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Many people dream of working on their own – of not having to answer to an employer for their daily pay. However, working as a freelancer also carries some risk. Nonetheless, you can find the means today to succeed in a freelance capacity, whether you choose writing, editing, accounting, or providing a similar professional service.
To begin, you need to ask the following questions:
So, why do you want to freelance?
People take the plunge and start freelancing for one or more reasons, including the following:
Therefore, from the beginning, you need to be clear why you want to freelance and determine if your reason is practical.
To decide on what you would like to do, consider the following:
You can begin working as a freelancer right away if you work as a sole proprietor. However, you also have to consider what this means for you in terms of getting clients and avoiding lawsuits. If you set yourself up as a sole proprietor, you increase your risk with respect to personal liability. That’s because, as a sole proprietor, you cannot separate your personal assets from your business assets. They are one and the same.
If you want to maintain a sole proprietorship and protect your assets, what should you do? After all this is the ideal entity to set up if you are a freelancer and want to make money fast. With this sort of autonomy at stake, it helps to find out how to reduce your personal risk.
The best way to protect your assets is by purchasing business insurance. Ask an insurance representative about the packages offered that focus on your freelancing needs. Usually, freelancers select liability coverage, errors and omissions insurance, and commercial auto insurance coverage.
Also, make sure the ventures you enter into are above-board. If you have any doubts, perform due diligence and research a company. You might also consider selling the expensive or valuable items you own to your spouse or a family member, keeping copies of the sales receipt and transfer of ownership. While this move may not protect you fully, the assets will not be listed as your own.
If you form a corporation as a freelancer, you will find that the process can be expensive and the paperwork rather tedious. However, you will still reduce your personal risk, and separate your personal assets from what you own in your business. This business set-up also makes it easier for you to raise venture capital. If you wish to do business with other businesses or another government, you need to be incorporated in Canada.
Freelancing allows you to work in one of various niche fields, including the following:
Above is just a sampling of what you can do as a freelancer. To make your dreams come true, make sure you do the following –
It takes commitment and dedication to work as a freelancer. Therefore, make sure you have a plan in mind and have scrutinized both the pros and cons of working in this capacity.
The best way to get clients for your freelancing business is to offer them something they can use. Just don’t tell people about your skills. Tell them what you can do for them – how what you offer can help them make their life easier.
If you give a client what he wants in terms of a solution, the price no longer matters . . . as much. Therefore, place your focus on giving a client what he or she wants in terms of a product or service.
If you work as a freelancer, you will have initial one-time and ongoing start-up costs. The ongoing costs include what you may pay for rent, business insurance, employment income, and taxes. You also have to factor in what you pay each month for producing products and marketing and advertising them.
If you want to make a decent freelance income and not overburden yourself, make sure you create a freelancing service that is productized. That means offering the same service to each client with a few minor tweaks or variations. By working from this type of template, you can systemize and outsource your work with optimized efficiency.
