By Leo Babauta

I don’t know about you, but I always assumed that working as a freelancer would be the dream job — no boss, no lazy co-workers, no headaches.

At least, it was until I learned a few essential steps that don’t take long to complete but that can save you tons of time and some pretty major headaches as you go about your work — and without the headaches, being a freelancer really is a dream job.

1. Find great clients. Every freelancer has had clients that are a major pain in the … neck. They are negative and critical, they are never happy, they are rude, they want things right away and to specific yet unknown specifications … they are major headaches. The problem comes when you continue to work with them. Ditch them, and find better clients. Your life will be so much better. Look for positive people who are genuinely fun to work with — and be sure that they’re professionals. Cyan and Collis from FreelanceSwitch.com are excellent examples of great clients — they’re fun, extremely competent, professional, and enthusiastic. Find people like them to work with.

2. Be clear about terms. When you’re entering into a freelance relationship with someone, it’s best to spell out, right away, what the terms are. Email them with a list of questions — rate, scope, payment terms, any specifications, format for submission, deadlines, etc. If you get this stuff clear up front, you won’t have headaches about it later. It’s good to come up with a list of this stuff so you can ask each new client the same questions.

3. Set deadlines. Work with deadlines, or things could sprawl out much longer than necessary. It’s best to overestimate how long it’ll take you to complete the entire project by at least half, but to set a sub-deadline for the next step in the project that you’ll need to complete. Submit each step along the way, setting deadlines as you go for each step.

4. Agree on desired outcome. You and your client should know exactly how the project should look when completed. Of course, I mean “look” in a figurative sense — obviously I’m not talking about the look of the words you’re going to submit as a writer, and if you’re a designer, you don’t know how it’s going to look until you’re done. But what I mean is that you have a shared vision for the project — with as many details worked out as possible. If you know exactly what the client wants up front, you’ll be able to deliver it. Otherwise, you’re shooting at a target with a blindfold on, and you’re going to run into innumerable hassles along the way.

5. Communicate clearly. Keep constant communication between yourself and the client from the beginning to the end, and all throughout the project. If you have problems or delays, communicate them. Ask for feedback along the way, so the client can correct your direction midway through the project, rather than just at the end. If you’re not sure about anything, be sure to clarify. Most headaches are caused by lack of communication.

6. Set aside designated time. Freelancers don’t work 9 to 5 (unless they want to). They can work early in the morning or late at night, and often all the times in between. If you work on your own, you will likely find that your work expands to fill all your available hours. Instead of working around the clock, designate time for your freelance work. During this time (and it can be several periods throughout the day), you can’t do stuff from your day job (if you have one), you can’t do family stuff, you can’t do email or RSS feeds — you can only do freelance work. It’s important to set and keep these boundaries, or you will never get anything done, and you’ll work endlessly and exhaustively.

7. Clear distractions. Another important step to getting your work done in the time you designate as your freelance time is clearing away anything that might interrupt the work. Yes, this means cell phones and IM and email notification and Twitter and anything else. Remove clutter from your desktop and walls. If others are in the area, tell them you’re “in your zone” and can’t be interrupted. Interruptions are one of the worst sources of frustrations and stress.

8. Follow up. When you submit an assignment or project to a client, be sure to communicate afterward to ensure that they’re happy with the outcome. Ask for feedback about what could be improved, or what they liked. This will help you deliver a better product in the future, avoid repeat problems, and keep your client happy.

9. Keep track. It’s a difficult thing to do if you’re not very organized, but it’s important to keep track of your hours, the work you’ve done, and your invoices. Keep a simple spreadsheet to log this stuff in, and just make it a habit to log your work as soon as you finish working. If you don’t keep track, you’ll have major confusion, stress and headaches later on.

10. Automate. If there are things you can make automatic, such as billing or logging or reminders or even parts of your work, take the little extra time it takes to set up the automated tasks. It’s well worth the investment in time. The more you can automate your freelance life, the fewer headaches you’ll have down the road.