Freelancing is a form of self-employment that consists of offering your professional services to different companies or private clients independently, that is, without being hired full time by any of them.
For several years now, freelance work has been gaining popularity among professionals around the world. This is due to the great advantages and opportunities offered by the flexibility and flexibility and autonomy and autonomy that characterize it.
Being your own boss means having the autonomy to choose which projects and clients you prefer to work with choose the 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 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 the professional growth and positioning of the worker within the labor market.
However, it can't all be plain sailing (otherwise we would all be freelancers by now), and working independently also implies the development of management tasks to have everything in order at the administrative level, as well as to ensure a steady flow of work and satisfied customers.
So if you are thinking of starting your freelance business, here we tell you what this type of work consists of and everything you need to know to become a freelancer.
What is a freelance worker and how does it work?
The freelancer is an independent worker who usually has specialized skills and knowledge. specialized skills and knowledge in a specific in a specific field of work, such as graphic design, content creation, programming, translation, 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 for.
The way a freelancer works is usually on a project or hourly basis. by project or by the hour. This gives the freelancer the freedom to manage the number of projects he/she is working on simultaneously and the amount of time he/she spends on 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, everything will depend on the needs and the agreement between the freelancer and the 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 his business. In a freelance mode of work, the management of the business is as important as the execution of the work itself.. The combination of both factors helps to achieve not only an efficient business, but also customer satisfaction and loyalty.
Requirements for freelance work
If you have come this far with the decision to become a freelancer, here are some important steps you can consider to undertake your project:
- Choose the area of specialization of your services based on your skills and based on your skills and professional experience. Be sure to choose an activity that is compatible with freelance work.
- Make sure you have the resources, equipment and tools necessary to carry out your freelance work. necessary to carry out your freelance work. From a workspace that helps you leverage your tasks and establish connections, to digital tools, platforms and the best apps for freelancers.
- Prepare a portfolio with samples of your work so that you can present it to your potential clients in an attractive way.
- Register as a freelancer and choose the type of legal entity that best fits the business model you want to develop.
- Define the rates of your services taking into account your fixed costs and market prices to stay competitive.
- Search for job opportunities by promoting your services through the relevant channels according to your field of work, and by performing a sales sales work with your potential clients.
- Write your own contract to formalize the working relationship with your clients before starting any project.
- Keep the accounting of your business of your business, issue invoices to the client and make your tax payments, fixed expenses and other costs related to your work activity.
- Provide excellent customer service and make sure you maintain clear and effective communication with them. Customer satisfaction is paramount to the positioning and growth of your business.
- Evaluate your work after each project and identify areas for improvement to keep your business growing.
Tips and keys to better sell your freelance services
While there is no recipe for a successful freelance business, here are some tips that will 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 promote it to 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 present of your business.
- Don't miss opportunities to networkingattend relevant events, participate in communities and surround yourself with like-minded professionals. This will help you create valuable connections and generate new business opportunities.
- Build solid professional relationships with your with your clients that will become long-term relationships.
- Request testimonials and references from your satisfied customers that you can use as a reference in your promotional strategies and with your potential customers.
Frequently asked questions about the meaning of freelancer
What is the difference between freelance and self-employed?
The terms "freelance" and "self-employed" are both used to define a person who works on freelance projects for companies or individuals, and as one is an anglicism of the other, it might seem that both have the same meaning. However, in practice they function differently, and it is in tax terms where the main difference between them lies.
A freelance is a worker who provides his professional services to third parties in exchange for remuneration, but without this representing the totality of his income. The moment this work activity becomes his main source of income, he becomes self-employed, and therefore must take this legal form.
Given this difference, a freelancer must register with the Self-Employed Workers Regime (RETA) and pay the corresponding fees, while a freelance worker only has to register with the Economic Activities Tax (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 lounger on the beach, or become a digital nomad and work from another city, or even another country, you choose the best workspace for you.
- You can choose your clients: When you are within a company it is not up to you to choose projects or who you work with, however, as a freelancer you have the option to decide who are the clients you want to collaborate with and establish your professional network.
- Variety of projects: The freedom to choose the projects you will work on allows you to develop your skills and knowledge according to your interests, specialize, diversify and constantly learn new things.
- Income potential: As a freelancer you set the rates for your professional services yourself 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 are more likely to increase your earnings.
Working as a freelancer has many advantages, but there are also some disadvantages you may face when starting your freelance business:
- Work flow and variable income: Freelance income depends directly on the projects you are doing, 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 they hire your services, you must also take care of management tasks, such as finding clients, promotional and sales actions, invoicing and accounting, customer service, etc. In this sense, time management for each task is important, as well as constant training and openness to develop new skills to boost your business.
- Lack of social benefits: Unlike a traditional employee, a self-employed person does not receive social benefits such as paid vacations or days off for sick or personal business. You should consider in your financial management to be prepared to cover these expenses on your own.
- Reconciling personal and professional life: The flexibility of freelance work is a great advantage, however, not having clear work time management can make it difficult to separate personal and professional. 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 such as coworking is a great option for the freelance profile, as it fosters the creation of connections with other professionals and the generation of business opportunities.