Freelancing, the ultimate dream of being your own boss, setting your own hours, and working in your PJs all day. Sounds like a piece of cake, right? Well, not exactly.
Is it all sunshine and rainbows, or are there some thorns hiding beneath the surface? In this blog post, we will explore the pros and cons of this career path and answer the age-old question: is it right for you?
The freelancing industry is becoming more and more popular as the gig economy flourishes. For those unaware of the gig/sharing economy, it’s the Goliath of money generation for independent ‘civilians’ looking to earn cash. Ever heard of Uber? Airbnb? Perhaps you’ve heard of Deliveroo? Anyway, these are some examples of gig economy businesses who allow for freelancers to either sell a good or service on their platform.
For the case of Uber, they provide a platform for drivers to carry out the service of taxiing. Airbnb allows for landlords to rent their properties short term. Rekkruut allows for recruitment consultants to help jobseekers find work. Regardless of the situation, the gig economy is generating serious money, with it being valued at $355 billion in 2021 – expected to reach $873 billion by 2027. Crazy growth, right?
In the UK, 1 in 6 adults currently work a gig job at least once a week, and of these, 48% also have a full-time job. This shows the convenience of the gig economy, allowing for freelancers to work outside of their typical working hours. The most in-demand freelancing roles are Graphic Designing, Writing, Copywriting and Web Designing.
When looking at a global scale, approximately 1.57 billion people in the global workforce are freelancers, and the average earnings of a freelancer is £18.37 per hour. The average hourly wage in the UK is £16.60 per hour, showing that independent workers are in the higher bracket for salaries.
Now we’ve looked at some of the stats, grab a cup of coffee (or whatever beverage fuels your workday), sit back, and prepare to delve into the nitty-gritty of this elusive career path.
The Pros of Freelancing
There are many pros, which is why it has become an increasingly popular career choice for many people. Here are some of the top advantages:
- Flexibility
One of the most significant advantages of freelancing is the flexibility it offers. They can choose when and where they work, which allows them to have a better work-life balance. This means that they can take time off to attend to personal matters or to pursue other interests without having to worry about requesting time off from a boss. No more micromanaging bosses or pesky co-workers to deal with. Plus, the potential for earning more money is significant since you can take on as many projects as you can handle.
- Autonomy
Freelancers are their own bosses, which means that they can choose the projects they work on and how they work on them. They are not limited by the policies and procedures of a company and can set their own standards for quality and productivity.
- Control over income
Since freelancers are responsible for finding their own work, they can set their own rates and choose the clients they work with. This means that they have more control over their income than they would in a traditional job.
- Variety
They can work on a variety of projects and for different clients. This allows them to build a diverse portfolio and gain experience in different industries and niches.
- Skill development
Freelancing can provide opportunities for skill development as they often work on a wide range of projects. This can lead to a broader skill set and the ability to specialise in certain areas.
Cons of Freelancing
Before you get too excited, let’s not forget about the cons. Here are some of the disadvantages:
- Inconsistent income:
Freelancers are not guaranteed a steady pay cheque and may experience fluctuations in their income from month to month. This can create financial uncertainty and stress, especially for those who rely on a consistent income to pay bills.
- No employee benefits:
Freelancers are not entitled to employee benefits such as health insurance, retirement plans, or paid time off. This means that they must pay for these expenses themselves and may not have access to the same level of benefits as traditional employees.
- Self-employment taxes:
Freelancers are responsible for paying self-employment taxes, which can be more complicated and expensive than traditional employment taxes. This can create additional financial burden and require extra time and effort to manage.
- Isolation:
Freelancing can be a lonely career path as freelancers often work alone and may not have the same level of social interaction as they would in a traditional workplace. This can lead to feelings of isolation and even depression in some individuals.
- Uncertainty:
Freelancers are responsible for finding their own work and may not have a steady stream of clients. This can create uncertainty about the future and make it difficult to plan for long-term goals.
Should you become a freelancer?
Being your own boss means you have to be disciplined and organised. There’s no one else to hold you accountable or set deadlines for you. You’re solely responsible for managing your time and staying productive. Additionally, the inconsistent income and lack of benefits like healthcare and paid time off can be a major drawback. It’s also worth noting that freelancing can be isolating, so you won’t have co-workers to bounce ideas off of or socialise with during work hours.
So, is freelancing right for you? Well, that depends on your personality, work style, and priorities. If you’re self-motivated, disciplined, and thrive in a solo work environment, then freelancing could be a great fit for you. On the other hand, if you need structure, collaboration, and stability, then a traditional 9-5 job might be a better choice.
How to become a Freelancer
Becoming a freelancer in the UK involves several steps, including registering your business, setting up your finances, and finding clients. Here are some general steps you can follow to become a freelancer in the UK:
- Determine your skills and services: Identify the skills and services that you can offer as a freelancer. This could be anything from writing and editing to graphic design, web development, or consulting.
- Register as self-employed: As a freelancer, you will be considered self-employed and need to register with HM Revenue & Customs (HMRC) for tax purposes. You can register online through the HMRC website. You can also read our article on how to register your own business.
- Set up your finances: Set up a business bank account and decide on an invoicing and payment system. You may also want to consider setting up an accounting system or hiring an accountant to help you manage your finances.
- Create a portfolio and website: Create a portfolio of your work and a website to showcase your services. This will help you attract potential clients and establish your brand. Read our article on how to market your business with a low budget for more information on this.
- Network and market yourself: Attend industry events, join online communities and forums, and network with potential clients and other freelancers in your field. Use social media platforms and online job boards to find work opportunities. Read our article on how to network.
- Price your services: Determine how much you will charge for your services based on your experience, skills, and industry standards.
- Start freelancing: Once you have everything set up, start seeking out clients and taking on freelance projects. Be professional and reliable in your work to establish a good reputation and build long-term relationships with your clients.
It’s important to note that the specific requirements and regulations for freelancers in the UK may vary depending on your industry and location. It’s always a good idea to do your research and consult with professionals, such as accountants or lawyers, to ensure you are complying with all legal and tax requirements.
What does Rekkruut offer for Freelancers?
Rekkruut will be an innovative platform designed to empower freelance recruitment consultants with the tools and resources they need to succeed. We provide access to our extensive database of jobseekers and clients, enabling solo recruiters to effortlessly connect with both parties and help fill vacancies. Our platform offers a streamlined strategy that eliminates the need for commuting to different locations for meetings or interviews, allowing you to save valuable time and energy.
One of the most significant advantages of Rekkruut is our flexibility. Our platform allows you to work entirely remotely and set your own schedule, giving you the freedom to work on your own terms. Whether you want to make it a full-time career or work alongside your full-time employment, Rekkruut can cater to your needs. This level of flexibility makes our platform ideal for anyone looking to take control of their career and work in a way that suits their lifestyle.
Another benefit of Rekkruut is our easy-to-use platform. Our user-friendly interface allows you to manage clients and candidates all within one app, keeping you organised and informed at all times. Our platform also supports video interviews, instant messaging, and profile-building, making it easy for you to communicate with clients and candidates.
When it comes to earning potential, Rekkruut is hard to beat. Our platform offers an impressive 75% commission for every placement you make, giving you a significant financial incentive to work with us. This level of earning potential is hard to find in traditional employment situations, and it makes Rekkruut an excellent choice for anyone looking to earn a competitive income as a freelance recruitment consultant.
Rekkruut offers an unparalleled platform for freelance recruitment consultants. Our innovative technology, flexible working arrangements, and attractive earning potential make us a leading choice for anyone looking to take their recruitment career to the next level. Join our email list today to be updated for our launch, and discover the many benefits of working with Rekkruut!
Want to become a Freelancer?
Freelancing has become a popular career choice for many individuals due to its numerous benefits. The flexibility, autonomy, control over income, variety, and skill development make it an attractive option.
The gig economy is flourishing, and freelancers have the opportunity to work outside of their typical working hours, making it a convenient career path. However, it’s essential to consider the cons of freelancing, such as inconsistent income, no employee benefits, self-employment taxes, isolation, and uncertainty.
Ultimately, becoming a freelancer requires discipline, organisation, and self-motivation, and it’s important to weigh the pros and cons to determine if it’s the right career path for you.
We hope you’ve enjoyed today’s instalment in the RekkBlog series, and don’t forget to have a read of some of our other RekkBlog posts!
For more information on Rekkruut, have a read of these blog posts:
Rekkruut: Cheaper, Easier, More Convenient than using a Recruitment Agency
Begin your own Enterprise as a Recruiter: An Introduction to Rekkruut
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