A freelancer is someone who works on a contract basis rather than as a permanent, direct-hire employee. Working as a freelancer may be the right choice for people who prefer to work with different clients and want a flexible schedule. In this article, we discuss the role of a freelancer, the benefits of being a freelancer and ten steps to becoming a successful freelancer.
What is a freelancer?
Freelancers work by the job, hour or day rather than working for one employer. They can take on contracts with companies or provide their services to individuals through online platforms. Regardless of the type of clients they work with, freelancers don't typically have a long-term commitment to any one particular employer.
A freelancer is different than an employee. When they work with companies, they are considered contractors and not employees. Freelancers also have different responsibilities than employees. They must manage their projects, set their work hours, bill their clients and pay self-employment taxes. Freelancers usually don't expect to have permanent clients, although they may develop an ongoing working relationship with some of their clients.
You can freelance in a wide variety of industries, from writing, graphic design and marketing to accounting, project management and teaching. Some freelancers choose a particular industry as their focus, while others may have a wider skill set in order to have more flexibility with their work.
READ MORE: What is Freelancing
Benefits of being a freelancer
Being a freelancer can present the following advantages:
A greater sense of independence: Freelancing often gives you greater control over your workload, as opposed to a full-time employee. You can decide which projects to accept, clients you want to work with and how much you want to be paid.
A more flexible schedule: You can decide where and when you work on your projects. You often have the opportunity to work from your home office and set your own hours. As long as you meet your deadlines, you can organize your schedule according to your preferences.
A potential for increased income: Since you can negotiate your pay rate per contract, it’s possible to attain an increase in salary more quickly than if you were a full-time employee and generally only able to secure annual raises. It’s also possible to take on freelance work while you still have a full-time job so you can earn extra income.
Easy to begin: You can begin freelancing with very few start-up costs, assuming you already have the necessary equipment and skills for your chosen field. Some people even quit a full-time job to work on a contract basis with the same company, just to get started.
How to work as a freelancer
Here are 10 steps you can take to become a successful freelancer:
1. Define your "why"
Every successful freelancer needs to start by defining their ultimate goal. Take some time to ask yourself why you want to become a freelancer. Whether it is to achieve a particular lifestyle or earn extra income, your "why" is what will keep you going when times are challenging.
2. Give yourself deadlines
Set a deadline for each of your milestone goals. For example, you should set a date for when you will select your niche, find your first client and quit your day job (if this is your intention). In general, since freelancers have to create and stick to their own schedules without any supervision, giving yourself strict deadlines can help you keep up with your responsibilities more effectively.
3. Find a profitable niche
4. Gather what you need to get started
Verify with your county or city whether you need to file any paperwork or attain any licenses or permits to work independently in your chosen field. You’ll also want to create a business plan that outlines your services, target demographic and marketing strategy. Then create a website and order business cards to advertise your services.
5. Set your income goal
Although it may take some time to reach a full-time income, it’s still important to set a financial goal. You can approach this by calculating three different amounts:
Basic necessities: This is the minimum amount of money you need to earn in order to pay for basics, such as food, rent and other necessities.
Leisure and hobbies: This is the amount you need to cover activities that you like to do outside of work, such as recreation, entertainment and hobbies.
Wish-list: This is the amount that would allow you to thrive, including money for vacations and wish-list purchases.
This exercise can help you figure out how much income you need to cover your living expenses and set milestones. When you reach a specific income level, you’ll know that you’re one step closer to your ultimate goal.
6. Keep your expenses lean
As a freelancer, you’ll have business expenses that you wouldn’t have as a full-time employee. For example, your laptop, smartphone, internet connection and any business services you pay for are considered expenses. Suppose you work from a dedicated home office. In that case, you can also count a portion of your utility costs and housing as business expenses.
It can help to make a list of already existing expenses to see which ones are necessary for your freelance activity. As your business grows, you will probably invest more and increase your costs. In the beginning, keep your costs lean and make sure you stay focused on the income level you need to achieve to meet basic financial obligations.
7. Find work
Indeed offers a convenient way to search for freelance jobs online. Simply go to Indeed Job Search and type “freelance” in front of the job title you are searching for, then enter your city or state and you’ll find a list of freelance opportunities near you. Indeed Advanced Search allows you to search by keywords, company, salary estimate and more. Plus, you can filter your results by the job posting date and remote positions, among many other options.
8. Build your network
Once you start working as a freelancer, contact everyone you know to tell them about your new business. Don't forget to mention that you are ready to start immediately and encourage them to forward your contact information to anyone who may need your services. By doing this, you introduce yourself as their go-to professional and start expanding your network.
9. Work on your brand
As a freelancer, take the time to polish your image and advertise your brand on different platforms. Your objective is to be easy to find and easy to remember through the use of a powerful digital brand.
In addition to creating a social media profile, consider spending time on forums that are devoted to your industry. Asking and answering questions can be an excellent way to get people interested in your activity. This is a very targeted approach where you can reach potential clients who are already on sites related to your type of work. Another advantage of online platforms is that you can meet more people than you would in person during the same amount of time. You can also leverage those online meetings into in-person meetings.
10. Find a mentor
Finding an experienced professional who can give you advice as you grow your freelance career can be enormously helpful. You can approach potential mentors with your business plan, website and marketing strategy to show them that you are serious in your determination to succeed.
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