Laying the Groundwork for Your Freelance Business

The new business cards arrived last week — thick matte paper, clean typography, and your latest title: EdTech App Designer.

It feels good. You’ve reworked your portfolio, aligned all your social media, and even updated your email signature. Everything finally fits the story you’ve been building — your brand, your niche, your vision.

This week, you’re at your monthly designer meetup, showing off your new cards and talking about your focus in EdTech app design with friends and colleagues. Everyone’s impressed — and for the first time, you feel like your hard work is starting to pay off.

But as the conversation continues, reality hits in the form of questions you’re not prepared to answer.

“So, what do you charge for a typical project?”
“Do you have a contract template you use?”
“How do clients usually pay you — upfront or in phases?”

You smile, trying to sound confident — but inside, there’s a flicker of panic.

Because while you finally look like a business, you realize you don’t quite run like one yet.

You haven’t set pricing. You don’t have a formal contract. You’re not sure how taxes work as a freelancer or what to do if a client doesn’t pay. You’ve built the brand of a designer — but now it’s time to build the business behind it.

That’s where your business plan comes in.

Not the corporate, 20-page kind — but a real, working guide for how your freelance career will function day to day. It’s the blueprint for everything that happens behind the scenes: how you set prices, where you work, who you collaborate with, and how you make sure your business supports your life — not the other way around.

1. Where Will You Work? Setting Up Your Business Space

Now that you’re treating your freelancing like a real business, you have to decide where that business will live.

Are you working from your home office? Renting a co-working desk? Planning to meet clients in person?

These decisions affect not only your budget, but sometimes even your legal setup.

Start by asking yourself:

  • Do I need a dedicated workspace or studio?

  • Will I meet with clients in person or mostly online?

  • Does my city or county allow home-based businesses with client visits?

If you’re working from home, check local zoning laws first. Some neighborhoods limit client visits, signage, or business traffic.

If that’s the case, explore options like:

  • Renting a co-working space (many offer meeting rooms by the hour)

  • Using a shared office or creative hub with a professional address

  • Renting a meeting room at a library, community center, or business incubator

The goal is to make sure your workspace supports your business vision and looks professional — without draining your budget before you’ve even begun.

2. Understanding What It Costs to Run Your Business (and Your Life)

Once you’ve decided where your business will operate, the next step is figuring out what it will cost to run — both personally and professionally.

A solid business plan starts with a clear picture of your monthly financial reality.

List two sets of expenses:

Personal Expenses:
Rent or mortgage, groceries, car payments, gas, phone, insurance, utilities, and other living costs.

Business Expenses:
Design software subscriptions, internet, workspace rental, website hosting, accounting tools, phone line, supplies, professional memberships, and taxes.

Add them together to get your monthly break-even number — the minimum amount you need to earn just to keep everything running smoothly.

This number becomes your foundation for setting project rates later. It’s what grounds your pricing in reality, not guesswork.

3. Choosing Your Pricing Structure

Now that you know what it costs to stay afloat, it’s time to decide how you’ll price your work.

Since you’ve already done research during your SWOT analysis, you have a sense of what other designers in the EdTech space are charging. Use that as a reference point, then tailor it to your own needs and goals.

Ask yourself:

  • Will I charge hourly or per project?

  • Do I include consultation or discovery sessions, or price them separately?

  • How long does a typical project actually take me?

If you tracked your portfolio project hours, that’s useful data. If not, estimate conservatively — it’s better to price for the real time involved than to undercharge and scramble later.

Your pricing should reflect your experience, skill set, and value — not just what someone else charges.

Start with a number that covers your expenses, then add your desired profit margin. This ensures every project moves you toward growth, not burnout.

4. Laying the Legal and Financial Groundwork

Before you start signing clients, take time to make sure your contracts, payments, and finances are properly set up. It may not feel as creative as designing, but it’s one of the smartest things you can do for your peace of mind and long-term success.

Contracts and Legal Support

Research what’s required in your state or region for independent contractor agreements. Then, take it a step further.

Many lawyers offer one-time consultations — sometimes even free or at a flat rate — to review your contract template and ensure it’s legally binding and protects your rights.

Having that review done once gives you confidence that your terms are enforceable and your bases are covered.

At minimum, make sure your contract includes:

  • Scope of work and deliverables

  • Payment terms and schedule

  • Revisions and approval process

  • Ownership and intellectual property rights

  • Late fees or cancellation policies

Think of your contract as your safety net — it keeps your business professional, clear, and protected.

Taxes and Financial Guidance

Just like with contracts, it’s worth getting expert help early when it comes to taxes.

If you haven’t already, connect with a CPA or accountant who understands freelancers. They can:

  • Help estimate quarterly tax payments (federal and state)

  • Show you how to track deductible business expenses

  • Advise whether to operate as a sole proprietor, LLC, or other structure

  • Ensure you’re setting aside the right percentage for taxes each month

Even one meeting early on can save you stress — and possibly money — later.

Payment Methods and Processing

Once your systems are in place, decide how you’ll accept payments.

Clear, reliable payment methods make it easy for clients to pay — and ensure you get paid on time.

Decide whether you’ll use:

  • Credit cards, PayPal, Stripe, or ACH transfers

  • In-person systems like Square for swipe or chip payments

  • Certified or business checks (avoid personal ones for security)

Every system has its own fee structure, so review the fine print.
Include your accepted payment methods in both your contract and invoices to avoid confusion and protect your income.

5. Building a Trusted Support Network

As your projects grow, you’ll reach moments when you realize you can’t — or shouldn’t — do everything yourself.

That’s where your network becomes one of your biggest assets.

Start identifying people who can fill skill gaps or handle overflow work:

  • Developers for back-end integrations

  • Copywriters who specialize in educational content

  • Illustrators, animators, or accessibility consultants

  • Photographers or videographers for app demos or marketing

You’re not hiring yet — just building relationships. Connect on LinkedIn, share their work, and stay in touch. When a project comes along that’s outside your scope, you’ll already have trusted collaborators to call.

And when you do outsource, always build their fees into your project pricing so everyone gets paid fairly.

6. Mapping Out Your First Year

Finally, bring it all together in a simple one-year roadmap:

  • Your income goal for the year

  • How many projects you need to hit that goal

  • Average pricing per project

  • Expected monthly expenses

  • Potential collaborators or subcontractors

  • Your client acquisition strategy (networking, social media, referrals)

It doesn’t have to be perfect — it’s a living document.
The goal is to give your business structure and direction so you can make smarter decisions as you grow.

Remember: a plan isn’t about perfection — it’s about giving your freelance career a clear path forward so every decision is made with purpose.

If you want a simple, free template to get started, check out the SBA’s Small Business Plan guide— it’s a practical, beginner-friendly resource to help you outline expenses, client goals, and pricing.


Helping UX Designers bridge gaps and grow

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