Freelancing

Before you even know how to start working as a freelancer, you need to get rid of the most common myths across freelancing.

The term freelancer is widely misunderstood

Lets bust a few myths first!

Myth #1: Freelancing is all about software development.

Freelancing does not have to just be about programming, there are a lot of other domains as well.

Here are a few freelancing roles:

1. Content writer.
2. Digital marketer.
3. Logo designer.
4. Graphic designer.
5. Web developer.
6. Software developer.
7. Ghost writer.
8. Business consultant.
9. Copyrighter.
10. Social media manager.

and a lot more roles come under freelancing.

Freelancer just means you are an independent contractor, who works independently on projects. You may be a content writer at a company and be a full time employee there or you can be a freelancer content writer who may work for the same company but on a project basis rather than being fully employed over there.

Myth #2: A freelancer just has to work online.

While it is true that it is much easier to find freelance jobs online, that is not the only way to find work as a freelancer.

You may also network with potential businesses and find clients offline as well.

Although finding a gig offline might sound a bit difficult but for a beginner it is much easier to find work offline as there is a lot less competition.

You may reach out to businesses, local shops and see if you can help them with their expertise.

If you are a graphic designer you can help them design brochures.

If you are a logo designer you can help design a great logo for their business.

If you are a digital marketer you can help them establish an online presence.

If you are a web developer you can help them setup an e-commerce site.

Whatever it be, just think in terms of how your skillset can help the other party.

Myth #3: Freelancing pays loads of money.

Just as with any job as some people get paid less while some get paid more, freelancing is no different.

If you are average at what you do you will be paid average, if you are highly skilled at what you do you will be paid highly.

While it is true that online jobs pay you in dollars which translates to a larger amount in developing countries, however if you work for clients from developed countries you also need to deliver a product of equal quality.

If you are under the false impression that freelancing pays a ton for a lot less amount of work then please get out of that bubble.

Myth #4: You need tons of experience to be a freelancer.

Everyone starts from scratch and you are no different.

Freelancers who are experts now are the ones who were in exactly the same place as you are now. They just eventually built their expertise by working on more projects and learning along the way, continually upgrading their skills.

It is true that you wont get expert level projects as a beginner and even if you get one you should simply not take it. Start with simpler projects at first which you think you can handle and gradually move ahead.

Yes you do need to have experience to work on decent projects but how else are you going to get experience if you don’t get started at some point?

While starting off as a beginner all your focus should be on learning, work on projects but work for the knowledge and experience you get. Money is simply the byproduct. This same knowledge and experience in coming years will make you 10X of what you are making right now.

Myth #5: Freelancing marketplaces are full of competition.

When people start off as a freelancer and bid on a project, they see that about 20 more people have already placed a bid on the same project.

Assume 20 people bid on a project, all of the 20 are not your competition.

Your only competition are the people who are better than you and not the ones who are worse than you.

For example, if out of these 20 people, you are ranked 5th as per your skillset then you barely need to worry about the 15 people below you.

The only people you should be worry about are the ones who are better than you.

The quickest and the most direct way to not worry about competition is to outrank them, if you move up the skill ladder you hardly have to bother about the competition. Unless of course someone offers a cheaper price.

Now coming to the main question, how should you start off as a freelancer?

1. See what value you can provide to different people depending on your skillset.
2. Think freelancing as being an independent contractor, try to devote equal amount of time to working on projects and finding clients as well.
3. Finding clients is another skill you would need to learn apart from your core skillset, because no clients would mean no work.
4. Be creative, don’t just get stuck in finding jobs online. Try some creative techniques to land local clients as well.
5. Getting your first client is always the hardest, getting the second client is a bit easier and so on. Hence make sure to not give up too soon. I know people who didn’t get their first client for months and yet they now are doing great.
6. If you chose the path of being a freelancer you need to be a learner for life, because freelance marketplaces are highly competitive and not being up-to-date on skills will throw you out of the market.
7. Look at learning as the process of sharpening a saw, and freelancing as chopping down trees. The better you sharpen your saw on a regular basis the easier it would be for you to chop down trees.
8. Don’t do it for the sake of money. The most successful freelancers I know are the ones who love to do what they do, be them graphic designers or programmers. If you are in it for the money, you will be soon outworked and outperformed by people who are passionate for their work.
9. Don’t get stuck reading blog posts and articles about how to become a freelancer. Instead take action right away. Gathering information and reading blogpost is an endless loop and its easy to get sucked into it. The only people who should read such blogpost are the ones who have no idea about what freelancing is. But if you are someone who has been collecting information since months, you probably need to stop reading and get to the actual work instead.

A few tips on how to find and get work offline:

1. Ask for referrals from friends and families, ask if they know business owners or an individuals who would need your services.
2. Contact and keep in touch with local shops and businesses you personally know. Don’t pitch your services but instead show them how you can help them in their business.
3. Network with more people in your circle and make new connections, you never know who can be your next potential client.
4. Keep an intent of genuinely helping business, don’t simply pitch your services to make money off them, pitch only if you know that your service would be of value to the customer. If it doesn’t help the client, simply don’t sell them.
5. Offer money back guarantee. If you fail to deliver results simply return back their money. If you are so confident about your services you should also be willing to return back clients money if you don’t deliver. This not only makes your proposal solid but will also make your client’s experience stress free.

-Saurav Sharma

Karma's Role In Unemployment

Write a journal to document your progress

Write a journal to document your progress: You do have a passbook to keep track at transactions of your money at the bank. What would happen if the bank stops keeping a track of your money and expenses? Wont that be a terrible idea? So why not keep track of where you are in life right now, what are you doing to improve and how much have you improved over a period of time ? To actually improve yourself, you do need a tracking system in place to track your progress on a daily basis. This system does not need to be complex, you just need to maintain a journal which records things you have done today to improve yourself. For example, you may write things down like “1. Reduced social media usage by 2 hours”, “2. Started learning XYZ skill, completed 1 topic” “3. Walked for 1Km ”. At the end of every week or every month, you can now do a self-review to see how much you have accomplished for the entire month. You can calculate the total hours you have put into learning a new skill, total kilo meters you walked, or total time saved for the entire month which you would otherwise have spent on social media. You can use the same journal for comparing your month-to-month progress as well. For example, in the past month if you had walked 30km then in the next month walking even 35km would be considered as a good progress.

-Saurav Sharma

There’s one secret indicator!

 There’s one secret indicator!

It’s powerful to filter the good and bad!

It even differentiates success from failure!

What is it?

To answer your question, first tell me, what is the difference between these two pizzas?

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STAGE I: PRODUCT PIZZA

PIZZA SCENARIO A:

PIZZA SCENARIO B:

NOW PAUSE!

Take a moment to think every difference you can find.

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STAGE II: EXPERIENCE

PIZZA SCENARIO A: The first pizza is from Domino’s pizza.

It’s delivered with great presentation. It’s clean. It’s hot. The taste and quality of the pizza is amazing, plus it’s 100% guaranteed. It will be delivered to your home in under 30 minutes and if it doesn't arrive on the promised timeframe its will be FREE!

PIZZA SCENARIO B: The second pizza is from an old local pizza shop.

It is delivered with terrible presentation. It’s sloppy. It’s cold. The taste and quality of the pizza is yucky, plus there’s NO guarantee. It will be delivered to your home in 60 minutes… if you’re lucky!

NOW PAUSE AGAIN!

1. Take your wallet out of your pocket.
2. Open it.
3. Take a $10 dollar bill out of the wallet…

TELL ME, WHO WILL YOU GIVE THAT BILL TO IN EXCHANGE FOR A PIZZA?

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To answer your question: How do you know if a startup idea is good or bad?

What is the secret indicator? VALUE!

You need to identify what’s the value that your idea delivers!

Don’t analyze only the idea of your product or market. Focus on the overall VALUE that the product or service delivers!

Is it what your customers want?

Example: “I have an idea! I will sell pizzas!”

• Amazing business idea! — check!
• Pizza business has great potential! — check!
• Is there a big market? — check!

Are those indicators good enough to answer your question?

NO!

How can you know if YOUR startup idea is a good business?

IF AND ONLY IF you deliver the right amount of VALUE that your customers want enough to be willing to open their wallets and give you money in exchange of your delivered VALUE!

Learn from the example above; you can start a pizza business… you may deliver a pizza with unbeatable VALUE or not!

Proof of concept is the ONLY way to find out what your customers consider as VALUE. Ask them to open their wallets to pay you!

Execution is the second obstacle to tackle in your journey to achieve success!

Follow the Lean Startup Methodology!

-Hector Quintanilla

Startup/Business Terms II

MOIC (Multiple on Invested Capital)

Formula: MOIC = (Investment Value + Gains) / Initial Investment
Definition: Ratio of returns to initial investment.

IRR (Internal Rate of Return)
Definition: Annualized return an investor earns on an investment.

COGS (Cost of Goods Sold)
Formula: COGS = Beginning Inventory + Purchases - Ending Inventory
Definition: Direct costs associated with making a product.

NPS (Net Promoter Score)
Formula: NPS = % Promoters - % Detractors
Definition: Measures customer satisfaction and loyalty.

D2C (Direct-to-Consumer)
Definition: Business model where brands sell directly to customers.

B2B (Business-to-Business)
Definition: Companies selling products/services to other businesses.

B2C (Business-to-Consumer)
Definition: Companies selling products/services to individuals.

MRR (Monthly Recurring Revenue)
Formula: MRR = Subscription revenue per month
Definition: Revenue from subscriptions in a given month.

ARR (Annual Recurring Revenue)
Formula: ARR = MRR × 12
Definition: Yearly revenue generated from subscriptions.

Valuation
Definition: The financial worth of a startup based on funding and market position.

Dilution (Equity Dilution)
Definition: Decrease in ownership percentage when new shares are issued.

Convertible Note
Definition: A loan that turns into equity during a funding round.

Pre-Money Valuation
Definition: A startup’s valuation before a new investment.

Post-Money Valuation
Formula: Post-Money Valuation = Pre-Money Valuation + New Investment
Definition: A startup’s valuation after receiving an investment.

SAFE (Simple Agreement for Future Equity)
Definition: An investment contract that converts into equity in the future.

Term Sheet
Definition: A document outlining key deal terms between a startup and an investor.

Cap Table (Capitalization Table)
Definition: A record of company ownership, including shares and investors.

Vesting
Definition: Process where employees earn their shares over time.

Cliff
Definition: A period before equity starts vesting.

Pro Rata Rights
Definition: The right of an investor to maintain their percentage ownership.

Down Round
Definition: A funding round where a startup’s valuation decreases.

Bridge Round
Definition: Temporary funding to sustain operations before a major funding round.

Gross Profit
Formula: Gross Profit = Revenue - Cost of Goods Sold
Definition: Revenue left after deducting direct costs of production.

Operating Profit (EBIT - Earnings Before Interest & Taxes)
Formula: Operating Profit = Revenue - Operating Expenses
Definition: Profit after accounting for all operating expenses.

Net Profit Margin
Formula: Net Profit Margin = (Net Profit / Revenue) × 100
Definition: Measures how much profit a company makes after all expenses.

Break-even Point
Formula: Break-even = Fixed Costs / (Price - Variable Cost)
Definition: Sales volume needed to avoid losses.

ROI (Return on Investment)
Formula: ROI = (Net Profit / Investment Cost) × 100
Definition: Measures profitability of an investment.

Bootstrapping
Definition: A startup funding itself without outside capital.

Freemium Model
Definition: A business model where basic services are free but premium features cost money.

Viral Coefficient
Formula: Viral Coefficient = Referrals Per User × Conversion Rate
Definition: The rate at which new users join due to existing users.

Unit Economics
Definition: Revenue and cost per customer or unit.

Pivot
Definition: A major shift in a startup’s business model.

Unicorn
Definition: A privately held startup worth over $1 billion.

Decacorn
Definition: A privately held startup valued at over $10 billion.

Cockroach Startup
Definition: A startup that focuses on long-term survival rather than fast growth.

Blue Ocean Strategy
Definition: A strategy to create uncontested market space.

Red Ocean Strategy
Definition: A strategy to compete in an established industry.

StartUp Business Terms I

Startup/Business Terms

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization)
Formula: EBITDA = Revenue - Operating Expenses
Definition: Measures core business profitability before non-operating costs.

PAT (Profit After Tax)
Formula: PAT = Net Profit - Taxes
Definition: Net income after deducting taxes from profit.

CAC (Customer Acquisition Cost)
Formula: CAC = Sales & Marketing Expenses / New Customers
Definition: Cost of acquiring a single new customer.

HoReCa (Hotels, Restaurants, and Catering)
Definition: Industry category covering food & beverage businesses.

TAM (Total Addressable Market)
Definition: Maximum revenue opportunity for a product/service.

SAM (Serviceable Available Market)
Definition: The part of TAM a business can serve with its current offerings.

SOM (Serviceable Obtainable Market)
Definition: The realistic market share a company can achieve.

GMV (Gross Merchandise Value)
Formula: GMV = Total Sales Price of Goods
Definition: Total sales value of goods sold via a platform.

LTV (Customer Lifetime Value)
Formula: LTV = (ARPU × Gross Margin %) / Churn Rate
Definition: Expected revenue from a customer over their lifetime.

ARPU (Average Revenue Per User)
Formula: ARPU = Revenue / Total Users
Definition: Average revenue generated per customer.

Churn Rate
Formula: Churn Rate = (Lost Customers / Total Customers) × 100
Definition: Percentage of customers lost over a period.

Burn Rate
Formula: Burn Rate = Monthly Operating Expenses
Definition: The rate at which a company spends its cash reserves.

Runway
Formula: Runway = Cash Reserves / Burn Rate

Definition: Number of months a startup can operate before running out of money. 

Startup/Business Terms II

There’s a concept in the startup ecosystem called..........

 There’s a concept in the startup ecosystem called product-market fit.

In essence, product-market fit is the degree to which a company’s offering (product) satisfies customer demand (market).

Product market fit is evident when it is happening. Customers are clamoring for the product. You can’t keep up with demand. It is also evident when it is not happening.

But the key piece to observe is that no company has product-market fit from day one. They have to find it through continuous experimentation. Some even entirely modify their offering, known as a “pivot”.

Some companies have a greater degree of product-market fit when they start, others have lesser fit. The ones who win are those that keep experimenting, listening to customers, modifying their offering, mastering their strengths.

In your career, you are the product and the variety of jobs are the market. You bring your skills to the table, and the jobs market responds by finding a place for your skills.

Product market fit is evident when it is happening. Companies are clamouring for your work. You enjoy work and you’re learning. Your colleagues love working with you. It is also evident when it is not happening.

But the key piece to notice is that nobody has product-market fit from day one. You have to find it through continuous experimentation. Some even entirely modify their product, known as a “career switch”.

Some people have a greater degree of product-market fit when they start, others have lesser fit. The ones who work out what career is best are those that keep experimenting, listening to people, modifying their offering, mastering their strengths.

-Aviral Bhatnagar

Startup Terms