If you’ve been stuck in the rat race, looking for a way out, then you might be thinking about how you can change your working situation. You can start your own business, but depending on what you want to do, the costs and time necessary can make it hard to do. What if you were able to take the kind of work that you’re doing right now, but simply do it for clients directly, rather than doing it for an employer? A lot more people are becoming freelancers as the internet makes it easier for them to find work. Could you do it too? Are you ready to?
Does your profession work with a freelancer model?
The first thing you need to ask yourself is whether or not you can transfer your skills and role to that of a freelancer. There is a lot of different potential freelancer careers that you can consider. Almost every position in marketing can be freelanced, as can all kinds of financial services, and even general admin work, through the route of becoming a virtual assistant. You might need to think a little outside of the box to consider how your skills could appeal to clients if your role isn’t a one-to-one fit, but there are a lot of ways to make money as a freelancer.
Dotting your i’s and crossing your t’s
Once you decide what you want to start doing as a freelancer, you can’t just immediately start doing it. You have to make sure that you’re legally allowed to start trading under your own name. If you’ve already started, there is some leeway to register after the fact, just so long as you make sure to report all of your income to the taxman. The steps to register as self-employed are relatively simple.
You must create a business tax account and register your business, including a business address and name. You can choose to use your home address, but it is better to use a registered office address provider, and keep your personal address private.
Finding clients
The toughest step for a lot of freelancers is to find the work that they need to keep the money coming in. A lot of people will start working on freelancer websites, such as Fiverr, Freelancer, Upwork, and so on. However, the truth is that while they can help you get started, they operate on something of a “race to the bottom” pricing strategy, so you want to make sure that you’re moving off of them quickly. There are lots of different ways to build your client base. Creating a website, a professional portfolio, and being active in sharing your work through social media and digital marketing can help. As soon as you start getting clients who are happy with your work, that’s when you start angling for testimonials and recommendations. Just make sure that you’re not pestering them.
Preparing for tax season
One of the biggest differences between working as an employee and working for yourself is that you’re not totally responsible for your taxes, which you have to file every year. It’s recommended that you file your taxes as soon as you can, so you get a good idea of what you have to pay in advance of the deadline and give yourself as much time as possible. Of course, you should be setting aside a portion of your income to pay those taxes as well. There is freelancer tax software that you can use to help you keep on top of your finances easily enough. Don’t forget to get reductions based on qualifying business expenses, too.
Mind your work-life balance
One of the most common mistakes made by new freelancers is that they are in such a rush to get themselves up and running with new clients coming in that they neglect their work-life balance. Or perhaps you might not set the boundaries that you need between the two sides of the coin. You should make sure that you have a structured work routine, a place to work, such as a home office, and a disciplined approach to maintaining a life outside of your work. Otherwise, you could go the way of many others and experience burnout.
Hopefully, the tips above give you some ideas on how to get started on that freelancer life. It’s not for everyone, but there are plenty of people making a good living striking out on their own.
