How To Be Your Own Boss
Mary Pat Abruzzo, Content Editor @ Media x Women
Taking the plunge into full-time or even part-time freelance work can be overwhelming. The benefit? Freelance work is empowering - you are your own boss! The first step is to thoroughly research and plan so that you can be confident in your decision.
So, how does one freelance like a boss?
Ask Yourself What YOU Want
Ask yourself the simple question: What do I want from freelancing? The answers can vary. You want a side hustle, to gain experience in a field you are interested in, or to quit your day job to pursue your passion. Having a destination can be the easiest way to find where to start.
Although your end goal may be to freelance full-time, starting out part-time can be a smart way to build your portfolio, network, and begin to manage your finances. It’s crucial to have all the tools and knowledge you need to succeed.
Building your Ideal Portfolio
Freelance work is often a way for you to pursue your passion, in this sense finding your ideal client and projects can be important. As a freelancer, your portfolio is a tangible look into your skillset and experience, but more importantly, it should serve as a way to make you stand out.
Create a professional website that highlights what your strengths are and more importantly what makes you different. The beauty of a freelancing portfolio is that you want to make your brand personal to your values and passions - don’t try to be something you are not. Pick and choose the work that represents your strongest skillset and what direction you want to go.
Advertise Yourself
Get ready to show off! With a sparkling portfolio and LinkedIn, it’s time to advertise yourself. Shift through LinkedIn Groups, Facebook groups and social media sites to advertise to people and businesses that you want to work with. To make this search more valuable, identify your niche target market that you want to work with.
Network, Network, Network
Freelancer does not mean lonewolf. You should not be isolated as a freelancer, instead, you can use it as an opportunity to branch out into different networks. Attend networking events, set up coffee (or Zoom) meet-ups with professionals you look up and join networking communities.
People tend to trust recommendations from people they know, allowing you to gain clients, advice and credibility.
Don’t Sell Yourself Short
Setting the right rate is key to a sustainable freelancing plan. It can be intimidating to set your rate, but don’t let this lower your worth. The best thing to do is research based on what skills you are providing and your experience - this can give you confidence when explaining your pricing to a client.
There are many options for pricing: hourly, by project, or a monthly retainer. This will depend on the project and client. In any case, be confident! Emphasize the value of the work you will be delivering and fight for your worth.
Filing Taxes
With freedom, comes great responsibility. Tax responsibility to be specific. Get very familiar with the basics of accounting and taxes to be smart with your money. If you earn $400 dollars or more a year as a freelancer, the IRS considers you self-employed and you must file for taxes as a business owner.
You are responsible for your self-employment tax, which was 15.3% in 2020. This tax represents the Social Security and Medicare taxes an employer takes out of your paycheck automatically. You also have to pay self-employment tax to your state.
A rule of thumb to start is setting aside about 30% of your earnings and pay your estimated taxes quarterly. This will allow for a few surprises and penalties. In the future, investing in an accountant can be a way to save money and time in the long run.
Believe in Yourself
Corny, we know. Although we do project what we believe. If you believe you can start freelancing, the rest will follow because you will work to make it happen.