Becoming a freelancer is the dream for many careers, from creatives to administrators. Setting your own hours and working where you want might sound like the perfect life for you, but don’t make the leap just yet. The grass is always greener on the other side, so read on to learn what you need to know before becoming a freelancer.
Lay the Groundwork
Everyone talks about networking when discussing any job, but seriously—you need to network for freelance success. Create a page for your new startup on the essential platforms: LinkedIn, Facebook, and Instagram. Make it easy for people to find you and get in contact with you.
Depending on what you do, this may be a great opportunity to show off your work, so build a portfolio and show people why they should hire you.
Consistent Inconsistency
Even with the hassles a nine-to-five gig brings, it provides consistent income. With freelancing, you might have a good month, and you might have a bad month. Like a no-clients-at-all month.
This issue is the most prevalent when starting since you don’t have solid clients yet. Unfortunately, this is also the worst time to have that problem! Make sure you plan for this almost-guaranteed conundrum by setting money aside for lighter months.
You’re the CEO
This is a tough mental hurdle to jump. When you start freelancing, you stop being an employee and become a business owner. You’re responsible for bookkeeping, time management, and development for the business that is you. Take this life seriously and act professionally, and you’ll start to attract more clients.
Don’t Forget Taxes or Retirement
Taxes are a huge consideration for freelancers. You need to give up more money than ever to Uncle Sam, so you must prepare for this. Keep track of all your business expenses so you don’t leave money on the table with write-offs. Also, you’re responsible for the company’s retirement plan! If you want to set yourself up for a happy retirement, you’ll want to investigate SIMPLE IRAs and Solo 401(k)s.
Now that you understand what you need to know before becoming a freelancer, choose whether or not to take the plunge. It’s not for everyone, but it could be perfect for you.
