Are you experiencing financial difficulties due to the ongoing pandemic? If you are interested in finding a way to earn extra income from home and need additional funds to cover the increased expenses, freelancing is an excellent choice for you! Engaging in freelance side hustles provides flexibility, allowing you to work at your own preferred pace and during convenient hours. It can enable you to become self-employed and start your own business.
The trend of hiring professionals is increasing, as it proves to be a preferable choice for certain organizations. This has led to individuals with valuable skills starting a part-time business, eventually transforming it into a viable self-employment opportunity.
There is a growing demand for freelance writers, designers, marketers, and developers as firms seek to expand. This is due to the advantages of reduced taxes, lower employee-related costs, absence of healthcare expenses, and decreased need for office space. Additionally, numerous freelance work websites are emerging to meet this demand, providing even more opportunities for online side hustles.
Freelancing offers a way to earn additional income and explore opportunities to be independent or pursue personal interests alongside a full-time job. Engaging in freelancing can be highly fulfilling, granting the freedom to work on one’s own terms. This guide serves as an introduction to freelancing, covering its definition, initial steps, and advantages. With proper resources and understanding, starting freelancing as a side gig can be accomplished quickly.
The Benefits of Freelancing
- Flexibility: Freelancers have the flexibility to choose the projects they work on and when they work, as long as they meet deadlines. This can provide a better work-life balance and allow for more personal time.
- Variety: Freelancers have the opportunity to work on a variety of projects, giving them exposure to different industries and types of work. This can lead to professional growth and help them develop a diverse skill set.
- Control over income: Freelancers have the ability to earn as much as they want, based on the amount of work they take on. They can also set their own rates and negotiate with clients, giving them greater control over their earnings.
If you are self-employed, you will desire to maximize your working hours, increase your earnings, and improve your morale.
Don’t put all your eggs
Allowing a single client to dominate your order books can lead to disastrous consequences. If you heavily depend on one customer for the majority of your workload and that particular client ceases to exist, a significant portion of your income will be lost. Although having a consistent stream of work is pleasant, it is essential not to become reliant on it. Engage in proactive marketing strategies to secure projects from various clients.
Check Your Work Contract
Prior to beginning your freelance work, it is crucial to thoroughly review your contract to determine if your full-time job restricts you from engaging in affordable side jobs. Freelancing offers an excellent opportunity to supplement your income, but prior to commencing freelance work, understanding the conditions of your employment agreement is vital.
Freelance Time and Dime
As a freelance entrepreneur, effectively managing your time and finances is crucial to succeed. Balancing numerous projects and keeping a record of your earnings and expenditures can be challenging. To avoid any conflicts with your employer and ensure your side jobs are profitable, consider doing your freelance work outside of your regular office hours. Develop structured schedules that allow you to work both full-time and freelance without complications.
Log time spent on projects
It is exciting to be paid £1,000 for writing a case study or designing a website. However, when considering that it would take you 50 hours to complete the task, the compensation barely covers the minimum wage. This calculation takes into account taxes, overheads, pension, as well as expenses for heating, lighting, and other factors.
To someone trapped in a low-paying job, £25 per hour may seem like a significant amount. However, in reality, it is not. This is exactly why it is crucial to carefully monitor the time you dedicate to each project, so that you can eliminate the ones that are not financially worthwhile. Fortunately, there are numerous online tools and apps available for tracking your time.
Tighten up your expense claims
In order to increase your earnings as a self-employed individual, it is beneficial to maximize your claims on expenses. It is important to remember the various items you are eligible to claim for, including uniforms, stationery, utilities, travel expenses, and more. Utilizing apps like MileIQ, which keeps a record of your business-related mileage, can be helpful in this process.
By claiming a higher number of legitimate expenses, you can effectively decrease your tax bill, which ultimately translates to more money in your pocket, making it as beneficial as increasing your revenue.
Keep your rates up
When working as a freelancer, the temptation arises to lower your hourly rates in order to secure desired projects. However, it is important to consider that if you decrease your rates by 20 percent during a recession, you will remain restricted to that lower rate even after the economic situation stabilizes.
Instead of waiting for clients to give you a pay raise, take the initiative to demand one for yourself. This may involve getting rid of low-paying clients and seeking out more profitable ones. If you are accessible to everyone in terms of cost, you are not distinguished in any significant way.
Set minimum fees
Take a moment to examine your order book. Are all of your projects priced between £100 and £300? Are they all unique and not recurring? This situation is not ideal.
Each time you acquire a new client, you will need to go through a learning process and complete various administrative tasks. It is beneficial to seek clients who can provide ongoing projects. Alternatively, it is even more advantageous to establish a minimum project fee that covers all your expenses. In the given scenario, this fee could be roughly £500.
Turn down pro bono work
Is that not similar to torturing puppies? No, it is not. Although doing work for free might give you a sense of fulfillment, it will not help you meet your basic needs.
In order to effectively contribute to charities, it is important to establish a limit for your pro bono work, such as taking on one project per year. It is crucial to prioritize the success of you and your business before engaging in philanthropic endeavors.
Consider Networking
In order to establish a side business, it is advisable to establish contacts with fellow freelancers within the freelancing community. If you believe that certain projects would suit other freelancers better, it is recommended to refer them and you might expect the same in return.
Networking plays a crucial role in every freelancing side hustle as it enables you to discover potential clients, obtain guidance and expertise from seasoned professionals, as well as establish your brand. Additionally, networking facilitates connections with individuals in your industry, fostering skill acquisition and the enhancement of effective approaches for achieving success.
Different Online Side Hustles
There are several side hustles that are among the best options for making extra money.
- Graphic design
- Copywriting
- Editing
- Videography
- Marketing
- Search Engine Optimisation (SEO)
- Web designing and development
- Photography
- Data entry
- Bookkeeping
Below are several side hustles with the highest profitability.
- Blogging
- Event management
- Rideshare driving
- Survey participant
- Mystery shopping
- Makeup artist
- Pet care services
If you possess a skill that is in demand, consider participating in digital freelance opportunities to earn a profit from it. Engaging in these options might be the ideal way to have control over your own work.
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