The first thing is to think about why you want to go freelance. While permanent jobs are increasingly unreliable, the one certainty of freelancing is that you will be out of work at some point and you won’t have a formal support structure around you to help out.
Although, of course, that is exactly the way many freelancers prefer it. So having decided to go freelance, here are the steps you take.
Understand the Freelance Business: There are many good guides to freelancing out there, such as the one on the PCG’s website. Read as many as you can find so you understand what it is you’re getting into. You will be amazed at how much you don’t know, from expenses to the Opt Out.
Prepare a CV: A freelance CV is different to an employee’s one. You are only selling skills and achievements. Career progression is now of minor interest, and details of education, hobbies and interests are largely irrelevant. Keep it focused and concise; it is your primary sales tool so spend time getting it right.
Resign your current job: Unless you are very lucky, it is difficult to get a contract if you have to serve out a notice period. Bear in mind you have no history as a freelance, and are in competition with people who can start tomorrow. You should build up as big a war chest as you can then take the plunge. You will have to survive a while with no income; even if you get a contract straight away, there will still be a delay before some money comes in so make sure the mortgage is covered.
Get a Contract: This is the really tricky bit. If you have a network of contacts, you may be able to find something by yourself, but mostly you will be using agencies through websites such as Jobserve and the like (there are around 1200 on them on the web these days). The basic process is find a job you genuinely can do, send in a tailored CV emphasising the key points for this job, then follow it up with a phone call. Be prepared to repeat that process many times
Decide how you will get paid: In reality there are two choices. You can use an Umbrella company, where you become their employee and they look after all the payments and taxes for you for a fee., or you can set up your own limited company If you’re using agencies, you almost certainly can’t work as a sole trader. Umbrellas are safe but expensive, Limited Companies are not that difficult to run but do require more work and decision making from you.
Get an accountant: If you are not using an umbrella, get a good accountant that understands the freelance business properly. They will be an invaluable source of guidance until you have enough experience to do it yourself; and even then you should still consider using one.
Get your contract reviewed: You should do this anyway, but if you are using your own company you have to pay attention to your IR35 status. This is discussed in another article.
Do the job: Sounds trite, but you are as good as your last contract. Do it well, don’t abandon it half way for something “better” and remember that you are the expert or they wouldn’t have hired you.
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Image: Baby by gabi menashe
