Freelancing has developed into a progressively more popular career choice. Professionals either to this permanently as a career, or a way to stay employed in between jobs. When you decide to take freelance as a job, it is essential that you ensure you set yourself up in the appropriate way and that you have considered all practicalities that the job entails.
There are many benefits to becoming a freelance consultant, including increased flexibility and better work-life balance. If this something you are considering, in this article we will give you some tips to becoming a successful freelance consultant.
Start Saving
One of the greatest things you can do before you fully commit yourself to a new freelancing role is to save up enough money to pay for all of your bills as well as any unexpected emergencies that may occur. This is essential as it may take you some time to excel as a freelancer.
Giving yourself some financial buffer will allow you to focus on your job whilst reducing financial stresses caused by this big change in your life. Additionally, there may be months as a freelancer where you do not make as much money as you would wish, therefore being financially prepared beforehand is crucial.
Know What You Are Good At
You do not need any qualifications in order to start as a freelance consultant; however, qualifications and experience can have a significant impact on your business. Rather than advertising a range of skills in different areas, you should consider what specific skills you have to offer to other business owners.
If you do have a lot of knowledge skills and abilities, research the market and check what is not yet saturated. If you work in an industry with high demand where there are not many experts available, this will ensure that you flourish in the area as a freelance consultant.
Register Yourself
When working as a freelancer, it is crucial to remember that you have more responsibilities to manage. Firstly, you must be registered as a sole trader with the appropriate local authority. This is so that you can pay tax for the income that you make, which would not be deducted automatically.
Agreements Between You and the Client
Working as a freelancer, you must ensure that you have a system in place to document your work and agreement between you and the other party. The best way to achieve this is through contract documents, which guarantee the protection of your assets, an agreement of all the fees and costs that will have to be paid, and when payments are due. Contracts are a must in any professional relationship, and in the unfortunate case that you have entered a dispute with a client, with a contract you have the legal recourse to fight this.
Set Appropriate Fees
When working as a freelance consultant, the amount you charge will be entirely up to you. Although seemingly simple, this can be a tricky factor contributing to either your success or failure – if you charge too much, you may not get enough work and if you do not charge enough, you may start struggling financially. Set a range for the day rate you wish to charge. It is vital not to be too rigid with a precise rate, and should consider remaining flexible, where appropriate.
Before you decide on your fees, conduct some research to check what other similar businesses in your area usually charge for their services. This will give you an idea of how much you should charge and you can always adjust the price accordingly. Do not be tempted to use your previous salary to calculate how much your rate should be, as you will have additional costs to pay for as a freelance consultant.
Invest in Insurance
Freelance consultants are not legally obliged to have insurance in place. However, this may be something that you want to consider in order to protect yourself and your business. Professional insurance protects you against potential errors in your work, while public liability covers you if you unintentionally impair someone else’s property or cause personal injury.
There are expert insurance providers that specifically cater for freelancers that are able to give you the appropriate advice on this subject. Insurance is a factor that you must take into consideration when devising your fees, as you will have to ensure the money you charge also covers this.
Succeeding as a freelance consultant can be challenging and, as mentioned above, it can take some time before you start seeing the positive results. Do not lose motivation if your first project does not go well as things are likely to improve in the future, as long as you stay focused and more knowledgeable in the freelancing field.