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7 Questions to Ask Yourself Before Going Freelance

freelancers should set aside 40% of their pay

From the HBR.org, Amy Gallo offers seven question to consider before being a freelancer.  One of most interesting factors is the advice provided by Sara Horowitz, head of the Freelancers Union, who said that freelancers should expect to put aside 40% of the payments they receive to cover taxes, health insurance, vacations and retirement — costs that employers usually cover or withhold from a paycheck.  Amy also provides a great list of Do’s and Don’ts:

Do:

  • Make sure you have a strong network of people who can help you find work
    Give yourself a financial cushion before going out on your own — you need to be able to weather any dry spells
  • Be prepared to take on tasks that aren’t directly related to your work, such as handling IT issues, sending invoices, and selling your services

Don’t:

  • Assume that your skills and experience are something that clients are willing to pay for — consider testing the market before officially going freelance
  • Go freelance if you’re not self-directed or comfortable with ambiguity
  • Leave your job until you have a plan in place, even if it’s not 100% certain.

Read the full story at 7 Questions to Ask Yourself Before Going Freelance

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