Dreaming Of Going Freelance? What’s Holding You Back?
Many people dream of going freelance, but are reluctant to take the plunge.
Being employed is generally more predictable, because you get paid on a set pay schedule and you may be entitled vacation pay and benefits. On the other hand, working as a freelancer offers more risk and higher potential rewards. While you don’t earn a paycheck and don’t receive company benefits, you have the potential to make far more money.
You may reach a point in your career when your skills are in high demand by other companies. If you’ve developed a skill set that is valued in the marketplace, you may be able to create your own customer base as a freelancer.
If you are in a work position you don’t like and you have the skills to go freelance, what’s stopping you? Consider the reasons why people worry about going into freelance and how to address those concerns.
What If You’re Unsure?
The Internet allows you to find plenty of free resources to guide you through the freelancer process. Some professions (lawyers, architects, accountants) require you to register with a regulatory body before you start working on your own. You should also meet with an insurance agent to identify any professional insurance needs, such as errors and omission insurance. Finally, get help from other professionals who can provide tech support, marketing, and advertising services.
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There are other aspects to running a business, including keeping accurate records. To save time and ensure that your tax reporting is correct, consider outsourcing your payroll processing. A company that can assist as a Pay stub generator can help you meet tax filing deadlines.
Is Failure a Concern?
Starting your own business as a freelancer is not without risk, but if you don’t try, you’ll never know. Research the market to determine the need for your particular skill set, the amounts you can charge as a freelancer, and how you can develop a customer base.
The most effective way to research the possibility of freelancing is to create a formal business plan. Use the data you collect on pricing and the size of your customer market to document how you’ll find business, and how much you can potentially charge for the first 6 to 12 months.
Ensure that you’re suitably qualified and take steps to complete training courses if you’re not. You don’t have to go freelance tomorrow, but you can enhance your skills so that you can consider a freelance career down the road.
Part-Time Freelancing: Critical Decisions
If you have financial and family commitments, taking the plunge to go freelance can seem like a huge risk. You still need to pay your bills and meet your financial commitments. If giving up your current job is too much of a risk, consider taking on freelance work in your spare time. As time progresses, you may be able to go part time and take on more clients, in the hope that eventually you have enough work to be completely freelance.
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Financially Uncertain Times
It’s understandable in today’s uncertain financial climate that people want to hang onto the security of a full-time job. The predictability of being an employee may seem like a more attractive option. However, freelancing is a growing option that thousands of people choose each year. Many large companies are reluctant to take on more staff (and the costs associated) and would prefer to use freelancers.
With careful consideration, going freelance can be a lucrative option.
This post is for educational purposes only.
Ken Boyd
Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies
Co-Founder: accountinged.com
(email) ken@stltest.net
(website and blog) https://www.accountingaccidentally.com/
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