Working freelance
Being your own boss by working as a freelancer is becoming a necessity for many people especially when redundancy, or perhaps caring for a new baby or elderly relative, has curtailed a career you enjoyed. Many management professionals work freelance by becoming consultants in e.g. IT, HR, Project Management, Marketing, PR or Management Consultancy (this is covered more specifically in the Executive & managerial career resources section as is interim management). Many others work as freelance writers, journalists, illustrators, photographers, editors, musicians, drivers and designers.
Three things are really important whatever route you take as a freelancer
1. You do need to be really good at something i.e. have real expertise in an industry or a practical, creative or business discipline and have good interpersonal skills or you won't get any initial clients, repeat business or referrals. You need to be able to apply that expertise and knowledge in a setting other than your old company.
2. You have to be exceptionally good at selling and marketing - selling yourself, selling your ideas, selling your pricing, selling your methodologies. You may be good at what you do, but how are you going to get the work? Selling in this context is hard for newcomers especially if you have either no experience or you have only sold to a captive internal audience in your previous role. You have to have the courage to ask for the order, learn how to close sales and be comfortable networking and looking for business. If you have no idea what we're talking about, get yourself on a training course pronto so that you do, because you won't survive otherwise.
3. You have to be good at building relationships with clients and understand your accountability to them (i.e. what results are they looking for, and at what cost or deadline) or you won't get any business the first time, or any time after that.
- Besides setting up your own practice, you could consider joining an established business (or a number of businesses) as an Associate. You are self employed but work for them as a 'virtual employee' as and when they need you.
- You could become a portfolio worker where you work for a variety of companies concurrently. It means that you have several income streams, and client organisations still get access to expertise that perhaps they don't need, or can't afford, to employ on a full time basis, or beyond a specific event.
- You can become a freelance contractor. This has been a very popular route especially for IT or communications professionals. Essentially you work for, usually, one client or project at a time for the contract duration. You must be very careful of the Inland Revenue implications of IR35. The best place to go for all kinds of advice and services in this area is the Professional Contractors Group listed below.
- Freelancers often work as 'Associates' of other organisations. You will be self employed but work for them as a 'virtual employee' as and when they need you. Trainers and management consultants often register for work with several organisations as part of an informal network or bank of 'approved' providers.
Are you qualified?
- These days everyone seems to be obsessed with qualifications - how many, where from, are they dumbed down from 'my day'?
- It can work against mature workers who have lots of experience and have undergone company training which has not been 'recognised' by some authorising body that might not even have existed (or at least in the same form) when you started out.
- We all know that qualification or certification is no real guarantee that a person can do a decent job, nevertheless, you will need to start building up a series of signals which point to you being worth employing.
- If you are reading this before you need to leave your current job, consider looking at accredited training schemes to acquire the skills you need that you could begin before you set up.
Marketing yourself as a freelancer
- When marketing yourself then (which includes what you put on your business card) having a diploma, certificate, degree, an MBA, a post grad qualification or sporting the appropriate letters after your name of a trade association you are a member of, is vital.
- You have to be very careful which associations you register with, unless you have very deep pockets, but most do offer more than just a certificate.
- Local Business Networks are brilliant for picking up potential work contacts because they attract people from all types of businesses, entrepreneurs and academics.
- What you really want to evaluate each fee against is whether or not it gives you access to industry insights so you can keep up to date, networking opportunities and somewhere to market your CV or company services. If they throw in a magazine and a reasonably priced conference so much the better.
- Check out some of the other common sense marketing advice sites worth looking at in our section on Marketing and PR for your new business.
What do I need to get started?
To set up as a freelancer you will need as modest or as de-luxe a set of resources you want to fund depending on your chosen route but it may look something like this and run to a few thousand pounds depending on whether you are starting from scratch or not.
You'll find more tips in the setting up a home office section but this list works if you are actually running a business from home as opposed to creating a place where you work from home simply to save you from regular commuting to your employers site.
You can get most of what you need at PC World Business or try Laptops Direct.
You can get most of what you need at PC World Business or try Laptops Direct.
- A laptop, carrying case, printer (maybe an all-in-one copier, fax and scanner if necessary)
- Appropriate business software e.g. MS Office, Office for Mac, Sage etc.
- An internet account - preferably unlimited Broadband
- An email address (Hotmail accounts really aren't good enough)
- A web-site - a cheap but well executed DIY job or something fancier if you must, try 1and1.co.uk or, if you like this site, contact us for more information
- An appropriate vehicle for travelling to and from clients etc
- A home office space with a decent back supporting chair and filing space
- An office address but not necessarily real space (it may be your Accountant's address)
- A business bank account
- A business/professional library - check out your selections at the New Life Bookshop
- Business stationery - cards (your most important asset), some basic letterhead
- A simple logo/business identity - DIY or through an inexpensive local designer
- Basic office supplies - folders, plastic wallets, post its, pens, stamps etc
- An appointment system - paper diary or electronic
- A mobile and a landline with answer machine
- Professional Indemnity Insurance (usually at a discount through your Trade Association)
- A membership budget for networking and Trade Associations
- A marketing budget for any activities you deem necessary (try and blag as much free stuff as possible and use any free PR avenues you can)
- A core compendium of documents to market yourself - mini presentation, portfolio, client testimonials, press cuttings library, CV etc.
- A core compendium of documents/spreadsheets to manage expenses, invoices etc
- An allowance for your accounts, VAT returns, company registration etc to be done
- An allowance for trade memberships, any re-training etc
- An allowance to live on while you are waiting for your invoices to be paid (be very, very good at sending out and getting invoices paid!)
- You can get inexpensive business cards, letterhead and all kinds of other helpful stationery items here.
Other set-up considerations
- You may need to register with the Data Protection Registrar, for VAT, as a Limited Company and so on. Check out their sites in the directory at the bottom of this page, take advice from your Accountant or you could look at the Business Link site for more specific advice.
- Always start small and build up on the expense side. Use serviced offices if you need to, rent or lease equipment or whatever you need instead of buying so as to make your money go further. There are also many bargains to be had on sites like eBay.
How much should I charge?
- As far as fees go there are averages for each industry type. Go to your Trade Association for advice on freelance rates both regionally and for London (usually a vast difference) and be careful how much free stuff you do for clients.
- There may be a lot of players in your niche but don't be tempted to subsidise them if you can't afford it, or if they don't buy from you in a reasonable manner.
- You should always consider your down time when considering your fees, build in holiday, admin days, selling days etc.
Keep your knowledge and skill base current
Do make sure you have ways of keeping up with your industry sector - it's easy to get out of touch when you aren't part of a big company anymore. It is an investment in your attractiveness to clients so it shouldn't be an activity that you skimp on. The web is fantastic for this and lots of places will deliver free newsletters or RSS feeds to your electronic mail box.
Useful Freelance and Consulting Websites and Resources
Useful Freelance and Consulting Websites and Resources
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