Freelancing for a while, and I’ve noticed I’m often just guessing about my growth.
I check my bank balance at the end of the month, but that doesn’t really clarify if I’m progressing or just maintaining.
I just try to beat last year’s total.
Track income vs expenses first. Most freelancers skip this and get blindsided at tax time.
What actually matters:
- Monthly profit (not revenue)
- Client retention rate
- Time between projects
- Emergency fund growth
I focus on profit margins because big projects that eat up cash for software or contractors aren’t always wins.
Project gaps tell me everything about business health. Booking new work before I finish current projects? That’s growth. Scrambling for the next gig? Something’s broken.
Your benchmark: cover expenses and add to savings monthly. Everything else is gravy.
I track three numbers monthly: total income, income per client, and hourly rate.
Hourly rate shows if I’m getting more efficient or landing better projects. Going up means I’m doing something right. Dropping means I need to figure out what changed.
I compare each month to the same month last year, not the previous month. My business has seasons - comparing January to December is pointless.
Set quarterly goals instead of yearly ones. Way easier to fix things when you’re behind.
Simple math works for me. Monthly expenses times 12, then add a bit extra for tools or whatever.
Set a monthly income target that covers your costs plus 20% for growth. This keeps you on track. Track cash flow over 90 days instead of monthly. One slow month doesn’t mean much if the other two were solid. Watch your lead-to-job conversion rate. If it drops, you’ve got pipeline problems before they hit your bank account. Fix it early.
Set a monthly income goal you can see daily. I base mine on my best month from last year.
Keep an eye on your monthly earnings and job count. If you’re getting more jobs but your income stays the same, then your rates might be too low.
Reassess your goals every three months to keep improving.