Over the last couple years, I have been asked by several friends and associates, “Why are you freelancing?” After telling them that it’s mainly because I love what I do and love working for myself they usually want to find out how they can get into it too! Don’t get me wrong, Corporate America isn’t all bad. But just like college, it’s not for everybody. We hear people say “I hate my job” all the time but some people hate WORKING, not the job they are doing! It’s easy to hate what you do for a living but it is even easier to do what you love for a living, especially in today’s economy.
5 years ago, freelancing was something people did mainly in major cities where there was enough work to go around for artists, desktop publishers, writers and other creative types. Today, however, the freelance arena has changed drastically. Even with the economic downturn and widespread downsizing, freelancing is still strong if not stronger. I was always taught to look for two things when faced with obstacles in life: opportunity and alternatives. Companies that are laying off workers are not saying that they do not value what that particular employee did for them, they are simply saying that they cannot afford to pay that person the same salary AND remain profitable. In simpler terms, they need to find someone who will do that same job for a lower salary and with little to no employer-provided benefits. You just have to learn to adapt like these companies are adapting.
As a freelancer, you can live practically anywhere in the world and conduct business. Not to mention that the creative fields aren’t the only areas where freelancing is popular any more. Accountants, consultants, trainers, computer technicians and writers are all able to earn a living as freelancers. Regardless of the field you are interested in, there are some important things you should consider to help you get started and to ensure your success.
Before I talk about those, however, I need to talk briefly about the advantages and the disadvantages of being a freelancer. You need to know both sides before you make your decision so you truly understand what you’re getting into. If you have a hard time with self-discipline, time management and following up then I would recommend seriously working on those areas because being lax in them can significantly hinder you progress.
Freelancer’s Advantages
1. You set your own hours.
As a freelancer, you get to determine what time you start your morning (or day) and what time you call it a day (or night). You get to decide how much vacation time you can afford to take for the year and you can decide to skip work one day to spend time with your family. I only consider Sundays my day off but I have done work for clients on Sundays on several occasions.
2. You don’t work for a boss.
Even though you have a professional responsibility to your clients, they don’t brandish the same power over your career that a boss does. Yes, they can fire you, but you also have the option of deciding to work with an individual, group, organization or company or not; and that decision will not accompany negative consequences. I choose who I market to which allows me to be in total control of the clients I work for and with.
3. You determine how much you make.
While your typical job pays a set salary regardless of how hard or long you work, freelancing allows you to build virtually any pay scale you wish because you determine the value of your services, the rate for those services and how many jobs you take on at any given time. I love the fact that when I have a good month I’m confident that I can do the same next month if not better.
4. You are able to work from virtually anywhere.
Whether you prefer working in a home office (like me) or renting space somewhere to do your business, you are in charge of designing and maintaining your own workspace. You get to pick the people you work with. You get to pick the type of computer(s), office supplies and office furniture that you utilize on a daily basis as well. You can even work while you’re on vacation if you’re family will allow you to!
Freelancer’s Disadvantages
1. You can get worn-out rapidly.
Once you have a steady workload and an increasing client base, it becomes nearly impossible for you to schedule a much needed vacation. You have new projects and clients that need your constant attention, so taking a short vacation or getting sick even for a day can cause your work to stockpile. I have been freelancing long enough to know that taking several mini-vacations are more realistic and reasonable than taking one or two week trips. After a few years you will see when your slow months are and when subsequently, you can take a break.
2. You have to deal with clients who can be more difficult than bosses.
Most of the clients that you will deal with as a freelancer are genuinely good people, but there are others out there that are not. Every freelancer has probably been ripped off by a client at one time or another, even if they take steps to protect themselves. This is just one on those things that you will have to be mindful of. I typically try to avoid working with someone who has difficulty returning emails, phone calls or shows no respect for my time. If you are mindful of who you market to, you will not have to deal with these headaches much.
3. You do not have a fixed income.
Unless you have one or two truly reliable clients, you can expect your income to fluctuate dramatically. Some months you may feel like you don’t have enough time for all the work that you are contracted for while others may feel like you need to update your resume and start a job search, especially during your first year. This is inevitable as a freelancer! The way I deal with it simple – I have become a much better saver since I was laid off in 2004. If you fail to plan you ultimately plan to fail.
4. Separating work life from personal life can be difficult.
If you work in a home office, you may find it difficult to recognize the difference between being at home and being at work which means that while your watching television or eating dinner you may begin to feel like you’re actually still on the clock. I only have office equipment and furniture in my home office – no TV! It helps me stay focused.
As you can see, each advantage has a reciprocating disadvantage. However, all of the disadvantages can be easily overcome once you have experience as a freelancer. Here are a few tips to help you get started as a freelancer.
Find Something You Love Doing
This is crucial for your success. If you don’t have an idea of what you want to do as a freelancer, find something ASAP! Some people are lucky enough to already be working in a field they love but just don’t particularly care for the company they work for.
Remember, you will be doing this every day so it is imperative that YOU enjoy doing it. Also, the more you enjoy your work, the more passionate you are about it and the less it feels like WORK. Potential clients will be able to see that passion in you and the way you conduct business with them and will be more inclined to work with you.
Save, Save, Save
Most freelancers actually start out in a corporate job that is in the same field that they want to work in. In fact, many of them maintain regular jobs in addition to their freelance work for the sake of a stable income, medical benefits and work experience. Unfortunately, I did not have that luxury. I was laid off before I decided to be a full-time freelancer. It was a struggle at first but I always had a “Plan B” just in case. If you choose to be a freelancer full-time, I recommend you establish a comfortable nest egg, preferably in a interest-bearing account.
Most experts agree that you should have enough money in your savings to cover 3-6 months of your monthly liabilities and living expenses. If that sounds a bit overwhelming, then that’s a good indication that you aren’t ready to go full-time. While you are working your full time job, save up all of the money you earn from your freelance work and use that as your nest egg. This is not a requirement but it will make your transition much, much smoother. You’ll thank me for it later!
Start Finding Clients… Right Now
One of the biggest mistakes that freelancers make is that they start networking and marketing their services AFTER they went full time. The truth is that if you are SERIOUSLY considering becoming a freelancer, the time to start networking and marketing is not now, but RIGHT NOW! Let everyone know what you do and ask them to send you referrals to build your client base.
Start building a pipeline of job leads through any source imaginable. In fact, you may want to line up some long term clients beforehand so you can be certain of having an income as soon as you decide to go full time. It may even be necessary (it was in my case) to do some “pro bono” work in order to get your name out there and showcase your work. If you have a passion for what you do, it will be evident in your work and after a while clients will seek you out. This is why it is imperative to find something you love doing.
Be Over-Prepared, Not Overlooked
Your potential clients will request references and/or samples of your work before they give you a project. This is where you will create your value to your clients and also justify your rate. It is better to have your references prepared in advance than to answer with “I’ll get those to you tomorrow.” Don’t wait until someone calls to possibly offer you a project to get your portfolio in order or to organize your references. Having this readily available shows you didn’t start this gig last week and you are well prepared. It could also make or break some contracts for you.
Bookkeeping 101
The most difficult part of freelancing, unfortunately, is keeping good financial records. Tracking invoices, balance your freelance business checkbook, determining your overhead and tracking your expenses are very important. If you don’t have a firm grasp of these things, they can eat up a lot of time that you could be using to complete your projects. You don’t have to go out and hire a bookkeeper or accountant but you need to find someone or something to make this aspect of your business seamless and cost-effective. I personally hate paperwork so I prefer online tools for my day-to-day operations. A few tools that I can’t work without are FreshBooks, Phone.com‘s Virtual Office and Revolution Money Exchange.
FreshBooks is an online invoicing and time tracking tool that helps me manage my business quickly, professionally and effectively. Virtual Office from Phone.com is a small business/home business phone system that makes my freelance business look like a large professional company without the large professional expense. Revolution Money Exchange is the FREE alternative to PayPal – I don’t have to pay to get paid. Nice!
Start a Web Site
Use the web to your advantage. As a freelancer, time management is crucial. If your website can handle 90% of your day-to-day operations like sales questions, client inquiries and support requests while you are busy working, spending quality time with your family or even sleeping, then it is worth whatever it costs to get one! Create a professional but simple website showcasing your skills, experience and your services, then tell everyone you know about it! It’s one of the best ways of obtaining new clients. If you need to hire an established web designer that you are familiar with, contact me for a quote. Or you can build your very own website online!
These tips will help you decide whether freelancing is right for you. If you are one that gives up easily or doesn’t finish projects that you start, you may not succeed as a freelancer. You must be able to deal with rejection and objections. You must also be self-motivated and persistent because you will not have a supervisor hounding you for being 2 hours late for work. One of my favorite quotes is “life is what you make it” (hence the name of the blog) and it is true no matter what you do for a living.
If being a freelancer is something you are seriously considering doing then you must understand that everything that you have learned in the corporate world holds true as a freelancer, except the politics. I honestly wish I would have been laid off sooner but everything happens when they do for a reason. Below, I have listed a few links for tools and services that I use as a freelancer. I hope that you find use for them in your journey as well. Good luck!
Useful Freelance Tools: