The gig economy has become something of a trend post-pandemic, and for good reason. There are many opportunities to be successful and piece together an awesome overall career through a series of freelance jobs. However, that does not mean that it is without its points of consideration. Before you say goodbye to a traditional 9-5, here are a few things to think about to help you determine first, if the gig lifestyle suits you, and second, if it does, how to be successful.
Financial Freedom
As a freelancer, you already know how much work goes into running your own business. Contrary to being an employee, you’re responsible for every aspect of your company, including the finances. Working for yourself means finding ways and having the financial backing to grow your business. While some freelancers may think they won’t qualify for a loan, that’s not the case. While there are stipulations that you have to follow, it’s possible to get a loan. There are AOF small business loans for self-employed that are now considered the norm, especially with so many people becoming sole proprietors.
As with any type of loan, you’ll likely need to provide documentation that shows your current income and financial projections for the future. For instance, say you ventured out on your own and are a self-employed marketing consultant. You’d want to provide a business plan that includes financial forecasting for at least the next two years. You also need to provide proof that you’re able to grow your business without being seen as a risk. Specifically, it’s a good idea to provide a list of past and current clients who your work with.
Advantages of Freelancing
Working for yourself is freeing. You can work when you want, set your own hours and even work while on vacation. You also determine how much your time is worth. It’s not uncommon to be under paid, even in high-paying positions. However, once you decide to venture out on your own, you can set your hourly wage to reflect your educational background and skillset. Another thing to consider is that with the gig economy expansion, the demand also continues to grow. That means you now have the power to market yourself online and on multiple freelance websites to build your own empire. As more corporations shift towards a freelancer-only model, you could find work with major brands who pay well but still let your work for yourself.
Disadvantages
Being your own boss is great, however, there are a few things to consider. As a self-employed individual, you may have to compete for work, meet tight deadlines, and possibly not get paid. That’s why you need to be prepared prior to going out on your own. If you’re still working a 9-to-5, you need to save as much money as possible. This includes building an emergency fund in case there are eventual gaps in your income.
You can work your side gig on the weekends until you have saved enough money. A good rule of thumb is to have at least three to six months in the bank before you quit your day job. Since it takes time to gain momentum, you don’t want to let go of steady income until you are sure you can replace it. Many freelancers make this mistake early on, only to find themselves having to ask for their job back or having to find another one until they start to earn a profit on their own.