6 Tips for Freelancers to Pay Bills During Uncertain Times
Business

6 Tips for Freelancers to Pay Bills During Uncertain Times

Freelancers are among the professionals that work as a solopreneur to manage every aspect of the business. And financial troubles are typical when you don’t have a huge capital to rely on. Thus, you must know the ways to deal with bills and finances if you are running short on cash as a freelancer.

People with years of experience have learned from their mistakes to create an effective backup plan. You don’t have to go through the troubles to find an effective strategy to deal with it. It is simple enough to learn from the experience of others with endless material to study online and offline.

How to Get Instant Financial Help for Freelancers?

As a freelancer, you may not find the prioritised treatment from the banks for the loan application. It can take weeks to get fund disbursement even after you manage to meet the eligibility. Therefore, you should try the alternatives such as credit unions or direct lenders to get fast loans for the unemployed.

They are the ideal alternatives as the interest rates are also affordable. Do not use credit cards to pay the bills if you cannot afford the payment next month. It will increase the stress on your troubled finances because of the heavy interest rate.

Tips for Freelancers to Manage Bills During Financial Troubles

You can manage the expenses during a financial crisis if you have the right strategy to deal with it. Many people avoid the payment crisis by securing their finances with proactive efforts. Here are some tips for managing the bills during a financial crisis for freelancers.

1. Reduce the Payment Cycle

You need to work on the cash inflow to ensure there is enough in account to manage the bills. People often make the mistake of offering long payment cycles to clients. They don’t want to lose the client in the competitive environment.

Though, it is important to have short payment cycles if you don’t want the expenses to outrun the income. Ask your clients to make the payments faster and explain the situation to them. They will understand the reasons as the cash flow problems are common for the businesses.

2. Check the Account Statement

You must check the account statement to pay the bills as soon as payment hits the bank. Every individual should know when the clients are making the payment to create a detailed financial plan. You can ask the service providers or sellers to wait until the payment is credited with a fixed date.

The digital transactions take a few seconds to transfer the amount to your account. However, some clients may choose the traditional methods such as cheques to pay for the services. You need to check the statement to ensure the payment is received after the cheque was submitted to the bank.

3. Sync the Payment and Bill Cycle

It is okay to have different cycles of payment for bill and client payments. However, it can cause financial troubles in the long run when the customers take the deadline too seriously. Therefore, you must sync the payments with the billing cycle.

If the due date is the 10th of every month, ask the clients to make payments before it. You can match the payment cycle with the billing cycle by reducing the period. Also, give them a call if the payment is not made even after the due date.

4. Create Emergency Fund

You must have an emergency fund to manage the expenses in the absence of payment from clients. The market may suffer an unexpected crash to cause businesses to run out of operational money. You should understand the situation to let the clients take their time for the payment.

During this period, you need an emergency fund to make ends meet. It will also help manage unexpected expenses to reduce the damage from a crisis. An ideal amount to save for emergency fund rages between 3 to 6 months of your essential expenses.

5. Use Cards When Necessary

You can use credit cards as the last alternative to save money on late payments. The interest rates asked by the service providers are often exorbitant. Therefore, you may fall into a debt trap if there is no income in the coming months.

Though, the interest on the payment will remain lower than the late payment charges on the bill payments. Also, you should not miss the loan instalments as they will reflect on the credit history. Your chances to get a loan at favourable terms will get reduced with every missed payment.

6. Make Advance Payments

You can create a buffer to save yourself from sudden financial trouble. Make the payments in advance to make sure you have enough time to make the next payment. You can wait for the next payment cycle of clients to save money on the late fees.

You are not dependent on the payment of a month to survive. The payments for this month will help manage the expenses for the upcoming month. Therefore, you will have the cushion for some clients to delay the payments because of their problems.

Conclusion

To sum up, you need to prepare yourself to survive at least a month without payment from clients. It is common in the freelancing industry to face financial troubles because of numerous reasons. With security, you will not leave the freedom of being a freelancer to return to a 9-5 job.

Also Read: Branding Mistakes That You Must Avoid

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Branding Mistakes That You Must Avoid
Business

Branding Mistakes That You Must Avoid

Branding is essential to set yourself apart from your competitors. Each brand has its own identity. Branding makes people recognise you by your logo and slogan. You cannot emerge yourself as a brand overnight. You will have to do branding consistently.

Branding builds your reputation in your target audience. It can help you retain your existing customers and attract new customers. If you want to streak ahead, you will have to invest in branding.

Almost all businesses make an effort in branding, but not all of them use it the right way. Many entrepreneurs do not know the difference between brand identity and brand image.

The former involves the use of a strategy to present your brand in the market and influence customers to see you the way you want, while the latter defines how your customers look at your brand. Branding refers to building a brand identity.

You have control over ensuring how you appear yourself to your audience, so make sure that you put in the effort to create a reputation.

You all have been investing a lot of time and money in branding, but the most important thing is you are doing it right.

Branding mistakes that can take a toll on your business

Here are some branding mistakes that you must avoid at all costs.

You have not set a purpose for your brand

You must have a brand purpose because this defines what motivates you to do a particular kind of business. It tells why you exist on the market and what problem you are exactly solving. When you have a clear purpose that reflects in your branding, people start trusting you.

It does not make sense to do branding without a clear purpose. Doing it without purpose will never engage your customers. When it comes to branding, you should ask yourself the following questions:

  • What makes you set yourself apart from your competitors?
  • What value do you want to offer to your target audience?
  • Why should people prefer you to your competitors?

Being inconsistent

Many entrepreneurs think that they do not need to be consistent with branding because marketing requires it, but the fact is that you cannot emerge as a brand if you are not consistent. To understand why consistency is a must, here is an example.

Suppose you have been selling a hair colour for three years and you are not alone who is selling it. How will people get to know about you? You will have to do marketing, but you will have to do branding if you want to connect with your audience.

You will be active on social media platforms. Every day you will upload a post on these platforms to tell your users you are on the market. You will participate in forums to interact with your audience. All these things are a part of branding.

When people come across you frequently, they will start showing interest in you. They will begin to believe you, but this cannot happen until you show up daily.

You have to be consistent with your branding strategy. To ensure that people are being aware of you and identifying who you are and what you are. Consistency is a must to make your brand recognisable.

Compromising with originality

You are unique, and hence your logo should also be unique. It is the face of your brand. It must not take after the other brand logo. Even a slight resemblance can confuse your audience, and you may lose them to your competitors.

There is nothing wrong to take inspiration from others, but you should not copy them. It will not only confuse your audience but may penalise you for copyright infringement. Ensure that you do deep research to ensure that the design you have come up with does not already exist.

Make sure that you come with a professional and elegant logo that aligns with your niche. If you do not have logo designing skills, you should hire a logo designer. They may provide you with an excellent design.

If you are a start-up and do not have enough money to pay the designer, you can fund their fees with guaranteed payday loans from direct lenders.

Not having the right audience

Branding has no point if you are not targeting the right audience. Many people can visit your website and try to explore your business, but they will never be converted.

If you have not reached out to the right target audience, all your effort will go in vain. Identify your audience, find out where they are and communicate with them to make yourself appealing.

The final word

Branding is essential if you want to streak ahead, but a lot of entrepreneurs do not know the right way of doing this. The mistakes mentioned above can take a toll on your branding strategy. This is why you must avoid them.

Also Read: 10 Project Management Tips for Self-Employed Workers

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