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Perhaps your restaurant has lines snaking out the door. Or your tax business has identified a prime market in another city. Or your medical practice has more patients than the available space can accommodate. Maybe you just have enough capital to support immediate business expansion.

Scenarios like these certainly indicate that another location would be great. 

What should you look for when opening a second location for your business? We’ll address what you should consider, and how to identify the right location.

Opening a second location for your business.

Here are a handful of questions you can ask yourself to get a clearer picture of whether or not expansion would be wise:

• Is your business space limiting your ability to serve customers?
• Is there a new market you can serve (or are already serving digitally)?
• Do you have the capital necessary to expand?
• If not, do you have access to additional capital?
• Can the factors that have made your first location successful be duplicated?
• Do you understand the legal ramifications of opening a second location?

If you answered yes to three or more of these questions, consider your business a prime candidate for expansion.

Potential alternatives to opening a second location.

If you haven’t, it could be worth exhausting all other sales channels before opening a new location. If you rely on brick-and-mortar sales, it might be worth exploring ways to digitally meet demand, before opening a new branch of business.

“You may be able to grow your business by building a website, eliminating the need for considerable funding and the risk associated with opening a physical store,” according to business expansion strategies from Entrepreneur. “For many businesses, the internet offers low-cost access to a national market, with large numbers of potential customers. The viability of the internet marketing medium for your business is a function of your business’s ability to successfully and profitably deliver your products and services outside your existing local market.”

You could expand digital sales to new geographies, increase your fleet operations, or offer more virtual options for services (think, telehealth, for example).

This requires its own set of considerations (e.g., outsourcing new warehouses or fleet services, having teams that manage digital websites and workflows), but it may present cheaper, easier, and less risky options for expanding your business.

If you’re certain that a new location is the way to go, there’s a lot to consider when choosing the actual location.

How to find a second location for your small business.

Here are 10 considerations that will aid you in choosing the right location and setting yourself up for success once you move in:

 What to consider

1. How much the venture will cost.

You can’t make solid business decisions until you know the price tag. Don’t simply focus on the cost of the physical property—you’ll also need to take into account utilities and other operational expenses. This requires that you have a deep understanding of the expenses at your current location.

If so, you can scale those numbers relative to the new location to project what you’d actually be on the hook for, and what kind of returns you might see.

2. How you’ll continue what has made you successful.

Many entrepreneurs capture something special with their first business location. Whether it’s the location, ambiance, staff, or a combination of many factors, customers are consistently drawn to that store. Your challenge is to transfer what’s working to your next location.

This can be difficult, as the details associated with the store or office will undoubtedly differ from your first. For this reason, it’s more of a translation than a straight transfer. You’ll need to find a way to effectively incorporate the best parts of your business into a new place.

3. How you’ll improve upon what has made you successful.

Don’t stop at simply replicating your first location. This is your chance to transcend the status quo. Look for at least five ways you can elevate your operations, with a particular focus on the customer experience. It’s a fresh start on an existing concept. 

Opening a new location can be stressful—that’s when you run the risk of losing sight of your customers.

You can add new inventory in the new store or offer exclusive promotions. By improving things at your new location, you’ll benefit your operations across the board.

4. The foot traffic in the area.

Even if your business is primarily driven by advertising or referrals, don’t underestimate the importance of foot traffic. The more people passing by your business, the better. So when choosing a location, look for somewhere people care about and visit often. You can get a general idea of foot traffic by simply spending time in a potential area. Beyond that, don’t be afraid to visit with other business owners in the neighborhood and ask them about the foot traffic they experience on a monthly basis.

5. Car traffic in the area.

Another important aspect of your business will be vehicle traffic. Will a lot of potential customers be driving in the area of your new business? Will there be too many cars in the area? If so, parking and accessibility could become a problem for you, your staff, and your customers.

This is another opportunity to speak with local businesses and get their insights on the traffic situation. If there are too few people driving in the area, or there are congestion problems, be wary of setting up shop in the midst of them.

6. Understanding the competition.

On the topic of neighboring businesses, it’s important for you to find out what competitors are already established there. This isn’t just to avoid setting up your business next door to someone who already does what you do. It’s to see how other local businesses promote their products or services.

You can never stand out if you don’t know what you’re standing around. It’s important to find an area where customer needs aren’t being met. Perhaps there’s a business on the same block that is similar to yours, but if you can articulate why yours will be more effective at serving customers, you have a strong chance of succeeding.

7. Establishing a network.

Opening a second business location is never an easy endeavor. Rather than go at it alone, leverage other businesses and contacts in the local area. Not only will this help you gain insider knowledge of your new market, but you’ll make contacts that can boost your awareness. Even the briefest of conversations with other small business owners can yield strong results, as they may then go on to consciously or subconsciously promote your business.

A good way to get your foot in the door is to join any business organizations in your new neighborhood. Each event you attend is another way to rally support for your business and make a few friends along the way.

8. Keeping your eye on the horizon.

Your network will be an excellent source of information regarding the future of your second business location. What’s in store for the region? For example, housing and transportation projects can be gold mines, as they bring more potential customers into your radius.

On the flip side, be aware that the current condition of a potential location is never set in stone. Many small businesses have struggled when undesirable businesses or projects emerged in their vicinity. The more you know in advance, the less you’ll need to worry about this happening to you.

9. Accounting for logistics.

A new location means you’ll need to figure out how to handle shipping and receiving, parking, and a host of other nuances. You can take best practices from your current business location, but plan that many may need to be retrofitted. It can be helpful to talk to your employees about their unique roles and how they would recommend tackling the new logistical approaches your second location will demand.

10. Rent first, buy later.

There are times when you feel confident buying the property for a second location. Perhaps you are already familiar with the area or have found an opportunity so lucrative that buying isn’t a substantial gamble. Most of the time, however, it’s recommended that you think about renting first.

This gives you the chance to learn the area and find solutions to any complexities. If things go smoothly, you can always buy in the future. If long-term problems arise, you’ll be thankful for the flexibility your rental agreement allows.

Funding your new location.

One popular route for entrepreneurs who want to open a second location is a loan from the Small Business Administration (SBA). These financing products come with interest rates and repayment terms similar to those you’d get from the best traditional bank loans.

SBA Loans

The SBA is dedicated to helping underserved entrepreneurs, including women and minorities. If you’ve been rejected in the past and feel that you haven’t been given a fair shake, it’s definitely worth checking out the options this agency offers.

Commercial real estate loans

Commercial real estate loans can also be used for business expansion, helping you:

• Renovate an existing business location
• Construct a brand-new building
• Open new retail space
• Buy an existing warehouse
• Get out of a lease and become a property owner
• Refinance for an extension on your current payment term (to gain more immediate cash on hand)

Commercial real estate loans usually offer favorable rates and terms. For example, the rates start around 5%, and the repayment terms are about 20–25 years. The dollar amounts on these loans start around $250,000 and go all the way up to $5,000,000.

The reason these loans provide such borrower-friendly details largely comes down to collateral. The real estate involved with the loan will be used as collateral. Since lenders know their investment in your business is secured by such a tangible and valuable asset, they’ll be more generous and willing to work with you.

How to find the best loan for your real estate needs.

Don’t assume that a commercial real estate loan is the only way to fund your second business location. You have numerous financing options. The key is to review the relevant financing products and choose the one that gets you the money you need, the timeline you require, and the rate you prefer—don’t let poor financing get in the way of a lucrative second business location.

Many resources are available to help you evaluate loans and make an educated decision. One of the first places to start is a trustworthy loan calculator, which allows you to identify costs in a clear and efficient way. You also might want to talk to a financial expert who can help you identify desirable loans and watch out for red flags. 

By taking the time to choose the best location and secure the most favorable funding, you’ll be setting yourself up for a much brighter future.

Generally, there are two main levers that your business can pull to affect growth metrics: 1) customer acquisition, meaning bringing new shoppers through the door, and 2) customer retention, meaning keeping your old shoppers from exiting that door. 

Each is a necessary component of business growth, but which is more cost-effective—and which should you prioritize for your small business?

It’s long been reported that customer retention has a higher ROI. But is that actually the case? Here, I explore the evidence to dissect which is actually more cost-effective—customer retention or customer acquisition. 

Customer acquisition vs. retention: Fact-checking the numbers

“Obviously, customer acquisition,” you say, because you’re not new to business. Everyone has seen the stat that it costs 5X more to get a new customer than to keep an existing one…

Stat #1: It costs 5x more to get a new customer than to keep an existing one…

That’s a great stat! But have you ever tried to find the source? Go ahead, Google it and you’ll be clicking around dozens of articles and infographics that cite each other, but you’ll probably never find the actual report or survey where that 5X stat originated.

I’ll save you some time: The statistic goes back to a report put out by Lee Resources in 2010. The report itself, I can’t find online. And Lee Resources’ only social media presence, Twitter/X, last chirped in 2013. Their Facebook page no longer exists. 

Their oft-cited stat of customer acquisition being 5X more costly than retention may be absolutely right—but there’s no way of knowing without seeing the actual report.

Stat #2: An increase in customer retention leads to larger increases in company profits…

According to Bain & Company, “a 5% increase in customer retention increases company profits from 25% to 95%.” That’s incredible!

But, have you tried to find the source of this one? I have. Sites usually link back to this short brief by Fred Reichheld. Unfortunately, the “95% increase in profit” is not in these 3 pages. The “25% increase in profit” is there, but a) there’s no actual study/survey reported, and b) it’s only referring to financial services.

The real source of this statistic is actually a paper by Reichheld and W. Earl Sasser, Jr. titled “Zero Defections: Quality Comes to Services.”

There are a few things you should know about this paper:

1. There really is a statistic fairly close to the “95% profit” cited above: “Reducing defections by just 5% generated 85% more profits in one bank’s branch system…” So to restate, this profit increase was seen in a single bank.
2. This paper was published in 1990. Over 32 years ago and the same year Tim Berners-Lee invented something called the World Wide Web.

This stat might not be completely applicable to e-commerce—something that hadn’t been invented yet.

If anything is clear, it's that these oft-stated references should be taken with a grain of salt.

Customer retention won’t always have a higher ROI

So what was the point of this exercise in fact-checking? It isn’t so obvious that the ROI of customer retention is always more than the ROI of customer acquisition. It varies by industry, by company, and even down to the types of marketing & sales tactics that your business employs.

Customer acquisition vs. retention: What to consider

When answering the question of which is better—customer retention or acquisition— the real answer is, it depends. On many factors, in fact, including, but not limited to the following:

• Your production costs vs. operational costs
• Your product type
• Your average contract type and size
• What stage of growth your company is in
• How good your tracking data is 
• The macro-environment and industry at large

Think about it logically in the context of the timeline of a company’s growth:

Retaining customers at the start of the growth curve may indeed be more cost-efficient, but it can’t be better for the success of your nascent company. New customer acquisition is overwhelmingly important at this stage in the life cycle. 

On the opposite end, retention is key when a company has matured and has a large base of customers to keep and nurture.

It depends on the business itself.

Consideration #1: Do you offer products or services? And what of what kind?

Retention is a great idea, but what if your business largely produces products that last a lifetime? Think well-made cast iron skillets and Christmas tree stands; items that the average customer will only need to buy once or twice forever.

Maybe you offer services of some kind—whether digital or physical. Retention is going to be a much more important factor in growth.

Consideration #2: What size and kind of contracts are you working with?

Contract type is also very important to consider. Subscription businesses might favor retention more heavily, as well as companies with long sales cycles, say 3 or more months.

Consideration #3: What stage of growth is your company in? 

If you have a young business that is growing rapidly, you might favor acquisition (at least temporarily).

There's also a good chance you don't have reliable retention data yet.

Customer retention attribution is much harder to capture accurately versus acquisition. This can make it hard to proof your own ROI. Do you have reliable retention data that you can trust to base future growth decisions on?

Consideration #4: What does the macro environment look like?

You cannot ignore the state of the industry and economy when deciding whether to prioritize acquisition or retention.

If you offer a service, during a recession, your focus on retention will likely need to grow.

The spending decisions of your customer base shift largely with the macro environment. So should your growth tactic.

One last consideration…

How about one last practical thought experiment: say you want to double your business. 

Would it be easier to get every single one of your customers to double their spend, or double the size of your customer base? Suddenly, the obvious answer may not be so obvious for your business anymore.

The final verdict

It’s more important to track your business marketing & sales expenses accurately than to rely on “conventional wisdom” that might not actually be accurate to your business. 

By understanding your finances, you can calculate your own ROI on acquisition vs. retention, giving you much better data to work off on moving forward.

Perhaps the best and most important growth metric of all? Customer Lifetime Value (LTV).

In an ideal world, you’re always going to prioritize the customer (new or existing) with the highest customer lifetime value.

Customer Lifetime Value (CLV): The most important metric

I quite like this Forbes article that touched on the silliness of that 5X statistic much like I did:

Consider what Wharton Marketing Professor Peter Fader told me in an email interview: “Here’s my take on that old belief: who cares? Decisions about customer acquisition, retention and development shouldn’t be driven by cost considerations—they should be based on future value.”

Fader added, “If we could see CLV as clearly as costs, all firms would get this. But because costs are so tangible and CLVs are a mere prediction, it’s really hard to get firms to adopt this mindset.

CLV is an important statistic for your business to really get right to answer the retention vs. acquisition question.

While CLV should always be improving (which means your business is becoming more “sticky” and loyalty is increasing), it may not be big enough to sacrifice acquisition spend. Alternatively, if your CLV is great due to your churn rate being so low, then retention is already doing well and the focus should be on acquisition.

At the end of the day, no generic statistic should drive the direction of your business.

*******

Disclaimer:

The views and opinions expressed in this blog are those of the authors and do not necessarily reflect the official policy or position of Lendio. Any content provided by our authors are of their opinion and are not intended to malign any religion, ethnic group, club, organization, company, individual or anyone or anything.

The information provided in this post does not, and is not intended to, constitute business, legal, tax, or accounting advice and is provided for general informational purposes only. Readers should contact their attorney, business advisor, or tax advisor to obtain advice on any particular matter. 

One of the most important questions you need to answer as a small business owner is whether you should incorporate your business—and if so, how. 

Here, we’ll explore why you would want to incorporate your business, and how to do so, with helpful links to resources across different U.S. states.

About business incorporation

What does “incorporated” mean? 

It’s the process of converting a sole proprietorship or general partnership into a separate entity in the eyes of the law (i.e. the state you're operating in) and the public. 

In other words, by incorporating your business, it becomes a separate legal entity from you, the business owner, or any other individual involved.

Is incorporation right for you?

The setup itself involves fees and plenty of hoop jumping. More importantly, it introduces extra guardrails and responsibilities for your business. The benefits, however, often outweigh these costs.

“The first thing you’ll need to consider before incorporating is whether structuring your business as a corporation is the best way to serve your vision for your company,” explains a business structure analysis from Forbes. “There are 4 major business structures available to you. Have you carefully considered the pros and cons of each? Corporate structure is attractive if you’re interested in issuing shares in your business, you are anticipating a rapid and far-reaching expansion of your enterprise, and/or your vision is best served by a rigid managerial hierarchy.”

What are your business goals? Keep them in mind as you read through the rest of this post. It’ll help you gauge whether you should incorporate, or go with another structure such as a partnership or a limited partnership.

That brings us to our next question: If you are planning on incorporating your business, should you classify it as an S corp or a C corp?

S corp vs. C corp

When incorporating your business, you can do so as an S Corporation or a Corporation.

A C corp is the more standard incorporation, while an S corp comes with specific tax advantages. C corps pay corporate-level federal taxes, while S corps do not—their taxes are instead passed down to shareholders.

That is the primary difference between S and C corps—how they are taxed.

When determining which is better for you, there are two main factors to keep in mind:

• S corps come with more tax advantages for small businesses, but with that, come with more limitations.
• Owners of a C corp are subject to double taxation (at the corporate level and then at the personal income level) but come with no limitations.

If you own a small business and don't see it growing beyond 100 shareholders, an S corp is likely the right option.

If you're fond of catering to unlimited growth, a C corp is likely the better option.Thomson Reuters provides an in-depth breakdown of S and C corp pros and cons to help you determine which is right for your business.

How to incorporate a small business

If you decide that incorporation is your best route, you’ll need to follow a strict process to make it happen. There is no universal checklist available, as the details vary from state to state. But here are some of the key steps that nearly all entrepreneurs will need to accomplish in order to become the proud owner of an incorporated business.

1. Choose a Business Name

It’s essential to find a name that isn’t just memorable and effective, but available. Visit your state’s online database to make sure that your preferred name hasn’t already been taken. Review the U.S. Patent and Trademark database as well to check on any overlapping trademarks.
Typically, you can search your state, plus either “business entity search” or “corporation search,” and you’ll find the necessary search tool to look up existing businesses in your state.

Example corporation search pages:

• Delaware corporation search
• Florida corporation search
• California corporation search
• PA corporation search
• Illinois corporation search
• Texas corporation search
• New York corporation search
• MA Corporation search
• Utah business entity search

2. Set up governing documents

This step is where you create the road map for how your business will handle its business. You often aren’t required to submit these documents to the state, but they’re essential when it comes to things like handling profits or navigating disputes.

You can pay an attorney to help with your governing documents, but the most cost-effective route is to use one of the free bylaw templates that you can find online.

3. Make it official with paperwork 

Here’s where you let the state know what you want your business to be called, as well as contextual information such as the business’s purpose, directors, officers, and mailing address.

Most states allow you to file your articles of incorporation online. You can also print off hard copies and then submit them by mail, but this approach will always take longer. Once everything has been reviewed and approved, you’ll receive a confirmation from the state that your business is now its own legal entity.

Similar to an entity search, you can simply search your state, plus “articles of incorporation,” and you’ll find the documentation you need.

Articles of incorporation by state:

• California articles of incorporation
• Illinois articles of incorporation
• Texas articles of incorporation
• Florida articles of incorporation
• PA articles of incorporation
• Georgia articles of incorporation
• New York articles of incorporation

4. Gather for a meeting 

Once your articles of incorporation have been approved, you must hold a formal meeting. A top priority of this event is to record information on how your business was funded. This means the names of each person must be written down and the percentage of their ownership noted.

Be sure that you don’t conclude the meeting without also getting everyone to sign the business’s bylaws. If you have any resolutions to bring to the group, this is also the time to get them approved.

5. Secure an EIN 

Even if your business has no employees, it likely needs an Employee Identification Number (EIN). You can learn more about EIN requirements and easily apply for your own by visiting this application page created by the IRS.

As mentioned earlier, your state may have some other unique requirements for incorporation. But once you’ve completed these 5 steps, you’ll be ready to start enjoying the benefits of incorporation.

The benefits of incorporating your small business

Let’s look at some of the primary perks of incorporating your small business:

Protecting your personal assets 

Since your business is declared as its own legal entity, your personal assets are protected in the case of any legal or financial issues. If assets were to be claimed at any point, it would only be the business’ assets, not the owner’s.

Establishing business credit 

There’s now a clear delineation between your personal finances and business finances. That separation helps your business begin its own credit history rather than being attached to your personal credit history.

Raising capital easier 

You’ll be able to issue shares of company stock to potential investors that you otherwise wouldn’t have access to as a sole proprietorship. Also, banks typically prefer to lend to an incorporated company over sole proprietors.

Building credibility with customers and community 

Say you did business with a company and they needed to give you a check. You look at that check and see that it’s from the CEO’s personal account and bears their personal information. How professional do you think that company is now? When you incorporate your business, you’re proving your credibility and professionalism as a business entity—and communicating your business intentions, even if in a non-direct way.

Incorporation can lead to success

Taking the time to incorporate your business could help you immensely in the long run. Weigh your options and then take the necessary steps to become the type of business you want to be. It may take some time and effort to complete the process, but you’ll be glad you did.

Multiple studies have found that small business owners are happier—and healthier—than traditional employees. Being your own boss can be stressful at times, but many people find the process to be exhilarating and more rewarding. 

The truth is, though, there are always going to be challenges to starting a new business—especially in your first year of operation. Here, we’ll highlight the common challenges you need to be aware of when starting a business, and how to best prepare for them. 

Common challenges of starting a business you should prepare for

There are a variety of intimate details across funding, taxes, profitability, and sellability, that you won’t be able to truly grasp until you’re in the throes of running your business—since they require deep, timely context to do so.

Once the ball is rolling, you’ll need to prepare to face the following.

1. Having enough funding to maintain and grow operations

Securing capital is one of the biggest challenges for new business owners.

For many business owners, the need for cash is a catch-22: you need money to pay for equipment and inventory, but you can’t make money without the equipment and inventory. As a result, would-be entrepreneurs turn to various funding methods to get the capital needed to cover expenses until they start generating revenue from the business itself. 

You have multiple options available as you seek funding for your business. Each of these options comes with different pros and cons depending on your budget and goals for growth. 

• Seek a business loan. If you lack the needed funds to start your business, work with a financial institution to secure a business loan. You can work with these creditors on a reasonable monthly payment plan with flexible interest rates and terms. Lendio curates multiple loan types for business owners to review and apply for.
• Work with private investors. Angel investors and venture capitalists are always looking for the “next great idea.” Some investors won’t expect payment for a few years as your business grows, giving you the flexibility you need to spend money. However, they may want regular reports on your performance and can also request a say in the decision-making process because of their shareholder status. 
• Bootstrap your business. Bootstrapping occurs when you pull funds from your own pocket to start a business and operate that company as lean as possible. With this type of funding, you won’t have additional fees or interest to repay—but few people have the liquid capital on hand to cover all of their costs for the first few years. 
• Crowdfund from the community. Crowdfunding has become increasingly popular to raise money for your business. With this model, dozens of people from the community donate to your business idea. You can either pay these people back or offer discounts for donors who support your company.  

You’ll likely need a combination of options to fund your business. For example, you may start by self-funding the business and reaching out to friends, family, and colleagues to become private investors over time. 

Once you’ve established some fluid business, you can begin exploring small business loans and private investors to fuel more accelerated growth.

2. Creating a Realistic Operating Budget

It’s estimated that 82% of businesses fail due to poor cash management—so take a proactive approach to managing your money within your first year. 

Creating and sticking with a budget is an important step. This process includes not just setting a budget, but also understanding when you need to adjust your spending.

The first thing to do: get organized. Ensure that you have a process for tracking your expenses and labeling each purchase so you can sort through them later. (This will also be immensely helpful during tax season.) Once you have transparency, you can start adjusting your levers and setting budget goals and expense expectations. 

Developing a business operating budget isn’t that much different from managing your personal expenses. If you want to save money, you review where your income goes and learn what can be cut and what needs to stay.

One thing to keep in mind during this budget development process: your priorities and needs are going to change. You’ll need to spend more, for example, during peak seasons to advertise more or scale inventory. That’s okay, for now.

If developing and managing a budget still feels intimidating, consider consulting with an accountant or looking into budgeting software. 

3. Paying taxes accurately and strategically

Filing taxes is a source of stress for many Americans, even those who have full-time employment with a single company. 

Some people are afraid of underpaying and being audited, while others feel confused by the IRS verbiage—so they rush through their forms or hand off their documents to an accountant. 

As you launch your small business, taxes will become more important—and more complex. You’ll have to pay different amounts if you’re self-employed, and you’ll have to maintain a list of deductions to report as business expenses. 

Even when you have these nuances figured out, you may come across other challenges and requirements as you begin to scale and hire employees. 

Tracking deductions is one of the hardest—and most important—steps in tax preparation. The government frequently creates new rules for what can be deducted and by what amount, so it can sometimes feel like trying to hit a moving target. 

However, there are some standard deductions (marketing expenses, insurance costs, education, etc.) that you can write off. As you begin to file your taxes, identify which expenses can qualify as deductions in order to reduce how much you need to pay. 

The good news: if you take time in your first year to categorize your expenses correctly and develop good bookkeeping habits, you can put yourself in a great position for tax season.

4. Optimizing your business for profitability

As you grow your business, you’ll discover that you have multiple levers to pull to increase profitability. You can save money by reducing costs, or you can adjust your products and prices to increase your margins. 

Companies make minor adjustments to their product lines frequently. They debut new items to appeal to customers and change their products to meet customer demand (like fast-food chains going “all-natural”). 

Within the first few months of opening, you may decide that you need to change up your products to help your business succeed. Fortunately, there are many ways to do this. A few options at your disposal include: 

• Eliminating products and services that don’t sell (does your pizza restaurant really need a hamburger on the menu?)
• Eliminating items with low profit margins (high-cost items, products that take a long time to make, or items from vendors with difficult contracts, for example) 
• Launching new items based on trends and customer demand (what brunch restaurant doesn’t offer avocado toast?)
• Creating product bundles to sell high-margin items along with low-margin products
• Negotiating better deals with your vendors to pay less for goods
• Adjusting your materials sourcing and costs to pay less before assembling your products
• Investing in technology to speed up the production process and scale your abilities 

As you can see, many factors affect the profitability of your business. You have the final price that you list your product to sell but also the costs of labor and materials to assemble these products. 

Over your first year in business—and likely beyond—you will need to continue to adjust and optimize your products or services, as well as the resources invested in them, to improve your bottom line. This should always be a focal point of your business.

5. Building an effective marketing plan (that’s optimized for long-term)

In the same way that your products and services will likely change as your business grows, so will your marketing strategy. In fact, as you consider how you promote your business, you might develop a 3-part plan: pre-launch, launch, and post-launch/maturation. 

During the pre-launch process, your main focus may be on name recognition and making customers aware that your business exists. 

The goals for your marketing efforts will likely focus on maximizing your reach (getting in front of a large number of people) and connecting with potential customers on social media and via email so you’re top-of-mind when you eventually open.

When your business launches, your marketing goals will change, however. 

Once your business starts to mature and you develop a healthy customer base (typically 6 months to a year in operation), you can adjust your marketing materials for long-term success. At this point, you’ll have accrued some data over time, and be able to start optimizing for your ideal customer profile. 

Your marketing campaigns will then require you striking a balance between retaining the customers you brought in during your launch and encouraging new ones to try your brand. 

Some business owners seek marketing firms that specialize in business openings and product launches. These experts can make sure your business gets noticed when you open, ensuring that you hit the ground running.

6. Hiring the right employees and growing your team

Once your business starts growing and your customers fall in love with your products, you can start to expand. At this point, you can begin to delegate more and more across every aspect of your business.

It’s during this time that you might considerexpanding your existing staff with new members.

Neil Patel created a useful guide for determining when your company is ready for a new hire. His main indicator: you’ve had to turn down work from customers or can’t fill the existing demand for your products or services. 

Turning down work doesn’t always mean your customer will come back when you’re ready for them. You could lose customers in the long run if you can’t scale your efforts to meet their needs. 

Think about the cost of acquiring a new customer versus retaining one. Once you start limiting your existing customers or turning leads away, your company is losing money while its marketing costs are increasing. Don’t think of your new hire as an additional expense but rather an asset to help you scale. 

Fortunately, there are multiple options for taking on additional talent. You can contract out work until you have enough demand to bring on a full-time employee. You can also take on paid interns to help with basic work and then train them to become staff. Finally, you can hire part-time work with the goal of bringing them on full time once your business grows into it. 

Remember, taking on a new hire isn’t just an expense or opportunity for growth—they’ll also take time from you. You’ll need to train them, manage them, and work alongside them to meet the demand of your customers.

Additional challenges entrepreneurs face

While this guide has covered many of the big obstacles that startup businesses face, you’ll also need to overcome several miscellaneous challenges during your first year. A few common tasks and mishaps that business owners face include:

• Creating company documents and infrastructure. Within the first year, you’ll likely create a company handbook as well as several policies and rules for how your business operates. 
• Investing in the right tools and software. It’s hard to know what’s on the market and able to help you, from choosing a good financial management app to setting up widgets and plug-ins for your website. 
• Finding quality networking opportunities and forming partnerships. It’ll take time to find networking groups within your community that can benefit you. However, once you make these connections, you can grow your business. 
• Developing safety procedures and cybersecurity training. You’ll need to make sure your employees are safe—along with your digital assets and sensitive financial information.   
• Identifying your competitors and your relationship with them. Some companies work well alongside their competition, while others face challenges—and even direct attacks. 
• Establishing a work-life balance. Opening a business is a marathon, not a sprint. Learn how to take time off to recharge so you can move your business forward. 

Each of these challenges can be overcome with creative problem-solving and a determination to move your company forward.

Launching your business with an eagerness to learn

Each new business owner will face unique challenges and roadblocks during the first year. For some people, the idea of managing the company’s ledgers and tax forms is overwhelming. For others, managing employees or handling customer feedback can create stress. 

However, if you can identify and admit what you need to learn, you can take steps to resolve mitigate any risks. The best way to survive your first year in business and to continue growing for years to come is always to be eager to learn—knowing that some of that learning is going to come from making mistakes.

Small business associations provide many benefits, including networking, training events, information on industry trends, and discounts on items like insurance, office products, training, and conferences. 

Finding the right associations could be the difference between getting a foot in the door, having emails or calls answered—and can ultimately help you build relationships that change the trajectory of your business.

Types of small business associations

Small business associations can range based on who is backing them, what industries they serve, what type of owners they cover, and much more.

There are government-backed associations, private associations, non-profit associations, and a wide range of more specialized groups.

Membership costs vary. Some organizations are free, while others require a nominal annual membership fee.

List of small business associations

General business associations

Some small business associations aren’t niche or industry-specific. They can dispense advice to owners of any type of small business. 

Often they know who you should know, can connect you with mentors, or direct you to other associations for your industry. 

Cross-disciplinary interaction is another upside to being a member of a general small business association. By mingling with business owners outside your area of expertise, you might find a solution to a business problem from someone who thinks differently than you do. Or you may find a partner to collaborate with to create a new product or service.

For general small business associations, the US Small Business Association (SBA) and its local partners should be your first stop. 

Most cities and many community colleges offer programs via an SBA partnership, including:

• Small Business Development Center (SBDC)
• SCORE (local chapter)
• Veteran’s Business Outreach Center (VBOC)
• Association of Women’s Business Center (AWBC) (local chapters)

Other general associations to consider include:

• Business Network International (BNI) (local chapter)
• National Federation for Independent Business (NFIB)
• Entrepreneurs’ Organization (EO)
• International Council for Small Business (ICSB)
• National Small Business Association (NSBA)
• StartupNation
• National Association for the Self-Employed ( NASE)
• Alumni association for your college or university

Chamber of Commerce Small Business Council

Chambers of commerce deserve a special spotlight based on their purpose: to advocate for local businesses, to build a community, and to support the local economy.

Most states and cities have a chamber of commerce. Oftentimes, this is a great place to start when searching for new groups to join.

Membership isn’t limited to your physical location, so consider joining wherever you’d like to grow your business. Your business can be a member of multiple chambers of commerce.

To find a specific state or city chamber of commerce, either check the list on ChamberofCommerce.com or search online using the keywords “Chamber of Commerce + [your state/city].”

There are also chambers of commerce for specific minority groups:

• US Black Chambers, Inc. (USBC)
• US Hispanic Chamber of Commerce, Inc (USHCC)
• US Pan Asian American Chamber of Commerce (USPAACC) (regional chapters)
• Association of Latino Professionals for America

Veteran-owned business associations

If you’re a veteran-owned small business looking for veteran-owned support, you should consider the following groups:

• National Veteran Small Business Coalition (NVSBC) (local chapters)
• National Veteran-Owned Business Association (NaVOBA)
• Office of Veterans Business Development Resources

Woman-owned business associations

• National Association of Women Business Owners (NAWBO)
• American Business Women’s Association (ABWA)
• National Association for Female Executives (NAFE) (local chapters)
• Women’s Business Enterprise National Council (WBENC) 
• Women’s Business Development Council (WBDC)

Minority-owned business associations

Minority-owned businesses can join these associations: 

• Minority Business Development Agency (MBDA) (business centers)
• National Minority Supplier Development Council (NMSDC) (local chapter)
• Black Business Association (BBA)
• Hispanic Business Enterprise (HBE)
• Asian Business Association (ABA)

Industry-specific business associations

Learning from other disciplines has its perks, but sometimes you need to hear from your peers (and learn what your competition is up to), so don’t overlook associations specific to your industry.

Examples include:

Marketing

• American Marketing Association (AMA)
• Association of National Advertisers (ANA)

Construction

• Associated General Contractors of America (AGC)
• American Subcontractors Association 

Retail

• National Retail Federation (NRF) (memberships for startups)
• Retail Merchants Association (RMA)

Small business communities

For something less formal, though still helpful, you can also join small business communities and online groups.

Whether that’s visiting the r/smallbusiness thread on Reddit, or joining more specialized small business communities, you can hear and learn a lot from your peers about entrepreneurship, real estate, SEO, and a range of other topics related to growing your business.

Online groups are also great for networking. They offer virtual as well as in-person events. Consider joining both industry-specific and location-specific groups. 

Search for options on:

• LinkedIn groups
• Facebook groups
• Meetup groups

Tips for reviewing business associations

As you consider which associations to join, keep an open mind about how an association’s location or niche fits your business needs. 

For example, both the local and national chapters of SCORE provide value. The local chapter can provide in-person connections while the national chapter can help connect you with other businesses similar to yours that aren’t direct competitors. 

From a niche perspective, it can be useful to join cross-industry associations. If your business sells outdoor equipment, perhaps joining both a retail association and an outdoor association like the Outdoor Industry Association could boost your revenue.

And don’t “join and forget” the club. Spend time building relationships with other members as those business contacts could evolve into customers, partners, or mentors. The value of associations comes from being an engaged member.

It takes time and might cost a bit to join small business associations, but your business can reap the benefits of networking and advocacy opportunities in the long term.

Whether you're looking to sell your business or not, it’s always important to understand how to value your company. Small business valuation methods, however, can vary in complexity, accuracy, and acceptance amongst buyers.

Here, we’ll highlight the 3 small business valuation methods you can use to make sure you have an accurate understanding of your company’s true worth.

How to value a small business

There are a few so-called “rules of thumb” for valuing small businesses, but you’ll want to use them in conjunction with other business valuation methods to get the most accurate calculation.

One common rule of thumb: Use a multiple of percentage of annual sales.

The multiple depends on your business and requires research. Multiply the sales from the past 12 months of business by the multiple to get a quick, sales-based valuation. You can see valuation multiples by industry here.

Another rule of thumb: Use an SDE (seller’s discretionary earnings) multiplier. This varies based on industry and similarly requires research. For this valuation, you multiply your SDE by the multiplier. See multiples by sector here.

Along with your valuation method, there's a lot of prep that goes into valuating your small business:

1. Do you have all of the necessary numbers and information at your fingertips? Be sure to have an understanding of SDE, EBITDA, revenue, debt, and market capitalization.
2. Do you have the right paperwork available? Business valuations will require balance sheets, tax returns, deeds, licenses, and anything else related to finances.
3. Are you familiar with the state of your industry? Know your comps and the growth potential of your market.

With all of this in place, you can adopt a business valuation method.

3 methods for small business valuation

According to business acquisition platform BizBuySell, the average American business sells for 0.6 times its annual revenue.

Of course, this should only be seen as a baseline—the actual value of your company is deeply impacted by your specific situation, industry, and location.

The three methods you can use to analyze these impacts and get a true valuation of your company include comparable analysis, adjusted net assets, and discounted cash flow (DCF) analysis.

1. Comparable company analysis

Comparable company analysis, commonly shorthanded as “comps,” is a small business valuation method that evaluates a company based on the value of other companies. 

Because of this commonsense approach, it is a very common and accepted form of valuing a company. Also referred to as “public market multiples,” “trading multiples,” “equity comps,” and “peer group analysis,” this method is very similar to market-based valuation and precedent transaction analysis.

Comps often focus on multiples of EBITDA, meaning Earnings Before Interest, Taxes, Depreciation, and Amortization. 

EBITDA multiples are usually used to determine value for large corporations, while smaller businesses often look at multiples of Seller’s Discretionary Earnings (SDE). SDE is a company’s annual EBITDA plus the annual compensation paid to the business’s owner.

As the name suggests, comparable company analysis calculates a business’s value by comparing it to the value of comparable businesses. 

Region, industry, and size are common ways businesses are grouped together. Small businesses are commonly compared based on enterprise value to sales (EV/S) and price to sales (P/S).

To value your company via comps, you should research the sale price of businesses similar in size, sales volume, and revenue. In most cases, you can get this information from quarterly and annual reports—or by paying for a market intelligence platform (though that can be pricey).

If you’re having a hard time gathering this information, an appraiser can ensure accurate comps analysis.

This video gives a solid rundown of how to carry out a comps analysis.

2. Adjusted net asset method

An assets-based valuation of a company will look similar to a balance sheet. For a slapdash “back of the envelope” value of your business, add up all your company’s assets and subtract all liabilities. This can give you a starting value, but it doesn’t take into account the wider market or future earnings.

The idea of the adjusted net asset method is to identify the fair market value of all of your assets, and subtract your liabilities (tangible and intangible).

The most difficult part of this method are the adjustments themselves. Adjustments can be made on the asset or liability side to reflect market value. For example, you can adjust for:

• Property: Whether real estate or personal, property book value is not always going to reflect its market value.
• Inventory: The speed of items sold, when they were stocked, and how they are accounted for (see LIFO vs FIFO, for example) are all levers when identifying the true market value of your inventory.
• Accounts Receivable: If your company has outlying collectibles, you can adjust based on whether those collectibles are expected to be paid in full or not.

Even if it doesn’t take into account the totality of your venture, an asset-based valuation can at least set a starting price.

Tim from MoneyWeek does a thorough job explaining the adjusted asset method here.

3. Discounted cash flow (DCF) analysis

To conduct a discounted cash flow (DCF) analysis, you must complete a complex formula that uses past data to predict future revenues for your business. The formula compares a company’s cash flow to its cost of capital. 

The components of the formula are:

• Cash Flow (CF)
• Discount/Interest Rate (r)
• Period number/time period (n)

A buyer looks at a DCF analysis to understand the potential future revenue of a company in comparison with the risk involved with the business.

Because the DCF analysis formula requires an intensive forecasting model, it is the most detailed and information-intensive method available to evaluate a company.

DCF analysis can be very useful for young small businesses—a new company might have a great probability of earning profits in the future even though it runs at a present loss.

Watch Warren Buffet break down the DCF approach.

How do you value a business quickly?

The most simplistic way to find the value of a company is to look at your balance sheet and subtract your total liabilities from your assets—similar to the adjusted net assets valuation method, simply without the adjustments.

“Depending on the business, the balance sheet might show tangible and intangible assets and a variety of long-term liabilities, some of which you might be able to reduce through negotiations and invoking early-termination agreements,” writes Steve Milano in the Houston Chronicle. “If it’s a complex balance sheet, you can simply take the assets you think you can sell quickly and subtract the liabilities to determine the company’s net worth for a fast sale.”

While you’ll want to get an appraiser involved and do more financial modeling before any agreement is reached, a balance sheet can give a pretty basic sense of a company’s value in a pinch.

If you have the time, it’s important to do your company the proper justice in identifying its worth, however.

You should consider much more than just physical assets and sales numbers. The value of your business could partially derive from aspects that don’t appear on a balance sheet, like your ideas, customer base, location, and curb appeal.

The pandemic proved that necessity can be the mother of adoption, as millions of patients have turned to telehealth to reach providers despite distance, time, and social-distancing guidelines.

Since then, it's become clear that telehealth is here to stay.

While small practices have taken longer to adopt and integrate telehealth, it has proven to help practices of all kinds and sizes retain current patients and attract new ones.

Benefits of telehealth for providers

There are plenty of reasons that some healthcare providers have thus far resisted the spread of telehealth, including concerns related to patient confidentiality, payment, and a range of regulatory obstacles.

When implemented successfully, however, telehealth can be a major contributing factor to the success of your practice.

The benefits of telehealth for provider's include:

• Better patient engagement: Traveling to an office can be enough of a burden for patients that it decreases attendance for follow-up appointments. By allowing them to connect with you from the comfort of their homes, you’ll often notice better adherence to treatment plans and medication management.
• Better flexibility: It’s hard to get two people together in the same room at the same time—especially during standard office hours, when many patients have work or other obligations. Telehealth makes it possible for you to see patients on a more flexible schedule and from just about any location with available internet.
• Better access for disadvantaged patients: Patients in rural areas often find it difficult to reach an office for consultations. This also applies to low-income patients nationwide, as limited resources and inconsistent work schedules make doctor visits challenging. Additionally, patients with mental health challenges and other stigmatized conditions often struggle to visit offices. In all of these scenarios, telehealth provides a convenient solution.
• Better revenue opportunities: Overhead costs drop substantially when you hold consultations from your home. You’ll also lose less money because telehealth usually decreases the number of office-visit no-shows.
• Better ability to compete: When your practice provides telehealth as an option, you can attract patients who prefer (or even insist upon) this option. The rise of urgent care centers and other treatment options makes it crucial for you to attract new patients with offerings designed to simplify their lives.
• Better patient loyalty: Offering telehealth services improves patient satisfaction. When patients don’t have to deal with inattentive receptionists or frustrating long waits in your waiting room, they’re more keen to reward you with their loyalty.

How to set up telehealth for your practice

Your first objective: research what regulations apply in your region or state.

The Center for Connected Health Policy provides a wide range of resources to help you comply with telehealth-related laws and regulations. Check out this helpful resource to review the rules that determine how you utilize telehealth in your practice.

Once you have an understanding of that, you can set up an integration plan, using the phases below as your guide.

Phase 1: Do your research

1. Start by getting your patients’ opinion: Send out a survey or have in-person conversations to gauge your patients’ interest level in telehealth. Learn what time of day they would prefer to hold consultations and what telehealth services most interest them.

Taking this collaborative approach allows you to cover two goals at once: announcing to patients that you will offer telehealth and gleaning key insights for how to best implement it.

2. Get your staff in the game: You should also seek various perspectives from your staff. First, they’ll have valuable ideas to consider for the implementation.

For example, your front-desk employees might anticipate possible issues with patient scheduling that you simply wouldn’t think of on your own. The bonus of enlisting your team in the process: they’ll be more likely to support the telehealth initiative because they were involved from the onset.

3. Hone your plan: Armed with insights from your patients and staff, you’ll be able to create a plan for how your practice will handle this telehealth component.

Consider questions like:

• Will you make the technology a centerpiece of the practice, or will it be more of a backup option when emergencies or scheduling difficulties arise?
• Will you only use telehealth for follow-up appointments, or could new patients have initial consultations that way?
• Are you going to use telehealth for full synchronous meetings, or more faceless interactions?

By outlining how you want to use telehealth and what you hope to accomplish, you’ll have a roadmap that will help you navigate obstacles and reach your goals.

Phase 2: Configure your systems and workflows

1. Choose your software: Some telehealth software products are so loaded with features that they’ll practically do everything but cook your breakfast. If you’re experienced with these technologies, you might place a lot of value in a robust option.

If you haven’t had the opportunity to use telehealth systems in the past, however, you should look for more user-friendly software that eliminates any unnecessary factors that could complicate your ability to communicate with patients—at least at the start.

“Small practices and solo providers have to think carefully about virtual care, considering that they generally lack the resources to experiment and the overhead to survive a failed project,” says healthcare technology expert Eric Wicklund. “They should not look to replicate the programs in operation at large hospitals and health systems; rather, they should look at their own patient populations, pick a service that can be easily moved online (such as non-acute primary care, follow-up visits or chronic care management), and match the technology to the service.”

There are three major considerations to keep in mind when choosing telehealth software:

• Look for tools that can fully integrate with the EHR or practice management system already in use at your office. This compatibility allows you to schedule appointments and transmit patient communications without any additional effort.
• The best telehealth software can operate even with weak internet connections. This criterion is essential: you don’t want to compromise the quality of a consultation if you run into connectivity issues.
• Make sure you can add your practice’s branding elements to the telemedicine software. By customizing the look of the system, you’ll create a more consistent experience for your patients and continue to build brand equity with them.

2. Figure out billing: In order to make sure that telehealth is beneficial to your practice, you should first establish billing guidelines. Relevant rates and reimbursements can be more delicate since virtual care is a newer, different medium of healthcare.

How do you plan to receive co-pays and out-of-pocket payments from your patients?

You could collect their credit card details at the time of scheduling and then charge them after the appointment, or you could utilize a software platform that allows them to pay through the system during the appointment. Part of this can be addressed when surveying patients. The rest is up to your own determination.

Phase 3: Communicate and grow your offerings

1. Spread the news: While you should already have had conversations with your patients about telehealth as you gear up for launch, it’s advisable to create a marketing campaign that spreads the message thoroughly.

“Many telehealth networks were built on a premise that came from an old movie: ‘If you build it, they will come,’” explains Northwest Regional Telehealth Resource Center. “Telehealth providers soon found that simply building a network wasn’t enough.”

Your marketing efforts can utilize many different approaches. Perhaps you start by adding a new banner on your website that prominently announces your telehealth service. You could also add an FAQ section to address any questions or concerns your patients might have, then link to answers directly from the web banner.

Other marketing options include putting signage on your building or investing in paid ads on social media.

You can also utilize email, SMS, direct mail, and any other digital messaging systems you use to interact with patients to keep them up-to-date with your telehealth integration plans.

2. Start small: Don’t worry about diving headfirst into a wide-scale telehealth initiative. Start by focusing on your existing patients and the specialties where demand will be the highest.

You can determine these areas of focus based on the insights you obtained from patients, as well as industry best practices.

As you find success in the early stages of telehealth implementation, you can then consider adding new telehealth services to fuel further growth.

Just be wary of the temptation to offer everything to everyone—it’s best to move slowly and let strategy and analytics be your guide.

Phase 4: Make sure you are remote-ready

1. Set up your location(s) to be remote-friendly: Where will you base your telehealth operations? Part of the appeal of this technology is that you can conceivably meet with your patients from almost anywhere in the world. But there are requirements that must be met if you want your consultations to be effective, compliant, and positively experienced by your patients.

Your main objective should be finding an enclosed space that ensures privacy for conversations with patients. Headphones are recommended in order to make your patients’ voices inaudible to everyone but you.

In addition to finding a private room, your chosen space should also be distraction-free. Clear your desk or table of all clutter and make sure there are no background noises. Brighten the room with adequate lighting so patients can see your face and feel reassured by the professional-looking setting.

2. Make yourself camera-ready: Even if you’re holding your consultations from a beach house in Tahiti, it’s important to look as professional as you would in an exam room. Wear your typical wardrobe—and don’t forget to run a comb through your hair.

Given the physical distance between you and your patients, it’s important to maintain eye contact and reassure them that you are listening. If you are looking elsewhere in order to write a note or check in on a record, explain what you’re doing so they won’t feel ignored.

Your attention to detail is critical during a telehealth consultation. Notice your patients’ body language and vocal cues. It’s understandable if they’re nervous, as this could be an unfamiliar arrangement for them as well. Patients might feel uncomfortable speaking to a screen or worried about the security of the transmission.

The virtues of bedside manner shouldn’t be forgotten, though you’ll need to retrofit them to become “screenside manner.”

3. Practice to make perfect: There are plenty of factors to consider as you prepare for your first telehealth consultations. Decrease the pressure by conducting practice sessions with a family member or employees of your practice.

Explain to them that you’re trying to identify potential issues in your process, and then ask them for blunt feedback. You might be surprised by the quirks that arise.

This also grants you the chance to discover any technical kinks. Your goal is to familiarize yourself with the software so that it’s streamlined from the moment you boot up your computer to your final moments with a patient. Once the process becomes automatic, you’ll be able to devote your whole attention to the patient.

It’s time to put your preparation into practice and hold your first virtual consultation.

All that’s left to do is sit down at your desk or table, position your computer, and meet the needs of your patient just as thoroughly as you would with an in-office visit—which you’re already very primed to do.

Freelancers. Contractors. Sole proprietors. Solo-entrepreneurs. Participants in the gig economy. There are several names for what you do, but they all reflect one idea: you work for yourself, find your own clients, and are responsible for your success. 

While others may find this idea terrifying, you navigate your career with confidence, always looking for new ways to grow your income—and you’re not alone. 

According to a 2023 report by Upwork, 38% of workers in the US have some sort of gig arrangement. The range goes from gig work as a sole source of income (like a solo entrepreneur) to employees picking up freelance jobs as a side hustle. 

With more people entering the freelance workforce, competition for jobs is on the rise. If you are looking to grow your professional success—or even just maintain your current income level—then you need to market yourself and attract future clients. Turning to the web is an accessible way to do this. Freelancers can use digital marketplaces ranging from basic job sites like Indeed to more advanced, niche forums to find their newest gigs.

21 top freelance gig sites to grow your client base.

1. Upwork

Upwork is a great place to start when looking for freelance work. It is one of the most popular and largest sites for freelance gigs. If you are new to the gig economy and want to see what options are out there, turn to Upwork. 

Because this is one of the largest job boards, the competition to get noticed is high. Upwork uses a bid system where applicants bid on jobs based on their skills and pay rates. The increased competition means that you may have a harder time landing gigs if your rates aren’t competitive or if you have less experience than others. However, if you have a niche skill set, this website could work in your favor. 

One of the more important considerations about using Upwork: they charge freelancers a 10% service fee for using the platform (which manages the entire workflow process from application to payment).

2. Fiverr

Fiverr is another household name for most freelancers. Users can advertise their services, saying they will perform a task for a certain price. Instead of applicants responding to jobs, it’s the job creators who seek and contact relevant talent. 

Fiverr got its name because the prices used to be so low ($5). However, as the site has grown in popularity, you can find more experienced freelancers with thousands of reviews who charge more. 

As a new freelancer on Fiverr, you will likely need to set your rates lower than you might want to land a few jobs. As you get more gigs and ratings, you can adjust your pricing to align with your clout on the site.

Similarly to Upwork, Fiverr also charges freelancers for using the platform in the form of a service fee. Their standard service fee is 20% of the order total. Again, as a freelancer looking to build your name and bankroll, you need to weigh the pros and cons of using a larger platform that takes a sizable share of your earnings.

3. Guru

If you are looking for a large number of jobs and users on a freelance website, then Guru is another major platform to consider. This site boasts more than 800,000 registered employers and one million paid invoices. 

You can also see how competitive your field is. Guru claims to have more than 500,000 programming and development freelancers on the site but only 11,000 legal freelancers—so differentiating yourself is essential to get noticed and hired. 

Signing up for Guru is free. However, the site charges freelancers a fee of up to 9% on every paid invoice. They also offer paid membership plans that reduce these fees and make your portfolio more prevalent for employers to find. 

4. Freelancer

Through Freelancer, employers can post jobs that freelancers bid to take. What sets this website apart from its competitors: you can clearly see the bids that other freelancers submit. You can also see how many people applied to do the work before you submit your bid, which shows you how competitive a position is. 

Freelancer allows employers to post gig work on either an hourly or per-project fee basis. This specificity means you can look for jobs based on your preferred project salary. However, other freelancers might outbid you by offering the same service at a cheaper rate.

Job seekers can also find a variety of freelance gigs to fit their wants or needs. These include completing projects in different languages including French, Portuguese, Spanish, German, and more. The platform also allows freelancers to filter jobs by several categories including skills, language, hourly rate projects, contests, and fixed-price projects.

5. FlexJobs

FlexJobs isn’t an open job board (meaning users need to register), and it isn’t free. There are four plans available, with the most affordable option being $6.95 per week. FlexJobs claims that its job listings are of higher quality and that applicants can distinguish themselves because they pay to get noticed. 

People who use FlexJobs fill out a profile with their resume and portfolio. They can link to any awards they’ve won and share images and videos from projects they’ve worked on previously. 

FlexJobs also has dozens of quizzes that applicants can take to showcase on their profiles. When you score well on these quizzes, it validates your skills or expertise for a specific task—giving employers more incentive to choose you.

6. SolidGigs 

SolidGigs is another paid service that costs $21/month. However, this brand sets itself apart by emailing top jobs to you. 

SolidGigs is an aggregator, pulling from nearly 100 websites and sending out jobs from the best ones. You can select the job criteria you want so that the gigs you see are relevant to you. SolidGigs may be a good option if you don’t have time to browse several job boards each day. 

SolidGigs also has an extensive course library that boasts over 127 courses, videos, lessons, and tools that you can use to grow your knowledge base. This feature adds to the value of the paid job board service.

7. Hubstaff Talent

Hubstaff Talent is a global job search tool that has reached 199 countries and features almost 100,000 freelance profiles and 3,000 agencies. This freelancing website is extremely organized—different jobs are sorted into specific categories, making browsing for work easier. 

Employers who want to hire team members on Hubstaff Talent will browse individual and agency profiles to consider who to hire. These companies can form a team of workers to get a project done. 

This collaborative feature enables companies to build their own team by pulling in several freelancers via 1 listing instead of trying to source freelancers across multiple listings and job boards.

8. FreeUp

Applicants who want to apply for jobs on FreeUp will choose a level of experience (which correlates to expected pay rates). Choose between entry-level, mid-level, and expert-level jobs in your area and submit your resume and writing samples. If you’re a good fit for the FreeUp site, staff members will set up a 15–20 minute interview to learn more about your skills. 

Once you’ve been properly vetted and approved, you can access FreeUp’s freelance marketplace. By vetting freelancers beforehand, companies can feel confident in the applicants who respond to their job lists. However, this may feel more like working with a recruiter than checking a job board for some applicants. 

9. ServiceScape

With over 87,000 registered clients, ServiceScape is a prominent option for freelancers who are looking to get noticed. Employers can either look for specific freelancers to join their teams or submit projects that they want freelancers to complete. Employers can also message freelancers and schedule conference calls to review their work or get updates on how the project is going. 

10. Authentic Jobs

Authentic Jobs is a job board for designers, developers, and creative pros. The listings on Authentic Jobs fall into 3 categories: full-time jobs, freelance jobs, and remote jobs. By separating these 3 options, members of the gig economy can find the top positions they want while employers don’t feel isolated if they want to advertise for both full-time and freelance work. 

Authentic Jobs makes money by charging employers. Companies pay to post their listings and potential contractors can apply for free. This process ensures that Authentic Jobs has a wide range of talent applying for various positions, increasing the chances that employers find the perfect team members to hire. 

11. Remote

Do you prefer to do the bulk of your work online? If so, Remote is an ideal site for you. Instead of sorting through local freelance jobs where you may be required to work in an office for the duration of a contract, look for remote work where anywhere can be your office. 

Remote is more of a staffing website than a freelance-centric job board; however, there are plenty of freelance and contract listings that you can respond to. Remote also has a strong infrastructure for payment, invoicing, and taxes, which helps both employees and employers stay on top of the financial side of gig work.

12. SkipTheDrive  

SkipTheDrive is another website that specializes in helping people find remote work. Users can browse by category, from account management to web development, and look for freelance jobs that can be done from home. 

This website is unique because of its remote focus—many job-listing sites include in-office work or partial remote positions. SkiptheDrive is ideal if you don’t want to filter through office jobs while searching for fully remote options.

13. Working Nomads

Working Nomads was created for freelancers who are traveling the world and looking to make money wherever they are. Companies that advertise on this website are less picky about when and where contractors work because the best talent could be on the other side of the world. This site is certainly a smaller job board, but it offers a niche for a specific type of worker. 

14. SimplyHired

If you are used to using traditional job sites like Indeed to look for freelance work, then SimplyHired will look familiar. Employers can list jobs and freelancers can apply for them. This website is a good option for those looking for significant contract work, meaning you want the stability of a full-time or part-time job without the limitation of only working for one employer. If you aren’t sure about entering the gig economy full-time, then you can apply for full-time jobs through these listings as well. 

15. Behance

Behance is a powerful platform for creative professionals to showcase their portfolios and discover freelance opportunities. It's particularly popular among designers, illustrators, photographers, and other visual artists. On Behance, freelancers can upload their projects and gain exposure by having their work featured in galleries and searched by potential clients worldwide.

Behance's community-driven approach sets it apart; it's not just a job board but a space where creatives can receive feedback, follow each other, and get inspired. It also serves as a talent pool for companies looking to hire creatives for their projects. For freelancers seeking to establish a strong online presence and connect directly with potential employers, Behance is an invaluable resource.

Signing up and creating a profile on Behance is free, which allows freelancers to display an unlimited number of projects. For those looking to expand their reach further, Behance integrates with Adobe Portfolio, enabling users to build their own personalized website to showcase their work comprehensively.

16. 99designs

99designs is a unique platform catering specifically to designers and clients needing design work. This global creative platform connects freelance designers with businesses seeking design services, such as logo creation, web design, packaging design, and much more. On 99designs, clients submit a design brief, and designers submit their concepts in competition for the job. This approach not only allows designers to showcase their skills but also gives clients a variety of design options to choose from.

For freelancers, 99designs offers an opportunity to work on a wide range of projects, improve their portfolio, and gain exposure to potential long-term clients. While the competition-based model may not suit all designers, it provides a unique way to challenge oneself and get creative with various briefs.

The site also offers direct work opportunities for designers who prefer to work in a traditional freelance manner, bypassing the contest format. This versatility makes 99designs a comprehensive platform for both budding and experienced freelancers in the design industry.

Signing up for 99designs is free, and designers are vetted to ensure a high quality of work is maintained across the platform. This vetting process helps build trust with clients and ensures that only serious, talented freelancers are competing and working on the site.

17. Dribbble

Dribbble is widely recognized as one of the leading platforms for creatives to share, grow, and get hired. Specifically tailored for designers, illustrators, and graphic artists, Dribbble serves as both a portfolio platform and a vibrant professional community. Freelancers can showcase their work, discover new trends, and connect with other professionals and potential clients.

Dribbble focuses on the creative process and design inspiration. It is not just about finding the next gig; it's also about building a brand, learning from peers, and engaging with an audience that appreciates design aesthetics. For companies and startups looking for top-tier design talent, Dribbble offers a curated environment to find professionals with the exact style and skills they need.

While the basic account is free, Dribbble also offers Pro memberships which provide additional features such as advanced analytics, portfolio customization, and the ability to send and receive direct messages, making it easier to network and secure freelance opportunities. These memberships range from $5 to $15 per month.

18. TaskRabbit

TaskRabbit is an on-demand service platform that connects freelance labor with local demand, allowing consumers to find immediate help with everyday tasks, including cleaning, moving, delivery, and handyman work. Unlike traditional job boards or freelance platforms that focus on digital services, TaskRabbit caters to a wide array of physical tasks and errands.

The platform is incredibly user-friendly for both Taskers (the freelancers) and clients. Individuals looking to become Taskers must undergo a vetting process, including a background check, to ensure safety and reliability. Once approved, Taskers can set their rates and work schedules, offering flexibility that many freelancers seek.

For freelancers who pride themselves on their handyman skills, enjoy helping people with their to-do lists, or just want a flexible way to earn money, TaskRabbit presents a unique opportunity. It bridges the gap between digital freelance work and traditional employment, offering the best of both worlds with the convenience of finding jobs through an app and the satisfaction of completing tangible tasks.

19. DesignHill

DesignHill is a creative marketplace that offers a dynamic platform for designers and businesses to collaborate on various projects. From logo design and branding to website development and graphic design, DesignHill serves as a one-stop-shop for all creative needs. It hosts a global community of talented designers, providing them with opportunities to participate in design contests, work on individual projects, and sell their designs through print-on-demand services.

DesignHill facilitates a space for freelancers to showcase their portfolio, engage with potential clients, and compete in design challenges. This platform not only enables designers to gain visibility but also helps them to network and build their careers by directly connecting with businesses across industries. DesignHill’s structured contest format encourages creativity and competition, ensuring that businesses receive high-quality, innovative design solutions.

20. Jooble

Jooble is a comprehensive job search engine that aggregates listings from thousands of job sites, corporate boards, and staffing agencies worldwide. Unlike traditional job boards, Jooble is designed to simplify the job-seeking process by providing a one-stop solution for finding work opportunities across numerous industries and locations. Whether you are looking for full-time, part-time, or freelance opportunities, Jooble offers an extensive database of job postings, making it easier for candidates to find positions that match their skills and preferences.

For freelancers in particular, Jooble is an invaluable tool for uncovering potential gigs in their area of expertise. The platform allows users to customize their search parameters with filters such as location, salary range, and job type, enabling them to target freelance positions. Additionally, Jooble's user-friendly interface and daily job alert feature keep candidates informed about the latest opportunities, ensuring they never miss out on prospective projects.

21. LinkedIn

LinkedIn isn't just a platform for connecting professionals; it's also a helpful tool for freelancers seeking new opportunities. As the world's largest professional network, LinkedIn offers an unparalleled reach to potential clients and projects in nearly any industry. Freelancers can use the platform to showcase their experience, share portfolio pieces, and post insightful content that reflects their expertise.

One of the standout features of LinkedIn for freelancers is the ability to receive endorsements and recommendations from colleagues and clients. This social proof can significantly bolster a freelancer's credibility and attract more business. Additionally, the LinkedIn Jobs section frequently lists freelance opportunities, and the platform's advanced search capabilities make it easier to find these gigs.

By actively engaging with content, joining relevant groups, and using the LinkedIn ProFinder service, freelancers can enhance their visibility to potential clients. ProFinder is LinkedIn's freelance marketplace, designed to help businesses find top-quality freelancers across a variety of fields, from writing and editing to graphic design and software development.

LinkedIn also offers a suite of tools for content creation and sharing, making it possible for freelancers to position themselves as thought leaders in their niche. This combination of networking, job hunting, and personal branding functionalities makes LinkedIn an invaluable component of any freelancer's digital arsenal.

How to evaluate freelance job boards.

There are dozens of online freelance job boards available—and the number is always growing, so you shouldn’t worry about joining them all.

Several of the websites won’t be relevant to your career path or business, while others will be too niche or small to check regularly. 

Here are a few considerations when you first land on a freelance job board:

1. Is the website free or paid? Some paid websites promise higher-quality work and more opportunities for job seekers. Before you sign up for monthly payments, set a goal for yourself. If you don’t actually get clients from that site within 90 days or 6 months, cancel your subscription. Otherwise, you’re wasting your money—there are plenty of free sites available.
2. Is the website industry-specific? Look for niche job sites that only post listings that are relevant to your career. These sites can make searching easier and cut down the overall pool of applicants. However, you may not want to go too niche in your search—that will limit the opportunities available to you. 
3. Do the job types match what you’re looking for? The word “freelance” is so broad that many companies don’t know how to label it. You may find long-term contract gigs that ask you to work full-time for 8 months or even relocate for a while. If this commitment level isn’t what you’re looking for, then you need to find a website that has listings relevant to your specific needs.
4. Do the levels of compensation match your expectations? Along with looking at job types, consider their payment levels. If the majority of a site’s job listings offer subpar payment to what you usually charge, then you shouldn’t waste your time there.
5. Are new jobs posted regularly? It might not be worth your time to check smaller sites that only post a few jobs each week. Additionally, many companies cross-post jobs on multiple sites, so you may see the same listing on a mainstream job site like Indeed or Monster.

The more freelance job sites you visit, the better you’ll get at evaluating their worth. You may return to some websites daily for work while ignoring others completely. Remember: the best job board is the one that has the most relevant leads and brings in the most clients to your business.

How to stand out on freelance job boards.

Not only is it important to find relevant job boards that share listings you actually want to apply to, you also need to respond to these jobs effectively. Here’s a few tips to keep in mind:

• Set aside time each week. Working as a freelancer is a process. Always try to have leads and applications in your funnel. Set aside time each week (or even a few minutes each day) to apply for jobs and submit your portfolio for consideration.
• Keep your materials close at hand. Applying for jobs is much faster if you have all of the materials ready. Keep an updated resume, basic cover letter, portfolio, and work samples nearby so you can submit them to various job listings. This preparation allows you to increase the number of gigs you apply for.

• Reach out to existing clients for recommendations. Some job boards may allow you to list testimonials or references. Reach out to your clients and satisfied customers first before you list them to ensure you have their permission. Also, try to choose a few top sites for recommendations—that way, your clients aren’t writing a review of your work every week.
• Track which websites give you the most success. Don’t waste your time on websites that never drive any leads. If you keep applying to jobs but never get them, switch to another website with different listings and a new target audience.

Freelance workers don’t have the luxury of resting on their laurels. If you want a regular stream of income, you need to keep applying to jobs and growing your client base. Regardless of your industry, sales and self-promotion are 2 key skills for contract workers. Keep this in mind as you look for relevant freelance job boards to grow your career.