I’m a freelancer, and I get asked about being freelance all the time. Perhaps it’s a career path you’ve heard of, but you’re not really sure what it entails. Perhaps you’ve considered it but you’re not sure if you can make it work.
Let’s delve into the freelance life – what it really consists of, who it’s for, and what the pros and cons are.
What does being freelance mean?
Simply put, freelancing is a type of self-employment. A freelancer is a person who doesn’t work for one specific company, but is hired by different people and organisations to do work for them. For example, as a freelance writer, I get hired by various clients (including Youth Employment!) to write and edit content for them. I’m not employed by any of those companies – they are my clients.
Freelance just means you work for yourself, not a third party employer like a company or organisation. Legally speaking, a freelancer in the UK will typically be considered a self-employed sole trader (though some freelancers do set up Limited Liability Companies, or LLCs, for the financial benefits this can bring.)
Who is freelancing suitable for?
Freelancing isn’t for everyone. But if you want to work for yourself and be your own boss, it can be a great option.
Freelancing is great for people who are independent and self-motivated in their work. If you really need a boss telling you what to do, it won’t work for you. Freelance also suits people who prefer a flexible way of life and the ability to set their own hours. Finally, it’s great for people who are introverted or simply prefer to work solo. If you need the bustle and camaraderie of the office environment, you might find freelancing lonely (though you can mitigate this through video calls, social media, networking, and joining freelancer groups either in person or online.)
Freelancers exist in all kinds of industries – I know freelance web designers, graphic designers, social media specialists, SEO practitioners, photographers, personal trainers, and many more. Despite the myth that it’s just for creative industries, this is not the case at all. Not all jobs can be done freelance, but I bet there are more freelance-friendly jobs than you think.
What are the benefits?
One of the most obvious benefits to freelancing is the freedom it brings. You can set your own hours and work from anywhere (at least in theory.) I like taking an hour or two off in the middle of the day sometimes to work out and run errands. I know other freelancers who set their hours around their partner’s shift pattern or children’s schedules, and others who are night owls and prefer to keep hours that wouldn’t work in a traditional office job. And while I don’t necessarily recommend working from bed or wearing pyjamas 24 hours a day, you can do so when you’re freelance.
As a freelancer, you’ll typically earn more per-hour than someone doing the same work in house. Clients are willing to pay freelancers a higher hourly rate for work because it’s still cheaper than bringing in a member of staff when you factor in benefits, holiday pay, sick pay, the cost of recruitment, and the ongoing cost of their salary.
Since you can set your own rates and hours, the earning potential is limited only by the number of hours in the day and what clients are willing to pay you. A lot of freelancers earn more than they ever did in traditional employment, though this is not a given and it can take time to build up to this level.
One thing I particularly enjoy about freelancing is the ability to work with people all over the world. When your business is run primarily from a computer, you’re not limited by geography or timezones. I currently have regular clients in Australia, the United States, and Indonesia as well as here in the UK.
Another advantage of freelancing is that, once you have enough work to meet your financial needs, you can start picking and choosing your projects. Want to specialise in a different area, explore a new niche, or scale back on an area of work that isn’t exciting you any more? Well, you can! Getting to the point of being able to say yes or no to projects is one of the most exciting milestones as a new freelancer.
What are the downsides?
As a freelancer, you do not have a guaranteed income and the amount you earn can vary month to month depending on how much work you get. If you value or need strict income security in terms of knowing how much you’ll earn each month, freelancing will be a challenge.
Freelancers do not usually get employment perks such as paid sick time and paid holiday time. Typically, when you’re freelance, if you’re not working then you’re not earning. So while you can take a month off to travel if you want to, you’ll need to factor those lost hours of pay into your annual budget.
As a freelancer, you’ll be responsible for your own tax bill – there is no Pay As You Earn. This means you’ll need to register with HMRC, keep track of your income and business expenses, file a tax return each year, budget for your tax bill, and pay on time. Managing my finances as a freelancer takes me around 30 minutes per week, and then about half a day to file my return at tax time. It’s not a massive time commitment in the grand scheme of things, but you’ll need a system that works for you.
People who try to haggle down your rates or push your boundaries are also a fact of freelancing life. You’ll need to get very good at saying no, holding firm on your limits, and pushing back professionally when people try to take advantage.
The other downside to freelancing is that you’ll almost inevitably end up chasing someone for payment at some point. The longest it ever took me to get money out of a client was eight months. This is an extreme example, but it does happen. I know freelancers who have missed out on money they were owed entirely when a client company shut down. If the company you’re working for goes bust, you’ll likely never see that money.
Most clients are brilliant – respectful, communicative, and pay on time. But the odd ones who don’t definitely make this life more stressful.
So is it for you?
Only you can answer this question. Personally, I love freelancing and wouldn’t change it for anything at this point in my life. The freedom, ability to choose my own projects, and the fact that I can work from home far outweigh any downsides. You might decide it sounds great, or you might think the whole thing sounds very stressful.
Do you have any other questions about freelancing? Let me know and if we get enough, I’ll do a follow-up freelancing Q&A.
