Are You Enamored with the Freedom of Freelancing?
One of the most common—and biggest—mistakes people make as they jump into freelancing is that the emphasis is on freedom—freedom from a time card and clock, freedom to choose clients and projects, and freedom to choose the work environment and hours. While those are terrific benefits of successful freelancing, the freedom of freelancing is a motivation, not the focus that will elevate a new freelancer into the stratospheric status of a successful freelancer.
Regardless of your industry, abilities and goals, your outlook should be that you are starting a small business. That your business is freelancing is a coincidence. Approaching your freelance enterprise with a lackadaisical attitude that has you mentally frolicking across a meadow amidst wildflowers and butterflies, singing, “I’m free! I’m free!” will have you soon trudging back to job interviews right after your bankruptcy hearing.
Approach freelancing as a business, for that is exactly what it is. You are a small business owner, and you should prepare yourself, educate yourself, and sell your wares exactly like the business you are.
Before you hang out your shingle, though, are you both willing and able to run a small business AND produce, manage and sell your wares that will hopefully pay your bills? Do you know about the laws and ordinances regarding businesses in your area? Are you able to don every business hat needed, such as Operations Manager, Chief Financial Officer, sales representative, advertising department and the mail clerk?
If not, you will have to hire people or firms to handle that for you, adding to your start-up and operations costs.
If you know enough to continue your planning, do you have your business license yet? Yes, a business license: The IRS doesn’t consider your endeavor actually business-oriented until you are a business. Otherwise, it’s just a hobby, and you can wave goodbye to all those legitimate business-expense tax deductions. As a business, any training aids, courses, references and even equipment you purchase with the sole use for the business can be legitimately a business expense—including the cost of the business license!
How will you fund your business? If you already own the tools and equipment you will need, including the office supplies, file storage and more, your start-up expenses are reduced, but you still have to do more than put a sign up on the front lawn and email all your friends. How will you advertise both on the Internet and in the terrestrial world? What are the advantages and disadvantages? How will know know if your advertising is effective, and how will you track adjustments and results? Trial-and-error is fine when you aren’t trying to run a business, but your efforts must be more focused, effective and cost-effective than a happenstance occasion.
If you truly desire to cut the employer umbilical cord in search of having clients instead, you are certainly entitled. However, while you still have the security of some sort of reliable paycheck, learn everything you can about marketing and advertising, gain a working knowledge of business finance and tax requirements and above all, network, network, network: The Internet is a ready source of expert advice, legitimate hints, tips and low-cost courses. Take advantage of every one you can find. Then start small while keeping that day job. Only when you can easily replace the entire employer-based income with client-based, freelance income might you consider cutting yourself loose and be free from a J-O-B.
About the author
The author of this article is Holly Miller of Coupon Croc. Whether you're freelancing from home, or starting a business, use Littlewoods discount codes and save on everything from home office furniture, to the latest electronics.