What it means to work as a freelancer and its advantages

Freelancing is a form of self-employment that consists of offering your professional services to different companies or individual clients independently, that is, without being employed full-time by any of them. 

For several years, freelance work has gained popularity among professionals around the world. This is due to the great advantages and opportunities offered by the flexibility and autonomy that characterize it.  

Being your own boss means having the autonomy to choose which projects and clients you prefer to work with, as well as the rates you want to charge for your work. Especially taking into account that, as a freelancer, you are the one who will keep 100% of your profits.

But not only that, you also have the flexibility to choose the schedule and workspace that works best for you. This allows you to reconcile your personal and professional life, and create a balance around your needs.

In this way, freelance work opportunities contribute to professional growth and the worker's positioning within their labor market.

However, not everything can be a bed of roses (otherwise we would all be freelancers), and working independently also implies developing management tasks to have everything in order administratively, as well as to ensure a constant flow of work and satisfied clients.

So, if you're thinking about starting your freelance business, here's what this type of work involves and everything you need to know to be a freelancer.

What is a freelance worker and how does it work

A freelancer is an independent worker who usually has specialized skills and knowledge in a specific field, such as graphic design, content creation, programming, translation, or consulting, among many others. This characteristic is related to a growing demand for specialized services and the need for companies to reduce fixed costs, which leads them to outsource these services to a freelance expert in the subject they are looking to address. 

The way a freelancer works is usually by project or by hours. This gives the worker the freedom to manage the number of projects they carry out simultaneously and the amount of time they dedicate to each one. However, this does not mean that the projects or contracts have to be for a short period of time, there may be temporary or indefinite freelance contracts, it will all depend on the needs and the agreement between the freelancer and their client.

What differentiates this type of hiring from those made directly by a company, is that in this case, the freelancer is in charge of paying taxes, social security, vacations, sick leave, and other expenses. the freelancer is in charge of paying his taxes, social security, vacations, sick leave, and other expenses that a company manages in a freelance work modality. In addition to the freelancers, there are other types of freelancers who work independently.

In addition, the worker must take care of all the administrative tasks of their business. In a freelance work mode, managing the business is as important as performing the work itself. The combination of both factors helps to achieve not only an efficient business, but also customer satisfaction and loyalty.

Needs to be able to work as a freelancer

If you've come this far with the decision to become a freelancer, here are some important steps you can consider to start your project:

1. Choose the area of specialization for your services based on your skills and professional experience. Make sure to choose an activity that is compatible with the freelance work model.
2. Make sure you have the resources, equipment, and tools necessary to carry out your freelance work. From a workspace that helps you enhance your tasks and establish connections, to digital tools, platforms, and the best apps for freelancers.
3. Prepare a portfolio with samples of your work so you can present it to your potential clients in an attractive way. 
4. Register as self-employed and choose the type of legal entity that best fits the business model you want to develop.  
5. Define the rates for your services taking into account your fixed costs and market prices to stay competitive. 
6. Look for job opportunities by promoting your services through the relevant channels according to your field, and carrying out sales work with your potential clients.
7. Draft your own contract to formalize the working relationship with your clients before starting any project.
8. Manage your business's accounting, issue invoices to clients, and make your tax payments, fixed expenses, and other costs related to your work activity.
9. Provide excellent customer service and make sure to maintain clear and effective communication with them. Customer satisfaction is essential for the positioning and growth of your business.
10. Evaluate your work after each project and identify areas for improvement to keep your business growing steadily.

Tips and keys to better sell your freelance services

Although there is no cooking recipe to successfully boost a freelance business, here are some tips to help you improve the impact you have with your clients: 

• Define your value proposition. Identify what differentiates you from your competition and work on a strategy to enhance it towards your customers.   
• Know your market and establish a communication and sales strategy around their most relevant needs.
• Give your business an attractive image by preparing your portfolio, your promotion strategy and the content of your communication. Highlight your value proposition, your experience, previous work, testimonials, and other elements that you consider represent the image you want to make known of your business.   
• Don't miss opportunities to network, attend relevant events, participate in communities, and surround yourself with professionals related to you. This will help you create valuable connections and generate new business opportunities.  
• Build solid professional relationships with your clients that become long-term relationships. 
• Request testimonials and references from your satisfied customers that you can use as a reference in your promotion strategies and with your potential customers. 

Frequently asked questions about the meaning of freelancer

What is the difference between a freelancer and a self-employed person?

The terms “freelance” and “autónomo” (self-employed) are both used to define a person who works on projects independently for companies or individuals. Since one is an Anglicism of the other, it might seem that they have the same meaning. However, in practice, they function differently, and the main difference between them lies in tax terms. 

A freelancer is a worker who provides their professional services to third parties in exchange for remuneration, but without this constituting the entirety of their income. The moment this work activity becomes their main source of income, they become self-employed, and therefore must take this legal form. 

Given this difference, a self-employed person must register in the Special Regime for Self-Employed Workers (RETA) and pay the corresponding fees, while a freelance worker only needs to register in the Tax on Economic Activities (IAE).

What are the advantages and disadvantages of being a freelancer?

Some of the main advantages of freelance work are:

• Flexible schedule: As a freelancer, you have the autonomy to manage your time and determine the work schedule that best suits your needs and those of your business.
• You decide where to work from: A cool office to meet with your clients, work from home or from a sun lounger on the beach, or become a digital nomad and work from another city, or even from another country, you choose what is the best workspace for you.
• You can choose your clients: When you are within a company, the choice of projects or who you work with does not depend on you; however, as a freelancer, you have the option of deciding which clients you want to collaborate with and establish your professional network. 
• Variety of projects: The freedom to choose the projects you are going to work on allows you to develop your skills and knowledge according to your interests, specialize, diversify and constantly learn new things.
• Earning potential: As a freelancer, you set the rates for your professional services and receive all the benefits. In addition, you can work on multiple projects simultaneously, and as you gain experience and position yourself within your market, you have more opportunities to increase your earnings. 

Working as a freelancer has many advantages, but there are also some drawbacks that you may face when starting your freelance business:

• Variable workflow and income: Freelance income depends directly on the projects you are working on, and there may be periods when you have many at once, and others when demand decreases. Therefore, financial administration and business management are of utmost importance for this type of work. 
• Business management: Being a freelancer means that, in addition to carrying out the work for which your services are hired, you must also take care of management tasks, such as finding clients, promotion and sales activities, invoicing and accounting, customer service, etc. In this sense, time management for each task is important, as well as constant training and openness to developing new skills to boost your business.
• Lack of social benefits: Unlike a traditional employee, a self-employed worker does not receive social benefits such as paid vacations or days off for illness or personal matters. You should consider being prepared to cover these expenses on your own within your financial management.   
• Balancing personal and professional life: The flexibility of freelance work is a great advantage, however, not having a clear management of working time can make it difficult to separate personal and professional life. Establishing a work routine that fits your needs can help you achieve this balance.
• Feeling of isolation: If you decide to always work from home or in an environment without professional interaction, you may feel some isolation. A flexible workspace like coworking is a great option for the freelance profile, as it encourages the creation of connections with other professionals and the generation of business opportunities.