Quitting your day job to be your own boss has many perks including the freedom to work from home and the flexibility that comes with managing your own schedule. Being on your own clock is what employment dreams are made of but before you take on the freelancer life, you might want to consider what it takes to make it on your own before bowing out of your day job.
1. Review Your Savings
One stress that may come from going out on your own is your financials. It can take time to set yourself up unless you have developed a plan during employment. Ensuring that you have enough savings to support yourself for up to six months is wise, to avoid the risk of running dry when you need to invest to start up. If you have made the decision to be a freelancer, allocate a nominated amount each week into a savings account. If you don’t end up needing the funds, consider it a salary bonus. Essentially, don’t quit your job until you feel comfortable with your financial security.
2. Consider Start-Up Costs
Depending on the type of industry you are planning on freelancing in, start-up costs will vary. For example, you may want to hire a professional to tidy up your resume to maximise your chance of securing freelancer gigs. If you’re starting your own business you will need to register the business name, purchase the domain name and also set up a website or social media accounts. The initial start-up costs may feel overwhelming but are necessary investments into your business. You may also need to enrol in courses or workshops to improve your skills or learn new ones. Regardless of the type of work you will be doing, factoring in expenses, setting a realistic budget and planning for it well in advance is key to success.
3. Plan For Your Office Environment
Unless you have an office arrangement in your house, working at home isn’t always conducive to productivity. If you don't have access to fast Internet, a functional office desk, printers and other technology requirements, you may find it difficult to stay focused and get the job done. You either need to set up a functional home office or be prepared to move around. For example, testing out various libraries may be manageable for work that only requires your laptop, or you may need to rent out a studio or pay to work in a shared office space. Planning ahead of time is crucial because working on your bed is not a sustainable option.
4. Consolidate Your Key Contacts
Word of mouth is the leading platform for securing jobs and it’s not always about what you know but who you know. Before going out on your own try to meet with people in the industry to get a good idea of the environment. Don’t be shy of emailing your contacts to touch base or to catch up over coffee. Most people are willing to help out, offer advice and set up introductions. It’s also good to know what competitors in your field are doing to help you focus on what you intend to deliver. You can meet these people at networking events or search categories on LinkedIn.
5. Look Into Additional Revenue Streams
It’s not a bad idea to have another revenue stream coming in while you’re freelancing. If finding jobs within your field are limited or the workload is unstable, having an alternative revenue stream to fall back on is recommended. For example, if you’re a savvy business person and follow international markets you could join a forex trading platform as a means to earn some extra income. With different market opening hours around the world, you can trade currency 24 hours a day, 5 days a week. Another option could be to join Uber as a driver, which is entirely flexible. If you have your way with words, do some freelance writing. Identify your strengths and be creative.
Quitting your day job and branching out on your own can be an exciting step. However, don’t do it in a rush or without planning ahead of time. Careful consideration and diligent preparation will ensure a smooth transition.
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