So, You’ve Decided to Become a Freelancer
Five Things to Prioritize When Transitioning from the Office to Freelancing
Making the shift from the 9-5 rat race to the unpredictable world of freelancing is daunting even for the most prepared and organized person. The internal struggles about your decision are compounded by the reality of preparing for your new gig. A person leaving the office world may ask themselves: “Where am I going to get my work done? how much should I budget for coffee? do I need to pay for this software myself?”-- the short answer is, yes. Keeping a tight budget will be important for most during the early days of freelancing. Fortunately, I’ve done the grunt work needed to successfully make this transition into freelancing and get supplies for my home office for the low. Here are some things to keep in mind:
Take inventory of your work habits
The image of the freelancer is typically that of a coffee shop dweller, hunched over their MacBook with headphones permanently glued to their ears. However, if this is not the image you have for your new work-life then you should invest in equipment that reflects your working style. Need a clean desk? Or lots of storage? Maybe you know that you work best outside of the home and won’t spend much time in any office you build. The best part about working as a freelancer is that you get to create the career you want, including the furniture and equipment you’re working with every day. Being honest with your work habits will make working more enjoyable. You’ll appreciate all the time you’ve saved by avoiding wasteful spending and buying what you need the first go around.
Invest (wisely) in your future
Along with the honesty you need to buy the best office supplies for your habits, you need to be honest about where you see yourself and this equipment in the future. And not just professionally. Take into account your living situation--do you see yourself moving soon or are you staying in a more permanent housing arrangement? How’s your vision? Do you need more than just a laptop to effectively complete the work you are going to be doing? As a person with the font size on her iPhone 8 Plus larger than that of all her friends, it’s obvious that I appreciate a large screen. However, after reassessing my computer needs, I pivoted from a desktop to a laptop and budgeted for all the tech accessories I needed to have a proper docking station at home. I knew that I didn’t fit the stereotype of the freelancer I previously described and that I planned on getting most of my work done from home, but being mobile fits the plans and needs I have for the future.
TRACK. EVERYTHING.
There are times when I’ve started a new job pretty haphazardly. All of the onboarding information they give you at once that, currently, means nothing to you, will become a big part of your day to day life once your more familiar with your job. Failing to organize and keep track of documents, passwords, and key websites you’re using to perform your day-to-day work will catch up with you. So while you’re starting with a clean slate, make sure to pay close attention to how you are keeping track of all this information. Make use of free and often overlooked tools like web browser bookmarks, reminder apps, and your calendar. If spreadsheets are more your speed, employ the use of Microsoft or Google platforms, to ensure your work autosaves as you go. Keep track of naming conventions and file structures on your computer when saving receipts, invoices and client documents. Don’t catch yourself slipping with misplaced financial information, especially not when you’re transitioning from a predictable pay schedule to one based on fulfilled invoices. Speaking of invoices…
Watch your spending
In the beginning, you won’t be sending any. You won’t have any money coming in until you’ve prepared yourself to start pitching business. Some people have a part-time job or use savings to keep them afloat before their new venture becomes viable. Either way, it’s important to track your spending closely so that you don’t run out of money and can wisely invest in your business. It’s amazing how costs sneak up on you after you’ve created a tight budget. Embed some flexibility in the beginning so your business operations move seamlessly. Also, tracking your spending and business costs from the beginning will come in handy when the time comes to make decisions on taking on new projects, new contracts, and new clients. You can factor in your need for cashflow when deciding upon your workload, including any work you can do outside of your business to sustain your expenses.
Remember to factor in software into your equipment costs
Do you use specialized software to complete your projects? Are you charged monthly for access or do you pay a one time fee? These expenditures need to be taken into account when budgeting for your transition into working freelance since they are typically covered by your employer. But remember, you ARE your employer. And these expenses add up. Simple services for writers, such as Grammarly, have a free version of their platform, but the premium features are only available for subscribers. Adobe’s Creative Suite is the go-to platform for graphic designers, video editors, offering a gamut of creative services. Their fees can range from $10 a month to nearly $60 a month, depending on which software the freelancer needs. If the product or service you are paying for is directly related to the successful performance of your work then these costs need to be factored into your budget, right along with your typical monthly expenses.
Starting your own freelance business is daunting, and it goes without saying that if it were easy, everyone would have one of their own. The important thing to remember in the beginning is that a strong start lays the groundwork for a successful business. Treat yourself as the client and put as much work into the “assignment” of starting your business as you would for someone who’s paying for your services. After all, the whole point of freelancing is so that you can pay yourself.