In the United Kingdom, there's been a large uptick in the percentage of the workforce classified as freelancers. There are several reasons for the increase, ranging from economic concerns to lifestyle choices, and the ranks of freelancers are growing every day. As a career path, working as a freelancer is appealing to many due to the variety of experiences it provides, as well as the level of control one can exercise over their own time. That's not to say that freelancers have it easy, though.
Generally speaking, freelancers face a difficult path to financial security and stability. They, on average, have to work harder than salaried employees to achieve similar outcomes. This reality manifests itself in ways that you might not expect. Understanding these difficulties isn't just an academic exercise, mind you, but one that may prove useful to many people who don't yet know they'll need the wisdom.
Consider the effect that Brexit is expected to have on the economy in the UK. Odds are, there is going to be another large increase in freelance jobs post-Brexit, which means more workers are going to have to understand the implications of such work. To help, here's a guide to three things workers will have to learn to succeed as a freelancer.
Marketing yourself
For anyone who has never had to solicit work on a regular basis, getting used to doing so can be quite a challenge. Traditional employees likely have no experience in such matters, as the most marketing they've ever had to do is to produce an attractive curriculum verite. The first thing that a new freelance worker must realize is that it's not enough to let your work speak for itself. In reality, the worker is the product that needs selling, not just the results of their labour. The key is to figure out a unique value proposition that will stand out to prospective employers and communicate it effectively.
Overcoming financial hurdles
When it comes to everyday financial decisions and necessities, freelancers can take nothing for granted. That means considering everything from how to save up for a vacation (unpaid, of course), to dealing with unexpected illnesses that interrupt their work, to navigating things like securing a home mortgage. To make sure that all bases are covered, freelancers must learn how to budget properly and save for the future. They also have to get acquainted with financial institutions that have experience with freelancers. Certain companies like the UK’s free online mortgage broker, for example, take the hassle out of securing loans for freelancers, making a home purchase much easier.
Managing accounts receivable
One of the most common problems that new freelancers face is understanding how to collect their fees for work they've performed. While most clients will pay in a timely fashion, every freelancer will run into a customer or two that will slow-walk payments. Dealing with such a situation is damaging on two fronts. First, it takes more work to get paid for a task that's already completed. Second, it wastes valuable time that could be used for a new – and paying – project. To minimise this common problem, freelancers should automate their billing to the greatest degree possible, and outsource invoicing to an accountant when necessary.
The keys to success
Working as a freelancer isn't always easy, but can also be a very rewarding experience. Freelancers learn new skills on a regular basis and come in to contact with a wide variety of people from countless industries. Over time, it is possible to create a network of reliable contacts that take some of the effort and uncertainty out of the freelancer's world. Once that happens, most freelance employees get to enjoy all of the benefits of self-employment, without worrying about how to secure their next paycheck. It's a very satisfying feeling, indeed, and one that many more are likely to have in the United Kingdom in the very near future.
