Thinking about freelancing? Here are the answer to some of the question I get asked most often.
The job market has been tough over the last few years. If you have found yourself unemployed, under-employed or just working a part time job while you continue to look for the job of your dreams, you may have thought about doing some freelance or consulting work. And, you wouldn't be alone. In fact, freelancing is becoming a very popular way for companies to get work done without having to take on the financial cost of retaining a full time employee.
If you are considering consulting or freelancing, you probably have a lot of questions to answer before you can even begin to decide what is the best option for you. If you have never worked for yourself, the prospect can be scary. So, here are a list of questions I get asked often by people who are thinking about freelancing, and they are the questions you should be asking yourself before you make a decision.
Here are some questions to get you started:
- How much time do you have to devote to your freelance career? - If you work a full-time job, you may not have a whole lot of time left over to spend on other projects. Take a realistic look at your calendar so that you can decide what sort of projects you would be willing to take on. The worst thing you can do is be overly optimistic about your schedule, accept a job and not be able to deliver. If time is a big concern, start small and work up to larger, more time consuming projects.
- How do you find business? - Depending on the services you plan to offer and the type of work you do, how you would go about finding business can vary. One thing that stays the same is that your professional network is going to be the best resource. From previous employers, past competitors, non-profit organizations to past colleagues. There are also many places online where freelancers can look for gigs.
- How much should you charge? - That really depends. A good rule is to take the amount that you would be paid if you were an employee and raise it by 100 – 125 percent. On the surface, that amount seems outrageous, but when you think about it, there are many expenses that an employer subsidizes. For example, office equipment, office space, internet access, software, insurance etc that you will now be responsible for. For most companies, the price of having an employee is much higher than the salary they pay, so when you look at it from that perspective, it makes more sense. Keep in mind that you can always negotiate lower or offer a discount but negotiating for a higher amount after the fact is next to impossible.
- What kind of contract should you accept? - The main thing is that you never want to sign a contract that will limit your ability to do business. Most companies would never ask you to sign away your right to work as a freelancer with whomever you choose, but read over any contract before you sign it. If you have questions or concerns about it, be sure to consult with an attorney.
- Do you have to file taxes on your income? - Absolutely. Just like any other business, you have to file taxes. It's a good idea to ask an accountant about whether you should file quarterly or just once a year.
Freelancing can be a lot of hard work but it can also be very rewarding. If you decide to go that route, keep in mind that your work is your business and everything you do is building your business. So, don't accept less than what you deserve, unless there is some other benefit. And, don't sign anything that would prevent you from taking on additional clients or working in certain fields.
Have you ever done consulting work or worked as a freelancer? What do you think are the keys to success? Let me know in the comments.
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By Melissa Kennedy- Melissa is a 9 year blog veteran and a freelance writer for FinancialJobBank. Along with helping others find the job of their dreams, she enjoys computer geekery, raising a teenager, supporting her local library, writing about herself in the third person and working on her next novel.
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