Becoming a freelancer takes a lot of hard work and perseverance, but for those who have the right attitude and approach, it is a hugely rewarding career path full of benefits that can’t be replicated while working for someone else.
Freelancing in many forms is becoming an increasingly popular industry to be in and with the ease of working from anywhere in the world, providing that you have the necessities to make it a success, it’s a path that many people are starting to go down.
While working from a beach on a sun lounger, or from your sofa in your underwear seems incredibly appealing to many people, it’s not quite as easy as it sounds to get started and there are a few things you need to know first before you dive straight in.
Check out the step-by-step guide below on becoming a freelancer.
Think About Your ‘Why’
Your first point of call when becoming a freelancer is to think about exactly why you want to do it. Is it so you can work from home and spend more time with your children? Is it so you have the flexibility to travel and work online at the same time? Perhaps you were almost forced into self-employment after being let go from your previous job and you want to have a go at starting your own business?
Whatever your ‘why’ is, make sure you’re entering into freelance life knowing the pros and cons of the decision you’re making, as well as acknowledging that it’s not quite as easy as sitting at a laptop for 3 hours a day making millions while you enjoy sunshine and cocktails the rest of the time.
Decide on Your Business’ Name
The next step is to decide on your business’ name. Whatever area of freelancing you plan on going into, you need to ensure that your business’ name accurately reflects what you do and that it’s something that people will recognise and hopefully eventually grow to love.
It goes without saying, but you also need to ensure your business name isn’t offensive, rude or insensitive and that it makes you and your company come across as professional.
Set Up Your Company
Now on to the fun stuff; the process of setting up your business!
This will involve a plethora of different steps, but you can expect to have to set up a website and social media pages for your business, as well as registering it with Companies House (or whichever platform is relevant in your country).
You may also need to register as self-employed with HMRC so that you can be held accountable to pay the correct income tax and National Insurance. If you’re setting up your freelancing business as a limited company, then you’ll have to register with HMRC so that you’re eligible to pay Corporation Tax.
If you plan on having a physical office space, you’ll also need to finalise all the agreements and arrangements for that as well.
Set Up a Business Bank Account
Setting up a business bank account is about as fun as it sounds, but it’s an important step to take when becoming a freelancer. In order to keep all your payments, invoices, incomings and outgoings in order, you’ll need a separate business bank account from your personal one so that you can keep everything in check.
You might have to book an appointment with a local bank manager who will likely want to see proof of who you are and some details about your intended business such as the name, address and photo ID of yourself so they can double-check and cross-reference everything.
Consider Your Accounts, Taxes and National Insurance
In the same vein as setting up a business bank account, you will also have to consider your business’ taxes, accounts and national insurance.
Many freelancers are proficient at keeping their own accounts in order, but if you don’t feel like you’re equipped with the necessary skills for this part of running a business, make sure you hire someone who does.
It’s easy to find an accountant who can keep your accounts and taxes in order and if you work remotely from around the world, you can easily find a remote accountant on websites such as Upwork or Fiverr who will take care of everything for you.
Think About Where You Will Work
Deciding where you’ll work from isn’t necessarily the most important step in becoming a freelancer, but it is something you should consider, nonetheless.
For example, will you require a dedicated office space either in your home or as a rented space? If so, you’ll need to make the necessary arrangements to ensure that comes to fruition. If all you need to run your freelance business is an internet connection and a laptop, then you can happily work from pretty much anywhere in the world, providing that you’re equipped with those two essentials.
Find Your First Clients
This section really deserves its own guide, so I won’t go into too much detail right now, but the final step you need to take to become a freelancer is to find your first clients.
Now that everything is set up and running, you need to make a start on your business so you can begin to earn money. Providing that the fundamental steps above are in place, here are some of the ways you can find your first clients.
- Use your connections on LinkedIn to find relevant jobs
- Utilise your Twitter and Facebook connections and ask if anyone needs any freelance work
- Ask your friends and family to provide referrals to people they know who may require your services
- Look on freelance job websites such as People Per Hour, Fiverr and Upwork – fees can be low but there’s always room for growth (check out our guide on using Fiverr to find freelance work)
- Advertise your services in the local paper or post office
Final Thoughts On Becoming a Freelancer
Hopefully, you now feel much more equipped with the knowledge required on becoming a freelancer after reading this guide. You may also want to check out our 10 actionable tips on how to start freelancing or if you’re still on the fence, our guide to the advantages of being self-employed.
It’s certainly not an easy business to get into but working for yourself and running your own company comes with many rewards; you just must be prepared to go out and get them.
