Starting a freelance business comes with many perks - like the flexibility to work where you want, how you want, with whom you want. No wonder around 45% of the workforce is self-employed .

But that doesn’t mean it’s easy. Sooner or later, freelancers make mistakes or have to overcome obstacles, which may cost them precious revenue and peace of mind. It’s very easy to make mistakes when you’re a sole operator - the person executing the work and running the business all at once. It can be a lot to manage. And that’s okay, we’re only human.

Let's take a look at some of the most common mistakes freelancers make, and how you can reduce the risk of them occurring.

1. Underpricing Your Services

This is one of the most common mistakes a freelancer can make - especially in the early stages. If you underprice your services, you risk limiting your profitability and may even attract the wrong types of clients (i.e., those who only value low prices, not quality).

So, do your research before setting your rates. Look into industry benchmarks and what other freelancers in your niche are charging. Also take into account your time, your level of experience, tax obligations, expenses, and other business running costs, like software subscriptions. These day-to-day expenses all add up, so keep these in mind when setting your rates.

You may think a freelancer doesn’t need a contract, particularly if you already know the client through your warm network. But don’t overlook them. Contracts are here to help protect you if things go wrong. It can also save you stress; research from Leapers found that 39.4% of freelancers report being stressed after working without a contract.

Your contracts should clearly define the scope of work, your payment terms, revision limits, and your “ways of working” (such as contactable hours or preferred methods of communication). Having clear expectations laid out in a contract sets you both off on the right foot and reduces potential headaches down the track. ​

3. Saying Yes When You Should Say No

When you’re a new freelancer, it’s tempting to say yes to any and all work that comes your way. But sometimes saying no can be one of the best moves for your business.

Turning down work can be a smart move in these scenarios:

  • A potential client has shown red flags during the proposal process, such as lowballing your quotes.
  • You don’t have the right skills for the job. A little bit of imposter syndrome is normal, but if you’re not certain you can deliver the results the client is looking for, it may be best to refer them to another freelancer.
  • You’re at capacity time-wise. If taking on a new client would mean working much longer hours, or you’d be very stressed trying to complete the work, politely declining them (or adding them to a waitlist) will ensure you’re focusing on quality over quantity.

4. Setting And Reinforcing Boundaries

A survey from Freelancermap found that a third of freelancers struggle with work-life balance . Setting clear expectations and boundaries from the outset is essential for ensuring clients respect your time and helping you maintain a healthier work-life balance.

These boundaries could include specifying your standard response times and turnaround times for urgent requests in your contract. Accommodating clients who repeatedly cross these boundaries (like sending late-night texts and expecting a quick reply) can lead to burnout and frustration.

5. Getting Too Comfortable

Freelancers who enjoy a full client roster typically make one of the biggest mistakes of all: getting too comfortable.

Clients can come and go at any time. One minute you could be booked and busy, the next, a major client leaves, and you’re left scrambling to bring in new leads to fill the void. So it’s critical to keep marketing yourself and continuously feed the pipeline. Building a personal brand on LinkedIn and updating your freelance portfolio are just a couple of ways to attract new clients.

Working independently as a freelancer can be tough, so don’t be hard on yourself if you’ve made these mistakes. Reframe them as learning opportunities. Those who do can build a stronger, more resilient freelance business that lasts the long haul.