The freedom to pick and choose how, when and where you work are some of the big advantages of becoming a freelancer, and it can be tempting to jump right into the world of self-employment for these very reasons.
However, if you’re not fully prepared for the implications of freelancing, you could be surprised by many of the challenges which come with working for yourself. Consider whether you are ready to give up the day job by asking yourself the following five questions:
1. Do you have a portfolio of work?
No matter how much experience you have, clients will always want to look at examples of your previous work to see if you’re right for them. If you don’t have a portfolio yet, be sure to prepare one and publish it on your website – or at least build up your LinkedIn profile.
You could offer your services to friends or family for free or create your own projects. For example, those wishing to become a self-employed writer can create a blog to showcase their skills – and a budding freelance software developer could build an app or freely downloadable software.
2. Do you know how to pitch work?
Depending on the nature of your freelance work, you may be required to pitch your services to clients face-to-face, over the phone or via email. You should have a well-rehearsed and persuasive pitch and be confident in your ability to sell your service, as well as yourself. If you struggle to pitch your work you might struggle to find clients.
A successful pitch should explain exactly why you’re right for the job, bringing in prior experience and areas of expertise that are relevant to the client or job in front of you. Practise pitching to friends and family members first, and be sure to get your website copy right down to the[a2] last detail before using it as a basis for your pitch.
3. Could you offer competitive rates?
Figuring out what you will charge for your freelance services is incredibly important but also pretty tough. You’ll want to earn enough to make your work worthwhile and to pay your basic monthly bills, whilst offering value for money to your client. You’ll also want to position your prices in line with your competitors in order to make your service appealing.
Many freelancers provide quotes to their clients on a project-by-project basis, so you can assess every request that comes in and tailor your prices in accordance with the amount of time required to complete the job. But it’s always a good idea to also have a basic hourly and daily rate in mind, as some clients prefer to work on this basis.
Remember that you need to offer clients value for money. Let’s say you’re a graphic designer who takes 10 hours to produce a logo. If you want to work at a rate of £40 per hour, you may quote a client £400 to create a logo design. If that same client has received a quote of £300 for the very same job from another freelancer, your pricing won’t seem like value for money. Will you be able to explain to your client why your pricing is higher, and what added value they’ll receive from paying you more? Perhaps it will be of superior quality, turned around faster or you’ll be able to provide the logo in multiple formats. Whatever your USP, be sure that you remain an appealing choice to potential clients by ensuring that you offer value for money.
4. Are you financially prepared?
The biggest downside to working as a freelancer is the lack of a reliable monthly income, which is very daunting when you have regular monthly expenses to pay such as rent, mortgage or utility bills.
Depending on the industry you work in, it may be possible to find clients who can provide you with work on a consistent enough basis that you can maintain a steady stream of income, but it is not a guaranteed wage. You also have to consider scenarios such as late payments from clients or unforeseen business expenses.
To ensure that you can stay afloat at times where business is slow or invoice payment is delayed, you should have some savings behind you. Aim to save three to six months’ worth of income before you quit the day job and go freelance, as this should give you a good safety net for those tougher times.
5. Could you successfully maintain professional client relationships?
One of the trickiest things about working as a freelancer is developing successful relationships with clients. Your clients pay your wages so they are the closest thing to a boss, but remember that you are running a business and do not rely too much on repeat business or view them like an employer.
You also need to make sure that you’re paid fully and on-time. No matter how pleasant and reliable a client may be, you should ensure that contractual terms are agreed in writing in advance of starting any work to avoid misunderstandings further down the line. The idea of drawing up legal contracts, invoices and terms and conditions may seem daunting to new freelancers, but putting these in place can help to secure the success of your fledgling business.