Is Freelancing Worth It? 3 Things to Consider Before Quitting Your Day Job

How to Quit Your Job and Start Freelancing

Are you tired of nine-to-fiving it and maintaining an extensive business-casual wardrobe? Are you ready to make your own hours, call your own shots, and join the ranks of the pajama-clad workforce? It’s true that freelancing is a booming trade with endless opportunities throughout the global job market, but not everyone is cut out for the self-starting lifestyle and boom-and-bust cycles that come along with it.

Yes, being your own boss means a greater level of freedom and autonomy, but with such privilege comes great responsibility. Before you take this leap into the great unknown, here are three of the most important things to keep in mind before quitting your job to take up freelancing.

1. You. Must. Hustle.

When you start freelancing, it’s all about the hustle. You have to be ready and able to put yourself out there and network within your industry, so you can build a customer base and start landing paying jobs. Once you have the jobs, you’ll probably have to hustle to meet deadlines. If you’re getting work through another company, or subcontracting, they will likely give you shorter timelines, because they have to account for time to review your work in-house and prepare it for client review. Not meeting deadlines is a good way to lose out on future gigs, so never accept work you’re not certain you can finish on time.

Common Question: How do I know how much to charge as a freelancer?
Answer: Setting the price for your time depends on market rates, your experience, and your proficiency. Start by looking into how much others in your line of work charge, so you have range to work with, then consider where your skill level places you within that range. You might find that you’ve priced yourself too high and will need to come down to land jobs, or you might realize that you are underpriced, and that your work warrants a higher rate.

2. Sometimes You Don’t Get Paid

Not getting paid is a hazard of all forms of self-employment, and it can happen in several ways. When you freelance, you are not guaranteed work from anyone, so there will be dry spells. Even if you have a pretty consistent flow of work for a long time, there are a lot of things outside of your control that can impact you. If you’re subcontracting, the company you’re working for could lose the client, go out of business, or just straight-up refuse to pay you. This can happen when you’re working directly with clients, too.

Even seemingly satisfied clients can decide not to pay up, and unless you have a litigation budget, you could end up taking a loss. It’s always a good idea to take a deposit up-front, which can help mitigate the extent of the loss, but it’s still a hit to your income. Since you might go weeks or even months without making a serious payday, it’s always smart to save as much as you can for a rainy day. Perhaps, a rainy day in April… Yep, we’re talking taxes next.

Common Question: Do people really refuse to pay after you’ve finished a job?
Answer: Sadly, yes. Whether you’re a home builder or a freelance graphic designer, you always run the risk of people skipping out on their invoices. We already talked about taking deposits, but beyond that you just have to do your due diligence by looking into potential partners and clients. You should also look into your state’s laws on debt collecting.

3. Taxes are Complicated

Just to be clear, I’m not about to advise you on your taxes. You need professional copywriting? I’m your gal. You need your taxes done? You better be ready to shell out anywhere from $200 to $500 for a professional to prepare your annual filing. What I can tell you is that taxes are complicated when you freelance. Since the money you make does not have state or federal withholdings already included, you have to make your payments directly to the government. Yay!

Here are a few things you can do throughout the year that will help you be more prepared come tax time:

• Save all your receipts for everything you buy for work
• Keep track of every penny you make
• Set aside money to make your tax payment

This is just a list to get you started. You’ll want to talk to a CPA for anything regarding write offs, deductions, etc.

Common Question: How much of my income should I plan to pay in taxes?
Answer: I don’t know; but here’s a link to IRS.gov. Good luck.

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Article by Brittney Gaddis – Co-Founder at Honey + Hare and Graphic and Website Designer at Brittney Gaddis Design