6 Tips to Successfully Transition From Your Day Job to Freelancing
If you’re feeling a little burned out by your office job, perhaps it’s time to consider switching career paths. In particular, you may want to think about being a freelancer. While it can be challenging at times, especially at the beginning, you’ll enjoy plenty of benefits which include:
- remote work for most if not all the time
- schedule flexibility
- pursue work you’re most passionate about
- practically unlimited potential for earning
However, it’s not easy to transition from having a day job to being your own boss and manager, especially if you’ve been an employee for a long time. That said, there are plenty of things you can do to make the shift easier. Here are just a few:
Straighten Your Finances
When you transition from being an employee to being a freelancer, your financial situation will be a little tricky during the first few months. Unless you find well-paying clients on your first day, you’ll have to work with a tighter budget for a while. To make things less stressful, you need to get your finances in order before you start freelancing. Some of your primary considerations include:
Savings and Expenses
Before you quit your day job, you need to have a financial cushion to cover the loss of your monthly salary. Some people recommend having savings that are good for at least 6 months of living expenses, but it’s always a good idea to add a bit of a buffer. If you don’t have any savings yet, you need to start building one now or delay your shift to freelancing.
You should also take note of your monthly bills and account for changes. For example, if you’ll be working from home, you’ll likely be paying more for electricity in the future. Meanwhile, if you prefer to go to a co-working space, you need to account for your commuting and rental expenses.
Lastly, you need to factor in the purchase, maintenance, and replacement of your equipment. If you don’t have the right tools to provide great service, it will be more difficult for you to find and retain clients.
Where to Get Extra Cash… Just in Case
Depending on how soon and how many initial clients you’re able to book during your early days as a freelancer, you may or may not need extra cash to help tide you over. If your answer is yes, you need to know where you can borrow money. One option is to ask your friends or family members. Just make sure, that if they agree, to pay them back ASAP so you don’t put a strain on your relationships.
Another option is to take out a cash loan online. This is much simpler to apply for compared to a bank loan, and the proceeds can be disbursed in as early as 24 to 48 hours upon approval. This is also a good way to start building a good credit score and reputation, provided that you’re able to pay your dues on time.
Target Earnings
Finally, you need to set a goal for your monthly earnings. You can set your previous monthly salary as a benchmark, although it might be safer to start a little lower to be more realistic. Then, gradually move your earning targets as you go along. Consider this as your yearly appraisal, so that you can also enjoy the fruits of your hard work.
Review Your Skills and Add to Them
It’s important for a freelancer to have a marketable skill set in order to attract clients. Some jobs, like social media marketing or graphic design, can easily be used for a freelancing career; on the other hand, there are some jobs that aren’t in high demand in the gig economy.
If your previous or current job belongs to the second category, you may need to learn a new skill that you can market as a service. You can go to freelance job boards to see which categories have the most postings and then work from there. For more ideas, check the latest industry trends and see where there may be gaps that you can fill.
You also need to take stock of your soft skills, such as time management, negotiation, and effective communication. These can help you ons the administrative side of things, especially when looking for clients and discussing your rates.
Finally, be prepared to upskill. Remember that industry best practices often change along with technology, so you need to be adaptable if you want to stay relevant. Consider learning allied skills to offer more holistic services. Going back to the earlier example of social media marketing, it’s a good idea to learn about search engine optimization as well so you can also dabble in content marketing.
Fortunately, continuous professional learning is now more accessible. Thanks to digital resources and training providers, you can find plenty of e-books, videos, and other learning materials to enhance or add to your skill set. Do note that while many of these are free, there are some courses and certifications that require some form of payment or tuition. Make sure to account for these fees as part of your freelancing expenses.
Know Where to Find Clients
Speaking of looking for clients, part of being a freelancer is knowing where to find jobs. The simplest way is to build a robust profile on freelancing sites, which also offer easy ways to connect potential employers with independent service providers. What’s great about this option is that there’s literally no geographical barrier. In this regard, you can say that there’s no shortage of clients in freelancing.
Another straightforward way of looking for clients is by going to your existing professional and social network. For example, you may try offering your services to former colleagues or even family members who have their own side ventures. You can also post about your new gig on relevant sites, including forums and social media. Don’t be shy about asking your friends working in the same industry you’re freelancing in if they have any leads, either.
The key is to learn how to market yourself, particularly your strong points as a freelancer, so clients can see the value of working with you.
Manage Your Online Presence
Once you’ve established your reputation as a reliable freelancer, it will be easier to find more clients. That said, this doesn’t mean that you have to stop your efforts in marketing yourself. In fact, you should keep up with your marketing the longer you’ve been freelancing because there are always new people joining the proverbial fray.
One of the most important things you need to do is to manage your online presence. If you can, build a website where you can showcase your work portfolio, achievements, and notable clients. It’s also a good idea to be present on social media platforms like LinkedIn, Facebook, and the like.
Depending on your industry and where your clients are usually present, you may need to be present in one or multiple channels. For example, if you’re a photographer, it’s good to be on Instagram to upload your sample works. At the same time, you may also benefit from TikTok by uploading short videos of your work process or even snippets of your latest shoot.
Understand the Finer Points of Freelancing
Before you decide to become a full-time freelancer, you need to really know what you’re getting into. For one, you’re going to be in charge of quite literally everything. Many of the things that your employer previously did for you will fall upon your shoulders, like filing your taxes and paying government-mandated contributions. In essence, you’ll be a one-man team doing the job of a variety of executives and an employee all at once.
This isn’t meant to scare you off freelancing, but rather to help you realize and understand the scope of the decision you’re about to make. Be honest with yourself—can you handle all of the above responsibilities? If so, then you’ll likely succeed in this endeavor. If not, think about things some more before you take the leap.
Consider Doing Part-Time as a Freelancer First
It can be difficult to leave your day job to become a freelancer if you’re already earning a lot but especially if you can’t do without a steady paycheck for long. If this is the case, it may be beneficial to work part-time as a freelancer first. Treat it like a test run, so you can get used to managing everything on your own before you do it full-time. Once you’ve gotten the hang of things, you can then shift towards becoming a full-time freelancer.
Working as a full-time freelancer is definitely an appealing career choice, especially if you want more control over how you spend your time. However, you need to be prepared before you make that move. For one, you can’t just leave your day job without notice. Don’t burn bridges, particularly because your former colleagues may be your potential future clients. You should also be ready to face rejection when you’re starting out, or else to haggle persistently for competitive pay.
That said, as long as you stay committed, patient, and responsible, you’ll eventually find your footing as a freelancer.
Good luck!