Are you planning to embark on the journey of freelancing and leaving your full time job?
If YES, read this article to know how you can make a smooth transition and what all planning and preparations you need.
Making The Leap to Freelancing
Starting a freelance journey means sailing into the vast ocean of opportunities. This journey gives you the freedom to be the captain of your destination. In freelancing, it’s you who will handle everything right from choosing clients, finalizing projects, completing the deadlines, or invoicing them. However, making a leap from full time to freelance is a huge transition and you need to know a lot about this adventurous move.
In freelancing, every challenge that you come across brings with it immense opportunities to build your portfolio. With every passing success, you set a new milestone for yourself. But leaving a full time job and freelance completely needs lots of planning. And that’s why here are some questions to ask before freelancing
When should I start?
How should I start?
Would it be a safe decision?
Full time vs. freelance; which is better
And many more.
So, let’s know what you need to do when you start from scratch.
Assessing Your Readiness for Freelancing
Why does freelancing attract you?
Most of you would answer because of its freedom and flexibility. But have you assessed your readiness for the job?
Before you start you need to evaluate your skills and experience required in a competitive service. Also, you must know freelancing does not give you instant money. Ensure your financial stability before leaving your full time job.
Freelancing demands self-motivation and discipline. Unlike full time office jobs, you will not have people around you to share thoughts and emotions. You will have to handle your emotional ups and downs on your own. You will have to be disciplined and prepare your own schedule, find clients, and understand business basics, taxes, legal requirements and ways to market your brand.
If you are ready to adapt to all these changes and feel prepared for the uncertainties of freelancing, you are probably ready. If NOT, think over it again.
Setting Up Your Freelance Business
When you are setting up your business, make sure that you make the necessary registrations, understand tax liabilities, and ensure legal compliance before starting the business.
Firstly, define your service clearly and accordingly target your potential market. Create a professional portfolio, and once you have it with you, get an employee identification number to register yourself as a taxpayer.
Determine the legal structure of your business; whether it will be sole proprietorship or LLC. Accordingly register your business name. Once you make all these preparations, create a marketing strategy, set up your rates, plan your finances, look for clients and stay updated with the industry skills and trends.
Financial Planning for The Transition
As we already said above, freelancing does not bring income instantly. It takes time and meanwhile you need to run your finances with your savings. So, before you start freelancing, plan your finances ahead.
- First of all, you must evaluate how this transition will affect you financially. Do you have enough savings to survive without pay for the next six months? If not, think before you start. As freelancing is unpredictable, you must make sure that you can manage your expenses for the time being.
- If you have any subscriptions and services that you may no longer need, try to close them as soon as possible.
- As a freelancer, you will have to pay your taxes on a quarterly basis. So, adjust your tax planning accordingly.
- Look for health insurance plans for freelancers and start saving some money for your retirement plans, too.
- Before you move ahead, make a business plan ready with the right pricing strategy.
- When you will crack a deal with any client, you will have to sign some contracts and agreements. So, plan ahead and meet a legal professional to understand your roles and responsibilities in this regard.
- Look for options for invoicing clients. You can take help of Ruul’s global invoicing solutions for easy and quick clearance of payments.
- Lastly, try to save some money so that you can refine your skills to stay competitive in the market.
Building A Freelance Portfolio and Client Base
The very first thing that you need for freelancing is a well-designed portfolio. Until and unless you have that you can’t explain how you are helpful to your clients and how you can meet their demands. While creating the portfolio, make sure to add a self-introduction page. This page will have all the information regarding your skills, expertise and knowledge.
Further, research the market and contact other freelancers to know the current pricing in your field. Set your rates accordingly, if your finances allow, try to offer discounted rates as you begin. Also, make sure that you have added your contact information. Without accurate contact info, your potential clients may fail to contact you.
A portfolio definitely helps you build a client base gradually, however, initially you need to widen your network as well. Sign up for different freelancers' websites and if possible visit industry events. This will help you widen your network. Also, upload your work on social media platforms like Facebook, Instagram and Linkedin as it again helps you connect with potential clients.
Tips For Smooth Transition
Thinking of going freelance full time needs you to adopt the right strategies. Here are some tips that will help you in a smooth transition from full time to freelance
- Start taking small projects when you are still in your full time employment. This will help you create a client base and portfolio before you start full-fledged.
- Do thorough market research to identify your niche and target group. Accordingly, market your skills and services.
- Do connect on every possible platform to connect with freelancers and potential clients.
- Set your goals clearly and focus on them. Why did you choose freelancing; for lifestyle, income or skills? Whatever it is, maintain a goal and work for that.
- Learn time management as you need a structured schedule to give time for business development, client work and personal affairs.
Conclusion
Freelancing is not just a business, it’s a complete way of living. Besides freedom and flexibility, you need to be self-disciplined and have resilience. A proper financial planning, right strategy and a proactive approach can help you understand this landscape and let you make informed decisions.
