With the development of technology and digitization of the economy, a new form of work has been added to this new reality: freelancing. Today, companies are looking for talent that offers unique expertise at a reasonable price. Faced with this trend, more and more people are looking for freelacing jobs to start a business and earn money. But how do you become a freelancer and succeed in your career as an individual? What are the risks? What are the main hurdles to overcome to get off to a good start? In this article, we will examine all aspects related to being a freelancer and explain how it has many benefits for earning and financial freedom.
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What costs should be considered?
Being a freelancer doesn’t require any start-up capital, but there are costs to consider before starting. In fact, you have to pay various types of taxes and insurance for your business, not to mention the income taxes you owe.
The most important thing is to register your status with a regulator or local government – this could be URSAFF (Union of Unemployment and Social Insurance Schemes). Once your freelance status is validated, give yourself time to review your achievable goals and find a financial balance that suits all your activities.
While most freelancers prefer to work without a fixed salary, some choose to invest in professional training before starting. This option will not only allow you to acquire new skills and knowledge related to your field, but will also give you a competitive advantage in the market. Thereby you significantly increase the level of product/service you offer to customers.
Although it is the rapid implementation of digital tools that greatly facilitates remote work, you will need to create an additional budget to communicate with your customers and business partners. Visual communication software such as Skype or Zoom is essential to the smooth running of a day-to-day business.
What are the possible statuses?
Depending on the laws in force, each country will offer freelancers different options to carry out their activities. Therefore, it’s a good idea to carefully consider which status is best for your situation.
Auto-entrepreneurs benefit from certain tax exemptions and have, unlike the standard social status “independent worker” (TrInd), a “lighter” tariff profile that allows flexible management of social charges related to a freelancer’s activities.
Micro-entrepreneurs generally have recourse to this status, as it makes it possible to alleviate the administrative and financial burdens associated with managing a sole proprietorship. The social contributions that a micro-entrepreneur must pay are calculated on the total amount of income collected in the previous month or quarter.
Depending on the size and purpose of your business, some people start by creating a company (such as SAS or SARL). Of course, this option involves more work (and therefore time and money) than other non-profit status options.
What are the advantages and disadvantages?
- Adaptability: Being a freelancer offers individuals a high degree of flexibility for quaworker jagenfinition – if you need a little more time off, you can take a week or month without having to get permission from your boss.
- Selection of projects: As an individual, you can be more creative and choose only the projects that interest you the most, while improving your skills.
- Remote work: Thanks to modern technological tools, you can do your work anywhere – whether at home, on vacation or even around the world!
- Lack of competition: . As you face a large number of other freelancers for every contract offered, getting a mandate can be very difficult.
- Financial allowances and insurance: . The scheme that comes with auto-entrepreneur status is usually less beneficial than that enjoyed by regular employees (health insurance, unemployment, etc.). If your business doesn’t work, you have little recourse for compensation.
- Bad attitude: . “Freelance sickness” is more than a lack of motivation and poor time management – it can include social isolation and difficulty making the changes needed to improve your business.
What are the tools to use?
Management tools include things like tracking payments, sending emails for leads, processing invoices, and many other day-to-day administrative tasks. Investing in reliable software solutions like Trello or QuickBooks is essential if you want to optimize your workflow and gain better control over your business.
When it comes to communicating with your customers, partners or employees, modern technology represents a very effective and economical way. Services such as Skype or Zoom allow remote entrepreneurs and professionals to easily maintain communication remotely without delay or additional costs.
If you don’t want to go through a repeat client, always make sure that your freelancing business is visible on search engines – which usually requires some investment in SEO (search engine optimization), PPC (paid advertising ) and social network.
Define an action plan
Once the status has been chosen, it is important to have a clear and detailed plan of the goals to be achieved, in terms of duration and expected achievements. Stay focused on the clear vision you intend for its use of resources – both financial and human – are often limited to the minimum required to get started.
Create a good professional image
Freelance consultants need a solid strategy to ensure their visibility to attract more potential clients.
We can say that being a freelancer is a great opportunity for those who want to make a place for themselves in an emerging market. However, before starting, it is important to know the costs and the steps to take to start your career in the best possible conditions. Between the different legal statuses available, the search for clients and compliance with tax and social obligations, a good level of preparation is essential for this business venture. After considering these aspects and incorporating them into your project, it’s up to you to persevere to succeed in your retraining as a freelancer!