Things to consider before becoming a freelancer

When we hear the word 'freelancing' we often think of the freedom associated with it. Part of it is true.

As a freelancer, you get to choose when you want to start work. You're also not confined to office spaces and are free to choose your own working environment.

On the flip side, freelancing can be quite a daunting task especially if you're the industry newcomer. The word 'hustle' will be an everyday occurrence as you battle for the daily bread so to speak.

Here are some of the things you should take note before taking the jump into the freelancing business.

Build your network beforehand

Nobody makes it on their own and this why it is important to have a support group or network that you can depend on.

This could mean having business mentors to having friends will specific skills such as legal or accountancy.

Once in a while, you will find yourself in situations where you need help from these people. Without their skills, you may end up having a bottleneck for your business which could cause unnecessary delays for your business.

Additionally, a larger network and group of contacts means that there are more opportunities for your freelancing business.

Prepare for financial adjustments

Freelancing means taking the step to run your own business and when you run a business, you expose yourself to a higher level of financial risk compared to the average employed person.

Not only will you need to think about ways to be thrifty in spending, you also need to consider the fact that financial institutions may not be as willing to lend credit.

Unless you have trusted friends or family members that can lend you money, then all you have is your own savings.

Most financial planners will tell you to save at least six months of what you were earning when you were employed but more is always better.

Learn to structure your fees accordingly

Its about finding the line that's acceptable for both you and your clients. By getting this right, you will help make your business more sustainable.

If you consider your customers as your bosses then you must be aware of the not-so-pretty-side of running your business.

It sometimes means working late nights or working on holidays to meet the clients' deadline but the bottom line to this is that all the extra hours must add to something.

Whether it is putting in extra charges or getting a contra deal as payment for the service, make sure that it counts for your business.

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