How to prepare for going full time freelance
Posted on Friday 21st March, 2008 by James Young | No comments yet
If you’re reading this blog and in particular this entry, it is hopefully because you’re currently working full time but considering switching to freelancing full time.
I’m now well into my second year of freelancing and have in the most part, learned as I’ve gone along. The work aspect itself is by far the easiest part of being a freelancer, it’s all the other things you need to know that were taken care of for you while you were working that you’ll now be doing for yourself.
Prepare before you leave your job!
If you’ve reached the point where you think freelancing is for you and you’re willing to commit to quitting your day job, it’s worth planning a little in advance before you hand in your notice.
If you’re lucky enough to be leaving a full time job and are taking a client with you, then the remainder of this post isn’t really for you. If however, like most people, you’re planning on leaving with no clients - read on.
The main problem new freelancers run into is a lack of cashflow in their first year and often they find themselves back in full time employment before too long. It’s difficult enough winning new clients and contracts when you’ve got some money in the bank, it’s even harder when the pressure is on and you’ve got no savings to fall back on.
When you’re preparing for your jump to freelancing I’d recommend you consider delaying the decision to hand in your notice for another couple of months (if you can) and spend that time trying to save up as much money as you possibly can. The best way to achieve this is to start freelancing on the side in the evening or at the weekend. It’ll give you an idea of how hard it is working directly for the people who will ultimately be paying your wages in the future and it’ll generate a little extra income which you should be saving for the lean months ahead.
You’ll appreciate the effort you’ve made to save your money when you make the switch because you’ll find many companies won’t pay you on time, they won’t be beating a path to your door because you’ve made the jump to freelance and you’ll start to panic once you’re eating into your savings because work hasn’t come in like you’ve planned and clients won’t pay you on time. Being able to save the equivalent of 3 months of your full time wage would be a great fallback. It’s not a lot but once you consider that you’ll probably be working from home you’ll save money on travel, lunches, those trips into the town at lunchtime where you end up shopping and much more. That money you’ve saved will go a lot further than you think.
Building a freelance brand and presence
While you’re busy preparing to switch to freelance by saving your money, also be aware that when you leave the comfort of an agency you’ll have very little reputation in your area and you should be spending time thinking about making connections and networking with potential clients to get work in so you can hit the ground running.
You’ll need to register yourself as self-employed with the Inland Revenue (this is based on working in the UK) so you can pay your taxes. You’ll need to build a brand for yourself. If this is going to be a website then you’ll need to show off some portfolio work. It’s difficult if you’ve only got work you’ve done while working for an agency as most agencies won’t let you show this as work you’ve done even if you’re clear about the circumstances in which you’ve done it.
This is more than reasonable so my earlier suggestion of freelancing on the side before leaving your job will give you both money and a portfolio you can show as work you’ve done on your own.
Now you’re leaving
So, you’ve saved some money up and built a small portfolio. Well done. That’s the first step.
Now the day is coming where you’re finally leaving your job. It’s the last time you’ll have the security of a monthly pay cheque but don’t worry, it’s also the first time you’ll be in total control of what you’re doing with your life so it does have its benefits!
Make sure that wherever possible you never burn your bridges with your current employer. They can always be a good source of future work and if you’re in a position to, it’s good to leave on good terms and ask about the possibility of them giving you any overflow work they can’t handle. It can be a good source of work for you and even if it’s not something that you can rely on immediately, you never know in the future when they might get in touch. Freelancing is all about making a big contact list!
Hit the ground running
You’ve got some savings, you’ve got a small portfolio ready to show potential clients - now make sure you’re ready to work from day one!
Most designers and developers usually have a home machine that is set up in a similar manner to the one they work on in an office but be sure you’re set up to test all your work, that you can develop in your new home office, that you’ve got some letter heads and business cards ready to give out to anyone you meet.
There’s no point spending your first few weeks freelancing working on your own brand. This should be ready to go and on your first day there’s no value in turning down a client because your computer isn’t set up/your freelance contracts are ready to send to them/etc. You should be in a position (having hopefully been freelancing on the side for a bit) to take on a paying client from day one.
Contracts, billing and account management
This is all up to you now. I’ve written another post on this blog which called “useful resources for freelance designers” which has a sample contract and scope document you’re welcome to download and use. Be sure that every client you sign up is under contract.
Good luck, don’t be afraid to try a new direction in your career but don’t underestimate how much effort and work you’re going to have to put in!