It was time. I was ready. Circumstances were optimal . . . but there are no guarantees.
Why yes, I’d wanted to freelance full-time for many years. I had visions of working in my pajamas, drinking coffee, with a pencil to hold up my knotted hair (my hair is so thin, I’ve never been able to knot it with a pencil, but this is my dream . . . not my reality).
Given that I was leaping from one side of the desk to the other, I knew the sorts of questions and land mines that waited in anticipation on ‘the other side.’ I’d also freelanced on the side for many years, waiting on that first big contract that would catapult me from 9–5 into whatever work hours I felt like setting.
The side work gave me a glimpse into what I was getting into. I had time to prepare, financially and psychologically, for this moment, so I knew when I made the jump, I had to do so feet first, with eyes closed.
Why feet first? Isn’t the correct phrase head-first? Not when—by then—I’d had enough clients, good experiences, and bad experiences to know better. At the same time, there was so much that remained unknown, not to mention that I was taking a scary leap, that it felt like I needed to do it with my eyes closed . . . before I lost my nerve.
Leave on a High Note
If you are contemplating a similar jump, make sure you have done some mental and financial preparation, too. Maybe you’ve often thought about walking into your boss’s office one more morning to announce, “I quit!” and leave in a huff. Listen to me, read this next part over and over again:
No matter how much you may hate your current job, do your best to leave on a high note. No matter what they’ve done, no matter how awful it was. Work out your notice if they request or require it (at least two weeks); remain civil in any exit interviews you may have to endure (but keep things honest, too); and understand that this is not the time to make any sudden moves or set them up for failure when you leave. They will know soon enough after your exit how valuable you were, believe me.
And you never know when some of these individuals may reappear in your path further down the road. After all, you left the company—assume they may also, at a later time.
I get it, not everyone has months or years to plan their leap. Some have endured yet another layoff (which should come with a severance), while others may have even been fired (which sometimes does not). Do your best to have some cash saved . . . a few months’ worth at least, even if you have a signed contract with a company who will springboard your leap. Why?
Even the oldest, tried-and-true clients can mess up a payment. Depending on the service, particularly if you’re a subcontractor, they may cancel—even though you signed a contract. Sure, you might be in a position to take legal action . . . but more on that in a different post. For now, just know that you need to create a buffer of financial resources that can sustain you, ideally before you make your leap.
Nuts and Bolts
This is where a lot of creatives’ eyes glaze over, but to ignore the nuts and bolts of setting up your freelance business correctly could cost you everything.
- Do you know what your business will be named? Search for it, by name, to ensure someone else hasn’t already claimed it.
- Buy the domain. Now. Believe it or not, that’s your next priority. Do not spend time and money on any branding, business license, or insurance until you know for sure that your business has a name, and that you can secure the web domain for it. That seems a bit out of order, I realize, and there are workarounds, particularly if you set up an LLC; but if you are just starting out, from ground zero, buy the domain first.
- Secure a business license. I’m not going to spell out the particulars here, but there are plenty of resources to help you determine the type of business license you’ll need—and there are pros and cons to each business type—and you’ll want to check with your state to see what other legalities are required.
- You’ll want to figure out the sort of insurance policy or policies you’ll need to protect yourself and your assets.
- If you do not have a CPA and attorney in place, be sure to find them quickly, even if it’s just to ensure they can work with you when you need them, as you need them.
- To go one step further, make sure you have a financial advisor who is a fiduciary. You’ll need several ‘someones’ to help mitigate taxes, plan for your future, and help safeguard your interests.
- Built your logo and brand elements.
- Develop your web presence.
PSA for Those Who Hire Freelancers
Please do not assume that your vendor lives off the grid. Honor your contracts and work with your freelancer if something falls through. If you have not created a “what-if” clause in the contract, work together to figure out something that is fair so that they don’t suffer for having trusted in you. If they met their deadlines, be responsible and meet yours. Pay your invoices, or be prepared to pay a late fee without fuss. Due dates are not approximate.
Trust is a two-way street, and word gets around if you’re not trustworthy.