Starting to Freelance: How to Prepare Financially
Freelancing an excellent way to take control of your career.
11:00 22 October 2020
These days, there are more options out there than ever before, thanks to the rise of the internet, and the number of new companies looking for remote and distance workers. If you have a skill that you can share over the web, then you’re sure to find someone who’s willing to employ you. The only problem is that with a freelance career, you’re never guaranteed an income. The only way you can ensure that you’re going to be able to keep paying your bills, is to constantly seek out new clients and customers who want your services. Even if you’re excellent at what you do, there’s always a chance that you’re going to have dry periods in your work, where you’re not earning much. So, how do you prepare?
Start with a Plan
The first thing you need if you’re thinking of becoming a freelancer, is a solid plan. Sit down and ask yourself how much demand there is for the service that you’re going to offer, and how much you can reasonably earn from the job. Researching your competition online and finding out what they charge is a good way to get started here. Remember, if you’re new to your industry, you might have to charge a little less than some of the better-known competitors in your space until you’ve made a name for yourself.
Your research should tell you how many clients you need to earn, and how many hours you should work each week to make a solid income. During your research, remember that you’re just looking for how much work you need to pay for the absolute essentials in your life. If you don’t have a budget yet, look at your monthly spending and see what you can remove to cut yourself down to the absolute basics. This way, you’ll know how much work you need to survive.
Prepare for the Dry Periods
Speak to most freelance professionals and they’ll tell you that their work often moves through periods of feast and famine. One month, they’ll have more clients than they can handle, and the next they’ll have none. Over time, you can reduce your risk of suffering from this problem by building up a repeat client base. However, at first, it’s important to prepare for the famine periods. In the long-term, you’ll be able to take the extra cash you make during your feast months and put it into an emergency savings wallet for the tougher times in your career.
However, when you’re first getting started, you might need to consider alternative funding options, such as a payday loan that you can pay back when you know your clients are going to start needing you again. Another option could be to ask your friends and family for help – although this might not be possible for people whose families don’t have much spare cash. The important thing to remember is that no matter what happens as you enter your new freelance lifestyle; you’ll find your rhythm eventually. This life is a great choice for a lot of people – but it’s not always easy.