Focus on: Freelancing

Date: 22 Dec 2010

Freelancing is, for many professionals, the perfect way to balance home and family life. It allows you the flexibility to choose the work you do and the hours you do it. Many work from home.

Some freelances work on a one-off job basis; others set themselves up as companies and work mainly on contracts and some work within an organisation almost on an employee basis. You can get advice on contractual issues from freelancing campaign group the PCG. For one-off work and working on as an individual within an organisation, it will be up to you to negotiate a fair price for your work. You can do this by researching the market and checking what the current rate is for your type of work. Do not undersell yourself – you might think that by undercutting the competition you will get more work, but potential clients tend to associate the price you charge with the quality of work you deliver.

Freelancing in the current climate can be tough. Make sure before you go freelance that you have done your preparation. Most freelances start by getting work from people they already know, many from their former workplace. Set up some work in advance before you go freelance and for the extra cautious it is a good idea to try and do some freelance work on the side of employed work while you build up the former. Some people prefer to do this on an ongoing basis, freelancing for a few days a week while working as an employee for the rest of the week. This gives added security and allows you to profit from the advantages of both types of work. If you have been working as a full-time employee, you might be able to negotiate a shorter working week as your freelance work grows. Present a good business case for this, for instance, your company does not lose your expertise and you build skills which may in turn benefit your employers.

One of the drawbacks of freelancing is that work can be either feast or famine which makes it hard to plan things like holidays, which, of course, you will not be paid for so ensure you build in the fact that you get no holiday or sick leave into your calculations on pay. You may feel, due to the insecurity of freelancing, that you have to accept every work offer, particularly in the early days as you are building up your portfolio of clients. This usually pans out as you gain more regular clients and you can dictate your workflow more. You may then find yourself turning work away, although this can be hard as many freelances worry that if they say no to a client, especially a regular one, they may not be asked again.

One of the big pros of freelance work is its flexibility, but you will have to be willing to be flexible in return. If a regular client has a big project which they ask you to do at the last minute, you may find yourself working all hours to get it done.

Always treat every contact in a professional manner. Freelances rely on their reputation. Word of mouth is a vital way of getting work and the more contacts you can make the more likely you are to get work. You can build these by logging into professional networks via social networking sites like LinkedIn or signing up to organisations like the freelancing organisation, PCG. It's a good idea not to simply rely on virtual networking, though. Where you can, get out and meet people, whether that is one to one basis or through professional get-togethers. People are more likely to remember you if they can put a face to your name.

As a freelance, you will have to register as self employed and fill in your own tax returns. You can get help with tax issues through organisations like the PCG or www.taxcutters.co.uk. You might consider hiring your own accountant. This can work out saving you money as the accountant will know all the things you can claim on that you may not be aware of, such as office overheads [heating, lighting, etc] and equipment, travel and transport.

Read more:
A portfolio career
Freelancing: a flexible option