Working as an independent professional, consultant, gig worker or freelancer is an attractive option for some people. It can offer a greater degree of independence, autonomy, flexibility, and work-life balance.
While some independent professionals are inclined to jump right in and start doing the work they’re passionate about, early planning can help prevent challenges later.
Starting out
Here are some things to think about when you’re considering going freelance or starting your own business.
Know what you do well and where you may need advice or support. Leverage the experience of colleagues and online learning opportunities.
Find your purpose and why you’re doing what you do. This can help with decision making and prioritizing work.
Be clear on what you’re “selling” – how is it of value to others?
Identify income streams and potential clients. Be clear about the kinds of clients you want to work with and plan to pursue.
Research the feasibility and typical price structure of your business idea, and create a budget.
Avoid charging too little because of imposter syndrome, as it may be difficult to raise prices later.
Consider best- and worst-case scenarios and how you can prevent or manage them.
Learn how to reach your potential clients effectively – like advertising, email, cold calls, networking and social media.
Consider networking virtually, such as with LinkedIn, or through associations or meetups.
Create and update a list of providers for services such as software subscriptions, tech repair, transportation, website updates and printing.
Take the time to create the best environment for you. Consider:
- A comfortable and ergonomic workstation
- Silence or pleasant background sounds like music
- Good lighting
- Exposure to nature
- Comfortable temperature
- Minimal distractions
- Access to water and nourishment.
- When possible, work in a different space from time to time for a change of scenery. Even moving to a different room in your home or to a café can provide you with a fresh perspective.
Managing money and regulations
Knowing how to navigate the financial and regulatory side of working for yourself is a great idea when you’re starting out. Here are a few things you might want to keep in mind:
Know how to register your business with the government, such as applying for tax numbers.
Don’t avoid or delay compliance with regulations or professional or reporting requirements, such as taxes and business licences.
Seek advice from professionals such as lawyers and accountants early on in your career and take advantage of free guidance from banking, accounting, and legal associations.
Begin saving money from day one, even if it’s just a small amount each week. Having some funds set aside can help create a safety net and help reduce anxiety and overwhelm.
Know what you can write off and keep all receipts and your travel log in one place.
Know and budget for what you want or will need, like:
- Personal development courses
- Technology
- Promotional items
- Advertising
- Office materials and supplies
- Don’t avoid or deny cash flow issues, no matter how much you dislike this part of your work. Force yourself to review your income and expenses monthly, and do regular cash forecasts.
Know what resources are available for a business like yours, such as funding, corporate sponsorship, donations, grants, discounts and memberships.
Consider saving yourself time and stress by using services or software that streamline processes. These can include newsletter management, virtual assistants, social media specialists, bookkeepers, web programmers, and – to help with work-life balance – house cleaners, grocery delivery and others.