Regular jobs put many restrictions on people in one way or the other. That is why; nowadays many people want to become a freelancer. But if your this move is not well thought out then that too can end up stifling you.
When you decide to quit your regular job from an organization and become a freelancer before that you should be aware of your step. You must know the pros and cons of your decision. After all, your this step is a life-changing one.
Benefits of Freelancing
1. You are the Boss
Now, no one controls you. This means that you are just answerable to your clients and yourself. No one will be managing you now. You are free to do your work as you please and in any order, the way you feel comfortable with. You own the control now which makes you more responsible when it comes to tough decisions.
2. Flexible Working Hours
This is the very first advantage of a freelancer, “Work whenever you want”. Now, it is you who has to choose your own hours. It is not mandatory for you to work during the regular working hours. Instead, work during the most productive hours.
3. Work Whenever You Want
Choose to work whenever you want. It is your call when it comes to the working environment whether it is a coffee shop or your home. No longer, you are bound to work at a particular place. Find a place where you can work best. Most importantly, you can wear your most comfortable clothes while working.
4. All Profit is yours
No longer you have to share your profit. Instead, you are free to use that money to improve yourself and expand your business.
5. Control over Jobs and Clients
During the time of a job, you have absolutely no choice of whom you want to work with. You are even bounded to work with unprofessional and rude clients. But as a freelancer, you can take your call.
But as said, “Every coin has two sides”. Along with the advantages, we even have a disadvantage of freelancing.
Disadvantage of freelancing
1. Not getting paid
This is the most common risk in the freelance world. Sometimes, it is too late when you realize that you are at risk. Even you submit your work to your clients but they don’t end up paying you. They don’t even pick your calls up and start ignoring you. It looks like your work is going in vain.
2. Not steady and reliable work
Both your incomes as well as your workloads are unstable and inconsistent in nature. In a traditional job you know your exact pay but in freelance, you won’t be able to depend on the regular project, client or profit.
3. No Employer Benefits
Almost all traditional jobs offer you health insurance, paid sick days and vacation time. We all know that health benefits are expensive. Starting your freelance business means you are no longer going to have traditional job’s benefits. Every day that you don’t work will be a day without pay.
4. A lot of Legwork
Your projects were handed to you in your traditional job. But now you are an in-charge of finding your own clients and projects. This completely shows a lot of legwork on your part. Now you have to perform other tasks too such as marketing, sales, and advertising.
5. Work and Personal Time
It can be difficult for you to distinguish between work and personal time. Sometimes, you work for too long that you can never make time for your personal interest.
Things to consider as a Freelancer
One can clearly see commitment and passion in the assignments of a freelancer. Moreover, willing to adjust and accommodate schedules and scope of work. They always keep their satisfied and happy with their work. But when it comes to the pay then clients often drag their feet endlessly. At this point in time, they feel short-changed and unappreciated. When this kind of situation arises and they cannot pay their bills then they hunt for the regular jobs.
There are many benefits of freelancing. But freelancers get to know that this path is full of uncertainties and compromises once reality hit them hard. The lure of increased personal and family time which once drove them to freelance now brings stress to them. Well, I am not trying to scare you but you should surely consider few things if you are choosing this path. As experience in the field of freelancing is far from the positive one:
1. Business Plan is a must
Working in an organization means that you are only responsible for your role in your field. But when it comes to freelancing then you are a lone trooper. You can’t focus on your primary skills whereas you have to now play your role as well as of others. At the very first level, target revenue, profitability and customer acquisition. It is important to do this so that you can decide your fees and the number of projects that you need to take to meet your goals.
2. Properly deciding on your expenses
Make a list of your expenses into two different categories: personal and business. Under business, you need to consider telephone, Internet, travel and other expenses. In personal expenses, list down clothing, rent, fuel, groceries, and others. Also, consider a certain percentage of your income for taxes. Plus add 30% of your post-tax earnings towards investments, so you don’t compromise on your savings.
3. Financial Planning
When you work in an organization then you are offered several benefits like medical facilities, insurance, provident fund, bonus and many more. But when you are a freelancer then none of them is coming to you. In fact, your income is not going to be regular. Hence, you need to be more careful in your financial planning when you are a freelancer.
4. Protection of your fees
Due to the delayed payments and rare scope of work, you surely need to revise your rates of work. Don’t forget to include a clause of delayed payment in your agreement such as charging a certain rate of interest in a delayed payment.
As a freelancer, you can manage your business on your own terms. That is the main reason why most of the people prefer freelancing job. But this liberty should not come at the cost of your financial freedom.