Transitioning from working full-time to freelancing is challenging. Believe me, I would know. When I decided to become a freelancer, I wasn’t expecting the amount of information I needed for becoming my own boss. I thought I knew everything about the legal and financial sides of the matter. As it turned out, I had absolutely no idea about what I was getting into.
Fortunately, one of my best friends had already made his transition a couple years ago and supported me throughout the process. Here’s what I’ve learned about becoming a self-employed freelancer.
Learn to specialize
Jack of all trades, master of none. I’m sure it’s not been once nor twice that you’ve heard this saying—and it couldn’t be closer to the truth. Put your mind and energy into something you feel best aligns with your talents and abilities, and unlock a world of potential to reach the top of your game.
Focusing on one chosen field allows you to hone your craft and reach outstanding levels of expertise which, in turn, draws more clients to your services. The image of a professional who knows all the tricks of the trade works well when you’re trying to hit it big on the competitive freelancing market.
Research your market
Before you quit your job to become self-employed, you need to have a good idea about your market. Who are your potential clients? Where can you find them? How will your service or product fit into the market? These are all key questions you should be asking yourself at the very beginning of your journey into self-employed freelancing.
Nobody will be presenting you with a paycheck at the end of each month or cover your health insurance. You’re taking full responsibility for your professional life, so make sure you know what you’re doing by properly researching the market.
Create a personal brand
To stand out from the crowd and create an awareness of your service, you need a strong personal brand. Make sure that your business is based on your personality—you need that something special which will differentiate you from other providers.
Become an expert in your field and don’t be afraid to show it—participate in online discussions on LinkedIn, set up a blog, and make it into your own promotional space. Connect with your customers in places they hang out. Help them solve problems and show off your expertise. You need this type of buzz to create an interest on the market for your offer.
Price your services
Your aim should be to take on the most lucrative deals. Before you decide to charge your work per hour, remember that this system will limit your business at one point or another. The vast majority of seasoned freelancers charge per project. Charging per project, you stand a chance at working less and actually gaining more.
So, how much should you charge? Check out the market, talk to other freelancers, and have a look at job ads that are relevant to the type of service you provide. There are many freelance industry reports which show average hourly and per project rates of professionals in your field—use them to develop your own pricing system. Give it a test drive, and see if it works for you and your clients.
Focus on what you do best
Finally, there’s that most challenging part of being self-employed: the bureaucracy. You’ll need to delve into the financial world and learn things about finance, accounting, and taxes that you never even suspected you should know.
What I did at this point is hire an experienced accountant who was referred to me by my freelancer friend. Thanks to this person’s expertise, I was able to focus on my work and get the most from it by not having to worry about income tax, health insurance, or pension.
Follow these five tips and you’ll be on your way to jumpstarting your freelancing career without any serious mistakes or minor glitches happening along the way.