Steps to Transition from Employee to Freelancer

After years of experience in your chosen field as an employee, you may want more freedom as an independent contractor who sets his own hours, creates his own client base and has a higher annual salary than when you worked for a company. Take some time to consider your options before you make the leap from employee to freelancer with your personal brand.

An independent contractor has to find his own work on his own terms. As an employee, you had a steady stream of work that came into the company. Your boss kept you busy, you received paychecks every two weeks and your job featured constant work. Self-employment means you must be a go-getter and a self-starter since you must find your own clients and figure out how to get paid regularly.

Recognize that going from employee to freelancer involves a transition and a process. You cannot wake up one morning and decide to quit without a contingency plan in place. Gradually move from a worker to an independent contractor until you have enough clients to make up for lost income from quitting your job. That means you may work a lot of long hours between two commitments, but at least you have a safety net in case you change your mind.

Create a one-page business plan that outlines what services you offer and how you handle the business. Ask yourself, and answer, several questions as you move to freelance options. What services do you offer? What makes your business unique from others in your field? Who represents your customer base? How much money do you need to make to sustain your current lifestyle? What rates should you set? All of these questions need practical, realistic answers before you move forward as an independent contractor.

Present yourself and your personal brand as much as possible. Tout yourself as a good freelancer while maintaining your employee status by using adjectives that someone looking for a job would need. Promote your work as someone who meets deadlines, creates high-quality work and puts the customer first.

Buy an online website separate from your employment so you can contact potential clients. Be careful about separating your employment from your independent contractor work. Some companies have non-compete clauses that forbid you, by law, from taking away business thanks to insider knowledge. Taking customers away from your employer lets your clients know you may not value the privacy of your customers as you move forward. If you violated privacy once, clients may feel that presents a liability with your contract work.

Be prepared for a change in your work-life balance, especially if you decide to work from home. Even though you have a home office, your spouse and kids may interrupt you. Delineate times and spaces for your family while you have your computer, smartphone and Internet connection ready for your clients at a moment's notice. Remind your children that even though you work at home, you still need space to perform work-like tasks throughout the day.

As an independent contractor, you have the freedom to work how and when you want. Although the transition may be scary, once you have some experience on your own, things should get better as you get used to the new paradigm.

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