Collaborative Post
In 2019, there were 4.8 million people who were classed as self-employed in the UK. That’s 15% of the population (Source: Gov UK). This number is increasing every year as side-hustles and the gig-economy become the norm.
It is exciting to break out on your own, to be your own boss and control your own destiny. But it can be a daunting experience too. There’s so much to plan and consider. You wear so many hats it’s difficult to know where to direct your efforts and attention first.
Here are a few things you need to get sorted before you start on your freelance adventure.
Have A Financial Safety Net
Knowing the bills are going to be paid, even for a few months, is a huge relief when you’re starting your freelance career. As part of your entrepreneurial plans, save up as much as you can in an emergency fund to pay your essential bills (mortgage, utility, childcare etc.)
Of course, not everyone has the luxury of being able to put money aside every month, or you might be looking to freelance due to a sudden change in circumstances such as losing your job or not being able to return to your role after maternity.
If you are planning to make the jump to a freelance career in the future, save what you can and take some of the immediate pressure off yourself.
Get Insured
There’s a lot to think about when setting up your business, insurance can sometimes be forgotten in the rush to get your services and marketing strategy out there, making money.
All freelancers need to have insurance, professional indemnity being the most common, that will protect you if a client makes a claim against you over your work. Some clients will insist on both professional and public liability insurance before they will even work with you. There are so many different products out there, it’s easy to be confused, you don’t want to pay for unnecessary cover, but you also want to be sure you are protected should the worst happen. A good insurance broker will be able to help guide you through the minefield of insurance policies.
Aside from your professional insurance, you will want to look at income protection and critical illness cover as well. Now that you’re working for yourself, you won’t have the safety net of paid sick leave or sick pay. If you become too ill to work, you still need to be able to pay the bills until you’re back on your feet.
Write A Business Plan
It’s not just traditional businesses that need a business plan. Freelancers should have one too. It maps out the long term strategy for you future and how you plan to grow and develop your business.
Business plans are essential if you intend to seek out business loans and grants. Even if you aren’t looking for finance, your plan will keep you motivated and on track as you navigate those first few months and years of freelance life.
Here’s a great business plan template from Freelance UK you can use to get you started.
Find A Supportive Group
Fellow freelancers are a great source of advice and support. There are many websites and groups dedicated to freelancing, some are better than others. A great place to start is Freelance Heroes or Freelance UK. No matter what your question, you’ll get some great advice from people who have been through it all before.
Create The Perfect Workspace
Carve out a space that’s yours to work in, even if its just your dining room table. If you have a spare room at home, spend some time arranging it to help you be productive and able to concentrate.
Open A Business Bank Account
It’s a good idea to keep your freelance income separate from your main current account, it will make life much easier when it comes to doing your taxes. Business bank accounts used to involve going to the bank and meeting the bank manager with a lot of paperwork. Today, you can open a business account in minutes and run your finances directly from your phone. A lot of these accounts are free, with the option to upgrade for a small monthly fee to access. Popular accounts include Coconut, Starling and Tide.
Most feature some great tools including invoicing, card payment options and tax calculations, so you’ll be saving money on buying separate software for these too.