients, and freelancers have to withstand severe competition to get a job. Employee fees are 20%, but, in case disputes arise, they may be even higher.

4. Hubstaff Talent

This freelance marketplace is also often listed among freelance online platforms and websites like Upwork. This freelance platform specializes in small projects delivered at a fixed price or for hourly rates and aims to connect clients to a vast pool of professionals. However, the scope of this website is somewhat limited – the number of registered profiles barely exceeds 100K and there aren’t as many jobs offered as on other freelancing websites.

However, there are also tangible advantages: the customer support is excellent and includes a live chat, the activity reports are easily accessible, and the Hubstaff app integrates with other tools for project management. On the downside, the time tracker could be more precise, and the lack of clarity about the projects’ budgets can be daunting.

This is one of the most influential freelancing websites with millions of users and a wide variety of jobs for all professional categories. Similar to how Upwork works, remote professionals may apply for jobs, and clients can choose from a number of applicants.

Businesses can easily find qualified candidates and send payments through almost every existing payment system since Guru boasts the highest variety of payment methods of all freelancing platforms. The disadvantage is poor customer service that fails to meet the needs of both freelancers and clients. Also, freelancers often complain about problems with withdrawing payments.

Apart from websites like Upwork, there are also niche freelancing websites aimed at helping connect clients and professionals.

Want to develop a marketplace similar to Upwork?

We at Eastern Peak know all the peculiarities of developing websites like Upwork. From the requirements gathering and planning to prototyping, development and hitting the market, we can help you create a freelance platform that really stands out.

Upwork alternatives by expertise

Specializing in website design and graphic design, niche websites like DesignCrowd are helping employers hire experienced professionals and find design jobs.

There are also other alternatives to Upwork where companies can look for design talent, and where designers can advertise their work. DesignHill , for example, even offers a set of proprietary design tools for its users. 

Content writing

Hiring freelancers for writing jobs is something companies, big and small, do on a regular basis. There are websites like WriterAcess , where clients can hire content professionals for all kinds of tasks: from scripting to creating a content strategy for a business. For content writing professionals, such services are viable alternatives to Upwork.

There’s a niche of websites targeted specifically at companies looking to hire remote developers for their programming tasks. These websites enable clients to choose from all kinds of prices and qualifications.

Toptal , for example, is aimed at companies with large budgets that can afford to hire the best of the best.

The music industry is also tightly interconnected with advertising and entertainment. For companies looking to hire musicians, vocalists, songwriters, and producers, niche websites like AirGigs offer an interesting Upwork alternative.

Surely, none of these websites is a direct Upwork competitor, but it does give you something to think about. Unless you want to build an Upwork clone, looking at the best features of sites similar to Upwork, will help you create a unique product distinctly different from other freelancing websites.

• Top 7 features for an Upwork alternative

Such websites are typically quite feature-rich and cover the complete process of working with a freelancer. Thus, it is almost impossible to fit all of them into one simple list.

However, there are certain features that lie at the core of every freelance marketplace out there.

Here is a common set of features for freelance websites like Upwork :

1. Registration and user profile

Online freelance marketplaces usually have two types of users – customers and freelancers. Alternatively you can introduce one more profile type – agencies.

Apart from the photo, bio, skills, and a list of completed projects, a user (freelancer) profile can include some additional information:

• Rating and reviews . Showing the number of completed projects, overall satisfaction rate, as well as some other information could be very helpful when choosing contractors or bidding for a project. That is why it is important to implement a reliable and transparent rating and review system.
• Portfolio . Code samples, diplomas, and product screenshots can also help freelancers demonstrate their experience.
• Skills tests . It is another way to prove your expertise as a freelancer and to make the right choice as a customer.
• Verification . You need to make sure the person behind the account is not a scammer and can be trusted. Thus, you need to implement a mechanism that will allow you to identify the freelancers and verify their identity. This can be done with the help of ID and/or video call.

2. Advanced search

Users should be able to browse through the available projects/freelancers using various filters, such as domain, specific skills, hourly rate, date posted, etc.

3. Job listing

Users (customers) should be able to post their projects on the platform to let freelancers know they are looking for specific skills.

4. Bidding mechanism

Freelancers should be able to reply to the relevant job postings and offer their services.

5. Messaging

This is a private chat room where the customer can talk to the pre-selected freelancers and discuss the project details. Later on, it can be used as a project communication tool, if necessary.

6. Project management tools

A popular solution for a freelance services marketplace is the addition of a time logging feature to ensure transparency of the freelancer’s work. It is also a convenient way to track the time worked for hourly projects.

7. Payments

The online freelance marketplace typically handles all transactions between the customer and the contractor. A popular solution is an escrow payment option. You should also provide integration with the most popular online payment gateways as well as credit cards.

• Advanced features for a freelance marketplace

To build a freelancer marketplace like Upwork or with similar popularity, a basic set of features may not be enough. Additional functionality may enhance the efficiency of the core features and bring even more benefits to the users. Keep in mind that you can include these features by default or make them available on a paid basis.

Here are some advanced features to include in your Upwork alternative:

1. Mobile application

Developing a mobile application for your platform is always a good idea, as it is more convenient for many people who spend more time with their phones than at a computer desk. But in the case of online freelance marketplaces, it may be even more crucial, as clients and contractors should have an opportunity to reach out to one another at any time.

2. Alternative communication channels

Besides chat rooms, users of a freelance marketplace might want to have other options for communication. These may include voice messages, video calls, emailing, etc.

3. Selected talents

Some Upwork alternatives have a feature of an exclusive pool of freelancers available for an additional payment or a subscription. This category usually includes verified professional freelancers.

4. Progress bar

This feature helps contractors report about a part of the job they have already done and for clients to remain informed about the stage their order is on. With this small perk, freelancers can finish their work timely, and clients are given peace of mind about the ongoing project.

5. Price recommendations & calculator

For many services, setting a price may be among the most challenging parts of the work. A dedicated feature can help calculate the cost of a service based on variables, such as a required skill set, the amount of work to be done, special requirements, and more. It may be also useful for clients who won’t have a need to calculate the total price for all services and tasks on their own.

6. AI-powered matching

Artificial intelligence can be an efficient assistant for clients who are searching for freelancers, as it can find the perfect match based on skills, timezone, availability, and other criteria.

7. Dispute settlement

When it comes to freelance jobs, conflicts may often arise. You might want to develop a mechanism on how to resolve the disputes, so users feel that their interests are valued, and that unbiased justice has prevailed.

• How to develop a freelance marketplace like Upwork

A roadmap to developing a freelancing website:

1. Choose your business niche

Targeting a niche market is always a good idea. There is no way you can build a product that caters to everyone. Find your specific audience and build your product with their needs in mind.

There are several examples of such an approach: 99designs is specifically aimed at designers, while Fiverr originally positioned itself as a place to get cheap (starting from $5) and fast freelancing services.

2. Decide on a marketplace business model

Deciding how you will attract revenue is crucial before you actually start developing a freelancing marketplace. The business model will, ultimately, dictate the customer journey and the type of user interface you will build for your platform.

All in all, there are about 10 marketplace business models, but the main means of generating revenue include the following:

• Selling fees: Although this model is believed to be one of the most tricky ones to set up and maintain, it will bring you steady income. Under the “Selling fees” model, you charge a portion of each sale that takes place through your freelancing marketplace. Your options include charging a flat fee, a percentage-based fee, or both. For example, Upwork will charge service providers a 20% fee from the first $500 bill, 10% from every $500,01 to $10,000 bill, and 5% from every billing exceeding $10,000. Freelancers also get charged for an additional number of connections as they bid for Upwork assignments.

• Payment processing and transaction fees: This model enables you to charge a small fee for every financial transaction that takes place in your marketplace. You get paid for processing membership, vendor earnings, advertising, and listing payments. Simply put, the more payments you process, the better. For example, Upwork delivers payment to 170 countries and charges a 3% fee for processing every client/service provider transaction. On the downside, this revenue model is hard to put into practice, and the clients aren’t usually happy.
• Freemium model: The opportunity to try out all of the functionality before paying for the whole product has proven itself to be attractive to new users. They can use the app for a couple of days or weeks to see if it works for them and then decide whether they want to become regular users. Alternatively, you can offer only a limited set of features for free. In this case, users can utilize the platform as long as they wish, but they will still need to pay if they want to get access to advanced features or more options.
• Sponsored features: This can be a featured product or business profiles on the main page of a freelancing platform, or on top of listings. This model allows members to get additional exposure, and may also include mentions in email newsletters and blog posts. The sponsored promotions revenue model is widely used by many online marketplaces, and Upwork is no exception. The rates may differ depending on the promotion type and the length of the promotion period.
• Individual prices: For some enterprises, primarily large-scale ones, a basic price calculator may not work, as they require a larger volume of work to be done. For an additional fee, you can offer individual price calculations performed by managers.
• Ads from 3rd party advertisers: This revenue model works similarly to the Sponsored features model but this time it’s the third-party companies who can advertise through your freelancing platform. You can use advertising models like: CPI (cost for impression), PPC (pay-per-click), cost per post, and cost per period. You can also leverage ad software like AdSense for ad placement.

Freelancing platforms may also use Sign-up fees or Pay per lead model to attract revenues.

As you can see, these revenue models may target customers, service providers, third parties, or all of the above. As a rule, one model will prevail, although freelancing platforms normally use a combination of several payment models.

3. Finalize your requirements

The project definition stage is a good place to start. Before you jump headfirst into the design and development, you need to understand exactly what is needed. This will save you lots of time and effort in the long run.

The next step is to create a visual identity and a user interface for your online freelance marketplace. The UX/UIdesign process usually includes several stages:

• wireframing

Read more: Corporate Identity for Startups. How to Build a Brand that can Compete with Market Leaders

5. Prototyping

As soon as you have the graphic design at hand, you can see your product in action, or even test it out with real users. This is when rapid prototyping comes into play. It doesn’t require as much time (and money) as development does, yet proves to be very helpful when validating your assumptions early in the process.

6. Marketplace development

Now that you have created, tested out, and polished your visual design and UX, you can put it into code and build a marketplace website.

If you don’t have an experienced CTO in your team, we recommend partnering with a trusted technology provider to hire a dedicated development team . Your team will help you choose the optimal tech stack and define the minimum viable set of features to start with.

Read more: How to create an online marketplace MVP

Although we’ve mentioned testing after the development stage, they usually go in parallel. Sometimes tests are written even prior to the code itself (in case of Test Driven Development ).

Yet, regardless of the approach you take, quality assurance is absolutely necessary if you want to build a functional and successful marketplace.

8. Launch and ongoing improvement

The development doesn’t end after you launch your marketplace website. You need to work on improving your product and scaling it. There is always something you can do better, just like there is always room for growth.

• How to keep your freelance marketplace competitive

If you are going to create a freelance marketplace, it’s important to understand that this market is highly saturated. Your product should be able to stand up to the competition.

Here are some tips on how to create a freelancing website that is competitive and commercially viable :

• Conduct a thorough market analysis . To stand out from the crowd, you need to know who you are competing against. Get to know your competitors, their benefits and drawbacks. Use them to build a better product or create something completely different if you see that there is a demand for it.
• Learn about your target audience and its needs . The best strategy is to aim at a certain problem your users are facing and help them solve it. Is there a specific audience neglected by the other freelance services marketplaces? For example, small-niche platforms for designers, copywriters, or specialized developers (e.g. Blockchain, a certain programming language, etc.) often turn out to be more popular than the all-purpose websites like Upwork.
• Find your unique selling point . What makes your product different from the rest of the freelance marketplaces? You can find a specific niche to target or add a certain twist to your product to make it stand out.
• Consider different business models . There is no unified freelance marketplace business model. You can choose to build an exclusive platform with 100% paid access, but in this case, make sure you can offer something really outstanding in exchange. A more popular option would be to charge service fees from the money that is paid through your platform. Alternatively, you can offer your platform services for free and charge only for the pro features.
• Experiment with new features and technologies . The list of features used by freelance services marketplaces is never 100% complete. There is always something you can add. For example, you can offer an integration with some of the most popular project management tools, add a service chatbot to help your users with routine tasks, introduce AI-based candidate screening feature, etc.

And one more bonus tip: start small . To minimize the risks of launching a feature-rich product, start with an MVP first. This way you will be able to see if your marketplace will be of any interest to your target audience. If there’s no demand for the product, pivot and take another shot.

• Getting started: Build a freelance marketplace with Eastern Peak

Judging by our experience, a marketplace business model is extremely scalable and can be applied to various business domains both locally and worldwide . From Upwork to Airbnb or Amazon, there are dozens of marketplaces that lead the way in almost every industry. And, when applied to such a promising domain as freelance work, this model has shown its true potential.

As an example, view a video testimonial below of the Bizzabo event marketplace – the world’s fastest growing event technology company that empowers event marketers to manage, measure and grow professional events across the globe via their online event platform.

How to get started?

The product discovery phase is the best first step you can take to lay a solid foundation for the development of your online marketplace. It includes a functional specification, UX/UI design, and a visual prototype that will give you a clear vision of the end product. On average, this phase takes 4-6 weeks.

The product discovery phase can help you:

• define a full scope of work and develop a roadmap for building a marketplace
• set a realistic budget for your MVP and plan your resources
• test the waters with your audience using a visual prototype
• craft a convincing investment pitch
• get to know your team

If you want to build a freelance marketplace, make sure to garner support from experienced technology professionals. We at Eastern Peak have the expertise and proven track record developing online marketplaces and mobile apps of various scales for companies and startups around the world.

Share your ideas with an experienced project manager and receive a free consultation. For more information on how we can help you bring your ideas to life contact us now.

Frequently Asked Questions

How does upwork work.

Upwork uses big data algorithms to analyze jobs customers have posted and offers them a selection of likely candidates.

For service providers, Upwork algorithms offer matching jobs based on their profiles. They can also search for projects and respond to client invitations.

How does Upwork make money?

The main means of generating revenue from a website like Upwork are the following:

• Selling fees
• Subscription model
• Payment processing and transaction fees
• Sponsored features
• Ads from 3rd party advertisers

What are the main features for an Upwork alternative?

Here is a common set of features for freelance websites like Upwork:

• Registration and user profile
• Advanced search
• Job listing
• Bidding mechanism
• Project management tools

How to develop a freelance marketplace like Upwork?

• How to Create an Online Marketplace MVP
• Smart Strategies to Attract Sellers and Buyers to Your Online Marketplace
• How to Compete in the Modern eCommerce Market like Tophatter
• Building a Rental Platform: Types, Features, and the Airbnb Example
• Fundamentals of How to Create a Workspace Rental Platform

About the author:

Alexey Shalimov, CEO at Eastern Peak

As CEO at Eastern Peak, a professional software consulting and development company, Alexey ensures top quality and cost-effective services to clients from all over the world. Alexey is also a founder and technology evangelist at several technology companies. Previously, as a CEO of the Gett (GetTaxi) technology company, Alexey was in charge of developing the revolutionary Gett service from ground up and deploying the operation across the globe from New York to London and Tel Aviv.

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What is a freelance marketplace?

An online freelance marketplace is a double-sided platform where companies place relevant job postings and hire independent contractors. In turn, freelance specialists can apply for open positions if their skills meet the requirements.

Now, let’s take a closer look at how an online freelance marketplace works.

How a freelance marketplace platform works

An employer posts a job or a task and waits for a response. The company itself can offer the job to a contractor after examining the portfolio and feedback from other employers. A freelance marketplace like Upwork has algorithms that select relevant candidates with a suitable fee and experience in the niche. Even if the online platform’s AI fails to find a contractor for some challenging project, freelance marketplace employees manually find qualified candidates for freelance work. At the same time, contractors on freelance platforms strive to get good reviews, do well on projects, and improve their experience to be higher in the rankings and to get interesting and expensive jobs.

Three ways to find a contractor on a freelance marketplace

Why have freelance marketplaces become popular?

There are several reasons why freelance marketplace websites have become popular. Some of them relate to the growth of the freelance market in general, and others to the merits of the freelance marketplaces themselves.

First, the pandemic forced companies to hire staff and work remotely even though they had not thought of it before. Over time, many of them have recognized the benefits of remote employment. In turn, websites like Upwork have simplified the process of finding and hiring remote workers.

Secondly, many employees, especially those of Generation Z, do not like sitting in an office from 9 to 5. So they take advantage of flexible hours and the saved time because they don’t have to go to the office. The continuous growth in the number of freelancers proves it. In 2022, more than 70 million people in the US alone are freelancing, and by 2028, that number will rise to 90.1 million .

A third reason for the growing popularity of these service providers is the convenience and benefits of freelance marketplaces for job seekers and employers. Here are the 3 main advantages:

• Vast choice of specialists and tasks . Marketplaces like Upwork gather many talents in different fields, while a freelance platform like 99designs showcases niche specialists. Finding the appropriate candidate on a freelance marketplace is easy due to the number of users. A freelance marketplace also collects many jobs for workers of different levels and specialties, so every contractor will find a project to their liking for a comfortable payment.
• Easy hiring and communication process. Employers can filter candidates, view work examples, read reviews, and write to the relevant candidate directly on the freelance marketplace platform. Contractors on websites like Upwork can post their cases and portfolios, and not only look for jobs themselves, but also accept offers from employers, and communicate with them directly on the platform.
• Built-in payment gateways . When the job is done, the employer sends payment according to an agreed fixed price to the contractor directly on the freelancer marketplace.

With such a set of benefits, the popularity of freelance marketplaces among job seekers and employers will only grow, as well as the revenue of the freelance marketplace creators. For example, according to Statista, Upwork’s revenue more than tripled between 2016 and 2021, reaching $502 million . So, if you want to join the freelance industry, you can make money by becoming a service provider and developing a freelance marketplace.

Types of freelance platforms & overview of websites like Upwork

The freelance market is growing, and Upwork, founded in 2003, is no longer the only choice. The variety of platforms is increasing, and many freelance marketplaces like Upwork have emerged. In this part, let’s look at the different online marketplaces and the features that attract users.

Types of freelance marketplaces

Freelance marketplace for long-term projects

Websites like Upwork, a long-term freelance marketplace, focus on large, long-term projects with high budgets. At the same time, these freelance platforms are the most versatile: there are many types of freelance jobs and different types of payment available. Users can quote custom prices, and clients can choose the best quotes. When creating a freelance marketplace, think about the niche for your project. For example, a freelance website for long-term projects is good for app development, but a short-term one is better for copywriting.

Upwork homepage

Freelance marketplace for short-term projects

A marketplace like Fiverr serves as a platform for specific small tasks. There are many projects on Fiverr, from content creation and video production to app design and more. Such service providers deal with small budgets and focus on affordable prices for employers. Here, customers mainly put out small tasks for a low price which is suitable for specialists with little experience.

Fiverr homepage

Global freelance marketplaces

If you want to help people find specialists all over the world regardless of location, a global freelance marketplace like Behance is the right option. Behance combines a freelance platform with a social network for creators. Artists, photographers, and motion designers can create a portfolio and share it with a huge audience.

Behance homepage

Local freelance marketplaces

If you want to help people in a particular country or region look for talent, create a local freelance marketplace. For example, Salita specializes in finding translators in Norway. Anyone with interpreting skills can register, prove their qualification by uploading certificates, and gain access to jobs through this freelance marketplace.

Salita homepage

Niche freelance marketplace

If you want to focus on jobs for specialists in a particular field, set up a niche freelancing marketplace . For example, 99designs helps find designers for websites, logos, clothing, and other products. In addition, this freelance website presents itself as a community of designers for inspiration as they can look at each other’s projects, learn new trends in design, and get inspired.

99designs homepage

General freelance marketplace

If your freelance marketplace business model involves different areas of expertise, consider building a general freelance marketplace. For example, Freelancer is a freelance marketplace specialized in bringing together a wide range of different professionals: web developers, marketing, social media specialists, etc. The freelance marketplace hosts various competitions to help freelancers enrich their portfolios and develop a positive reputation on the site.

Freelancer homepage

When thinking about the type of freelance marketplace, you don’t have to focus on just one. The types of platforms can overlap and combine two or three: for example, Upwork is a general marketplace for long-term projects.

Monetization strategies of freelance marketplaces

It turns out that not only the number of freelancers is increasing but also the variety of freelance platforms. Monetization opportunities for a freelance marketplace like Upwork are also growing. Let’s find out what monetization strategies exist for the freelance marketplace.

Charge fees when transferring payment for completed tasks and projects. Websites like Upwork and Fiverr use this monetization strategy. Fiverr charges 10% of the transaction above $10.

This subscription model assumes you provide some of the app’s functionality for free but charges only registered users for additional features in a premium subscription. For example, Upwork has a free plan for freelancers and a premium one. With the Freelancer Plus plan for $15 per month, a freelancer can see what price competitors charge for tasks. A paid member’s profile remains active and will be shown to employers even if the person has not visited Upwork for some time.

Promotion of profiles

Freelancers want their portfolios to appear first in searches, and employers want their jobs to be at the top. Add a feature to your freelance marketplace that allows contractors and recruiters to promote their listings for a fee to increase your income.

Custom prices

If you decide to build a general freelance marketplace or a marketplace for long-term projects and focus on large corporate clients, it can be difficult to calculate a universal subscription price. In this case, you can take an individual approach, talk to company representatives, and calculate a custom price for using the marketplace website.

Mixed model

This subscription model assumes that you combine several monetization strategies to increase your income. For example, you can offer freemium to freelancers and charge employers fees.

5 ways to monetize your freelance marketplace

Must-have features of freelance marketplaces

To be profitable, your freelance marketplace must remain competitive, and for that, it must be user-friendly. So, when developing a business idea for a marketplace like Upwork, you need to think about the basic features that will attract your target audience. Below, we collected must-have features for the freelance marketplace.

Must-have features of freelance marketplace

Registration

Registration at a freelance website like Upwork should be available to all types of users: contractors, recruiters, and agencies. Here are a few tips on how to make registration user-friendly. First, add the option to register via social network or email. Second, avoid being intrusive and don’t require users to register as soon as they enter the freelance platform. Instead, offer a registration form when the user is viewing a job offer or candidate’s profile.

Fiverr registration form

User profile

User profiles should include contact information and a photo, describe skills and experience, and offer promotion of the profile if you use this freelance marketplace monetization strategy. Besides, you can add the following sections to user profiles :

• Rating and Reviews. Here, recruiters will see the number of completed projects, text reviews, and the overall level of satisfaction with the contractor.
• Portfolio. Here, contractors will upload their diplomas, examples of completed projects, and code samples (for development experts). This section is like a cloud service for contractors’ projects.
• Identity verification. Websites like Upwork should make sure that the person behind the account is not a scammer and can be trusted. Identity verification can be done with an ID — uploading photos of identity documents and/or a video call.

Fiverr user profile

Search and filters

Freelance services marketplace should use advanced search and filters to ease the selection of appropriate specialists and projects. For example, on Fiverr, by typing the words into the bar, you will see the most popular queries. Apart from the search bar, add to the freelance marketplace filters like publication date, hourly rate, specific skills, and rating.

Fiverr search bar

Job catalog

Companies and recruiters on a marketplace like Upwork should be able to post jobs and assignments. In this section, the client can indicate the gist of the project and the necessary skills of the freelancer, describe the company or entrepreneur, and set the proposed fee.

In-app chat

Messenger in the freelance marketplace allows clients to chat with pre-selected freelancers and discuss project details. In chat, the requestor and the contractor can stay in touch during the project as well.

Payment system

To make use of a freelance marketplace like Upwork comfortable for users, you need to build payment gateways and provide multiple payment options . For example, add the ability to pay with debit and credit cards. If you want to build a global freelance marketplace , add currency exchange within the platform.

Fiverr payment system

Review & feedback system

The feedback system is important for the freelance marketplace as it provides real information about the contractor and the quality of his services. After the freelancer has completed the task, the client should be able to leave a review. It is better to enable this feature only for registered users to avoid reviews from rogue sources.

Fiverr users’ reviews

How to build a freelance marketplace

To launch a freelance marketplace, you need to start with the MVP — a minimum viable product. This is a version of your platform with basic features that will be enough to attract the target audience. To develop the MVP , you need to follow a few steps. Here they are.

Step 1: Work out an idea and business strategy

First, analyze the market. In order to start a development process, do comprehensive market research, study competitors’ business models, and learn as much as you can about the target audience of websites like Upwork and their needs. Find specific problems of the target audience and omissions of competitors that need to be solved. For example, read reviews about freelance marketplaces and find out what users are dissatisfied with. These are the omissions of competitors, which, if corrected, will make your freelance marketplace competitive.

Second, form a unique offer: choose the type and business model of the freelance marketplace . After analyzing the market, think about how your project will differ from your competitors and what will be your advantage. For example, you can focus on the accessibility or uniqueness of the online freelance marketplace . If you choose uniqueness, you can, for instance, create a platform for blockchain developers or copywriters in Spanish. Through such a business model, you can make the community exclusive and sell access to it more expensively, gaining money. If you choose accessibility, the benefit will be that your freelance marketplace will suit more people, so you can earn more from a wider target audience.

Step 2. Decide on the functionality

To build a freelance marketplace, think about the feature set that you will include in the MVP. This should be a minimum set of features that can keep the freelance platform competitive and attract the target audience. A sample list of such features was described above.

Step 3: Choose the technology stack

The next step in the freelance marketplace development process is choosing the technology stack. To build a freelance marketplace, we at Purrweb use React.js for the frontend (the interface the user sees) and Node.js for the backend (the server part).

For mobile development, we use React Native — a framework for cross-platform development. It creates a native-like experience and saves time and money as the team works on a freelance marketplace for iOS and Android simultaneously.

Step 4: Develop the MVP

Once you have chosen a technology stack, you need to hire a development team to build a freelance marketplace. At that stage, the team will take care of UI/UX design, code writing, and testing. When the MVP is ready, you can release it, collect feedback, and improve your freelance marketplace.

Read more about what MVP is, why, and how to develop it in this article of our blog.

How to keep your freelance marketplace competitive

To remain competitive among other freelance marketplaces, make the use of your service as comfortable as possible. There is no such thing as a perfect marketplace, so to stay competitive, you can take into account and correct the mistakes of your competitors, improve basic features like the payment system, or add to a freelance marketplace new unusual features that you haven’t seen before. Here are a few points to reflect on:

Convenient and fast payment system

It is important for people to get money for their work quickly and to be comfortable making transfers. So there is a lot to think about.

• Speed. Choose for your service provider an internet acquiring that works with most banks and allows you to receive payments within 24 hours.
• Comfort. Automate billing, fees, and invoicing to accommodate users. Implement escrow, a payment method in which money is held in a third-party account until the client approves completion. The payment is then sent to the freelancer. Such transactions increase the level of trust to the freelance platform from both clients and contractors.
• Geography of payments. If your freelance marketplace operates around the world, consider offering multiple payment options and currencies. Most modern payment solutions, such as PayPal and Wise, support major world currencies. If your platform will operate in a local market, be sure to choose a service that works in the local currency.

Multichannel communication

Beyond just chat, add more features for communication: video calls, screen sharing, voice messages, and the ability to share files. These tools will help the freelancer and the customer communicate comfortably.

Gamification

Let users collect points for feedback by taking professional tests or inviting friends to the freelance marketplace. Users can then swap those points for discounts or free courses on the platform.

How much does it cost to build a freelance marketplace?

Prices for freelance marketplace development can fluctuate depending on the level of development company, feature set, and business model you choose.

Below, we have calculated the cost of freelance marketplace development at Purrweb based on the features mentioned in the article.

Our experience with marketplace development

We at Purrweb have already created successful marketplaces.

For example, we built a music marketplace and managed to stand out in the market. How? By creating a native experience using Java Script, unlike competitors who used WordPress. By the way, the project’s YouTube channel has already gained 20,000 subscribers. Read more about the case here .

We also developed a photographer freelance marketplace for our client from Belgium. To make the platform user-friendly, we solved a lot of problems: rebuilt the UI/UX design from 300 random screens of the previous contractor, worked around the restrictions for the payment gateway, and limited long-term storage of photos in the database. What other challenges we encountered while developing a niche freelance marketplace and how we solved them — you can read here.

How does freelance marketplace work?

Customers place different orders for contractors and wait for a response. They can also offer the task to the performer they like. Then, the client and the performer contact each other in the chat and agree on the nuances, deadlines, and price.

How does a freelance marketplace make money?

It depends on the business model you choose. You can charge a fee for completed jobs, offer users to promote their projects and profiles, or offer them freemium.

What percentage does Upwork take?

Upwork charges 5, 10, and 20% fees per transaction depending on the payment. 20% for orders up to $5,000, 10% — up to $10,000, 5% — from $10,000. The freelance marketplace also charges contractors a payment processing fee of 2.75%.

How do I build a freelance marketplace like Upwork?

First, analyze the market and target audience and formulate a unique offer — something that will distinguish you from others. Then, choose the type of freelance marketplace — local, general, niche, or other. Pick a business model and the minimum set of features for the MVP. After that, hire a development team to handle design, coding, and testing.

How much time will it take to create a freelance marketplace from scratch?

Purrweb specialists can develop the MVP of a freelance marketplace with basic functions in 4 months.

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How To Create A Freelance Business Plan – Guide + Template

Having a solid freelance business plan is crucial for achieving long-term success. While you may not have the same traditional structure as a brick-and-mortar business, it’s essential to have a roadmap that outlines your goals, target audience, and financial projections. In this article, we’ll discuss the key components of a business plan for freelancers and offer tips on how to create a plan that sets you up for success.

• Purpose of a business plan
• Benefits and advantages

The Business Model Canvas

Value proposition, customer segments, customer relations, key partners, key resources, key activities.

• Revenue Stream

Cost Structure

The lean canvas.

• Freelance business plan template + checklist
• Executive Summary
• Company and Strategy
• Products and Services
• Market Analysis
• Competitors
• Marketing and Sales
• Organization and Resources
• Risk Analysis
• Action Plan
• Common mistakes when creating a business plan

Purpose of a freelance business plan

A business plan forms the foundation of your company. It records the business idea and all the important components that contribute to its success or failure. Therefore, a business plan not only helps to get an idea of what the chances of success are for a plan, but also serves to keep an eye on the development of the company after the start-up, and to make target-actual comparisons and counteract negative changes in a timely manner.

In addition to its internal purpose, a business plan also fulfils external tasks. When starting a business, it especially serves as a basis for evaluation by external capital providers.

A good business plan can already be helpful in the start-up phase to convince potential investors, banks, authorities, as well as potential sales partners, customers or suppliers of the business idea.

However, before diving straight into the creation of a business plan, one should first engage with their business idea in order to illuminate it from all sides. This not only helps to avoid early failure, but also makes the creation of a freelance business plan much easier.

Join our freelancer community today! Create your profile in just 2 minutes and start attracting new clients.

Why use a business plan? Benefits and advantages

Before you start creating the perfect freelance business plan, let’s take a look at the benefits and advantages that it can offer:

• Increased clarity: A business plan can help you get clarity to your decision-making process and helps you put your end goal at the core and work towards it.
• Provides clear structure: A business plan provides structure and allows you to define business objectives. When consulted regularly, it can help measure and manage your areas of focus that are of the utmost priority.
• Creates a marketing roadmap: A business plan allows you to create an effective marketing roadmap, which in turn can help you define things like target market(s), target customers, schedules, timeframes, etc.
• Improved financial decisions: Planning for expenses effectively is crucial when it comes to freelancing. A business plan gives you the information needed to make better decisions financially.

To analyse the potential of a business idea, one can use a variety of methods. One of the most comprehensive tools for this is the Business Model Canvas by Alexander Osterwalder. In this method, a business idea is placed at the centre and related to 9 dimensions – the so-called building blocks:

Revenue Streams

During the development and analysis of the business idea, all fields are filled with the corresponding contents. Plan to spend two to three hours working on these fields. It is important to take enough time to consider the thoughts for each building block, but not to plan every field in detail. Remember, the completion of the Business Model Canvas should only show whether the business idea is feasible and serves as a guide for what needs to be considered.

The Value Proposition defines the extent to which the business model brings benefits to the customer. The following questions help to define the promise of performance:

• What problem am I solving?
• What exactly am I offering?
• Why are customers looking for my service specifically?
• What makes my offer better than the competition?

Next is the definition of the target audience or customers. It is important to define customer segments that will buy your services or products. Potential customers are grouped together based on their characteristics. The group characteristics can be traditional demographic factors (age, gender, location, etc.) or can focus on purchasing behaviour or reasons for buying.

Next, the channels through which you want to inform your customers about the product or service are defined. It is important to find out where and how potential customers shop. Here are some questions to answer:

• How and where do customers find out about the offering?
• How do customers become aware of my product or service?
• How can customers buy my products and services?
• How do I provide the service or how does the service reach my customers?

To capture all relevant touchpoints between customers and your business, it is recommended to record the so-called customer journey. Here, you put yourself in your customer’s shoes and document every step he or she takes from gathering information to making a purchase (and possibly beyond). This will help you identify the channels that you need to establish and manage for your business.

If you have already thought about the customer journey, you’re halfway to defining customer care. It is not only important to consider how to attract and win customers, but also how to keep the ones you already have. Consider the following questions:

• What options do you have to communicate with your customers?
• Is there a customer service hotline, a contact form, an email address?
• How do customers learn about your new offerings?

In the next step, you will think about possible partnerships and how you and your business depend on them. This includes suppliers and vendors, as well as technology partners or regulatory bodies that you need to work with. Focus on the really relevant partners without whom you couldn’t do your job.

The same applies to Key Resources. Here, the resources needed for your work are listed, including:

• Employees or roles that need to be filled
• Financial resources and capital
• Intangible resources such as licences, brands, patents, etc.
• Material resources such as laptops, office equipment, company cars, etc.

Of course, not every pencil you need to buy for your business needs to be listed here. The focus should be on the critical resources for success.

The definition of Key Activities is one of the simpler tasks in the Business Model Canvas. Here, all activities that contribute to the success of the business model are listed. The other components of the business idea also contribute to this, which is why it is worth deriving the Activities from them.

In general, you need to ask yourself what activities need to be performed to fulfil the value proposition, win customers, and maintain day-to-day operations.

Next, it is important to define how you make money with your business . For freelancers, this means defining their hourly rate or considering other revenue models to generate income. Are there perhaps special contracts that bring recurring revenue or are only the hours billed each time? Define all essential sources of revenue and how they work.

Lastly, the cost structure is defined. The most important variable and fixed costs and their causes must be identified. These may include:

• Production costs
• Marketing costs
• Licence costs
• Personnel costs

As a further development of the Business Model Canvas, the Lean Canvas became known in 2010. It is specifically adapted to the fast-paced and limited resources of a startup and focuses on the problem to be solved and the solution to be provided, as well as the so-called unfair advantage and the core metric. In the Lean Canvas, these elements replace the Key Activities, Partners, Resources, and Customer Relations.

Often business ideas fail because they don’t solve a relevant problem. Therefore, this component was added to the Lean Canvas.

Once the problem to be solved has been identified, the focus shifts to providing a corresponding solution quickly and easily. The Lean Canvas approach involves using an MVP (minimum viable product). The MVP represents the minimum version of the solution – the raw version. This is launched on the market as soon as possible and then further developed in collaboration with customers.

The unfair advantage essentially describes the competitive advantage. For startups, it is important to know this very well or, if it does not exist from the beginning, to define it.

Young companies often lose themselves in the masses of numbers and metrics that define the success of a business. To prevent this, entrepreneurs who choose the Lean Canvas approach should first define only one metric from which they can measure success and failure. At the beginning, when the survival of the company is paramount, this could be profit. Later, when it comes to growth, other metrics come into play.

How to create a freelance business plan – Template + checklist

For those who have thoroughly considered their business idea beforehand, writing a freelance business plan will be easy. The elements of the Business Model Canvas or the Lean Canvas often overlap with the elements of the business plan and only need to be worked out in more detail. The planned size and complexity of the business idea also determine the content and scope of the plan.

The following elements provide a guide for creating your freelance business plan:

1. Executive Summary 

The Executive Summary is a brief overview of the business plan. The business idea is explained briefly and concisely, usually along with the purpose, objectives, and goals of the business. The industry and growth potential of the market are described, and finally, the key investment and financial data are presented.

Write the Executive Summary at the end of the business plan. It serves as a compact overview of the business idea and as the first evaluation criterion for the potential success of the business model and its financing for potential investors.

The chapter, which should be no more than one and a half pages long, includes:

• Business idea
• Offer – products & services
• Industry / Market
• Growth potential of the market
• Financial requirements

2. Company & Strategy

In this section, the foundation for the company’s concept is laid out. The approaches for a successful implementation are presented in detail. It is also important to highlight the arguments and strengths of the idea and the planned company. These can be supported, for example, by a SWOT analysis.

The following sub-chapters are included:

• Founding history
• Milestones, capital, and shareholder structure
• Business goal
• Business purpose
• Vision and strategy

3. Products & Services

This section of a freelance business plan contains all information about your products and services. Define them precisely, describe their unique selling points, and think about pricing segments. 

The subchapters include:

• Products or services
• Product or service advantages
• Pricing segments

4. Market Analysis

For a successful business, the appropriate market potential must be present. Therefore, the selected market must be analysed in detail. Identify customer groups and define strategic business areas. The topics to be addressed include:

• Market volume
• Market position and market shares
• Growth potential
• Framework conditions (economic and legal factors)
• Entry barriers
• Competitive analysis
• Customer groups (segmentation)
• Strategic business areas (product per segment)
• Market objectives
• Outlook on potentials and future.

5. Competition

Here you take a look beyond your own company and get an idea of who your direct competitors are, who your market companions are, and how the situation can develop in the future. The following points belong in the competition analysis:

• Direct competitors
• Their products and services
• Their strengths and weaknesses

6. Marketing & Sales

For a business idea to succeed, the right marketing and promotion of the product or service is crucial. Here, you describe the marketing concept and your marketing mix, where you define what you market where, how, and at what cost. Common models for processing are, for example, the 4 or 7 P’s. In addition, the marketing concept should include all important key points for the timeframe of market entry. The sub-chapters for this chapter include:

• Sales and distribution strategy, distribution channels
• Pricing, price policy
• Communication strategy, channels, advertising, PR

7. Organisation & Resources

For the successful development of a company, resources, management, and employees play an important role. Therefore, this part Organization and Resources describes everything that is important for the organisation of the company, production, or service provision. This includes points such as:

• Production process (location, technology, capacities, etc.)
• Inventory management
• Research & Development
• Legal situation
• Patents/licences
• Responsibilities
• Development/expansion potential

8. Risk Analysis

In this section, possible opportunities and risks are described, as well as measures to counteract the risks. In classic risk analysis, risks and their consequences are listed and classified according to the likelihood of occurrence.

The risk matrix provides information about which risks are critical. For risks in the high and extreme categories, measures to limit or remedy them must be defined. Potential risks can be found, for example, in:

• Management / personnel

9. Financing

A business plan for a planned self-employment cannot be created without detailed financial planning. Create the financial plan in the business plan for a period of 3-5 years to increase planning security. The following topics belong in the financial plan:

• Cost structure
• Revenue cycle
• Cash flow plan – comparison of expenses and revenues
• Profit planning – profit and loss statement
• (Planned) balance sheet – overview of asset ratios
• Required capital / investments

10. Action Plan

No matter how detailed your business plan is, it won’t help if it doesn’t lead to a structured and realistic action plan. Define all the steps that need to be taken until your product or service is on the market. You can use the chapters of the business plan as a guide. The next steps need to be defined, for example, for:

• Product/Service
• Business start-up/Company
• Resources/Partners
• Marketing/Market entry
• Location/Business premises

11. Appendix

In the appendix, documents can be included that would exceed the scope of the respective chapter. For example, the following can be included:

• Resumes / Founders’ Profiles
• Financial planning (Balance Sheet, Income Statement, Cash Flow)
• Operating permits / Patents
• Organisational charts

📌 Business Model checklist ➯ DOWNLOAD

Common mistakes when creating a business plan (and how to avoid them)

When it comes to such a labour-intensive process as creating a business plan, it can be frustrating when errors creep in. To help you with this, we’ve identified the most common sources of errors below and provide tips on how to avoid them:

Lack of knowledge (e.g. in the area of finance)

• Scrutinise the areas where you are unsure, especially critically.
• Acquire any missing knowledge if necessary.
• Seek out partners and advisors who have the expertise you lack.

Missing structure in the business plan

• Pay attention to the logical structure of the business plan. The chapters and subchapters can follow a different order in your plan if it makes more sense for your business idea.
• Focus on the important components of your business plan, which may vary depending on the purpose of the plan (investor pitch, business planning, etc.)
• Various organisations offer consulting services to entrepreneurs, some of which are even subsidised by the states.

Insufficient differentiation

• Even if your idea seems incredibly unique to you, a comprehensive competitor analysis is necessary.
• This is the only way to define a convincing unique selling proposition (USP) – which is also essential for the success of your business idea.
• Not only does the business idea need unique selling propositions, but each product and service also needs to stand out in the market. Therefore, define a unique value proposition (UVP) for your products and services as well.

Underestimating risks

• Nobody becomes self-employed overnight without careful consideration. Therefore, inform yourself carefully about the risks of self-employment and choose your approach consciously.
• Use various analysis tools to minimise risks.

Poor planning

• It’s easier to take the next steps if they are specifically planned and written down. A dedicated action plan of the individual steps is therefore essential to make the business plan a reality.
• To avoid suddenly facing insurmountable obstacles, a secure risk planning is needed. Make sure to think this through thoroughly before embarking on the adventure!

These articles might be interesting too:

• Client Acquisition: Tips to Acquire Clients & Set Up Your Strategy
• Freelance Profile: What to Include, Tips and Examples
• Self-Marketing Tips And Tricks: How To Promote Yourself As A Freelancer

Stefania Volpe

Stefania joined the international team at freelancermap in 2020. She loves marketing, the digital world, foreign languages and meeting different cultures. She moved from Italy to Germany thanks to an exchange program at the university and worked as marketing manager for several startups. Now she focuses on helping freelancers and IT professionals to find jobs and clients worldwide at www.freelancermap.com.

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Guide to Building a Successful Freelance Business

Having a freelance business can afford you the freedom, choice, income, and independence you need to live a fuller and a more satisfying life. To help you get there, we've put together this go-to guide to building a successful freelance business online. We'll talk all about freelancing , from finding your niche to taxes and business options. Before you take the plunge into freelancing full time, ask yourself the following questions:

What are your motivations to go freelance?

Motivation is different for everybody, but some of the more common reasons are:

• You want to escape the mundane 9-5 rat race
• You need more flexibility in your daily schedule
• You want to have a better work/life balance
• You want control of your finances and career options
• You need the freedom a remote working environment affords

What's your motivation to freelance?

Are you making a considered decision or not?

So you've been not getting along with your boss, or you didn't win a particular account--both of those are unfortunate scenarios, but they aren't solid reasons to quit your steady job and decide to freelance. Think about it: becoming a freelancer isn't a decision to be taken lightly—we're talking about your career here. Remember, this is your long-term future and your personal finances, so a snap decision based on a few bad days or general job dissatisfaction isn't a smart move. Freelancing is very rewarding, but getting started is a lot of work, so it's important your motivation is strong enough to hold you steady while you get started. 

Whatever your motivation, take the time to think things through:

Create a brainstorming board with wants, needs, pros, and cons, and find out whether freelancing is really what you want, or whether your needs might better be served by another strategy entirely. If being a freelancer is the right path for you, then read on.

What Services Can You Offer?

As a freelancer, you aren’t locked into one role or position. While some choose to specialize in one field, or even one niche of one field, such as travel writing, others use their multi-passionate natures to freelance in several fields. There are so many types of freelance jobs online, that you'll be spoiled for choice. Consider freelance roles in: 

• Graphics and Design
• Web and Mobile Design
• Digital Marketing
• Writing and Translation
• Video and Animation
• Music and Audio
• Programming and Tech
• Business Services

Perhaps you are good with Adobe Photoshop , have a beautiful voice that would be good for voice-overs , and you can also create an amazing presentation in Powerpoint . There are so many options for freelancers looking to do business online that you can build a career with plenty of variety, whatever your skills.

How to Uncover your Freelance Potential

Analyze competitive offerings.

Let's say that you're a designer looking to get your freelance design business off the ground. The first thing you should do is look at others with successful freelance design businesses to gather insights into their competitive offerings. Take, for example, these Fiverr marketplace listing for designers.

You can see, even from this small sample, that there's a lot of variety in the services freelancers offer. From the insights you gain from your competitor research, you can establish what services you can offer, and if you can compete or carve out your own niche within the freelance marketplace.

List Your Skills

Start by listing all of your current skills. Write it all down. Don't obsess over making it perfect or only writing what you consider to be marketable. Answer the following: 

• What do you do, or have you previously done, for work? 
• Break down your current and previous roles. As part of your current job, do you find yourself writing reports? 
• Does your job require you to edit other people's work? 
• Do you run meetings? Organize schedules? 
• Were you involved with sales? What are your work-related skills? 

However insignificant they may seem, write them down. Next, list everything you're good at outside of work. Do you like to program simple applications or WordPress plugins in your free time? Do you edit photos? Make videos? Design digital art? Are you a calligrapher? A fitness fanatic?

Once you've got your list, eliminate any of the items that you really did not enjoy and would not want to do on a regular basis. While it's important for a freelancer to make a livable income, it's difficult to thrive doing things you really dislike - it'll quickly take the shine off freelancing. 

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Defining your skills helps you “zero in” on what you’re truly good at, and what can really help you thrive in the freelance world. (read article), research your marketable skills.

Now get down to research. Which of the remaining skills are marketable? The key is to find the "sweet spot" between what you're good at and what makes you the amount of money you need to live comfortably. Your time is valuable, so you need to establish which skills are worth pursuing. Eliminate the ones that you don't feel pay enough to be worth your time. 

Now you should have a nice defined list of items that fall into that "sweet spot". These are the core skills you can use to start your freelance business. From here, you should be able to start building services or packages to offer potential clients.

Key Takeaway: Do your research if you want to become a freelancer.

• List all of your skills (both from work experience and hobbies or interests)
• Eliminate all those skills you don't really want to do for work
• Start researching to establish which skills are marketable
• Establish which skills pay well enough to help you build the income level you need and eliminate the others
• Take the remaining skills as the foundation from which to build your freelance business

Study Up: Get Additional Education and Certifications

Whether you want to hone existing skills or learn new ones, self-education is perfect for those who want to freelance. It's not just about the skills you gain - although that's obviously the key factor, it also shows potential clients that you're serious. Serious enough to have invested time and resources into your continued professional development. If a client is considering who to hire between you and another freelancer, and everything else is equal, they're going to choose the candidate that demonstrates they're committed and invested in their freelance career. And, given that we're in the Digital Age, you don't even have to go to school to gain those skills. 

Fiverr, for example, has a section dedicated to freelancer education with all types of training courses, ranging from storytelling to technical SEO audits. Here’s an example course from Jon Youshaei about, “ Stories That Sell: 7 Secrets To Create Killer Content. ”

With Fiverr's courses, you aren't locked into a monthly subscription. Each course is a single purchase, and you retain lifetime access to it, so you can revisit and refresh your skills whenever you need.

Key Takeaway: Invest in yourself and your freelance business by honing existing skills and learning new ones.

• Look at the skills you'd like to learn, and prioritize them
• Take a relevant course in the one new skill that you identified as your highest priority
• Add the skill to your freelance profile and start practicing that skill, building your experience and portfolio in that area

Building and Testing Your Idea

Its time to formulate a clear plan to freelance success . 

Scope and Price Your Projects

Start with one or two services that you can excel at. Flesh out what you're prepared to offer and at what price. Keep your offering simple, but make sure you are very clear about the scope of what you're offering. Don't leave any room for misunderstanding. If you're building a content writing business model, for example, you may decide you want to offer a blog article service . 

• How much are you charging? Review competitive price points, and do your research on what you should be charging. 
• How many revisions are you prepared to do?
• How many days will it take you to deliver?

Identify what the scope of work, and budget range is that you are willing to work within.  You want to make sure that you are comfortable the that range.

 Test Your Project

Before you dive in, you should test your freelance project ideas. Don't just rely on a single test - run several with different people. Here are some simple ways to test your ideas:

• Offer free services to friends and family.
• Offer heavily discounted rates for your first 5-10 projects, or do the work at cost.
• Donate your service to a non-profit or cause of your choice to get started. 

You get a few other benefits from the multi-test approach, aside from finding out if your service works:

• You get samples for your portfolio
• You get on-the-job experience
• You find out how long it really takes for you to complete the job to the best of your ability.

Identify and Locate Your Target Clients

If you're wondering how to get freelance work, the answer is simple: It's knowing who your clients are and where to find them. One of the most challenging aspects of your freelance startup will be finding clients. But not just any clients. You need the right clients.  

It's time to put together your primary client persona - that's the ideal person who wants your service. This way, you can narrow down and only focus on clients who fit your buyer persona. 

The persona should include as much information as possible, such as:

• Pain points/needs
• The solutions you can offer to solve those needs
• Where they do business
• Online presence

Whether you're doing client outreach or listing your services on Fiverr, make sure you keep your customer persona right at the front of your mind. 

Key Takeaway: Finding new clients is challenging for freelancers, but you can make it easier.

• Create a customer persona for each of your services
• Establish how best to make contact with that persona, and do it
• Make sure you have a robust Fiverr account with strong service packages and upsells
• Do plenty of competitor research using tools like SimilarWeb
• Use FollowerWonk and email finders to reach out to prospects directly

Create a Strategy for Your Freelance Startup

It doesn't matter whether you're starting to freelance on the side while working your regular job or jumping in feet-first and aiming to go full-time right out of the gate - you still need a rock-solid strategy. Assuming you're following the steps in this freelance guide you are off to a good start. You already have the answers to some of the key components of your strategy.

Strategy Foundations

A good freelance business strategy will start with the foundation and basics of your business model. So far you should have documented:

• Service offering overviews
• Pricing of your services
• Test project results and insights
• Your buyer personas for each service

Resource Planning

Now it's time to add those components to your freelance business plan and round it out with the other essential factors, which include answering questions such as:

• What timeframe are you looking to become a freelancer within?
• How much do you need to earn per month or year to comfortably meet your financial needs? How many gigs or hours of billable work does that require? Can you be competitive?
• How many orders can you comfortably accommodate in a week or a month?

Key takeaways:

• Establish a foundation of your business (personas, pricing, project overviews)
• Establish long-term goals for your business (timeline to becoming full-time, incoming revenue goals, etc.)

Keeping Yourself on Track

Productivity is a crucial element to success in your freelance business, so you need to incorporate it into your overall strategy. It's easy to get lost in the minutiae of being a freelancer or in all the little distractions that occur when you start to work from home. You can lose focus or have so much to do that you dither and procrastinate and end up achieving very little. 

Set Working Hours

Get yourself on a tight schedule, just as if you were going to work at a brick and mortar job. Set strict working hours, whether that's 9 to 5 or 6 to 10, then 2 to 8. Make sure it's a realistic and achievable schedule. 

Then, within that schedule, pencil in specific times for particular tasks. For example, set aside an hour on Mondays and Thursdays for checking and responding to emails. You know you need to network on a regular basis, so maybe set aside two hours on a Tuesday morning just for that. Punch in the times you'll be working on client gigs, the time you'll be spending researching new potential clients, and time for learning. Obviously leave some room for flexibility, as the most successful freelancers are agile as well as well-organized. Using a calendar and strict timetable will help you stay on track and help you avoid overwhelm. 

Use Project Management Tools

Another great freelance tip to avoid overwhelm is to use project management tools and systems to keep yourself on track. You might prefer a whiteboard, or a pen and paper journal. There are also a number of great project management tools digitally to tap into for digital to-do list creation such as Asana, or Trello.

Include Break time

Don't forget to schedule in breaks. It's all too easy as a freelancer just to burn right through the whole day, but that isn't healthy for your body or mind. When you're setting up your timetable, make sure you include regular breaks to get away from your desk, get up and walk around, get outside, or just to go make a drink and some food. You need to get up and move around regularly throughout the day, and your eyes and brain need regular digital breaks.

Start Your Freelance Business

So now you've got a solid plan. You've identified your goals and established how you're going to get there. Now the real work begins - starting your freelance business. Building your brand as a freelance startup is crucial, just like any business. 

Yes, you can build a freelance website, as it's a great branding tool, but it's costly and time-consuming, particularly if you don't know how. That's one of the reasons Fiverr is a great place to start freelancing. You don't need any coding or web development skills - all you need to do is  sign up and create your seller profile . Then you can create your first gig and start selling. See our how to start selling on Fiverr help article for more info.

A freelance marketplace like Fiverr makes freelancing easier for beginners are career-long professionals in a number of ways:

• Clients come to you, specifically looking for your service
• Reduces the cold pitching you need to do
• Lets you showcase your best work
• Lets you set a clear scope of work up front, right in your service offering, so there's no misunderstandings later
• Allows clear upsells
• Shows verified reviews and feedback to establish trust
• Lets you send custom offers
• Lets you easily add video to your gig

And that's not all. In 2018, Fiverr acquired And Co to help freelancers manage the administrative side of their businesses. Services and features include time tracking, invoicing and payments, customizable proposals, contracts, expense tracking, income reports, and more. This helps you free up valuable time that you can invest in securing more gigs, engaging with clients, and learning new skills.

Do I Need an LLC to Freelance?

Whether a freelancer should form an LLC (Limited Liability Company) or not is a personal choice. The biggest benefit is that it may limit your risk to the amount of capital you've invested in your business. Sole proprietors have unlimited liability, you are your business, and your personal assets and funds may be at risk if you encounter legal trouble. If you decide you do want to form an LLC, remember to factor the state fees and filing fees into account when pricing your services. You'll also need to keep different and more thorough business records.

Key Takeaway: There's a lot to think about when you launch your freelance business.

• Building a freelance website is a secondary consideration, given the marketplace options available
• Make it easy on yourself to establish yourself and find clients by signing up as a seller on Fiverr
• Set up your Fiverr seller profile
• Create your first Fiverr gig and start selling
• Sign up to And Co to help run the administrative side of your freelance business
• Decide whether you need to form an LLC or whether you want to wait until you're more established

How to Win  Freelance Work

There are a few different strategies you can employ to help you win your first clients. 

1. Really work on your Unique Seling Point

Your unique selling point is how you differ and/or offer more value than your competitors. Don't drop your prices - you've already established how much you need to charge to meet your needs. 

Instead, focus on what you can offer that other people don't. Maybe you can include two images in your blog post offering. Perhaps you could do a time-limited offer of an infographic with a blog post. How about a free printable calendar? If you're bilingual, you could offer a free translation of your blog post. A free upgrade to a higher-quality image file? A free content health analysis with your SEO service? Or perhaps your USP is your demonstrable expertise in your field. Perhaps you only work on one project at a time, so your client gets your absolute, laser-focused attention. 

Whatever your unique values are, emphasize them when you sell. 

2. Leverage Your Social Networks

You may be surprised at how many people in your existing social network need your skills, so it's a great place to start to attract clients. And you can ask family and friends to share, too. This kind of self-promotion is invaluable, whether you're just starting to freelance or you've been doing it for decades. 

On LinkedIn, for example, make sure you create a strong profile that showcases your skills and get involved with relevant groups and conversations. And don't forget to use Fiverr's social sharing functionality to showcase your available gigs. 

3. Win Clients With Your Knowledge

You can show you have industry expertise, help people at the same time, and expand your brand trust and reach. The easiest way is to use sites like Reddit and Quora to answer questions in your niche. Just make sure your answers are accurate and offer real value, otherwise, you'll get yourself a bad reputation instead of a good one. Read our guide to freelance marketing with Quora for more info

4. Use Paid Ads

If you have the budget, you can drive targeted traffic to your freelance offerings with paid ads. Choose from social ads like those for Facebook or LinkedIn, or go with search engine ads. Just remember to make sure you target your ads specifically to your primary customer personas, or you'll be throwing away your money.

Key Takeaway: Winning your first freelance gigs isn't as difficult as it may seem.

• Define your unique selling point and use it
• Leverage your social networks
• Showcase your knowledge on sites like Quora and JustAnswer
• Use paid ads if your budget allows
• Bring existing customers to Fiverr to expose them to your other services

Find more strategies and tips on how to succeed on Fiverr as a seller with this free ebook.

Deciding to become a freelancer may one of the biggest decisions you ever make. It takes dedication and commitment to achieve success. There's an awful lot to wrap your head around as you get started, too, from trying to decide what services you can offer to taxes and retirement plans. This guide breaks down what can seem like a gargantuan task into manageable chunks, guiding you through the process. We've included plenty of actionable insights and useful freelance tips to get you started the right way. At Fiverr, we love to help freelancers win, so you'll find lots of other help on our blog .

The best option is having options.

Freelance Social Media services. Built for teams.

How to Build a Freelancer Marketplace Like Fiverr and Upwork

Tech Researcher and Writer

Table of content

• Developing a freelancer marketplace involves finding your niche, selecting essential features, designing a user-friendly interface, launching an MVP, and improving it based on users feedback.
• A marketplace offers a lot of monetization options, including charging freelancers and buyers, offering subscriptions, and providing additional services like educational courses.
• It’s essential to solve real problems faced by freelancer marketplace users to stand out in the competitive industry. This may include leveraging AI for better matchmaking, improving financial transparency, and enhancing communication tools.

According to an Upwork study , in 2023, 64 million Americans engaged in freelance work, representing 38% of the whole US workforce! Now imagine that they all used your freelance marketplace. If you only charged a dollar for using it, you’d still be a millionaire.

However, the competition is intense, and the number of freelance marketplace platforms is great. And many of them are worth millions of dollars. Although the market seems to be brimming, both freelancers and companies that hire them are not quite satisfied with the services provided. This creates space for a more advanced software platform to be launched. You could be the one who changes the entire industry with a superb freelancer marketplace. In this article, we’ll show you how.

Get comfortable and prepare yourself for:

• A brief introduction to how freelance marketplaces work and why people love them so much
• How a freelancer marketplace looks from the business perspective, and why your idea is so potentially profitable
• Insights on how to build a high-quality solution and appeal to users
• Must-have functionality for a freelancer platform and useful tips on how to implement unique features

Keep reading for all this and much more!

What is a freelance marketplace and how does it work?

A freelance marketplace is a two-sided platform where companies can find and hire individual specialists for specific jobs and where freelance specialists can find work if their skills match requirements. Through freelance sites, contractors cooperate with freelancers remotely. Such platforms are so popular because they provide:

• A bottomless source of talent. Companies can find various specialists with deep experience from anywhere in the world.
• An extremely convenient way to hire. After filtering, shortlisting, and vetting, a client can start working with a contractor.
• A simple tool for time tracking. Clients get precise information about how much time a freelancer spends on a certain task.
• A built-in payment gateway . When the job is done, an employer pays a contractor right on the platform.

The most successful freelancer marketplaces today are Upwork and Fiverr. They both facilitate connections between freelancers and clients across various industries, providing a marketplace for a wide range of services. However, due to its simplified approval process, Fiverr is more suitable for beginner freelancers and short, one-time projects. Upwork, in turn, is more suitable for experienced professionals who prefer building long-term relationships with their clients.

Why a website like Fiverr can be so popular

Along with market leaders Upwork and Fiverr, other similar companies like Toptal and Freelancer.com make millions of dollars in revenue annually.

Let’s reveal why websites like Fiverr have become viable places to find software developers.

Freelance marketplace advantages for companies

Giants like Google, Amazon, Motorola, and Lufthansa Systems cooperate with freelance software engineers. Taking into account all the potential risks, hiring an independent contractor is still a good and profitable idea for these companies because of:

• On-demand availability of talents: On an online marketplace like Fiverr, you can find specialists to handle certain tasks. Once the job is done, you can pay them and say goodbye with no further worries.
• Wide range of salaries: The freelancing model allows you to reach out to brilliant specialists living in another country and cut expenses due to cheaper labor costs abroad.
• Borderless market: Relying on a freelance marketplace to grow your business, you get an opportunity to work with different people from a variety of countries and implement cutting-edge technologies to outrun your competitors.

As you can see, there are a lot of reasons for companies to hire freelance specialists.

Freelance marketplace advantages for contractors

It’s projected that by 2027, 86.5 million people in the US will work as freelancers , which will make up 50.9% percent of the total US workforce. Both Millennials and Generation Z prefer flexibility and being your own boss to having a stable long-term position in a no-name company. And freelancing can give it to them.

Why is freelancing popular?

• Low entry barrier: It is easier to start a career on a freelance website like Fiverr because people can apply even with no previous job experience.
• Fast and easy way to find a new position: The field of freelance job opportunities is much wider compared to opportunities on traditional job sites.
• Extra source of income: Even those with full-time office work can find a part-time project on a freelance platform to increase their revenue and enhance their skills.
• Flexible time management: Freelancing allows individuals to control their own schedules, contributing to a harmonious balance between work and personal life.

These and other reasons are why more and more people wish to work as freelancers today.

Freelance marketplace for your business development

By launching a new freelancer platform, you get the chance to:

• Generate enormous revenue: The number of freelancers is rising, and if you employ the right monetization strategy, you stand to make lots of money.
• Change the freelancing industry: Solve existing platform issues, cater to users’ needs in a better way, and take your chance to change the entire freelancing industry with your web app.

By launching a new freelancer platform, you not only can generate significant revenue but also can get an opportunity to revolutionize the freelancing industry.

Now, let’s get down to freelancer marketplace revenue streams.

Monetization strategies for your freelance marketplace

Both Upwork and Fiverr have several ways of generating revenue. You can learn from their experience and adopt one of the following monetization strategies, or combine them:

• Charge freelancers a service fee (1% to 5%) based on their earnings.
• Charge buyers a payment processing fee (1% to 5%).
• Offer freemium functionality. To assure your potential users that they can benefit from using your marketplace, allow them to use basic features for free and charge a fee for additional, more advanced features.
• Introduce subscriptions. You can develop subscription plans for both employers and freelancers. For example, Upwork offers the Upwork Enterprise subscription plan for enterprises, providing additional tools and features for managing freelance engagement, and a Freelancer Plus subscription for freelancers, offering benefits like increased visibility, OpenAI-powered Chat Pro for repetitive tasks, and so on.
• Provide additional tools. Bill users for services that will help them achieve their purposes more effectively. For example, Upwork offers compliance assistance and payroll services for hiring freelancers as full-time employees through third-party providers, while Fiverr provides services like video editing, scriptwriting, and SEO optimization to help freelance creators in their job.
• Offer educational services. You can develop courses that will help users to improve their professional skills and, in that way, create an additional source of income for your marketplace. For example, Fiverr offers the Learn from Fiverr platform.

As you can see, both Upwork and Fiverr successfully combine several monetization models. Following their example, you can too. For instance, you can start by simply charging a small percentage from freelancers and buyers, then develop subscription plans as your platform grows.

How to Develop a Freelance Marketplace Like Upwork

Once you have enough inspiration and the intention to build a website like Upwork, it’s time to find out what the process typically looks like. We will guide you through the process based on our own experience creating marketplaces:

Step 1. Find your niche

The first thing you should do is decide on your positioning: Do you want to build a website like Fiverr or Upwork where everyone from graphic designers and writers to programmers and marketers can find jobs? Or do you want to build a niche freelancer marketplace?

In the first case, your competitors will be dozens of established companies. In the second case, you will target a smaller audience with specific needs.

According to Forbes , the most in-demand skills for freelancers in 2024 are:

• Website development
• AI services
• Video editing
• Social media content and management
• Mobile app development

Employers looking solely for specialists skilled in website development, for example, will probably prefer doing that on a freelancer marketplace for website developers. Such a marketplace would attract thousands of freelancers and employers looking for successful cooperation in their field.

There are a lot of options for building a niche marketplace. For example, you may want to build a marketplace for photo and video makers . Our team has contributed to the development of Creador, a marketplace aimed at connecting individuals and small companies with creative content producers. Or, you may want to follow experienced businesses and build a marketplace like Etsy that connects people who want to buy/sell unique items, or you can build an auction marketplace like eBay .

Apart from building a general or niche freelancer marketplace, you also have the option to build a white-label marketplace — a customizable platform that other businesses can rebrand and use as their own. The Clockwise team had an opportunity to contribute to the development of Whitelance — a white-label online marketplace platform that lets people launch their own Upwork-style platform in just a few days. Starting with an already functioning web application, our team rewrote the application’s architecture from scratch, implementing multi-tenancy so it could serve multiple clients and developing new functionality for freelancers, companies, and marketplace admins. As a result, our client got a scalable platform able to cope with millions of users.

Once you have decided what kind of marketplace you want to build, the next step is to choose which features to implement.

Step 2. Choose features

When developing a freelance website like Fiverr, you shouldn’t overlook the importance of its features. In this section, you will find out everything you need to know about basic functionality as well as how to cater to specific users’ needs.

Basic functionality for an online marketplace like Fiverr

Let’s break down the features any freelancer marketplace should have:

Now, let’s take a look at role-specific features:

This is the skeleton of a basic freelancer marketplace. However, if you want to build a niche marketplace, you should implement some specific features. For example, if you are building a marketplace with location-specific services, you may add a map that shows nearby freelance designers offering their services. This is the central feature we implemented in Creador, allowing clients to choose contractors in their local area, making their cooperation more convenient.

Step 3. Design your marketplace

Considering the popularity of freelance marketplaces like Upwork and Fiverr, we can assume that the user interfaces of these websites are familiar to and convenient for marketplace users. Analyze the interfaces and user experience of top freelance marketplace websites to see what they offer. However, you should also keep in mind that your website should be recognizable.

Experienced UI/UX designers within your team should develop a UI prototype and make sure it’s user-friendly, meets modern design standards and trends, and stands out among other similar marketplaces.

Step 4. Choose the tech stack and build an MVP

The technical part of development starts from choosing a tech stack that will allow you to bring your idea to life. From the perspective of our experience developing marketplaces, we can recommend the following scalable and up-to-date technologies:

• JavaScript frameworks such as React and Vue.js for building a seamless front end
• Node.js and the JavaScript runtime environment for using JavaScript on the back end

Choosing JavaScript for both frontend and backend development will streamline the development process, speeding up project completion and reducing maintenance complexity.

• As for payment methods, we recommend using API integrations with PayPal and Stripe, which are used by both Fiverr and Upwork.

If you’re not sure that you have the necessary expertise to build the freelancer marketplace of your dreams, try product development services. This is exactly what you need if you want to invest in development wisely. As part of our product development services , we provide our clients with everything from idea validation through actual development.

If you have everything you need at this stage, your development team can proceed to developing an MVP — the first version of your marketplace for freelancers that has just enough features to be evaluated by the first users.

Why an MVP? , you may ask.

When our clients approach us with an idea, we always recommend starting with a minimum viable product (MVP). Here’s why:

• Launching an MVP allows you to build and release your platform with core features only, using your budget rationally.
• The MVP approach promotes fast time to market. Getting an MVP to market quickly means you can start attracting users and generating revenue sooner.
• With an MVP, you can continuously improve your platform based on user feedback and market demands. This iterative approach allows for making informed decisions about what features to add next.
• Starting with an MVP minimizes the risk associated with development of a new product . By testing the waters with a basic version, you can identify potential issues and address them early.

Thus, developing an MVP is a smart, strategic approach to launching a freelancer marketplace. It balances cost, speed, and user feedback, ensuring you build a product that meets market demands while minimizing risk.

Let’s suppose you have already launched your freelancer marketplace MVP. What’s next? How can you deal with the upcoming challenges?

How to increase the value of your online marketplace like Fiverr

To scare off competitors (both powerful well-known freelance platforms and fresh platforms), you need to cater to needs no one else is meeting. No doubt, a cool design and bugless functionality are important. However, satisfying customers’ wishes like no other solution can will become your distinctive advantage.

Even though there are many up-and-running freelancer marketplaces, none is perfect.

We have analyzed these factors and prepared an exclusive list of tips on how to solve real users’ problems with your fresh and crispy freelancer marketplace:

Implement AI features for optimization

AI-powered algorithms prove very efficient in connecting freelancers with suitable projects based on their skills and connecting clients with suitable freelancers based on their requirements. The less obvious use of AI includes AI assistants for optimizing job postings, automated proposal screening, and AI chatbots for customer support.

Use AI to help users with cost estimation

It’s hard to determine exactly how much someone’s effort costs. Freelancers who are just starting their careers on websites like Upwork often fail to price themselves correctly. Simultaneously, clients that try to estimate a project’s price may lack necessary information to do so. You can help your platform users to come up with adequate offers and expectations. An AI-based algorithm comparing a project’s complexity and prices for similar services will help to set a reasonable price. At the same time, this algorithm will help each specialist to define their hourly rates.

Improve communication between clients and contractors

The key challenge of remote collaboration is seamless communication. As a freelancer marketplace owner, you have to offer all possible tools to make collaboration seamless. Earlier, we mentioned that messaging is an essential feature. Here, we would like to emphasize that multi-channel communication will make users turn their heads towards your platform. Allow video calls within platforms, let users record voice messages and share important files, and use integrations with large language models like ChatGPT to help users improve their writing or automatically generate video call captions. Screen sharing is also essential. Make any conversation and discussion as clear, fast, and simple as you can.

Allow database and TMS integration

Project management may be a headache. Let your users synchronize data in their freelance platform’s accounts and corporate databases or task management systems. Enhanced with multi-channel communication, this will significantly simplify people’s lives.

Add some gamification

Let users collect badges or points for giving feedback, passing professional tests, or inviting their friends to a platform. Let them exchange these badges for money, discounts, free courses, etc. Remind them that each new project, as well as a hired contractor, can bring them benefits.

There are a lot of ways to improve users’ experiences with your platform. Start by fixing problems and move towards implementing new functionality.

Online marketplace like Fiverr: what the future holds

For many entrepreneurs, investing in freelance marketplace creation may seem a risky decision. However, a well-thought-out strategy and a reliable team increases your chances for success. As strange as it sounds, looking for reliable and stable partnerships on freelance marketplaces is a risky way to go. If this is what you want, think about cooperating with an outsourcing company that has experience developing marketplace platforms. This is the best way to wisely manage your budget and minimize risks.

Want to know more about the project cost?

How to Build a Freelancer Marketplace like Upwork

Upwork is a popular gig marketplace that connects freelancers and those seeking contract or gig services such as administrative work, design services, and IT help, among other things. If you’re thinking of building a gig marketplace, here is an outline of the product considerations for a marketplace like Upwork.

Upwork has two audiences it must cater to: freelancers and people or organizations seeking freelance work, otherwise known as clients. For freelancers, Upwork provides a platform to find work and promote their services. For clients, Upwork helps find talent for short term projects. Organizations can either browse through freelancers and solicit services from them directly or they can create a job posting that receives bids and proposals from freelancers. 

The platform handles the discovery and discussion of terms and facilitates the transaction. Freelancers are encouraged to transact on the platform because they are reviewed at the end of the contract, which in turn helps them get more business. For the marketplace to work, it needs a few basic things: 

• User onboarding
• Finding freelancers
• Messaging and communication

Posting jobs and getting bids

• Handling transactions

Upwork’s primary business model is taking a service fee as part of the transaction. This starts at 20% and decreases after a certain threshold. Upwork also has additional business models such as charging freelancers to get additional credits for submitting proposals, but this guide will only focus on the transaction fee. Below is a quick guide on how to build a freelancer marketplace like Upwork.

With a marketplace like Upwork, getting the freelancers on board is likely the place you want to start with as it will be easier to attract buyers with completed freelancer profiles. You’ll want to capture basic profile information and details about their skills and expertise to create their account. However, it is also important to have clients create accounts as well since they could be posting jobs that freelancers will bid on. Below are the onboarding components to focus on for both parties.

Finding a freelancer

The next thing to think about is how clients will search for and select freelancers. They will likely want to search and filter based on things like skillset, price range, and experience. From there, they may want to click in and view more details about their profile.

It’s common for clients to message freelancers to describe their needs and assess if the freelancer can perform the required tasks or discuss terms.

In addition to clients being able to find freelancers and contact them directly, they may also want to post the job they are looking for and let freelancers contact them and bid for the work. Clients will need to browse through proposals, message freelancers if needed, and select the proposal they would like to go with.

Managing the transaction

To ensure trust in the platform, you’ll want to assure freelancers will get paid and that clients will receive the services, which usually has a time delay as the freelancer does the work. Holding the funds in escrow, either through Stripe or another service is the best way to cater to both sides. The transaction should be released after the client approves the work (or when you as the admin confirm the work has been completed if that is easier to start with).   

Reviews can be a critical way to encourage quality work from freelancers and help clients find the best talent. This can be a two way street with freelancers also reviewing the clients. This should be set up as part of closing the transaction so both sides must fill out the reviews to close the job and transfer the payment.

Administration & analytics

After setting up the seller and buyer sides of the platform, you’ll want to add a few administrative things to manage your platform overall. Being able to see all the users on your site, the transactions that have happened, and general metrics will allow you to get insights into how your marketplace is performing and give you a place to handle any problems.

Launching your MVP

Now that you’ve finished your basic Upwork MVP, you can launch your marketplace and start getting feedback! Early on, it’s helpful to be hands-on and talk to your users directly. Find out what they like or don’t like and where you can add or modify things on your platform. Check in with freelancers or clients that may have lapsed and with those who are active to fix the things that aren’t working and double down on the things that are. And remember to take time to enjoy all the progress you’ve made - you’ve gotten past the hardest part which is starting!

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7 Steps to Start a Freelance Business (With a Full-Time Job)

• 15 min read

Do Freelancers Make Good Money?

How much does it cost to start a freelance business, how can i legally be a freelancer, how to start a freelance business in 2023 (in 7 steps).

I made a lot of mistakes when I started my freelance business over a year ago.

It took me 10 months to figure out what I was doing, but it could have easily only taken one month if I had a framework for how to approach starting a freelance business.

My goal with this article is to equip you with the knowledge, tools, and resources to get your freelance business up and running — regardless of if you want to do it part-time on the side of your full-time job, or if you want to quit your job and become a full-time freelancer.

But before we dive in, let’s address some common questions.

The amount of money you make as a freelancer depends on the types of services you offer and the types of clients you work with.

According to Fundera , freelancers contribute $1.3 trillion to the US economy each year. I don’t know about you, but I can’t even wrap my head around that number.

And according to the same study, the average income for full-time freelancers is around $68,000. Depending on where you live, this can be a great income.

But if you live in a more expensive place like New York City, or even San Francisco, CA, it can be tough to make it by. Granted, this number is just an average.

This is why I always recommend people start freelancing on the side of their full-time job. Having just one client with a full-time job can make a world of difference to your overall income. And once you get the hang of being a freelancer, you may even make more than your full-time job — at least that’s what happened to me!

So bottom line, freelancers can make good money. But the freelancers that I know that make a lot of money are the ones that niche down as much as possible and get really good at providing just one service. We’ll get into these later in the article.

Freelancing, and starting a service-based business in general, is regarded as a low barrier to entry type of business to start.

You are essentially trading your time for money, which is the same concept as having a full-time job. And when I say that I don’t mean it in a bad way. We are all exchanging our time for money and that’s okay.

The short answer is that it doesn’t cost a lot of money to start a freelance business. In fact, you can start with nothing. But it does cost you in time to acquire and deliver a skill that people are willing to pay for.

Also, depending on the type of freelancing you’ll be doing, you might have to pay for some software tools or even a computer to do your work (who knew?). But even that is nowhere near as crazy as starting, say, a restaurant business.

Chances are, you’ll be spending a little money on different types of tools to help you manage tasks, send invoices, deliver your services, and all that. This is why it’s a good idea to have a full-time job so you can fund the first month or so of any tools you need. Then, once you sign your first client, all of your tools should be covered with your freelance money.

I’m no financial advisor or legal expert, so do not take any of this as truth. All of this is going to depend on what country you live in. I’m speaking from the perspective of a freelancer in the US, so make sure you do your own research.

If you want to start your freelance career on the side of your “regular” career, you need to make sure your employer is okay with you doing so. Sometimes when you agree to work somewhere full-time there’s something in the contract that says you can’t work with similar companies in the same industry, or that you can’t work with any other company period.

So make sure you consult with your employer before you start taking on freelance work.

The other thing you want to be mindful of is taxes. Ideally, if you’re in the US, you start an LLC (limited liability company) that you use solely for your freelance business. This way, you can separate your self-employed business from your personal assets and finances. It will also make it easier when tax season rolls around.

But you don’t need to start an LLC to freelance. However, it’s important to consult with a legal expert here to see what makes the most sense for you in your business location. The goal is to eventually become a legit small business owner. But don’t let this part of your journey stop you from starting.

We’ll get into freelance marketplaces later in this article, but some marketplaces know that freelancers just starting don’t have a real business. So as long as those places let you sign up, and you consult with them, you should be good to start.

Again, none of this was legal or financial advice. Please consult with an expert.

Okay, now let’s get into the good stuff!

Here are seven steps to starting your freelancing business:

• Identify Your Services
• Create Your ICP (Ideal Customer Profile)
• Get on a Freelance Marketplace
• Sign Your First Client
• Onboarding Your Client
• Getting Paid and Managing Finances
• Stay Organized With Your Full-Time Job

Okay, let’s dive deeper into each one.

1. Identify Your Services

This may seem obvious, but the first step in starting your freelancing business is to get crystal clear on what type of services you are going to offer.

Chances are, if you’re working a full-time job, your services might reflect what you are currently doing for your employer. But sometimes, it can be completely different.

For example, if you work as an in-house designer, it will probably be an easy transition to also provide design services to companies that need them.

Or, you may even be an accountant that wants to get into freelance writing.

It all depends on the type of work you want to do. So, you should ask yourself:

• Do I want to do the same thing as my day job?
• Do I want to do something different than my day job?

Both have their pros and cons — let’s talk about them.

If you offer the same services you already do on a daily basis, it’s going to be easier to sign your first client because you’ll have relevant experience that you can use to market yourself — so that’s a plus.

But, you may also be the type of person that craves variety. So if you’re not in love with what you do during your full-time job, your freelance work may start to feel repetitive and boring after a while.

On the flip side, if you decide to offer services different than your full-time job, it can be a great way to be excited about the work you do because it never gets boring. But the downside is that it will probably take you a bit longer to get up and running because you’ll need to really prove yourself when signing your first client (we’ll talk about that later).

Bottom line, figure out what services you want to offer and look around on a freelance marketplace like Upwork to see how other freelancers package their services.

For the rest of this article, I’m going to act like I’m starting a freelance copywriting business. Mainly because I currently freelance for a living, and writing is a large part of that.

2. Create Your ICP (Ideal Customer Profile)

Once you figure out what services you want to offer, it’s time to create your ICP (ideal customer profile).

This is something not many freelancer beginners think about, but if I could go back to when I first quit my job to start freelancing, this is the second step I would focus deeply on (after figuring out what services I want to provide).

The service you provide is important, but the types of clients you provide that service to determines your revenue potential.

You need to think about who you want to serve. Is it tech startups? Is it ecommerce companies? Is it people in need of accounting and financial services?

Find your niche.

For me, I knew I wanted to serve tech companies. But even that is broad.

So, the greatest tip I can give to you is to niche down as much as possible. Here’s an example:

In my case, the niche I chose was tech companies. But the sub-niche was SaaS (software as a service) companies. And the sub-sub-niche (if that’s even a thing) was SaaS companies that have raised at least a Series A funding round.

So my mission statement for my freelancing business becomes: “I want to serve Series A SaaS companies.”

See how much more focused that is compared to “I want to serve tech companies”?

This gives you a great starting point to identify what type of client is going to benefit the most from your services.

Of course, this may not be super easy to figure out in the beginning. If you have no idea who your ideal client is, it’s probably a good idea to work with a few different companies in different niches and see what you like (which we will talk about in the next section).

For me, my full-time job was working in content marketing at a SaaS company that had raised a Series A funding round. So I knew from the beginning what type of client I could help the most.

Okay, let’s start to hunt down our first client.

3. Get on a Freelance Marketplace

For this step, it’s ideal that you figured out what you want to do in the two previous steps we went over. However, if you still have no idea what service to provide and who to provide it to, this step can help you get more clarity.

I know this is going to sound obvious, but you can find some great freelance jobs on Upwork — it’s by far the best freelance marketplace if you’re just starting out and want to go broad (IMO).

The great thing about Upwork is that you can search for people that provide the service you want to provide, and you can see what their rates are and how they package everything.

Once you nail down your services and ICP, you can explore more niche marketplaces.

In the example of becoming a freelance writer, here are some great places to find meaningful writing gigs:

• Best Writing

There are tons of freelance marketplaces and job boards out there to get freelance clients. And I wrote a guide on the best freelance jobs right now that includes a bunch of different marketplaces if you want to check it out.

4. Sign Your First Client

Once you find a freelance marketplace that matches your services and clientele, it’s time to start marketing yourself and sign your first client!

This part is going to look different for each person. I’ll tell you what I did, but just know it’s not a source of truth.

If I were to start from zero again, the first thing I would do is figure out how I could position myself as a subject matter expert.

The best thing you can do to market yourself as a freelancer is to start a website that acts as your portfolio. You need a “virtual business card” that can showcase your best work and case studies (if you have them).

If building a website is too much, you can go on LinkedIn and look for part-time or consulting jobs in the field you want to work in. But, depending on the demand, you definitely want to put in some effort to stand out from the crowd.

One thing I did to get my freelance marketing and writing career started was to make sure I wrote a lot on the company’s blog I was working for. I also have a background in SEO. So while I was working my full-time job, I was able to not only write articles but also get them to rank in Google.

This was a huge advantage for me when I started to pitch to potential clients. I would simply show them how I was ranking in the number one spot for a specific keyword, with an article that I wrote.

The results showed for themselves, and it made me get my foot in the door.

But I took it a step further.

I started my own website and began blogging on it. And after a year, I had a bunch of blog posts that also ranked high in Google.

So in reality, when I did start freelancing full-time, I had two “case studies” to show for — one being the company I worked at and the other being my own personal blog.

Having something to show is what will give you the greatest chance of success. You have to put yourself in your potential client's shoes. Would you hire someone with no experience? Probably not. And when it comes to contracting or freelancing, definitely not.

Companies hire external help because they don’t have the expertise or resources in-house. So growing your skill set and online presence is a must if you want to help larger businesses.

As long as you can prove that your services will bring success to the type of client you want to work with, it will only be a matter of time until you sign that first contract.

You might get someone interested simply by applying on Upwork. But you also might not. So once you know your ICP, it’s a good idea to go on LinkedIn and hunt down the people you want to pitch — the higher up you can go the better. Then, use a tool like Hunter.io to find their email address and send them a super personalized email.

This is how I got my first client.

And once I had someone ready to work with me, I was ecstatic!

I soon realized that I had no idea how to deal with the admin side of freelancing.

Let’s talk about that.

5. Onboarding Your Client

When you get an opportunity to sign your first client, it’s normal to feel anxious. You want to do a good job and make your clients happy.

I think it’s important to think about your client experience and what you want your clients to feel when working with you.

You want your clients to say things like:

• “You’re so organized!”
• “These are good questions!”
• “This is such a smooth onboarding experience!”

Okay, you get the point.

The main takeaway is that you want to create a 10/10 experience for your clients from the start because it will help with client retention and growing your network.

The latter is very important if you want to eventually take your freelancing business full-time, or if you want a steady stream of clients without having to do much work.

If you do a great job for your clients, there’s a good chance you’ll find more work through referrals. And if a client loves your work, they’ll want to continue giving you more work over time.

So let’s talk about onboarding.

You’ll want to use a freelancing platform that can manage all of your client relationships, intake forms, contracts, invoices, and tasks. You also want all of this information to be visible to both you and your clients.

This is why I use Copilot — yes, the blog you’re reading on.

Copilot is a client portal software that allows you to bring all of your clients and freelancing tools into one central place. You can also create logins for each client that leads them to their own dashboard where they can view everything I mentioned earlier (tasks, invoices, forms, etc.).

I already wrote a full guide on how to create a client portal , but for onboarding, Copilot has a lot of built-in tools that make it easy to get started.

Once you create an account , you can invite a client and they will automatically get an email to create a user account for their portal.

You can also set up onboarding messages and forms so that every time a new client creates an account, they will be prompted to fill out a survey on any information you want to collect from them.

You can even integrate Copliot with many different apps to set up automations, embed a task board from a tool like Airtable or your favorite task manager, and DocuSign for contracts.

This way, you can set up a custom dashboard for each new client — giving them one central place to fill out forms, sign contracts, and pay invoices right from the start.

If you want to explore what Copilot can do, I highly recommend checking out the demo portal and playing around with it — it’s free!

Okay, once you have an onboarding process in place, let’s talk about what everyone wants to know… money!

6. Getting Paid and Managing Finances

For many freelancers starting out, finances can seem a bit daunting — at least it was for me. But this is the part of your freelancing journey that you need to get right. The more organized you can be in this area, the better you will feel about your freelance and online business as a whole.

When billing clients , it’s first important to know what your payment structure is. Here are some common ways of billing clients:

• Billing by the hour (hourly rate)
• Billing by each project
• Billing each month (subscription)

It’s also important to note that for some freelancing services, like freelance writing, many people bill by individual word count (so that would fall into billing by each project).

Regardless of what pricing strategy you have, you want to use invoicing and billing software that can fit all use cases. This way, you can be flexible in the future if you want to change the way you bill different clients.

I personally use Copilot for invoicing and billing clients. This is because Copilot integrates with Stripe as a payment gateway and lets me set things up like billing based on individual invoices or subscriptions — the latter is my favorite.

The conversation also comes up around payment fees. Oftentimes, most payment gateways charge a hefty fee depending on whether your client pays via credit card or straight to your bank account via ACH transfer.

In Copilot, you can set a rule to make your client pay for any processing fees, this way you collect exactly what your price is. But if you want to “absorb” the fee yourself, and not put the burden on your client, there’s an option for that as well.

Once you do bill your client, they will get a notification to pay your invoice. As mentioned earlier, Copilot also has an app marketplace. So you can use something like QuickBooks to manage your expenses and income for tax purposes.

This makes it super easy to manage your finances without having to commit to just one tool for your entire freelance business.

For example, you could be freelancing, selling digital products, or generating some sort of income from another “side hustle,” and have everything go into QuickBooks. So when you use Copilot’s integrations, it makes it easy to continue using any existing tools for your money management.

7. Stay Organized With Your Full-Time Job

This last step is one not too many people talk about. It’s exciting to talk about being your own boss and quitting your job. It’s glamorized.

But once you do start freelancing with your first client on the side of your full-time job, you’ll quickly realize how organized you have to be.

And by organization, I’m not just talking about files, reports, and client communication. Those are all important. But I’m talking about being organized with your time.

Committing to a 40-hour-a-week job while also potentially putting in another 5-20 hours a week on freelancing can be tough if you don’t know how to batch tasks together. Ideally, you set aside dedicated time for your freelance business each week. Be it a set number of days a week that you work on it, or a certain amount of hours you commit each day before or after your day job.

For me, I found that having dedicated days works best for my mental health. For example, I may only do freelance work on Mondays, Wednesdays, Fridays, and Sunday afternoons. This gives me space to breathe a little and to not constantly be in a state of thinking about client work every single day.

Granted, this will make sense if you’re doing freelance work part-time. But for me, now that I do it full-time, I dedicated each day to different clients. Monday and Wednesday could be working with Client A, and Tuesday and Thursday could be working with Client B.

The main takeaway is to be mindful of how many times you context switch in a given day and try to minimize it as much as possible. If you’re constantly context-switching every single day, you’ll eventually get overwhelmed and burn out.

Creating your own hours for work is a skill that you’ll have to learn as you go on. So have dedicated days to when you do what type of work and try to create a few days in the week where you don’t focus on a particular client at all. This will let you keep a healthy distance from being involved in scope creep and keep you in a positive mood about your freelance business as a whole.

Learning how to start a freelance business can be a very fruitful endeavor. Each person’s path will look different depending on your own experience and the type of services you want to provide.

A graphic designer’s journey is going to look different than say a writer’s journey, or even a social media content creator's journey. But the principle of finding the right type of client(s) you want to work with stays true for any service.

If you want to become a successful freelancer, you need to get really good at knowing what service to provide and to who it makes the most sense for.

Hopefully, this article gave you some insights into starting your own freelance business. And if you’re ready to onboard that first client, be sure to check out Copilot to create an amazing first impression.

Happy freelancing!

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Freelance Business Plan Template + Guide

Rhonda Page

Rhonda is an international speaker and published author. She began as a graphic designer and evolved to brand strategist and business development professional, bringing hundreds of thousands in new business to the various design firms she worked with. She's worked with the biggest global brands such as Kraft and Coca-Cola and been client side too.… Learn more »

Adam Wright

Adam Wright is the Content Manager at Millo, in addition to running his own graphic and web design business, Adam Wright Design. When he's not working on his business, you can find him watching hockey or just about any type of racing. Learn more »

Step-by-Step Freelance Business Plan

What is a freelance business plan, who needs a freelance business plan, benefits of a freelance business plan, now, go make yours.

BIG NEWS! We just released The Freelance Files , a collection of professional done-for-you email scripts, contracts, invoices, and more for smarter freelancing. The first 50 customers, save 50% with this link .

A freelance business plan is the ideal way to make quick progress as a freelancer.

Sure, you already feel like you know exactly what you need to do — find more clients, deliver high-quality work within deadlines, send invoices and recover payments. But freelancers who want to grow their business understand the importance of a freelance business plan.

A well thought out and structured freelance business plan helps to craft your strategic and tactical approach, defines tasks and budgets that you can track, and increases your chances of success.

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So today, I’ll share my 14-point freelance business plan template along with a guide for creating your ideal freelance business plan.

Let’s dive right in, then we’ll cover some of the basics after. My freelance business plan template for you consists of 14 questions.

Take some time off work when you are working on the freelance business plan for the first time, and try not to take calls until it’s done. You could review your plan every week and this will only take a few minutes. You could also do a monthly review when you enter your revenue and expense figures of the month, but this should not take too long either.

Let’s take a look at the freelance business plan steps below and the guidelines for answering the 14 questions. Download a copy of the template below and follow along as you fill yours in.

1. Company name

We start with the company name – pretty straightforward.

Question 2 is about your purpose , or why you started your company. It may seem that every business starts with profit as a motive, but when you really think about your own motivation you will find a purpose above profit. Did you start your brand design business because you are passionate about helping entrepreneurs create a distinct identity? Or did you start a video content studio to help more brands get the power of video easily?

3. Target Market

We now come to your target market . If you are in the B2B market then you should define the profile of organizations that you target as well as the specific roles within those organizations who make decisions to purchase from you. If you have done a user persona exercise, you could describe the personas here. If you’re not sure about who your target audience is, The Magic of Choosing a Target Audience will be helpful here.

4. Location

The fourth point refers to the geographical areas where you operate.

5. Products/Services

Next we come to a description of your products or services. Do you work on a project basis – with the scope defined by the client? Or do you have any standard products or packages? What is included in your offer? For example, do you offer freelance video creation as a service, and price depending on the scope of each project? Or have you created some standard packages, such as $350 for a 30 second video, with a 200 word script and incorporating 2 rounds of customer reviews?

6. Competitors

The sixth question is about your competitors . You should research before you answer this question because competitors are not always those who provide similar products or services, rather they are those who help users to solve the same problem. This means that your competitors could be from completely different product categories. You will find these insights by speaking to current and potential users.

7. Differentiation

Question 7 is about your differentiation . If you have not articulated this before, then it’s an excellent outcome of working on your business plan. As you clearly write your differentiation, you will be able to communicate it much more strongly during sales pitches or in your marketing material.

8. Problems

Now we come to the problems that you solve for your users. What were they doing before they started using your products or services? This knowledge helps you to find more users with similar challenges. What’s keeping them up at night? They may not say that it’s graphic design or creative needs, and you need to understand how your work helps them. My course is helpful here.

9. Benefits

Question 9 is about the benefits that your product or services deliver. It is extremely useful to articulate this and lends clarity to sales and marketing communications.

10. Marketing

Next we come to Marketing . How does your target audience get to know you? Are you doing anything to reach out to potential customers? You can mention meetups, events, social media, advertising, email campaigns, SEO, or anything else that’s working for you, here.

The next question is about your business goals for the next 6 months. I have suggested 3 goals but you can make a longer list if you want. One of your goals could be related to the new business that you want to generate. You may also have the goal of adding a revenue stream. Goals could be related to expansion, for example, launching in new geographies or adding new products. You may have sales or marketing goals such as creating a branding package , or a product to sell online. You may also have operational goals such as implementing a project management tool or better bookkeeping.

12. Milestones

In point 12, list the weekly milestones that you must complete in order to achieve your goals. You should review this every week, and refine as needed.

13. Targets

Question 13 is to define your monthly revenue targets . I have said 3 months, but you can set targets for a longer-term if you want. This is a good time to consider, are you charging enough to reach your goals? If you charge $1,000 for a logo, how many logos do you need to do to meet your revenue goal?

14. Expenses

Question 14 asks you to put down your budget for expenses . This helps you to be more conscious of how you are spending, and when you think about revenue targets and expenses together, you can manage your profitability better. It’s all about profitability. If your expenses are higher than your sales, you’ve got a problem!

Let’s back track for a quick minute. A freelance business plan is a document that lists your business objectives, targets, milestones, timelines, and budgets. Think of it as a roadmap that provides direction to your efforts, shows you the landmarks along your route and helps you avoid roadblocks.

Every business needs a business plan but most freelancers never get around to creating one. I have worked with many, many creative freelancers, and I know that some of them are aware of what a business plan is, but believe that only large businesses need it, while others are just not fully aware of the advantages of having one.

A freelance business plan is created with the specific requirements of freelancers in mind. I strongly believe that the template of the plan should be simple and should not consume too much of your time when you need to create, update or modify it.

Business plans of shorter timeframes say 3 to 6 months, are usually most suitable for freelancers. The work environment for most freelancers is just too dynamic to be able to plan ahead for the next few years.

I’ll share my preferred template for a freelance business plan here, and take you through the steps. But first, let’s see who needs a freelance business plan and what are the benefits of creating one.

Is a business plan essential for all freelancers? Maybe not, so take a look at the list below and decide whether you need one.

You will benefit from having a business plan if:

1. Freelancing is your main source of income

A plan may not be important for someone who has a job or another primary source of income and is freelancing as a side gig. But if you depend mainly on your freelance business, then the business plan should be a high priority for you.

2. You want to grow your business

If you have the ambition to grow your business, possibly planning to create more bandwidth when you get busy or build a team , then a business plan will help you to achieve that growth.

3. You plan to seek external advice or funding

If you are considering discussing your business with potential mentors, investors or consultants, a business plan is a good starting point.

The time and effort that you invest in creating your business plan will yield a variety of benefits.

Clearer direction and focus

The process of listing your goals and the steps that you must take in order to achieve them brings tremendous clarity and a sharper focus to your efforts. You will consciously pursue business relevant to your goals rather than respond to every opportunity that comes your way.

Prioritize better

If your working days are a blur of meetings, deliveries, and firefighting, chances are that you don’t have the time to do tasks that are important rather than urgent. Once you list these tasks down as weekly milestones that must be achieved for your goals to be realized, you are much more likely to make time for them. Maybe you need to attend networking events in your vicinity in order to attract talent, or maybe you need to spend time creating marketing collateral. Putting these tasks down in the plan makes it much more likely that they will get done.

Track your financial performance

Your business plan helps you track whether you are achieving your revenue targets and keeping expenses within control, or in other words, manage your profitability.

Builds the confidence of external stakeholders

When you need to discuss your business with investors, mentors or other external stakeholders, the business plan will inspire confidence in them and show them that you have thought things through.

Although my template is a little longer than some others, I have seen that it works really well for freelancers. It takes some time when you do it for the first time, then regular reviews and updates are pretty quick. I’m confident that you will find this time well worth it, for the direction, focus, and clarity that you gain from your freelance business plan.

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Best Freelancing Growth

Written by Rhonda Page

Contributor at millo.co.

Rhonda is an international speaker and published author. She began as a graphic designer and evolved to brand strategist and business development professional, bringing hundreds of thousands in new business to the various design firms she worked with. She's worked with the biggest global brands such as Kraft and Coca-Cola and been client side too. Her  Business Accelerator Program  teaches freelancers how to spend less time on pitches and close new business more easily.

Rhonda's Articles

Reviewed & edited by Adam Wright , Editor at Millo.

At Millo, we strive to publish only the best, most trustworthy and reliable content for freelancers. You can learn more by reviewing our editorial policy .

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How to build a freelance marketplace like Upwork or Fiverr and become a leader in the gig economy

Are you looking to launch your very own freelance marketplace like Upwork or Fiverr? The gig economy is booming and creating your own platform to connect talented freelancers with clients is a smart business move. But where do you start? 

Based on our extensive experience of building freelance marketplaces, we have put together a comprehensive guide that outlines the top 10 tips for building a successful freelance marketplace. From researching the competition to creating stunning design and testing it in the wild, this guide covers all the essential steps to turn your dream into a reality. Read on to learn how you can become a leader in the gig economy with your very own freelance marketplace.

Why Build a Freelance Marketplace? 

The world of work is changing, and the rise of remote work and independent contracting is a trend that shows no sign of slowing down. In particular, millennials and Gen Z are leading the charge towards independent work, preferring the flexibility and autonomy it offers. But it's not just the younger generation - research indicates that a majority of workers feel happier and healthier when working independently. This has led to a boom in the freelance marketplace, with half of US remote workers now working as freelancers. 

Here are the most prominent trends of the freelance market:

• Millenials and Gen Z prefer working independently and believe it is a secure alternative to traditional work.
• MBO and Partners’ research says that 87% of those in the workforce feel happier, and 78% feel healthier working independently than at a traditional workplace.
• The pandemic and the digital nomad culture have encouraged the rise of remote work.
• Half of the US remote workers work as freelancers.
• In 2022, there were 64.6 million independent workers , up 26% from 2021. The number of full-time independent workers regularly working more than 15 hours per week increased by 27%, from 15.3 million in 2019 to 21.6 million.

As we move forward into the future of work, it's clear that the freelance marketplace is here to stay. The pandemic and the rise of digital nomad culture have only accelerated this trend, and we can expect to see more and more people opting for independent work in the years to come. 

Top 10 Tips to Build a Website Like Upwork or Fiverr

So, you want to build a freelance marketplace. Let’s figure out how it’s done.

1.Research the competition

Upwork is the most popular freelance platform in the world. The company was born out of the merger of the two dominant players of the freelance industry, Elance and oDesk, in 2013. Today you can find almost any type of digital services at Upwork, but it’s most famous as the biggest marketplace for web and mobile developers. Both individuals and agencies offer their services at Upwork. In 2022, Upwork generated $0.61B of revenue. Who are its competitors?

According to g2 , the closest rivals of Upwork are Fiverr, Freelancer, and Toptal:

Fiverr is another freelance platform with a full range of services from copywriting, to design, to SEO, and beyond. Its main focus is microservices, also called gigs, making Fiverr the go-to place for small, one-off tasks. Gig prices start from $5 per job. Fiverr charges a 20%-commission from sellers and 5% from buyers.

Fiverr Revenue in 2022 - $0.33B

Fiverr Users - 7.3M

Fiverr is the closest alternative to Upwork in terms of popularity, range of service and accessibility. Fiverr is different than Upwork because:

• It’s mostly for short-term projects.
• It shows service packages (gigs) tailored to the task instead of freelance profiles and resumes.
• Posting jobs on Fiverr is less popular than searching for a candidate.
• Clients usually search for workers, not vice versa, so the job posting option is hidden in the menu. Fiverr's vetting process is less strict.
• Fixed prices instead of hourly rates helps to avoid overtime and out spending the budget.
• Toptal focuses on providing pre-vetted freelancers for big companies.
• The platform has the highest standards and lists only 3% of all applicants.

Toptal mainly works with software developers, but also finance experts, managers, and designers. Prices start from $40 per hour. The platform charges markup fees over freelancers’ hourly rates + $500 initial deposit per hire.

Toptal Revenue in 2022 - $25M

Toptal Users - over 10,000

Freelancer.com offers specialists from multiple areas and works with both big and small projects. It has low entry standards for freelancers and lacks quality assurance, but features like contest posting are very attractive. Starting from $5 for a basic plan , price ranges vary depending on membership options. There is commission for both freelancers and employers and extra paid features .

Freelancer Revenue in 2022 - $58M

Freelancer Users - 61.3M

Other freelance platforms focus on specific regions or niches. For instance:

• Revelo - specializes on software developers in Latin America,
• Contently - gigs for creative work,
• Supersourcing - IT services for big and small companies
• Skyword 360 - focuses on content writing.

Now let’s examine how you can compete with these platforms.

2. Identify your target audience

Before you start a freelancer platform, you must define who your client is. Is it an individual, small entrepreneur, or a large corporation? Also, decide on who your freelancer will be - a highly-skilled rare specialist or a student searching for part-time jobs and experience? Knowing your audience, you will be able to create a value proposition exactly for them.

Pay attention to trends as well. What audience should you focus on now?

The transfer from the industrial to the digital era is accompanied by the disappearance of prejudice to freelancers’ work quality. If previously freelancers were regarded as cheap, low-qualified workers, now the marketplaces focus on selecting rare and highly-professional specialists that are interested in the growth of their client database and salaries.

According to a report from Intuit , 80% of large corporations plan to hire more freelancers in the next few years due to the cost and inefficiency of the traditional hiring process.

Quick search, a great pool of candidates, a simplified hiring process, online management, and the opportunity to hire on-demand for temporary jobs are the biggest drivers of the freelance economy.

Focusing on enterprises can be more profitable for platform owners. Upwork, Fiver, and other existing marketplace understand this and have already created ‘Pro’ versions for corporate clients. On the flip side, if you choose to focus on this audience, be ready for big guys to demand excellent quality. The risks are high.

3. Define your value proposition

Freelancer platforms have many challenges. If you present novel solutions, your proposition will outshine the competition:

Quality vs. quantity

Some platforms pre-vet candidates. The platforms filter and interview their users to pick the best of the best. For example, Toptal vets freelancers through tests, screening, and live interviews. Of course, it takes a lot of resources to scan all the candidates and make sure they fit their job descriptions.

Freelance marketplaces like Upwork, Fiverr, and Freelance.com do NOT pre-vet candidates. Anyone can join and selection is completely up to the client. This creates a large pool of freelancers, but the quality of their service is like a shot in the dark. The only way for the client to know who to trust is to look at freelancer’s ratings, reviews, earnings, badges on the platform.

Possible solution: Depending on your aims you can either provide easy access for everyone and gather a large audience (like at Upwork or Freelancer), or you can restrict access by filtering professionals by their qualifications and experience (like Toptal). You can gather rare specialists and verify their reputation to create a unique pool of freelancers that clients will appreciate.

Low prices are attractive to clients of freelance platforms. They want to find an inexpensive, quality service. Prices of freelance work range widely. You need to balance quality and cost.

Possible solution: Analyze competitors' prices and services and figure out how you can make the price for some services lower without sacrificing quality and your profit. For example, one additional service is a project management layer between client and freelancer (like at RemotePanda); another service is auction bidding among freelancers; and guaranteed money back in case of bad service, is another. Or you can make a website like Fiverr with its $5-starting price. Clients want to save a buck wherever they can.

Besides finding clients easily, freelancers want to get paid without extra hassle. In some cases, freelancers wait forever for their payment, and sometimes it never comes. Statistics say that 29% of invoices are not paid on time.

Possible solution: You can demand partial payment in advance, or withhold the final project until payment is received. Alternatively, you can add Escrow payments so freelancers can receive payments immediately.

Currency exchange

Because freelancers come from any part of the world, they expect to have a choice of payment methods. Most platforms allow withdrawal in US dollars only. Thus, freelancers lose money on the conversion from USD and transactions take longer.

Freelance jobs are usually not expensive, so every penny counts. For example, after paying a fee to PayPal, then losing a percentage to conversion from USD to the local currency it cuts into profit. Furthermore, waiting weeks to be paid is doubly annoying.

Possible solution: offer multiple payment options and currencies if you offer services all over the world. Most modern payment solutions, like PayPal and Wise, support the biggest global currencies. If your platform will work at some specific local market, make sure to choose a service that operates in local currency.

Need a FREE estimate for your future freelance platform?

4. Select the type of freelance platform

Marketplaces differ in types, business models, purpose, and feature sets. To stand out among competitors, you need to define your niche, target audience, what project you are aimed for, and how you are going to earn money. There are general marketplaces like Upwork and Freelancer, but there are also a lot of narrowly specialized websites with less competition in the niche.

Thus, Arcbazar , our client, created the first global contest platform for designers and architects. iWriter is specializing in all kinds of text-writing. Toptal is aimed at highly qualified professionals. NoCowboys , another of our clients, is a platform for freelancers from New Zealand and Witmart.com is mostly for Chinese employees. What is particular about your projects? This is what you need to figure out!

Depending on which type of platform you choose, the feature set and business model will differ. Here are some of the common freelance marketplaces types:

5. Select your business model

90% of freelance platforms make money from commission charges. But this is not the only way to monetize. Business models can include the following:

6. Identify the core features

Any startup’s aim is to launch as quickly as possible to test the idea and start earning money and traffic. That’s why you should start development with the essential features your platform can’t live without. Here are some MVP features to build a platform like Upwork:

User profiles and settings

The user profile should contain all basic and contact info, a description of the experience and skills, examples of completed projects, gig offers, ratings, feedback from clients, etc. In the settings, users should be able to select the desired payment method, form of communication, alerts, and notifications, and password settings.

Search and filters

Without a robust search and filtering, it would be hard to find a necessary specialist. At Greenice, we use the power of ElasticSearch technology to provide the quickest and smartest search for any size of the database. Here is how we created a search for NoCowboys, where people are searching for freelancers for home repair, gardening, and other help among local tradesmen in New Zealand. There are automatic search criteria that can be changed to lookup by proximity, rating score, categories, recency of registration, etc.

Also have a unique idea?

Secure payments

Providing a variety of payments and currencies is essential for international platforms to attract more people to your service. Thus, in one of our projects, Arcbazar’s contest marketplace, we made localization in 10 languages and added 13 currencies for the users.

To make the life of users simpler, automate all billing processes, calculation of fees, and sending out invoices. Implement the escrow method to protect both your clients and freelancers from fraudulent behavior. Escrow is a payment method in which money is kept on the third-party account until the client approves the job completion. Then, the payment is sent to the freelancer. Such transactions increase the level of trust in the platform both for clients and contractors.

For example, at Fiverr, when the order is delivered, the client has only a few days to approve or send it back for review. In case the client does not do anything, the system automatically approves the job as completed successfully and sends the money to the freelancer.

Before hiring a person, a client may need to clarify some requirements or conditions of work. It may be necessary to stay in touch with each other with updates on progress. That’s why it is important to implement communication methods with the opportunity of sending text messages, files, and media files, otherwise people will communicate out of the platform and it will lose clients.

Reviews and ratings

After a job is completed, a client may rate it and give feedback to freelancers to help their rate among others. For example, for NoCowboys we created a smart system of verified ratings. Many rules made sure that everything was fair:

• Only registered users can post reviews.
• IP addresses are tracked: one feedback from one IP, even if one user has created many emails.
• Only one rating from one registered email for one job done.
• Displaying unauthenticated ratings with a special mark so that users understand that these reviews are not verified and can be fake. Look at the difference between authenticated and unauthenticated ratings:

7. Identify the extra features

If you’re not spicing up your core functionality with some extraordinary features it will be hard to win the battle with your competition. Here are some ‘extras’ from the leaders of the niche that you can take as examples.

Using AI to match freelancers with projects

Using AI and Machine Learning for matching is at the peak of popularity because of the great opportunities that it brings. This is the main feature of the Gigster platform. The system does not use hard-coded algorithms for matching inflexible for changes, but on the contrary, uses each alternation of clients’ behavior to correct the matching preferences in the future. the ML-based matching compares freelancers by expertise level, skills, availability, timezone, and hourly rate, among others, and identifies the best candidates for the job.

Price recommendation

It’s a non-trivial task for both freelancers and clients to estimate the job price. Users can view and compare the other’s gigs and posts but still feel hesitant about the adequacy of their sums. To give more confidence to your users, implement a price estimator that will automatically compare the skills, timeframes, job volume, and special requests with the database to suggest the optimal price. We did an ML-based recommendation system for one of our key clients, Arcbazar, an international peer-to-peer marketplace for architects and designers.

Time and progress tracking

As a rule, clients need to have the job done in the specified timeframe. That’s why both parties - clients and freelancers - have an opportunity to track the time with an independent tool to escape disputes. Having an option of showing the work progress also allows for a better understanding of how long it takes to get to the finish.

Variety of communications channels

It is very important for freelancers to be able to quickly clarify job details, control the fulfillment, and ask questions. Having multi-channel communication between client and freelancer can be what sets you apart. Add text chat, video calls, emails, and recorded voice messages that provide a convenient way to immediately discuss any questions.

Automatic gig and packages calculator

Gigs usually provide some basic price, but if a client needs more out of the standard volume, it’s a good idea to not waste time counting the price manually. All calculations should be automated on the platforms to create bills ready for payment. Like in Fiverr, for example.

Now that people make so many decisions on the go, having a mobile version of your platform can be a key factor for attracting the audience. A mobile app allows people to stay in touch and get notifications without needing to sit in front of their computers. It allows you to get instant answers to questions and view newly posted jobs, and thus, enhances customer loyalty as well as increases freelancers’ chances of being hired.

Project management for a blended team

Many companies outsource only some of their jobs while having an in-house team. It can be inconvenient to manage one project in two different software - tracking time, assigning tasks, setting milestones, sharing documents and ideas, etc. To manage everything in the same space, create a project management environment inside of your platform or create an option of integrating it with third-party tools to synchronize data between systems. Such an approach is used by Outsourcely, PeoplePerHour, and Guru.

Gamification and rewards

To stimulate the interest of your freelancers, introduce a system of badges that will allow them to increase their visibility, get access to projects first, purchase extra features, and other perks. For example, earning badges for participating in contests, passing tests and surveys, completing more projects on time, or getting the highest rates from the clients. We implemented badges for the NoCowboys marketplace which show the clients if the business is verified, registered, customer preferred, high rated, etc.

Combination with eLearning

Freelancers need to grow professionally. Giving a chance to learn online and earn certificates on your platforms can increase their chances for a better job. Fiverr created an eLearning opportunity for their freelancers. After course completion, a badge certifying the new educational level appears on the freelancer’s profile and is shown to employers as proof of a freelancer’s skills.

8. Create specifications and send them for estimation

When we build a house, we need to have a plan of work to be done. How many stores and rooms will it have, what color of flour and walls should it have, etc? The same is for the development of a marketplace.

In case you need assistance on the Discovery phase, our Business Analyst can help you with understanding the challenges and needs of your business, making a competitor analysis, gathering requirements, and prioritizing features. To tell you how much it costs to build a website like Upwork, Fiverr, or other platforms, we need the answers to the following questions:

• What is the goal of your project?
• Who is your target audience?
• What is your business model?
• What features do you need (at least a high-level understanding of how it should all function)?

Need help with your project specifications?

9. Create a stunning design and start coding

When the specs are ready and you have defined the core and additional features, you may order a web design. It should be modern, neat, and usable to help users intuitively understand how to use your platforms. With the ready design, the development team can start the coding. At Greenice, we have experienced frontend and backend developers who will make it all work together.

10. Test it in the wild and improve

“Have no fear of perfection - you'll never reach it.” - Salvador Dali

Do not strive to make it ideal all at once. As a startup, you aim to launch quickly with minimum time and budget waste. As soon as your MVP is ready and tested by the inner QA team, make it live, and collect the first feedback from real users. Successful projects are always in the process of improvement and are gradually adding new features that allow them to scale up. Feedback from the customers allows them to make useful changes and get rid of useless features that make the software clumsy and hard to use.

How Much Does it Cost to Develop a Freelance Marketpalce like Upwork or Fiverr?

The cost of your marketplace depends on the approach to development. You'll need to choose between developing an MVP from scratch or using a white-label solution. Both options have their pros and cons. Custom development provides full flexibility, unlimited scalability, increased data security, code ownership, and integration with any third parties. However, it can be expensive at the start. On the other hand, a white-label solution allows you to reduce costs while still having full freedom for remodeling the platform. You can take the solution structure, configure a server and database for it, rebuild existing features according to your business needs, and make necessary integrations. This approach makes the price much lower.

Custom MVPs start from $20K and take 4-8 weeks to develop. White-label solutions start at $10K and take 3-4 weeks to develop. Both estimates include the work of an entire team: project manager, team leader, developer, and QA engineer.

At the end of the day, the right choice for you will depend on your unique situation. No matter what you choose, we're here to help you make the right decision for your business needs.

Get an estimate of your freelance marketplace!

Our Experience

Our team has helped build several freelance marketplaces that have disrupted traditional methods of acquisition and collaboration. Here are some examples of our work:

• Arcbazar: The first and largest global marketplace for crowdsourcing architecture projects. We helped build a platform that enables freelance designers to compete and collaborate on design contests, while customers receive multiple design solutions in an online environment at a lower cost and faster delivery speed. Read the full case study here .
• 4TradesOnly: We built an easy-to-use platform for searching for construction work, hiring freelance contractors, or finding construction and office equipment buyers. See the client review on Clutch . 
• BizSaleByOwner: We helped create a platform that facilitates the selling and buying of businesses. This platform not only offers listings of businesses for sale, but also has a freelance marketplace of professionals who offer their expertise to help with the selling and buying process.

Our experience has allowed us to deliver successful projects that meet the needs of both clients and freelancers. We can help you build your ideal freelance marketplace, tailored to meet the needs of both clients and freelancers!

The freelance marketplace business is one of the main characteristics of the digital era’s workforce. Large enterprises decrease the bureaucracy of the hiring process and prefer to use the benefits of a global pool of specialists, disregarding their location. That’s one of the reasons why you have a great opportunity to make headway despite the competition.

What we recommend is that you be quick to launch your MVP. For that, you need to create specifications that will outline your project’s logic and purpose so that our development team can estimate the work involved and start on it as soon as possible.

Let’s talk about your project!

Anna Klimenko is a market researcher and author at Greenice with a deep technical writing background. She scrupulously investigates narrow business niches and creates insightful articles for entrepreneurs who are trying to start online businesses.

Margarita is an experienced project manager who excels at delivering projects on time and within budget. She has a proven track record of successfully leading marketplace, chatbot, and SaaS development projects, from the early stages to launch and support. Margarita is particularly adept at leading clients through the initial stages by providing discovery phase services. With exceptional communication skills, she effectively conveys project requirements and suggests solutions to clients, while remaining readily available to answer any questions.

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Plan to build a multi-vendor eCommerce, social network, dating website, review platform, or any other website connecting and facilitating exchange between different third parties? These articles will help you get started

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Why Every Freelancer Needs a Business Plan: A Comprehensive Guide

Why Freelancers Need a Business Plan

How to create a business plan, business planning for freelancers: faqs.

As a seasoned freelancer with over two decades of experience, I’ve seen firsthand the critical role a solid business plan plays in achieving long-term success . It’s a common misconception among many freelancers that a business plan is an unnecessary formality, a paperwork exercise more suited to traditional businesses than their own flexible, creative endeavors. However, this couldn’t be further from the truth.

A business plan functions as a roadmap , guiding freelancers toward their professional objectives and aspirations. It sets the direction, detailing not just where you want to go, but also how you intend to get there. This plan helps freelancers navigate the often unpredictable terrain of self-employment, making it easier to anticipate potential challenges and obstacles along the way.

Moreover, a business plan does more than just outline your trajectory ; it also clarifies your broader goals. It prompts you to think about what you want to achieve, why you want to achieve it, and what you’re willing to do to reach those milestones. This process of reflection and articulation can provide a much-needed sense of purpose and direction, particularly when you’re navigating the freelance world solo.

But a business plan isn’t just an abstract concept or a motivational tool; it’s also a practical guide . It highlights the operational aspects of your freelance business, such as your target market, pricing strategy, marketing approach, necessary tools and software, and financial goals. By addressing these factors, your business plan can offer invaluable insights into the practicalities of running a successful freelance operation.

In this article, we will delve deeper into why every freelancer needs a business plan . We’ll explore each component of a robust business plan, providing you with the knowledge and tools to create your own. Whether you’re a seasoned freelancer or just starting, the importance of a business plan cannot be overstated. So, let’s embark on this journey together, demystifying the process of creating a business plan and setting the foundation for your freelance success.

Many people tend to associate business plans with traditional businesses or startups seeking investment. However, as a freelancer, having a business plan can be just as beneficial and can indeed be the catalyst that propels your freelance career to new heights ( Collective ).

A business plan lays out all of your goals for your freelance business for the next three to five years . It provides you with clear direction for achieving your goals so you can grow and succeed over time ( Make a Living Writing ).

Not only does it offer a clear line of sight for your target, but it also helps in setting priorities . Having a solid freelance business plan is crucial for achieving long-term success. It’s a roadmap outlining your goals, target audience, and financial projections ( Invoice Owl ).

Even if a freelancer may not have the same traditional structure as a brick-and-mortar business, this plan is essential ( Freelancermap ).

Firstly, a business plan helps set clear goals and objectives . As a freelancer, you are your own boss, which means you’re responsible for setting your path. A business plan acts as a roadmap, guiding you towards your ultimate professional destination. It forces you to sit down and clearly articulate what you want to achieve in your freelance career, whether it’s expanding your client base, increasing your income, or branching out into new areas of expertise. Having these goals written down in a structured format can provide a sense of direction and keep you focused when distractions or challenges arise.

Secondly, a business plan allows you to identify potential roadblocks and challenges ahead of time . Freelancing is not without its difficulties, and it’s much easier to navigate these obstacles if you’ve prepared for them in advance. Whether it’s market competition, fluctuating demand, or financial management, a business plan can help you foresee these issues and develop strategies to mitigate them before they become significant problems. This proactive approach can save you a lot of stress and uncertainty in the long run.

Lastly, a business plan isn’t just for your personal use – it can also be a powerful tool for securing funding, partnerships, and clients . A well-crafted business plan showcases your vision, professionalism, and commitment to your freelance career. It demonstrates that you take your work seriously and have a clear plan for success. Whether you’re pitching to potential clients, negotiating partnerships, or applying for grants or loans, having a solid business plan can give you an edge over other freelancers and instill confidence in those considering investing in your services.

A business plan is an essential tool for any freelancer . It provides a roadmap for success, prepares you for potential challenges, and enhances your professional credibility. Armed with a comprehensive business plan, you’ll be well-equipped to navigate the freelance landscape and steer your career towards success.

Understanding your target market is the next crucial step . A thorough audience analysis will help you understand your potential customers’ needs, preferences, and behaviors, enabling you to tailor your products or services to meet their demands effectively.

Once you’ve identified your target market, it’s time to detail the services you offer . Clearly defining what you’re selling will not only help potential clients understand your business but also help you focus your marketing efforts.

The next step involves developing a pricing strategy . Your prices need to be competitive yet profitable, which requires a careful analysis of the market and your costs.

Your marketing approach follows closely behind . This encompasses how you plan to promote your business and attract customers. It could include tactics like social media marketing, SEO, or traditional marketing methods.

Operational requirements come next and refer to the resources you’ll need to run your business. These might include personnel, equipment, or software, among others.

Finally, your business plan should include your financial goals and projections . This section gives potential investors an idea of your business’s profitability and financial health, making it a critical component of any business plan. By carefully crafting each of these sections, you’ll create a comprehensive business plan that provides a clear path forward for your business.

Company Summary and Purpose

This foundational element sets the tone for the rest of your plan and serves as a reference point for all subsequent decisions.

To define your freelance business, you need to conduct a thorough self-assessment . This includes identifying your strengths and weaknesses as a freelancer. Are you an exceptional communicator, do you have a knack for problem-solving, or perhaps you possess a unique skill set that sets you apart from others in your field? These are your strengths, and they form the core of your freelance business. On the other hand, recognizing your weaknesses is equally important. Perhaps you struggle with time management or aren’t as tech-savvy as you’d like to be. Acknowledging these areas for improvement can help you devise strategies to overcome these challenges, ensuring they don’t hinder your success.

Next, consider your unique selling points (USPs) . Your USPs are the characteristics or qualities that differentiate you from your competitors. Maybe it’s your extensive experience, your specialized knowledge, or your commitment to customer service. Whatever it is, your USPs should be highlighted prominently in your business plan, as they’re key to attracting and retaining clients.

Once you’ve assessed your abilities and identified your USPs, it’s time to define your business’s purpose . Why does your freelance business exist beyond making money? What value do you bring to your clients? Your purpose should reflect the impact you aim to have on your clients or the industry. It should resonate with your target audience and align with their needs and values.

Your vision statement, on the other hand, is a forward-looking declaration of your business’s goals and aspirations . It outlines where you see your freelance business heading in the future and sets a clear direction for growth and development. Your vision statement should be ambitious yet achievable, inspiring yet grounded in reality.

Defining your freelance business, its purpose, and vision statement is not just an academic exercise . It helps establish your brand and shapes your messaging, making it easier to communicate with potential clients. It enables you to convey what you stand for, what you offer, and how you’re different from other freelancers in a clear and compelling manner. This clarity can set you apart in a crowded marketplace and attract clients who align with your values and appreciate your unique offerings.

Target Market/Audience Analysis

This process involves more than just figuring out who might pay for your services; it requires a deep understanding of their needs, preferences, and behaviors.

To start, you need to identify who your ideal client is . This can be based on numerous factors such as industry, company size, job title, geographic location, or any other criteria that are relevant to your freelancing services. The more specific you can be, the better. This will allow you to focus your efforts on the clients most likely to hire you and benefit from your services.

Once you have a clear picture of who your target clients are, you need to understand their needs . What problems are they facing that your services can solve? What goals do they have that you can help them achieve? This understanding will allow you to tailor your services to meet their specific needs, increasing the value you provide and making you a more attractive choice than your competitors.

Understanding your audience also plays a vital role in crafting effective messaging and marketing materials . Knowing your target clients’ needs, challenges, and aspirations will allow you to speak directly to these points in your marketing materials. This will make your messaging more engaging and persuasive, increasing the likelihood of attracting new clients.

Additionally, a deep understanding of your target audience can inform your pricing strategy . Knowing what your clients value and what they’re willing to pay for can help you set prices that are both competitive and profitable. This balance is key to maintaining a sustainable freelancing business.

Failing to understand your target clients can have serious consequences for your business . It can lead to ineffective marketing, mispriced services, and a lack of competitive edge. On the other hand, a clear understanding of your target clients and their needs can inform every aspect of your business strategy, from service development to marketing and pricing. This understanding is key to standing out in a crowded market and driving the success of your freelancing business.

Services Offered

Therefore, it’s crucial to detail these services in a way that not only clearly defines what you do but also illustrates how what you do meets the needs of your target clients.

To start, you need to clearly delineate each service you offer . This could range from specific tasks, like graphic design or content creation, to more comprehensive packages, like full marketing strategy development or project management. Be as specific as possible, as this will help potential clients understand exactly what they’re getting when they hire you.

Next, align your services with your unique selling points (USPs) and the needs of your target audience . If you’ve identified that your USP is your extensive experience in a particular industry, for example, you’ll want to emphasize how your services leverage this experience to deliver superior results. If your target clients are small businesses looking for cost-effective solutions, you might highlight how your services provide excellent value for money.

This alignment does more than just make your services attractive to potential clients; it also helps you stand out from your competitors . By focusing on what makes you different – whether it’s specialized skills, innovative offerings, or exceptional customer service – you can position yourself as a unique solution to your clients’ needs. This differentiation is key to winning clients in a competitive marketplace.

Remember, your services are not just a list of tasks you can perform ; they’re solutions to your clients’ problems. By detailing your services in relation to your USPs and your clients’ needs, you can present your freelance business as a valuable partner, capable of delivering the results your clients are looking for. This approach will not only help you attract more clients but also build stronger, more profitable relationships with them.

Pricing Strategy

The right pricing strategy not only influences your income but also impacts how potential clients perceive the value of your work.

Setting competitive and profitable prices for your services is essential for the sustainability of your freelance business . Your prices need to be competitive enough to attract clients, but they also need to be profitable enough to cover your business expenses and provide a decent income.

To set effective prices, several factors should be taken into consideration . First, consider the market demand for your services and the location in which you operate. These factors can influence how much clients are willing to pay. For example, if you’re offering a service that’s in high demand or operating in a location with a high cost of living, you may be able to charge higher rates.

Next, take a look at what your competitors are charging . While you don’t want to base your prices solely on what others are charging, understanding the going rate for similar services can give you a good starting point. You can then adjust your prices based on your unique value proposition and experience level.

Your value proposition – that is, the unique value you bring to your clients – should also play a significant role in your pricing strategy. If you offer specialized skills, years of experience, or exceptional customer service, for instance, these are all reasons you might justify charging higher rates than your competitors.

While it may be tempting for freelancers to underprice their services in an attempt to attract more clients, this approach can ultimately harm your business . Charging too little can make it difficult to cover your business expenses or invest in growth opportunities. It can also undervalue your services, leading clients to question the quality of your work.

Remember, pricing is more than just a number; it’s a reflection of the value you provide . By setting competitive and profitable prices, you can ensure the sustainability of your freelance business and attract clients who appreciate the value of your work.

Marketing Approach

As a freelancer, you are your own brand, and it’s through marketing that you communicate your brand’s value to potential clients. From building awareness and attracting new clients to nurturing relationships and driving growth, effective marketing strategies can be a game-changer for freelancers.

One of the most potent tools in a freelancer’s marketing arsenal is a strong online presence . In today’s digital age, the first place potential clients often look when they need a service is the internet. Having a professional, easy-to-navigate website that showcases your portfolio, highlights your services, and provides clear contact information can significantly increase your visibility and help attract new clients. Regularly updating your website with fresh content can also improve your search engine rankings, making it easier for potential clients to find you.

Social media platforms are another powerful marketing tool . They offer a way to reach a large audience at relatively low cost. Whether it’s LinkedIn, Twitter, Facebook, Instagram, or a combination of these, social media can be used to share your work, engage with your audience, and build your brand identity. By posting regularly and engaging with followers, you can use social media to establish yourself as an expert in your field and attract new clients.

Content marketing is another effective strategy . This could involve creating blog posts, videos, podcasts, or infographics that provide valuable information to your target audience. By providing useful content, you not only demonstrate your expertise but also build trust with potential clients. Plus, high-quality content can boost your SEO, driving more traffic to your website.

Email marketing campaigns can also be highly effective . Whether you’re sending out a regular newsletter, promoting a new service, or sharing your latest blog post, email allows you to directly reach people who have expressed interest in your services. It’s a great way to nurture relationships with existing clients and keep your brand top of mind for potential clients.

Networking, both online and offline, is another crucial element of a freelancer’s marketing plan . Joining industry groups, attending relevant events, or participating in online communities can help you connect with potential clients, learn about new opportunities, and stay abreast of industry trends.

Marketing is a necessary component for any freelancer aiming for success . By leveraging a range of strategies—from maintaining a strong online presence and utilizing social media to implementing content marketing and email campaigns—freelancers can effectively attract clients, build their brand, and ultimately grow their business.

Operational Requirements

Using effective project management and invoicing tools can streamline these processes, which not only increases efficiency but also contributes to a more professional image.

Firstly, project management tools are essential for keeping track of tasks, deadlines, and communication with clients . These tools can help you organize your workload, prioritize tasks, and ensure that nothing slips through the cracks. They provide a central hub where you can manage all aspects of your projects, from initial planning to final deliverables. This can be particularly useful for freelancers juggling multiple projects or clients at once.

Using project management tools can also improve your communication with clients . They often include features such as shared task lists, progress tracking, and messaging platforms, which can help clarify expectations and keep clients informed about the status of their projects. This transparency can enhance client satisfaction and lead to more positive working relationships.

On the other hand, invoicing software is crucial for managing your freelance finances . These tools can automate the process of creating, sending, and tracking invoices, saving you valuable time and reducing the risk of errors. Many invoicing tools also offer features like automatic reminders for overdue payments, which can help ensure you get paid on time.

Professional invoicing not only makes your life easier but also contributes to a more professional image . It shows clients that you take your business seriously and have systems in place to ensure smooth financial transactions. This can increase clients’ trust in your services and make them more likely to hire you again in the future.

Lastly, both project management and invoicing tools can be invaluable for freelancers working remotely . They allow you to manage your business from anywhere, providing the flexibility that is often one of the main attractions of freelancing.

To succeed in the competitive world of freelancing, it’s not enough to just be good at what you do . You also need to manage your projects and finances effectively. By leveraging the right tools, you can increase your efficiency, present a more professional image, and ultimately drive the success of your freelance business.

Financial Goals and Projections

Setting achievable financial goals is essential for ensuring the sustainability and growth of your freelance business.

Firstly, being aware of your income and expenses is crucial . As a freelancer, your income may fluctify based on the number and size of the projects you undertake. Therefore, it’s important to track your income accurately. Additionally, understanding your expenses – both business expenses like software subscriptions, marketing costs, and taxes, as well as personal expenses – is key to managing your finances effectively.

Once you have a clear picture of your income and expenses, you can start setting financial goals . These might include income targets, savings goals, or debt repayment plans. When setting these goals, it’s important to be realistic. While it’s good to aim high, setting unachievable goals can lead to disappointment and demotivation. On the other hand, setting goals that are challenging yet achievable can drive you to improve your performance and grow your business.

Building financial projections is a useful tool in this process . By projecting your future income and expenses, you can establish targets and measure your progress towards them. This can help you stay focused and motivated, as well as identify potential issues before they become major problems.

Planning for taxes is another critical aspect of financial management for freelancers . Unlike traditional employees who have their taxes automatically deducted from their paychecks, freelancers are responsible for calculating and paying their own taxes. This can be a complex process, as tax obligations can vary significantly depending on factors like your income level, location, and business structure. Therefore, it’s important to plan for taxes as part of your financial goals to avoid surprises come tax season.

Setting achievable financial goals is a crucial component of freelancing success . By maintaining a clear understanding of your income and expenses, setting realistic goals, and planning for taxes, you can ensure the financial health of your freelance business.

A business plan is not just a tool for securing funding or attracting investors; it’s a roadmap that guides your freelancing journey . It outlines your business strategy, sets clear objectives, and provides a framework for making decisions. Whether you’re just starting out as a freelancer or looking to take your business to the next level, a comprehensive business plan is an invaluable asset.

The first component of a business plan is a summary of your company and its purpose . This should include a clear statement of what you do, who you do it for, and why you do it. It’s your chance to define your brand and convey your passion and expertise. This section sets the tone for the rest of your business plan and can be instrumental in engaging potential clients or investors.

Next, your business plan should include an analysis of your target market or audience . Understanding who your potential clients are and what they need is crucial for developing effective strategies and offerings. This section should detail your ideal client profile, the problems they face, and how your services can solve those problems.

A detailed description of the services you offer is another essential component of your business plan . This section should clearly outline what you provide, how it benefits your clients, and how it sets you apart from your competitors. It’s your opportunity to show potential clients why they should choose you over other freelancers.

Your pricing strategy should also be included in your business plan . This should detail how much you charge for your services, how you arrived at these prices, and how they compare to the competition. A well-thought-out pricing strategy can demonstrate your value proposition and reassure potential clients that your services are worth the investment.

Your marketing approach is another key element of your business plan . This section should outline how you plan to attract and retain clients, including the marketing channels you’ll use, the messages you’ll convey, and the tactics you’ll employ to engage your audience.

Operational requirements are another important aspect to consider . This could include the tools and software you use, your workflow processes, or any other operational aspects that contribute to your ability to deliver your services effectively.

Lastly, your business plan should include your financial goals and projections . This section should outline your income targets, expense forecasts, and financial milestones. It serves as a benchmark for measuring your success and helps ensure that your business remains financially sustainable.

In conclusion, every freelancer needs a business plan . It’s more than just a document; it’s a strategic tool that guides your business decisions, communicates your value, and propels your freelancing career forward. By taking the time to create a comprehensive business plan, you’re taking the first step towards achieving your freelancing goals.

How do I write a freelance business plan?

Writing a freelance business plan involves several key steps. Start by defining your company’s summary and purpose, which includes what you do, who you serve, and why you do it. Next, analyze your target market or audience to understand their needs and how your services can meet them. Then, clearly outline the services you offer and how they benefit your clients. Your pricing strategy should detail how much you charge and how these prices compare to your competitors. Include a marketing approach that outlines how you will attract and retain clients. Lastly, establish your financial goals and projections to ensure your business remains financially sustainable. Remember, your business plan is a strategic tool that guides your decisions, so take time to create it thoughtfully.

Does a freelancer need a business plan?

Yes, a freelancer does need a business plan. A business plan serves as a roadmap for your freelancing journey. It outlines your business strategy, sets clear objectives, and provides a framework for decision-making. Key components include company summary, target market analysis, services offered, pricing strategy, marketing approach, operational requirements, and financial goals. A well-structured business plan can help avoid chaos and promote strategic growth. It helps set long-term goals, break them into achievable steps, and manage financial aspects. Remember, as a freelancer, you’re not just a service provider but a business owner.

Can you pay someone to write a business plan for you?

Yes, you can hire a professional business plan writer or a consultancy to write a business plan for you. These professionals bring expertise and an outside perspective to your business concept. They can help articulate your ideas, conduct market research, develop strategies, and create financial projections. However, while hiring someone can save time, it can also be costly. Plus, no one understands your business as well as you do. Whether you choose to hire a professional or write it yourself, being actively involved in the process is crucial.

How do freelancers get first clients?

Freelancers can secure their first clients through various strategies. Building connections with businesses and individuals you admire is a good starting point. You can reach out to potential clients directly or wait for them to request your services. It’s also beneficial to develop referral partnerships and offer your skills as a service. Defining your ideal client or market is another crucial step. Getting better at what you do and seeking feedback from clients, colleagues, and experts can also help. Additionally, using your social media wisely can aid in growing your business. Lastly, don’t hesitate to ask family and friends for help in finding your first few jobs. Remember, the process may be challenging, but perseverance and a strategic approach can lead to success.

Can I write a business plan myself?

Absolutely, you can write a business plan yourself. In fact, doing so can be beneficial because it gives you a deep understanding of every aspect of your business. The process involves researching and reflecting on your business concept, target market, competition, operational structure, and financial projections. There are plenty of resources available online, including templates and guides, to help you through the process. Remember, a business plan is not a one-time document but a living guide that should evolve as your business grows and changes. Writing your own business plan can be a valuable learning experience and a great way to take ownership of your business’s future.

How do I write my first business plan?

Writing a business plan involves summarizing your business, describing its operations, analyzing the market, detailing your service or product, outlining your marketing strategy, and presenting financial projections. It’s a vital document that guides your business’s growth and can attract potential investors.

Do freelancers write their own contracts?

Yes, freelancers often write their own contracts. These contracts outline the terms of the project, including the scope of work, payment terms, deadlines, and any other relevant details. Writing your own contract allows you to ensure that your interests are protected. However, it’s always a good idea to have a lawyer review your contract to make sure it’s legally sound. There are also templates and tools available online that can help freelancers create their own contracts.

Do I need a logo as a freelancer?

As a freelancer, having a logo can be beneficial for your branding strategy. A well-designed logo can help to differentiate you from others in your field, add credibility and professionalism to your freelance business, and can be a deciding factor for potential clients choosing between you and your competition. It tells potential clients who you are, what you do, and how that benefits them. Furthermore, a logo can communicate to people with no prior knowledge or experience with your business that you do great work. However, remember that a logo is just one part of your overall brand identity.

What are examples of business plan?

There are many examples of business plans available online. For instance, Shopify offers seven business plan examples that include elements such as an executive summary, company description, market analysis, products and services, a marketing plan, logistics and operations plan, and financial plan. Similarly, Hubspot provides a list of sample business plans to inspire entrepreneurs on their journey. Sites like Bplans.com offer over 500 free business plan examples and templates . Furthermore, the U.S. Small Business Administration (SBA) provides guidance on writing your business plan, including examples.

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Business Plan for Freelancers: Ultimate Guide for Success

Welcome to the exciting world of freelancing! Today, we're diving into the essential tool every freelancer needs: a business plan for freelancers. This guide will lead you through creating a plan that not only reflects your vision but also catapults your freelance career to new heights.

Key Takeaways

• Essential for Growth: A well-structured business plan is vital for freelancers to navigate the competitive market, set clear goals, and manage growth effectively.
• Comprehensive Approach: Effective business plans for freelancers should cover essential elements such as a company summary, target market analysis, detailed service descriptions, pricing strategies, marketing approaches, and realistic financial projections.
• Practical Implementation: Beyond creation, a business plan serves as a dynamic tool for attracting clients, guiding decision-making, and adapting to market changes. It's not just a document but a roadmap for ongoing business management.
• Avoid Common Pitfalls: Freelancers should be wary of unrealistic goals, vague plans, or inconsistency in their business plans. Regular updates, SMART goal setting, and thorough market research are key to avoiding these pitfalls.

Quick Links:

What is a business plan for freelancers.

A business plan for freelancers is like your personal GPS in the vast freelancing landscape. It's not just any plan; it's a tailored strategy that outlines your professional journey. Think of it as your personal blueprint, charting the course from where you are now to where you want to be.

So, why is it so important? Imagine setting sail without a map; that's freelancing without a business plan! It helps you set clear goals like increasing client base by 30% within the year, tracks your progress, and plays a crucial role in attracting clients. Imagine pitching to a potential client and showing them a well-thought-out plan that addresses their needs - it's a game-changer!

A comprehensive business plan covers everything from your company's summary, understanding your target market, detailing your unique products/services, setting competitive pricing, crafting an effective marketing strategy, to projecting financial outcomes.

For instance, if you're a graphic designer, your plan would outline your design services, identify your ideal clients (like small businesses or individual entrepreneurs), set competitive pricing, and project income from various projects. It's the roadmap to navigating your freelance journey with confidence and clarity.

Want to know more about managing your finances as a freelancer? Check out our insightful article on how to manage finances as a freelancer .

Why Do Freelancers Need a Business Plan?

In the competitive and dynamic realm of freelancing, a business plan is not just helpful; it's essential. Freelancers face unique challenges like fluctuating incomes, finding consistent work, and standing out in a crowded market. These hurdles can be daunting, but a well-crafted business plan turns them into opportunities.

For instance, let's consider Sara, a freelance digital marketer. She faced fierce competition and irregular client engagement. With her business plan, Sara identified her niche in eco-friendly brands, outlined targeted marketing strategies, and set clear financial goals. This focus not only attracted more consistent work but also allowed her to collaborate with clients who shared her values.

A business plan empowers freelancers like Sara to leverage their strengths, such as flexibility and specialized skills, and seize opportunities like untapped markets or emerging trends. It's the secret weapon for turning challenges into stepping stones, propelling freelancers from merely surviving to thriving in their chosen fields.

For tips on finding clients, don’t miss our article on how to find clients as a freelancer .

How to Write a Freelance Business Plan?

Creating a business plan for your freelance career is a journey of self-discovery and strategic planning. It’s a process that helps you understand your business inside out. Here's how to break it down:

1. Company Summary and Purpose

Your company summary is the "Hello" of your business plan. It introduces your business, but more importantly, it shares your story. Why did you choose freelancing? What drives your passion? For instance, if you’re a freelance photographer, your purpose might be to capture life's moments in a unique way.

This section should reflect your core values and aspirations. It's about setting the tone for what your business stands for and where it aims to go. This is your mission statement, encapsulating your business ethos and professional dreams.

2. Target Market or Target Audience

Knowing your audience is like knowing whom you’re throwing a dinner party for. A freelance graphic designer might target tech startups needing brand designs, while a freelance writer might focus on small businesses in need of compelling website content. This section involves identifying who needs your services.

Conduct market research to understand your potential clients' demographics, challenges, and preferences. Are they corporations, small businesses, or individuals? What are their main pain points? For example, as a freelance app developer, your target market might be small businesses in need of digitizing their services.

3. Location

While freelancers can often work remotely, your location still matters. It influences your networking opportunities, potential local clients, and even your working hours, especially if dealing with international clients. Your location section should explain where you operate and why it’s beneficial. For example, being in a tech hub city could offer networking benefits for IT freelancers.

4. Products/Services

This is where you detail what you offer. Are you a freelance social media manager offering content creation and analytics services? Or a web developer specializing in e-commerce sites? Be specific about what you provide and how it benefits your clients.

For example, as a freelance UX/UI designer, your services might include user research, interface design, and user testing. Explain how your services solve clients' problems or improve their businesses. You could mention your unique approach to projects, like using collaborative tools for client feedback.

This section should make potential clients understand why they should choose you over others. It's not just a list of services; it's a showcase of your skills and the value you bring.

Setting your rates is a balancing act. You have to consider your experience, the market rates, and what your target clients can afford. Will you charge hourly, per project, or have retainer agreements? It’s crucial to justify your pricing.

For example, if you’re an experienced freelance SEO consultant, your rates might be higher due to your proven track record of boosting website traffic. Research what others in your field charge and align your pricing accordingly, considering your unique value proposition. Be transparent about your rates in your plan; this helps set clear expectations with potential clients.

6. Marketing

Your marketing strategy is how you plan to get the word out about your services. In the digital age, a strong online presence is key.

For a freelance graphic designer, this might include a professional website showcasing a portfolio, active social media profiles, and a blog offering design tips. Networking, both online and offline, is also crucial. Attend industry events, join online communities, and consider collaborations with other freelancers.

Consider the following channels for marketing your services:

• Social Media: Platforms like LinkedIn, Instagram, or Twitter can be powerful tools for reaching potential clients. Tailor your content to each platform to engage your target audience effectively.
• Content Marketing: This could include blogging about your industry, creating video tutorials, or publishing case studies. It positions you as an expert in your field.
• Email Marketing: Collect emails through your website or blog and send regular newsletters with updates about your services, industry insights, or special offers.

Remember, marketing is not a one-size-fits-all; it should reflect your personal brand and resonate with your target audience.

7. Financial Projections

Financial projections are your financial forecast. They show how much you expect to earn and spend. Start by estimating your startup costs, like equipment, website development, or software subscriptions. Then, project your income based on your pricing strategy and expected client base. Don’t forget to include ongoing expenses like taxes, insurance, and marketing costs.

It’s important to be realistic. If you're just starting out, you might not see a profit immediately. Set short-term financial goals, like covering your initial investment in the first six months, and long-term goals, like achieving a certain annual income.

Include a break-even analysis, which is the point at which your income covers your expenses. This helps you understand when your business will start being profitable. Use financial planning tools or software to keep track of your projections and adjust them as needed. Remember, these are estimates, not guarantees, but they provide a framework for financial decision-making.

For more resources and templates to help you craft a professional and effective business plan, consider visiting sites like BPlans.com or using business plan software like LivePlan or Enloop . These tools offer templates tailored to various freelance professions, making the process more manageable and ensuring you don’t overlook crucial details in your planning.

How to Use Your Freelance Business Plan?

Your freelance business plan is a living document, not a one-time task to be shelved. To leverage it fully, regularly review and update it to reflect your growing experience and the changing market. Use it as a guide for decision-making and strategizing your next moves. For instance, if you notice a surge in demand for a particular service, you might allocate more resources there.

Implementing your plan involves using it to showcase your professionalism to clients. Include elements like your portfolio, testimonials, and credentials in your marketing materials. Your business plan's clarity on services and pricing can also help in retaining clients by setting clear expectations.

For managing your business, tools like FreshBooks for invoicing, QuickBooks for accounting, Trello or Asana for project management, and Slack for communication can be invaluable. These tools help streamline your operations, aligning closely with your business plan’s objectives and strategies.

For more collaboration tools, see our article on top remote work collaboration tools .

What are Common Mistakes to Avoid When Writing a Freelance Business Plan?

Avoid common pitfalls like unrealistic projections, vagueness, and inconsistency. Being overly optimistic about income or underestimating expenses can lead to financial strain. Ensure your goals are SMART (Specific, Measurable, Achievable, Relevant, Time-bound). This approach keeps your plan realistic and actionable.

Conduct thorough research about your market, competitors, and pricing strategies. This groundwork ensures your plan is grounded in reality. Regularly revisit and revise your plan to keep it aligned with your current business situation and future aspirations. Remember, a static plan is ineffective; it should evolve as you and your freelance business grow.

Your business plan for freelancers is more than a document; it's the foundation of your freelance success. Use it as a guide to navigate, grow, and thrive in the freelance world. Don't forget to subscribe to our blog for more insights and tips!

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How To Create A Marketplace Business Plan In 11 Steps: Full Guide

• November 17, 2023
• Fundraising

Both in the B2C and B2B industry, marketplaces have reshaped how we purchase online. They are flourishing in all verticals today, from large-scale consumer markets to B2B niche sectors. Whether you are raising capital or applying for a grant, you will need a solid business plan for your marketplace startup.

Whilst every marketplace is unique, we strongly recommend to follow in your business plan a clear structure vetted by dozens of high-profile VC firms globally. Having a powerful and clear business plan will maximise your chances of raising capital from potential investors.

In this article we walk you through the 11 sections you must have in your Marketplace business plan. Let’s dive in!

Note: If you are looking for a pitch deck instead, read our guide here . Although business plans and pitch decks are similar, they are also very different in their format. If you aren’t sure what is best for you, we recommend to read our article on the key differences between business plans and pitch decks .

Marketplace Business Plan: The Template

If you are creating a business plan for your marketplace startup, we recommend you follow the following structure:

• Executive Summary
• The Problem
• The Solution
• Market Opportunity
• Competitive Landscape
• Business Model
• Intellectual Property
• Marketing Strategy
• Financial Plan

1. Executive Summary

The executive summary is the introduction of your business plan. This is a section you should spend a lot of time on as it’s the first impression investors will have when looking at your business plan.

The executive summary should fit in 2 pages maximum . Make it to the point, concise, and make sure to answer the following questions:

• What is the problem you want to solve?
• What is your solution?
• Who are the co-founders behind the project?
• Do you have early traction?
• What are you asking for (capital from investors, government grant application, etc.)?

2. The Problem

This is the “why” of your business. Explain in this section what is the problem you are trying to solve.

The greatest businesses are solving big problems, yet they aren’t necessarily obvious . For instance, your marketplace might be in a niche B2B market and digitalising a legacy industry (health supplies for private clinics for instance). As such, you are solving an important problem for private clinics: the lack of product information, choice and unfavourable bargaining power from large suppliers.

Ideally you would list the 2/3 friction points you aim to fix. For instance, digitalisation usually fixes multiple problems at once: it is fast, seamless and accessible (vs. slow, prone to errors and non-readily available / accessible solutions).

Tech startup financial model templates

Download an expert-built 5-year Excel financial model for your business plan

3. The Solution

Your startup builds and commercialises a product and/or a service which solves the problem explained earlier.

This section should not explain in detail your product nor how it works. Instead, it should focus on the benefits for your customers .

Ideally, you should compare the pain points explained on section 2 (the Problem) to the benefits your solution brings to your customers. That way,  it is crystal clear to investors your solution really adds value to potential customers .

Following our marketplace example above, the benefits could be:

• Availability of products and comparability: clinics can choose exactly the product they are looking for, easily comparing features vs. alternatives
• Price competition ensuring best price-quality ratio

4. Market Opportunity

Here, you need to clearly identify 2 very important metrics:

• Market size :  how big is your market?
• Market growth:  how fast does your market grow?

If you are operating in a niche market, chances are that you will face some challenges: the information might not be publicly available. In any case, you should be able to make a high-level estimation of your market.  Read our article on market sizing and how to estimate TAM, SAM and SOM for your startup .

When looking for these metrics, you have multiple sources of information: public reports, specialised press, etc. Even public companies publish press releases and annual reports including some of their proprietary market estimates so be sure to look there too.

5. Competitive Landscape

How fragmented is your market.

Are there 3 big players sharing 90% market share or thousands of small players? Here, refer to public market reports and your own understanding of the competitive landscape.

A few questions you could ask yourself, among others:

• Who are your competitors?
• Are they local, regional, national or global?
• Are there any marketplace already in your industry or suppliers only?
• What’s the bargaining power of suppliers vs. buyers?

Where do you position yourself vs. competition?

Is your solution a game changer other competitors don’t have (yet)? Do you have competitors with similar products/services?

Ideally, you would create a small table with, for each type of competitors (e.g. wholesalers, marketplaces, direct suppliers, etc.) the main characteristics they share or not. For instance, do they all a global presence? Do they cover all the products you offer? Are they selling multiple brands / suppliers products? What is their relative price positioning (expensive vs. accessible)?

6. Business Model

This section is very important. Now that we have clearly identified the problem you are solving and the benefits of your solution, let’s have a closer look at your product.

This is where you clearly explain 2 key things:

Which products/services do you offer?

Marketplaces typically act as intermediary between sellers and buyers for specific products and/or services. Unfortunately, the global marketplaces like Amazon are exception to the rule here.

Here you will need to explain clearly what is your product offering : what services/products are you focusing on? Ideally, you would show a breakdown in terms of orders or revenues (pie chart for instance). Indeed, using our health supplies B2B marketplace example above, you might only focus on disposable health supplies (and not heavy medical equipments) for instance.

Another key information to add here is the average order value: what is the average value of the products? Are products transacting on your marketplace $50 piece second-hand clothing or $20,000 specialised industry rental machinery?

Pricing model

Marketplace are generating revenues from a number of sources, usually there are 3 main sources:

• Commission revenue : the main source of marketplaces. Marketplaces generate commissions revenues from 2 sources: either percentage of order value (for instance 10% of all transactions’ value) or a fixed fee instead (for instance $20 per transaction)

Note: the sum of commission revenues as a percentage of total transaction value (gross merchandise value) is usually referred to as “rake” or “take rate”. For a refresher on the 10 most important marketplace metrics, read our article here .

• Subscription revenue : you offer a tiered system, freemium or not (free plan) users need to pay for (monthly or annual billing cycle). You can charge either sellers or buyers (or both) for accessing the marketplace
• Additional revenues: marketplaces can sell add-on services such as promotion & content (e.g. promoted ads), white-label products, marketing and branding services, etc.

7. Intellectual Property

This section is optional: only include it if you already have a MVP. If so, you have a strong argument for product-driven investors which will give a lot of credit to your tech.

Be careful not to go into too many specifics though: investors aren’t always engineer by training. Do not put things like the programming language you have chosen (e.g. React, Python) or the database provider (PostgreSQL, MongoDB).

Instead, include things such as:

• whether you have a white-labelled solution or a proprietary back-end / database
• how many full time front/back-end engineers you have
• how much you invested already in your tech

8. Marketing Strategy

This section explains  how you acquire sellers and buyers respectively .

Depending on the type of customers you have, acquisition will likely be different. For instance, large suppliers (sellers) are usually acquired via outbound acquisition (Sales representatives). Instead, consumers (buyers) are acquired purely through traffic (paid or organic).

The different sources of acquisitions for marketplaces are:

• Paid marketing : any paid digital marketing campaigns (pay-per-click or per-impressions), whether it is search to your landing page (e.g. Google Ads), social media (e.g. Facebook Ads) or referrals. Paid marketing is mostly used to acquire sellers and buyers. As explained above, whilst buyers can be acquired exclusively through paid marketing or organic growth (see below), sellers can also require sales team effort (see below)
• Organic growth : you acquire sellers and buyers without paying for it. Organic growth is typically driven by investment in content (SEO, social media)
• Outbound acquisition : you acquire sellers (or rarely buyers) thanks to your sales team who contact potential customers via phone, emailing or in-person sales efforts. This is especially true for marketplaces who connect a few large suppliers to potential buyers.

Once you have clearly explained your acquisition strategy and what tools you are using (e.g. Google Ads for paid search, social media and content for organic growth), ideally you can show, among others:

• Your average  Customer Acquisition Cost
• Conversion rates and its components (add-to-cart rate, cart abandonment rate)
• Your monthly paid ads budget
• The number of followers you have on social media
• Your newsletter count

Note: for a refresher on the 10 most important marketplace metrics, read our article  here .

The roadmap tells investors where you are going and how is product going to evolve in the future. You can either keep it high-level (e.g. your long-term strategy) or more detailed (e.g. the pipeline of the near-future product features).

Investors do not just invest in your product as it is today. For example, you might only have developed a MVP with limited features for  early-adopters  while your product could be tweaked and serve a much larger customer base in the future.

Also, you might be broadening the type of products you offer in the future. Or you might introduce premium services such as a subscription, or premium listing fees. All of these additional features are very important to add in your investment deck.

Note: if you choose to include your product pipeline, keep it very simple. Your marketplace business plan isn’t your product manager’s presentation to engineers.  Instead of features, focus on the additional benefits and customer segments you might target  as such.

In this section you should focus on the people behind the company. Unlike in the executive summary, the team section of your business plan should not be limited to the cofounding or management team.

Instead, you should explain the current organisational structure of your company, the different teams, who they report to and their relative size.

For the people, keep it short. Keep biography to a minimum and only to key people (cofounders and management team). As rule of thumb, 5 lines per team member are enough, 10 a maximum.

When it comes to biographies, only include what is relevant: name, position, years of experience and/or previous companies is more than enough.

What about advisors?

Do you have angel investors with significant experience who advise you on strategy? Do you have a PhD who acts as advisor to your marketplace startup (on regulation and market access matters for instance)?

Any advisor should also be included here, with the same level of detail as for the management team.

Demonstrating in your business plan that not only team members but also experts are advising and/or sitting on your board is a strong selling point.

Note: add a clickable link to the respective Linkedin profiles so investors can refer to a more exhaustive resume for your team members (if relevant)

11. Financial Plan

Along with your product and the team, this section is very important. Unfortunately, many startups overlook the importance of financial projections in their Marketplace business plan.

Think about your audience: investors (venture capital firms or angel investors) are financially literate individuals . As such, they invest in your business to generate returns. Logically, they care a lot about your financials and more especially,  the expected financial performance of your business .

Do not expect investors to make up their own plan for your startup if you haven’t. As CEO, founder or entrepreneur alike,  you should have a clear idea of where you are going .

As rule of thumb, the more advanced your startup is, the more granularity you should include here. Pre-seed startups might keep it short (2/3 pages maximum) yet we recommend seed and Series A+ startups to include 4/5 pages at least instead.

Common marketplace metrics you should include in your financial plan slide are:

• Gross Merchandise Value (GMV)
• Average Order Value (AOV)
• Seller / Buyer Ratio
• Repeat Orders Rate
• Customer Acquisition Cost (CAC)
• Customer Lifetime Value (CLV or LTV)

For a complete list of the 10 most important metrics for marketplace businesses, refer to our article  here .

Marketplace Financial Model Template

Download an expert-built 5-year Excel financial model for your pitch deck

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Hire the Top 3% of Freelance Business Plan Consultants

Toptal is a marketplace for top Business Plan consultants and experts. Top companies and startups hire freelance Business Plan consultants from Toptal for their mission critical projects.

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Hire Freelance Business Plan Consultants

Andon Baltakov

Andon is a fractional CFO and a fundraising expert for clients of Toptal. Most recently, he devised a novel business plan and a financial model for a sports information company. He also provided advisory services to launch a new social, digital business. Currently, he is working with the CFO of an entertainment enterprise to structure a business model and expand a side video project into a multimillion-dollar film business. Andon is a seasoned strategy executive who worked at the AP, CNN.

Trevor Davis

Trevor is an experienced entrepreneur and banker with a background in business plan development, financial modeling, M&A, capital raising, and business valuation. He has worked and advised clients across many industries. Trevor has worked on over $5 billion of M&A and financing transactions and has advised clients ranging from early-stage startups to multi-billion dollar businesses.

Aaleem Jiwa

As a Deloitte consulting manager, Aaleem led the creation of a business plan and financial model for a city-owned real estate firm that enabled them to develop 50 properties in 10 years. He has helped owners of small companies and executive teams at multi-billion dollar entities optimize their businesses through financial analysis. Aaleem travels extensively, and freelancing allows him to deliver value to companies from any city in the world.

Wen helped a French multimillion-euro food startup build its equity story and manage potential acquirers (Danone). She has project experience with private equity funds, venture capital, and industrial groups in France, Belgium, China, Africa, and the US. She is skilled in financial analysis and modeling, investor deck, and market research. Wen freelances to help advise startups and corporates on business strategy, investor relations, and fundraising projects.

Alan has 30 years of experience as a consultant, including leadership roles at KPMG & KPMG Consulting and EY. He has executive operational experience as the COO of a venture capital-funded company. Alan is skilled in project management with a record of delivering on time and on or under budget. He is also experienced in business planning, process improvement, curriculum design, IT security, and logical and physical architecture. Freelance work lets Alan focus on client needs and projects.

Swapnil Manish

Swapnil is a finance expert with 16 years of experience and an MBA in finance. He has advised on M&A transactions, fundraising, and valuations worth $13 billion at bulge bracket investment banks (BNP Paribas and SMTB). He is also the co-founder of two startups, and he has advised other SME entrepreneurs at the intersection of business planning, fundraising, and scaling up through M&A and organic growth. Swapnil enjoys interacting with entrepreneurs and helping them maximize business value.

Monica Ioannidou Polemitis

With 20+ years of experience in strategic advisory, Monica has led multiple engagements across sectors. She's facilitated the valuation of new business ideas and secured financing from private and public sources, including extensive work with private equity funds and European Union financial instruments such as the EU and European Investment Bank. Recently, Monica has launched Hybrid ConsulTech, a company offering comprehensive digital transformation solutions across Europe and the Middle East.

Nick Fookes

Nick is a CFA with a 28-year track record spanning 40+ countries in M&A, finance, strategy, and policy. He's supported executive decisions in 60 high-stake projects, including M&A transactions ($46 billion), radio-spectrum auctions and trades ($3.5 billion), public policy advocacy, government contract bids (worth $1 billion), go-to-market strategies, and raises for small caps and tech startups. Independent since 2001, Nick has enjoyed working in diverse markets, sectors, and cultures.

Alex is a business intelligence and customer insight expert who helped raise over $200 million in funding as VP of marketing and sales at a venture-backed startup which eventually went public. He has broad experience developing business plans, market research, product development and deployment in mobile telecoms, advertising, and digital collaboration platforms. Alex loves freelancing because of the freedom and opportunity to cooperate on exciting projects worldwide and across industries.

Isaac Prada y Nogueira

Isaac is a former Formula One engineer with over ten years of management consulting experience, applying the management method he learned in F1 (mainly Minimum Viable Testing) to growth strategy, innovation strategy, and optimization of tech startups and SMBs. He has developed a proprietary growth strategy for tech companies called Competitive Manager and has doubled revenues for some of his clients. Isaac seeks projects where he can put in the same energy that took him to F1.

Niloufer Afzal, MBA, CM

A growth strategy expert with tier 1 companies, Niloufer led the transformation of a $300 million pet business that was acquired for two times EBITDA. Her areas of expertise are strategic planning, innovation, customer strategy, and eCommerce transformation. She is an award-winning architect of iconic brands across North America, Europe, and Asia; J.M. Smucker, Reckitt, Philips, Kraft-Heinz, McCain, GSK, Tetra Pak, and Mars. Nilo joined Toptal to help organizations unlock and accelerate growth.

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Toptal's screening and matching process ensures exceptional talent are matched to your precise needs.

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Our clients frequently pair these additional services with our freelance Business Plan consultants.

A Hiring Guide

Guide to hiring a great business plan consultant.

Business plan consultants have the industry knowledge and expertise to develop a business plan that maximizes your company’s potential and attracts investors. This guide to hiring business plan experts offers insight into best practices, skill requirements, job description tips, and interview questions and answers to help you identify the best candidate for your needs.

... allows corporations to quickly assemble teams that have the right skills for specific projects.

Despite accelerating demand for coders, Toptal prides itself on almost Ivy League-level vetting.

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How to Hire Business Plan Consultants Through Toptal

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How do I hire a Business Plan consultant?

To hire the right Business Plan consultant, it’s important to evaluate a candidate’s experience, technical skills, and communication skills. You’ll also want to consider the fit with your particular industry, company, and project. Toptal’s rigorous screening process ensures that every member of our network has excellent experience and skills, and our team will match you with the perfect Business Plan consultants for your project.

What do I need to look for when I choose a Business Plan consultant online?

Do not hire a Business Plan consultant online without interviewing them at least once, ideally via video conference so you can evaluate your rapport with them. It’s critical to ask them questions about your industry, their industry-specific experience, and their thoughts on current trends—all elements you can’t gauge from an online résumé. In addition to evaluating their experience and knowledge, it’s important to validate it through examples of work products and references.

How do I choose between two quality Business Plan consultant candidates?

When you have two highly qualified consultants vying for an engagement with your company, compare their skills with your internal capabilities and select the consultant who best complements the skills you and your team have. You’ll also want to consider their interpersonal skills and general fit with your preferred ways of working. Your objective should be to hire the consultant who rounds out the most capable team you can create to develop your business plan.

Do I need to hire a Business Plan consultant?

You should strongly consider hiring a Business Plan consultant. Business plan professionals offer significant benefits through their expertise and unbiased point of view. They’ll stress-test your current plans, identify potential risks and growth opportunities, provide a market analysis and industry insights, and ensure that your business plan is credible, positioned to maximize your company’s potential, and appealing to investors.

Who are Business Plan consultants and how do they add value?

A Business Plan consultant is a highly qualified individual who combines the skills of a management consultant and a CFO to advise and assist management teams of businesses of all sizes. Beyond creating business plans, they can assist with a number of projects, including market sizing; go-to-market and customer acquisition strategies; pricing and monetization planning; and fundraising strategy. Additionally, they can help you produce a pitch deck, board presentations and presentation materials, research and market reports, financial models, analyses, forecasts, and more.

How are Toptal Business Plan consultants different?

At Toptal, we thoroughly screen our Business Plan consultants to ensure we only match you with the highest caliber of talent. Of the more than 200,000 people who apply to join the Toptal network each year, fewer than 3% make the cut.

In addition to screening for industry-leading expertise, we also assess candidates’ language and interpersonal skills to ensure that you have a smooth working relationship.

When you hire with Toptal, you’ll always work with world-class, custom-matched Business Plan consultants ready to help you achieve your goals.

How quickly can you hire with Toptal?

Typically, you can hire a Business Plan consultant with Toptal in about 48 hours. For larger teams of talent or Managed Delivery , timelines may vary. Our talent matchers are highly skilled in the same fields they’re matching in—they’re not recruiters or HR reps. They’ll work with you to understand your goals, technical needs, and team dynamics, and match you with ideal candidates from our vetted global talent network.

Once you select your Business Plan consultant, you’ll have a no-risk trial period to ensure they’re the perfect fit. Our matching process has a 98% trial-to-hire rate, so you can rest assured that you’re getting the best fit every time.

Can you hire Business Plan consultants on an hourly basis or for project-based tasks?

You can hire Business Plan consultants on an hourly, part-time, or full-time basis. Toptal can also manage the entire project from end-to-end with our Managed Delivery offering. Whether you hire an expert for a full- or part-time position, you’ll have the control and flexibility to scale your team up or down as your needs evolve. Our Business Plan consultants can fully integrate into your existing team for a seamless working experience.

What is the no-risk trial period for Toptal Business Plan consultants?

We make sure that each engagement between you and your Business Plan consultant begins with a trial period of up to two weeks. This means that you have time to confirm the engagement will be successful. If you’re completely satisfied with the results, we’ll bill you for the time and continue the engagement for as long as you’d like. If you’re not completely satisfied, you won’t be billed. From there, we can either part ways, or we can provide you with another expert who may be a better fit and with whom we will begin a second, no-risk trial.

By Nicholas Piscani

Nicholas is a corporate strategy and FP&A expert who works with businesses to optimize their operations and execute high-priority strategic initiatives. He has helped entrepreneurs raise more than $600 million.

Previously at

How to hire business plan consultants, every company needs an effective business plan to maximize its potential.

A comprehensive business plan details a company’s present and expected future status and needs in order to guide strategic decisions and resource requirements. Research has shown that, historically, companies with business plans have grown 30% faster than those without them and that companies with business plans have been nearly twice as likely to receive funding. That’s because potential investors and investment banks often won’t take your business seriously without a comprehensive business plan.

While business plans are proven to maximize potential at all stages of maturity , many business leaders fail to develop or execute them. They may believe it isn’t worth the investment, or they may be overwhelmed by the number of steps involved and the amount of information required to get started. Other business owners may attempt to develop such plans without external assistance.

However, many company owners do recognize that specialized skills are required to maximize the impact of a business plan and to develop a complementary pitch deck for potential investors. These executives typically hire a business plan consultant to guide them through the entire strategic and business planning process. This hiring guide offers insights into how to select and hire a business plan consultant who can advise and collaborate with you to deliver the business plan you need.

What attributes distinguish quality Business Plan Consultants from others?

Above all else, quality business plan consultants have business planning and industry-specific experience. Typically, more experience equals more expertise, but don’t get caught up in thinking about experience only in terms of years. Once a professional business plan consultant has five or more years of experience, other factors, such as the number of business plans written and the number of successful funding rounds they’ve been involved in, are more important.

When selecting a business plan advisor, it’s important to find someone who develops complete business plans frequently, has a strong track record of success, and has specialized industry experience relevant to your business. For example, the core components of business plans in healthcare and construction may be similar, but industry-specific knowledge adds significant credibility when detailing the organization’s strategic direction, financial plans and models, and resource requirements.

Quality business plan professionals provide clear and concise guidance, and work with you and your management team to develop primary and contingency strategies. The consultant should be able to collaborate effectively during the planning process and illuminate potential shortcomings and pitfalls of an existing or new plan. While they may use a standardized template for creating business plans, the consultant should be willing and able to customize the plan to meet your organization’s specific needs.

How can you identify the ideal Business Plan Consultant for your business?

The ideal business plan consultant will possess a mix of hard and soft skills across multiple business areas so that they can skillfully craft a successful plan and pitch deck. The best business plan consultants have these complementary skills:

Industry knowledge – The business plan consultant best suited to help your organization will have solid industry knowledge and significant experience working with other companies in your sector. Understanding the industry, its competitive landscape, significant trends, and market segments is critical to developing an effective business and marketing plan.

Market research and analysis – This skill is required to establish accurate estimates of the total market, total addressable market, serviceable market, and obtainable markets. Business plan consultants need to gather and analyze significant amounts of data, interpret the results, and derive target markets and market-share goals for your company.

Financial modeling and forecasting – In addition to validating existing financial plans, the business plan consultant should be able to provide insight into current and alternative pricing strategies for revenue growth, understand whether capital and resource assumptions are valid given industry-average and best-in-class capital efficiencies, and confirm that margin expectations are reasonable given other operating assumptions. In-house financial analysts may be able to help fill this need with guidance from the expert business plan consultant you hire.

Data analysis and visualization – A quality business plan consultant should be able to compile and analyze all the inputs your organization provides and use them to create the components of the plan. This should include a go-to-market strategy that highlights your value proposition, identifies how you’ll reach your target market(s), and convinces investors that your organization has significant growth potential.

Presentation skills and storytelling ability – An underrated but essential value that a business plan consultant can bring is the ability to take all the individual components of the plan and weave them together into a compelling, original story that creates stakeholder buy-in and investor interest.

In addition to the aforementioned important capabilities, the best business plan consultant for your company should demonstrate the following soft skills:

Communication – The consultant should be able to distill complex ideas into accessible concepts to ensure understanding among stakeholders, investors, and employees. They should also be willing and able to ask hard questions and challenge assumptions.

Organization – The business plan expert needs to gather, analyze, and organize extensive data and other inputs from multiple sources. This requires impeccable organization and attention to detail.

Critical and strategic thinking – A quality business plan professional can consider threats, present alternatives, and stress-test the business plan to ensure it is sound and considers all possibilities.

A business plan advisor who possesses these complementary soft skills is more likely to be highly effective and deliver a plan that generates a high ROI.

What criteria can hiring managers use to match Business Plan Consultants to their specific industry or business needs?

Hiring managers should consider these three critical criteria when matching business plan professionals to their specific industries and needs:

• Industry experience – Each industry has a unique environment, with unique relationships between the hiring company and its customers, suppliers, competitors, etc. Navigating different compliance requirements and barriers to entry requires specific knowledge. While there is no set requirement for years of industry-specific experience, three years is a sufficient minimum threshold.
• Financial acumen – The consultant should be able to build detailed, dynamic financial models that drive the business plan. Experience with three-statement modeling is ideal, as the consultant will need to understand how investment and operating plans impact cash flow, the balance sheet, and the income statement. The hiring manager should prioritize credentials such as advanced degrees and certifications pertaining to corporate finance, valuation, and modeling financial projections when evaluating candidates.
• Leadership experience – Hiring managers should look for a consultant with a demonstrated history of leading teams and stakeholders through strategic initiatives. At a minimum, consultants should have reached a managerial level with a focus on strategy and business planning. Director- and VP-level experience, along with a track record of successful consulting engagements, becomes more important as the scope and scale of the project at hand increases.

How to Write a Business Plan Consultant Job Description for Your Project

First, define the use case for the business plan and identify the industry in which your company operates. Clearly identifying the sector will help candidates self-select, minimizing the number of irrelevant résumés to review.

Next, specify the experience and any specializations you require. Some technical expertise may be optional: For example, it may not be as important for your business plan consultant to have in-depth financial modeling expertise—as long as that’s a strength of your internal team. On the other hand, your business plan consultant must have extensive knowledge about your industry and market segments.

Your job description should also take into account how far along your organization is in the strategic and business planning process. If you have many of the pieces in place and simply need a business plan professional to ensure you have a cohesive and compelling plan to present, you’ll require a different skill set than if you need a business plan expert to research, analyze, define, and document the strategic path forward.

What are the most important Business Plan Consultant interview questions?

As you prepare to interview your top candidates, you should already have a basic understanding of their experience and skills. During the interviews, it’s important to ask questions that get to the heart of what your organization needs and whether the consultant has the expertise to deliver an effective plan. These questions will help you evaluate and select the best business plan consultant for your situation:

How would you approach this project?

With this question, you’re looking for the consultant to explain how they would use internal and external resources to gather relevant information and craft the story that the business plan will tell as it relates to your specific case. Ideally, the consultant can identify external resources that will provide industry, competitor, and market insights, including potential environmental, regulatory, or legal hurdles and risks.

Can you share your thoughts on the industry’s current state and future outlook?

The consultant you hire should be well versed in your industry, its present state, and the key factors influencing its future. The success of a business strategy hinges on the quality of the market information, data, and insights the expert has access to, and how they will use that information to guide the plan. A qualified business plan professional will be able to discuss total market size, growth rates, key competitors, and significant trends. Their answer should leave you confident that the candidate has the industry experience and knowledge you require.

Can you share specific examples of successful business plans you’ve developed?

The answer to this question should demonstrate how the candidate has applied their expertise in previous engagements or corporate roles. Although the consultant may be able to effectively explain their approach, specific examples will confirm they have the experience and capabilities to deliver what you need. Ask them to define the qualities of a successful engagement to be sure your expectations are aligned.

How do you ensure that a business plan is adaptable and remains relevant?

The last thing you want to do is lead your business down a path that reduces or eliminates agility. The consultant should highlight specific tools, such as scenario and sensitivity analyses, that can be used to develop contingency plans should the primary strategy shift because of changes in the market. The most qualified consultants should be able to identify gaps and trends in the market and suggest potential strategies and technologies to address them.

Additional questions to ask include how the consultant would communicate with you and your internal teams, how they handle disagreements among principals about the strategic direction the organization should pursue, and what, if any, special research and analysis they might perform for this engagement.

A well-rounded business plan consultant will answer your questions in ways that leave you feeling confident in their ability to successfully execute the project and deliver an effective custom business plan that maximizes your company’s potential and attracts investors.

How can a hiring manager ensure the confidentiality and security of sensitive information during the hiring process, especially when sharing business plans or proprietary data with candidates?

Hiring managers and recruiters can take decisive actions to protect their company’s confidential information during the hiring process. These include:

• Requiring candidates to sign nondisclosure agreements before they receive sensitive materials.
• Conducting thorough background checks to verify candidates’ credibility, trustworthiness, and adherence to data security protocols.
• Using secure document-sharing platforms or virtual data rooms with access controls, encryption, and audit trails.
• Using secure communication channels, such as encrypted email services or secure messaging platforms, when sharing sensitive information.

Why do companies hire Business Plan Consultants?

Business plan experts can deliver tremendous value to companies that are developing business plans to guide strategic decisions or pursue funding. While founders and employees may have a significant grasp of the company, its strategic direction, and its business goals, they may not have the expertise to craft a compelling business plan and pitch deck that attracts investors.

One of the quickest ways to lose the interest of potential investors and partners is by presenting a business plan that comes across as disorganized and fragmented. Business plan advisors with extensive experience dealing with investors solve this problem for their clients. They have the well-rounded business background and skill set to contribute and add value to the entire strategic planning process. They have the capability to propel a business forward by weaving a company’s market data, industry trends, business strategy, business goals, and resource requirements into a compelling story for stakeholders and potential investors.

While many business owners develop business plans without external assistance, hiring a business plan consultant can significantly increase the quality and credibility of a business plan, its likelihood to maximize business success, and its ability to attract investors.

Featured Toptal Business Plan Consulting Publications

5 Key Tips for Smarter Sales and Operations Planning Implementation

Creating a Narrative from Numbers

Small Business Resources for COVID-19: Loans, Grants, and Credits

Top Business Plan Consultants Are in High Demand.

Toutes les ressources pour devenir freelance 💻

Mettez toutes les chances de votre côté pour monter un projet rentable.

Voici le Business Model Canvas pour votre activité de freelance

Cet article a été écrit par un expert qui a étudié l’industrie et a confectionné le business plan pour un freelance

Vous retrouverez une analyse PESTEL complète, modifiable et sans copyright dans notre modèle de business plan

Nous avons rédigé de nombreux business plans pour des freelances .

Bien trop souvent, les freelances ne prennent pas le temps de structurer leur projet de manière claire et efficace.

Pourquoi? Parce qu'ils n'ont pas les bons outils et les bonnes structures. Parmi ceux-là, il y a le Business Model Canvas.

Qu'est-ce qu'un Business Model Canvas ? Est-ce que j'en ai besoin pour mon activité de freelance ?

Soyons honnêtes avec vous.

Ce n’est pas un remède miracle, mais le Business Model Canvas est un outil précieux pour structurer votre projet de manière stratégique.

Il permet de visualiser l'ensemble des éléments clés de votre activité.

Si vous êtes sur le point de lancer votre activité de freelance , utiliser un Business Model Canvas n’est pas juste utile, c’est indispensable.

Il vous aidera à :

• définir clairement votre proposition de valeur, comme une expertise unique dans un domaine spécifique ou un service client exceptionnel
• identifier vos segments de clientèle, qu'il s'agisse de petites entreprises locales ou de grandes entreprises internationales
• structurer vos canaux de distribution, qu'il s'agisse de votre présence en ligne, de plateformes de freelancing ou de recommandations de bouche à oreille
• cerner vos principales sources de revenus, que ce soit des projets ponctuels, des contrats à long terme ou des abonnements de services
• mettre en lumière vos ressources clés, telles que vos compétences spécifiques, votre réseau professionnel ou vos outils de travail

Bien sûr, le Business Model Canvas ne garantit pas le succès à lui seul, mais il vous offre une vue d'ensemble claire et une feuille de route pour votre activité de freelance.

Et si vous rédigez un business plan pour votre activité de freelance , le Business Model Canvas est un excellent outil pour vous guider tout au long du processus.

Notre business plan pour un freelance vous aidera à réussir votre projet.

Des exemples pour chaque partie du Business Model Canvas d'un freelance

- Petites et moyennes entreprises à la recherche de services spécialisés - Entrepreneurs et startups nécessitant des compétences spécifiques - Particuliers ayant besoin de services ponctuels ou de conseils professionnels

- Expertise pointue et personnalisée dans un domaine spécifique - Flexibilité et adaptabilité aux besoins du client - Tarification compétitive et transparente

- Plateformes de freelancing (Upwork, Fiverr) - Réseaux sociaux professionnels (LinkedIn) - Site web personnel et blog pour attirer et convertir des clients

- Communication régulière et transparente via email et appels vidéo - Suivi personnalisé et feedback après chaque projet - Offres spéciales et réductions pour les clients fidèles

- Facturation à l'heure ou au projet - Abonnements mensuels pour des services continus - Revenus passifs via la vente de produits numériques (ebooks, cours en ligne)

- Compétences et expertise dans le domaine d'activité - Outils et logiciels spécialisés pour la réalisation des projets - Réseau professionnel pour les recommandations et collaborations

- Réalisation de projets pour les clients - Prospection et acquisition de nouveaux clients - Mise à jour continue des compétences et veille technologique

- Plateformes de freelancing pour la visibilité et la gestion des projets - Outils de gestion de projet et de communication (Trello, Slack) - Réseaux professionnels et groupes de soutien pour freelances

- Abonnements aux outils et logiciels nécessaires - Frais de marketing et de publicité - Coûts liés à la formation continue et au développement professionnel

Nous avons également un article dédié à l'analyse SWOT pour ce projet

Ne confondez pas Business Model Canvas, Business Model et Business Plan

En tant que freelance, il est crucial de bien comprendre la différence entre ces trois concepts : le business model, le business model canvas, et le business plan.

Le business model canvas, comme on vient de le voir, est un outil pratique pour résumer votre concept sur une seule page.

Vous y mettez vos segments de clientèle (entreprises, particuliers, agences), votre proposition de valeur (expertise spécifique, flexibilité, tarifs compétitifs), et vos flux de revenus (prestations de service, abonnements, commissions).

C'est visuel, rapide à remplir, et ça vous permet de voir en un coup d'œil si tout se tient.

Le business model, c'est simplement la manière dont vous, en tant que freelance, allez gagner de l'argent.

Par exemple, allez-vous facturer à l'heure, au projet, ou proposer des forfaits mensuels ? Allez-vous offrir des services complémentaires comme des consultations ou des formations ? C'est l'idée centrale de votre activité.

Enfin, le business plan, c'est un document beaucoup plus détaillé. Il inclut tout : votre stratégie marketing (comment attirer des clients et vous faire connaître), vos prévisions financières (ce que vous allez dépenser et gagner), et votre plan opérationnel (comment vous allez gérer votre temps, vos outils de travail, etc.). C'est celui que vous présenterez à un investisseur ou une banque si vous avez besoin de financement.

En résumé : le business model, c'est le concept ; le canvas, c'est un outil de synthèse ; et le business plan, c'est votre feuille de route complète.

Des exemples de Business Model Canvas complétés pour des freelances

Un business model canvas pour un freelance en rédaction de contenu.

Plateformes de freelancing, agences de marketing digital, outils de gestion de contenu, réseaux de rédacteurs.

Rédaction d'articles de blog, création de contenu pour les réseaux sociaux, rédaction de newsletters, optimisation SEO.

Fournir un contenu de haute qualité, optimisé pour le SEO, qui engage et informe les lecteurs.

Communication régulière avec les clients, révisions illimitées, rapports mensuels sur les performances du contenu.

Plateformes de freelancing, site web personnel, réseaux sociaux professionnels, recommandations de bouche à oreille.

Petites et moyennes entreprises, startups, blogueurs, agences de marketing digital.

Abonnements à des outils de gestion de contenu, formation continue, coûts de marketing personnel, frais de plateforme de freelancing.

Facturation à l'article, forfaits mensuels de création de contenu, services de révision et d'optimisation SEO.

Un Business Model Canvas pour un freelance en développement web

Plateformes de freelancing, fournisseurs de services d'hébergement web, outils de développement, communautés de développeurs.

Développement de sites web, maintenance et mise à jour de sites existants, intégration de solutions e-commerce, optimisation de la performance web.

Créer des sites web performants, sécurisés et adaptés aux besoins spécifiques des clients.

Support technique continu, réunions de suivi régulières, documentation détaillée des projets, formation à l'utilisation des sites.

Plateformes de freelancing, site web personnel, réseaux sociaux professionnels, forums de développeurs.

Entrepreneurs, petites et moyennes entreprises, startups, agences de marketing digital.

Abonnements à des outils de développement, frais d'hébergement web, formation continue, coûts de marketing personnel.

Facturation à l'heure ou au projet, contrats de maintenance mensuels, services d'optimisation et de mise à jour.

Un Business Model Canvas pour un freelance en design graphique

Plateformes de freelancing, agences de publicité, imprimeurs, fournisseurs de logiciels de design.

Création de logos, conception de supports marketing, design de sites web, création de visuels pour les réseaux sociaux.

Offrir des designs uniques et professionnels qui renforcent l'identité visuelle des clients.

Consultations initiales gratuites, révisions illimitées, suivi post-projet, newsletters sur les tendances du design.

Plateformes de freelancing, portfolio en ligne, réseaux sociaux professionnels, recommandations de bouche à oreille.

Startups, petites et moyennes entreprises, entrepreneurs, agences de publicité.

Abonnements à des logiciels de design, coûts de marketing personnel, formation continue, frais de plateforme de freelancing.

Facturation à l'heure ou au projet, forfaits de design mensuels, services de consultation en branding.

Un Business Model Canvas vierge à télécharger gratuitement

Si vous ne souhaitez pas modifier le Business Model Canvas de notre business plan, vous pouvez télécharger celui-ci et la remplir avec vos propres éléments.

Bonne utilisation du Business Model Canvas et bon business plan !

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