Why should freelancers focus on diversifying their client base? - Penny Freedom

Why should freelancers focus on diversifying their client base?

Anyone who works as a freelancer knows that it pays to plan ahead and be constantly thinking of ways to grow. One great technique you could consider is diversifying your client base. While this might take a little time in terms of sourcing new business, there are some superb benefits which make it worthwhile. But what are they?

Spreads the risk

If 2020 has taught us one thing so far, it is that nothing is ever certain in business. Diversifying your client base is a good idea as it helps to get you through rough times. You may have one main client who you work brilliantly with – but what if they suddenly stop trading or decide they want to use someone else? If this happens, then you face a stressful dash to attract new business. It is much better to have a range of clients you work for. This allows you to spread your risk and avoid a problem with 1 client sinking your whole business.

Helps to build up your network

Networking is key in business and this true for anyone who freelances. Building up a large network of clients can help you to source new business and pick up new contracts. It can also help to build your reputation within your sector and establish your brand as one that people trust. By working with a range of different clients, you are able to build up a much larger network than only working with a few.

Superb for developing new skills

Perhaps the last major benefit which diversifying your client base brings is the chance to develop on a personal level. You may, for example, start out as a copywriter but find that you develop your editing or infographic talents by doing this kind of work for people. Connecting with more clients and taking on work that helps stretch you is a marvellous way to grow as a freelancer.

Look after your cash flow – however many clients you have

However many clients you have, you do not want the hassle of chasing up money they owe you. This can seriously eat into your time and take small business owners away from their core work. Penny is an easy to use online platform which removes this hassle from freelancers. Simply submit your invoices through our app and get paid within 24 hours!