For a lot of people, freelancing is the dream. No boss breathing down your neck. Work the hours that suit you. A flexible way to earn money. Choosing your clients. No more long commutes to an office. Wearing your PJs all day. Working anywhere.
It sounds like heaven.
But before you jump into the lifestyle, you need to open your eyes to the not-so-great side of freelancing.
The dark side of freelancing
With the good inevitably comes the bad.
Although the pluses I mentioned earlier are true, they are countered by potential downsides.
Cashflow
The main advantage of being an employee is that you get a regular salary every month. Budgeting is easy; your taxes are taken care of, and you might even get a bonus.
When you go freelance, you say goodbye to that safety net. You have no idea how much money you’ll earn from one month to the next, making budgeting a nightmare. Plus, because your income isn’t taxed at source, you must put enough aside to pay your tax bill at the end of the year (and VAT if you’re registered).
It will also be down to you to chase invoices unless you pay someone else to do that for you. Sadly, clients don’t always pay on time (shock, horror), which can play havoc with your cash flow.
Jack of all trades
Many freelancers work alone. That means there’s no finance department, IT section, marketing team, or aftersales section. Again, unless you have the funds to bring in external help, you’re on your own.
Oh, and an IT issue or other such problem that delays the projects you’re working on won’t wash with your clients. They’ve set you a deadline, and they expect you to meet it.
The buck stops here
You can say goodbye to the chain of command. When something goes wrong or a customer complains, it’s coming your way. There’s no one higher up the chain to pass it on to. Yes, when the s**t hits the fan, you’re in the firing line.
Ebb and flow
In an ideal world, freelancers would enjoy an unbroken flow of clients and never experience a downturn.
In reality, freelancing is a game of chance. You’ll be drowning in work and enquiries one minute and the next – silence. Emails will stop (apart from the annoying cold-calling ones), the phone will stop ringing, and your social channels will be deserted.
It’s a constant battle. You’ll market your business like crazy in the quiet times. When you’re busy, your marketing slides. Then business drops off, and you start again, and so it goes on.
No more 9 to 5
Yes, you can say goodbye to the 9-to-5 job because freelancing can mean hello to the 24-hour, seven-day-a-week way of working—especially when starting out.
Is being a freelancer right for you?
Have I put you off?
All I want to do is open your eyes to both sides of the freelancing story.
Personally, I love this way of life, but then again, mine is the second household income, making it easier to cope with the ebb and flow of work.
Think carefully before you make the leap. And remember, budgeting is key to staying afloat – don’t forget those tax and VAT bills!
Sally Ormond, Briar Copywriting Ltd.