The decision to go from employed to self-employed is not an easy one to make. After all, who would prefer a steady workload and salary to fighting on your own, looking for clients, and constantly being unsure about what you will earn next month?
Well, self-employment comes with a lot of perks and it’s up to you, your hard work and dedication to get them. Still, 47% of the global workforce consists of freelancers as of 2022 with a tendency to grow in the future which speaks for itself.
Of course, there is much more responsibility in being your own boss and managing a team of your own. However, if you want to take the leap and start a business by yourself, go for it. You don’t even have to leave your full-time job if you can cope with both your ventures.
In this article, we will run you through 11 ways to go from employed to self-employed, along with some helpful tips to make the transition smooth and easy.
1. Have A Plan
The first step to making the transition from being employed to being self-employed is to have a plan. You need to know what your goals are and what you need to do to achieve them. Without a plan, it will be very difficult to make the change successfully.
That being said, don’t quit your job just yet. First, bear in mind that cash flow from clients that hire you on a contract basis is not secure. Second, if you do so, you risk losing the relationships you’ve built in this company. So, multitask until you have a consistent client base.
2. Build Up Your Savings
Before you make the transition, you should try to build up your savings as much as possible. This will give you a cushion to fall back on if things don’t go as planned. It will also help you to cover any unexpected expenses that may come up.
3. Talk To Your Employer
Although it may sound like a questionable idea, talking to your employer about your intention may turn into winning a client who already trusts you. Many businesses resort to working with freelancers along their full-time team as they are much more flexible, result-oriented, and more often than not, cheaper. For example, 54% of Google’s workforce is made of contractors.
So, your current employer may agree to continue working with you on a contract basis as they have already experienced your discipline and the quality of your work. This will not only give you more time to handle other clients and manage your work hours as you please, but it will also set you free from lengthy team meetings and filling out timesheets daily.
4. Join Freelancer Platforms
Freelancer platforms are the perfect place to start your self-employed journey. They provide you with an opportunity to showcase your skills, find clients and bid on projects.
LinkedIn is one of the most successful platforms out there and it’s free to join. You can create an account, showcase all of your work experience and join groups relevant to your niche and set of skills. Other great options to get freelance clients and build your portfolio are People Per Hour, Upwork, Freelancer, Fiverr and Guru.
5. Create Your Online Presence
Your online presence will be the first impression potential clients get of you, so make sure it’s a good one. Invest in creating an impressive portfolio website and keep it up to date with your latest projects. Make use of social media platforms to engage with potential and current customers.
You can also start blogging or doing podcasts to share your knowledge with the world. This will help you build a network of potential clients and partners.
6. Network and Build Your Brand
Networking is essential for any business, big or small. It’s a great way to meet people in your industry and gain referrals that can help you grow as an entrepreneur.
Attend events, join industry-related groups and work on building your personal brand. This will help you gain visibility in the market and establish yourself as an expert in your field. Make sure you prepare your introductory pitch and have a notebook at hand to write down any details of the people who you talked to and expressed interest.
7. Make Sure You’re Organized
When you’re self-employed, there’s no one else who is going to keep you organized but yourself. You need to make sure that you have a system in place for tracking your income and expenses and for keeping your paperwork in order. Otherwise, it will be very easy to get overwhelmed and bogged down in the details.
8. Find A Good Accountant
When you’re self-employed, it’s important to have a good accountant who can help you with your taxes and financial planning. A good accountant can save you a lot of money and headaches down the road.
9. Invest In Marketing
If you want your business to be successful, you need to invest in marketing. There are many different ways to market your business, so find one that fits your budget and start promoting yourself.
10. Stay Positive
Making the transition from being employed to being self-employed can be tough, so it’s important to stay positive throughout the process. Remember why you decided to make the change in the first place and focus on all of the benefits that being self-employed will bring.
11. Ask For Help When Needed
Don’t be afraid to ask for help when needed – there are many resources available for people who are making the transition from being employed to being self-employed. Talk to friends or family members who already work on their own, join an entrepreneurs group like our very own CEO Hangout Slack Community, or online forum, or hire a business coach or consultant if needed.
The Takeaway
Starting your own business can be a scary and daunting task, but if you go into it with a clear plan and the right mindset, you can set yourself up for success. Talk to your employer about going solo, join freelancer platforms to get started, create an online presence, invest in marketing, and stay positive throughout the process. Having a solid support system is key when making the transition from employed to self-employed—ask for help when needed and surround yourself with people who believe in your vision.