Freelancing is a type of self-employment. Instead of being employed by a company, freelancers tend to work as self-employed, delivering their services on a contract or project basis. There are many different types of freelancers, but they tend to be knowledge workers who possess a high-level of skills and knowledge in a certain area, such as designers, writers, programmers, translators, project managers and so on. There is, however, another group of self-employed professionals that often get classed as ‘gig workers’ or ‘contractors.’ Self-employed handymen, cleaners, construction workers and drivers would fall into this category. The most distinct difference between freelancers and gig workers is that the former tends to rely on the internet to deliver their work.
How does freelancing work?
Setting up as a freelancer is a little bit like setting up your own business. While every country has its own laws and types of business structures available for freelancers, the key factors to consider remain the same regardless of where you live or work. So, are you really interested in freelancing?
Then here’s what to consider when setting up as a freelancer:
- Type of legal entity to work under. To start working as a freelancer (that is, officially), you’ll need to register your business with the local government. Keep in mind that the legal entity you choose (e.g. Sole Proprietorship, Limited Liability Company) will impact the amount of taxes you have to pay, your personal liability and the amount of paperwork required — not something that should be brushed aside carelessly!
- Paying taxes (invoicing, expenses, tax returns, etc.). Once you register your business, you’ll be legally required to file tax returns and pay taxes. Putting a robust invoicing and expense-tracking system in place from day one can prevent you from plunging into complete chaos at the end of the financial year.
- Choosing an insurance policy for freelancers. Even if you go freelance, you should be able to enjoy the same security and peace of mind that you get when working for a company. It’s worth thinking about paying for a special health, business or income insurance for freelancers to protect yourself from the unexpected
What are the advantages of being a freelancer?
With the number of freelancers on the rise year on year, many describe the decision to go freelance as life-changing. Here are a few of the commonly touted advantages to quitting the standard 9-to-5 job and becoming a freelancer.
What are the disadvantages of being a freelancer?
What do freelancers do when things don’t go as planned? That brings us to the challenges of running a freelance business. It’s important to be aware of some of the less favorable situations you could face if you decide to become a freelancer, so that you can prepare yourself and take the necessary steps to avoid anything dampening your freelance experience.
Courses for freelance:
1. The first course in the Building Your Freelancing Career specialization is focused on freelancers looking to define and solidify their philosophy, values and goals within their future business. Coursework will discuss the importance of understanding their competition and market position in a competitive business landscape, help them define what their unique value is, and how that relates to possible business approaches. classcentral.com
2. Building Your Freelancing Career specialization will help learners get their business plan ready to be public-facing and start finding work. The course will cover topics such as how to set boundaries with projects, how to build a public-facing portfolio and materials, and how to present one's work. classcentral.com(2)
3. Gain vital business skills to establish yourself as a professional freelancer. classcentral.com(3)
Books about Freelance:
- The Freelancer’s Bible: Everything You Need to Know to Have the Career of Your Dreams - On Your Terms by Sara Horowitz
- The 4-Hour Work Week by Tim Ferriss
- Creative Inc.: The Ultimate Guide to Running a Very Successful Freelance Business by Meg Mateo Ilasco and Joy Deangdeelert Cho
- Rework: Change the Way You Work Forever by David Heinemeier Hansson and Jason Fried
- My Creative (Side) Business by Monika Kanokova
- My So-Called Freelance Life: How to Survive and Thrive as a Creative Professional for Hire by Michelle Goodman