Even though they might be happy that becoming their own boss is the right thing to do, newbie freelancers can sometimes still feel quite daunted and overwhelmed by taking those initial steps into self-employment. Most of the time, it’s because they aren’t quite sure what to expect and worry that they might struggle to find enough work. For this reason, it’s so important to try and put in place some safety nets that can help to give you peace of mind, and will also help you out if you ever do end up in a tricky situation.
New to freelancing? Here are the safety nets you need to put in place.
Insurance
There are a number of different insurance policies that you should get as soon as you officially become a freelancer. For starters, you should have health insurance. This will cover you for all medical bills and treatments, so you don’t have to raid your savings to pay for it. Next, you need to find yourself some business insurances, including indemnity and liability insurances. These will protect you in case any of your clients aren’t happy with your service and try to make a claim against you. The liability insurance also covers you for any accidents that might occur while you are working.
Plenty Of Savings
The life of a freelancer has plenty of ups and downs, but these shouldn’t phase you too much if you are well prepared for them. The best way to ensure you can survive any periods of little work, you need plenty of savings in the bank. Ideally, you should have about three months’ worth of wages in the bank. Don’t worry if you don’t quite have that much, though; you can always get help from companies like King of Kash to help you out if you ever find yourself short of work and savings. Ideally, though, you should start saving to prepare for becoming a freelancer.
A Large Network
It’s always good to have a large network of professional contacts who you can get in touch with whenever you need any help or advice at work. It’s good to try and keep some of the contacts you made while you were in your full-time job, as they might be able to support you in your new freelance career. If you need to fill out your address book, though, you can always go to your local business networking events. Failing that, there’s always LinkedIn!
A Reputable Accountant
It is often said that a freelancer’s best friend is their accountant, and that is so true! If the thought of having to do your own taxes strikes fear into your heart, then it really is worth getting in touch with an accountant who can do it all for you. Sure, their fee might be quite pricey, but they can often save you a lot of cash on your final tax bill. And those savings will definitely outweigh their cost!
Once these safety nets are in place, you can start to boss freelancing!
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