If you’re an independent musician, you’re self-employed. If you’re self-employed, there’s an outstanding chance that you’ve spent some time cobbling together freelance gigs.

I know, because I’ve been there. I took “the leap” for good at the start of 2021, and it has taught me everything I needed to know about business and life.

On the business end, one of the most important lessons I’ve learned since taking the leap — from 9-to-5er, to freelancer, to entrepreneur — is this.

The success of your business depends largely on the systems you put in place.

In the beginning, there may be a natural excitement as gigs start coming to fruition. You may be so excited to focus on the projects themselves that you forget — or worse, neglect to — build in the back-end support needed to ensure your long-term sustainability among the self-employed.

Here are four essential components to ensure that your growing business remains protected and successful.

Contracts

Simply put, a gig worker working without a contract is asking for trouble. A good contract will clearly lay out the scope of the project, including the work to be performed, and will help you establish timelines and project rates. As a legally binding document, a contract will also minimize the possibility of non-payment or late payment. Once signed, the client agrees to pay the specified amount for the services outlined therein, and you agree to provide those services.

In short, a contract holds everyone accountable. It gives you a clear blueprint of the task at hand, while ensuring that the client also holds up their end of the bargain. This LinkedIn newsletter features a much deeper dive into the importance of contracts.

Deposits

You’re a busy creative, and your time is valuable. So, let’s make 2024 the year that value is reflected.

Asking for a partial deposit upfront adds another layer of protection for you and your business. A deposit shows a commitment on behalf of the client to pay for services rendered, and it solidifies your commitment to commence work on the project outlined in your contract.

The initial deposit amount is up to you. In my experience, it is most common to charge a deposit amounting to 50% of the total project cost, with the remaining balance due at the time of completion.

Non-payment policies

Life is easier when we can pay our bills on time. As a freelancer, there’s a good chance that you depend on the income from your clients to make sure that happens. If their payments are late, your bills are late. And, if your bills are late, you may be assessed a late fee. Wait long enough, and service may be suspended or discontinued altogether.

Just as the electric company expects timely payment for services rendered, so should you. Be sure to develop and include policies surrounding late fees, suspensions, and cancellations in your contracts. Hopefully, you’ll never have to enforce those policies, but things happen, and it’s best to be prepared for when they do.

Not to mention, the best way to prevent bad behavior is to pair it with a consequence.

A payment system

How are you collecting payments?

While your favorite cash app may seem good enough for now, pause to consider whether it has everything you need to truly run a business. You’ll want to have a system in place to track invoices, payments, customers, revenue, and more. The more parts of this process you can automate, the better; not to mention, having complete, easy-to-understand records will make your life monumentally easier come tax season (which is just around the corner!).

Personally, I use Square, which allows me to create invoices, customer profiles, specific products, and more. Square also provides me the ability to send invoice reminders, establish multiple payment options, and set up recurring payments. Also, its reporting functions break down everything I need to know to file this spring. There is a small fee that is taken out of each payment received, but it’s a fair trade for the convenience and peace of mind of having a system in place.