Starting to Become a Freelancer
You may have decided to turn your hobby into a job. It could be that you simply want to earn some extra money. It may seem freeing to work for yourself, instead of an employer. But starting a business does need thinking about carefully. This article gives you some pointers of things to consider.
Plan Carefully
It is not advisable to hastily hand in your notice, without thinking things through carefully about whether your business idea will generate enough income for you to live on and thrive.
Consider you freelance business idea realistically as to whether it will generate the funds you need to live, to pay bills, eat, and for all your current expenditure. Look at your competitors of people who are running similar businesses, to ensure that it is a big enough chunk of the market to target with your products or services. Think carefully about whether you have the skills for the role.
Work Hard
When you do not have set times to start and end work, it can be easy to take advantage of this and lay in longer in the mornings or go for coffees with family or friends. But, if you are spending too much time doing this, you will not be generating income. You will simply be unemployed! You do need to get beneficial use out of your day and work effectively. You will find an excellent work routine that works for you. It is also important not to go too far the other way and remember that you do need a work-life balance too, and not out of fear, work every hour in the day and neglect family or friendships or your own health.
Build a Portfolio
When you work freelance, the best way to show what you are capable of, to gain new customers, can often be to show them the work you have done previously. If you create a portfolio of examples of work you do, as you go along, you have this to draw upon to show as examples.
Register and Submit Tax Statement to HMRC
It is important that you pay tax on any earnings above £1,000 in a tax year. It is a good plan to register with HMRC once you start freelancing, and as a rule of thumb if you can start to put one-third of money earned aside for tax, this will help you to manage your tax-bill.
Good Communication Skills
It is advisable to reply to customer queries as soon as possible, and keep your customers updated with how work is progressing to keep everyone in the loop. If you can network, it can be invaluable to build up connections and opportunities. It can also make freelancing less isolating, compared to collaborating with a team of employees in a regular job.
Payments
Ensure that what you are being paid is competitive, but fair for the time that the work takes. You need to ensure that you can financially survive on the income your freelance work generates. It does not benefit you (or other freelancers working in the area) to have your rates too cheap, because this would suggest you do not place value on the work that you do. If a client has not paid you for work done, then this does need chasing up. To avoid this, you may sometimes be able to work with an escrow system, or by putting in place a contract for work.
DBS Checks
If you will be working with children or vulnerable adults, then it is best to apply for a DBS Check to show to future people hiring you for work, that you are safe to work with these people. If you are self-employed, you can only apply for a Basic DBS; but if you are working via an organisation, they will be able to apply for a Standard or Enhanced DBS (with Barred Lists) on your behalf.
There is a lot to think about before becoming a freelance worker, it can be one of the best decisions you have ever made, but it can also be extremely challenging work and stressful guaranteeing you have a regular pipeline of work.
