Starting to freelance without a plan or a safety net
Before a big life change like moving into self-employment, it’s a very good idea to research, plan and build up some savings. But circumstances can change suddenly, forcing you to jump into freelancing without any time to prepare. Here's what we recommend if you ever find yourself in this situation.
Before a big life change like moving into self-employment, it’s a very good idea to research, plan and build up some savings. But circumstances can change suddenly, forcing you to jump into freelancing without any time to prepare.
It’s the situation I found myself in 15 years ago, when my role was made redundant due to restructuring. I’d known and worked alongside freelancers and agencies throughout my career, and often thought about becoming self-employed after dabbling with various side projects. But with a young family and a mortgage, I hadn’t considered it as a serious option or put any preparations in place.
After declining some options to potentially stay at the company, my former employer offered me a freelance project, which I took to tide me over while I applied for new jobs. And I’ve been self-employed ever since.
And while I’ve survived, and thrived at times, there are definitely things I could have done sooner to make up for jumping into freelancing without any preparation.
Get support and advice asap
Having stumbled into self-employment, I didn’t realise organisations like IPSE existed. Rather than learning from the advice and experiences of others, I was focused on just finding clients and building my business through trial and error. And I was reluctant to invest in support when every expense was coming from my own pocket.
With hindsight, a course like the IPSE Incubator would have saved me a lot of time and money, and massively reduced my uncertainty and stress. It’s easy to keep putting business plans and budgets to one side when you already have some clients to work with, and monthly bills to pay.
But even if you’re lucky and things are initially going well, everyone experiences ups and downs as a freelancer or business owner. And just as a contract suddenly becomes invaluable when a client relationship becomes difficult, having a long-term plan helps you prepare for a downturn and keeps you focused on what is genuinely important.
Your goal doesn’t have to be creating the next multi-million-pound agency, or launching a unicorn startup that changes the world. It might be making enough to cover your bills for the near future, or growing that into comfortable and sustainable living. Plans and targets can, and should, change as your career develops. But without something to aim for, it’s impossible to measure your progress and success, or know where to focus your time.
Build your financial buffer during the good times
When you have plenty of income from clients, it’s tempting to relax and assume self-employment will always be profitable. But if you haven’t started out with any savings, it’s important to start building them up alongside preparing for your tax returns.
Even if you can only put away a small amount each month to build up a financial buffer, it can grow over time into an invaluable safety net. Even a few hundred pounds can help cover your share of rent or a mortgage, allowing you to focus on work rather than panicking over bills when you’re between clients.
And building your savings will also help you to reassure family and friends who might be nervous about your sudden switch to self-employment.
Try to get your family and friends on board
It’s understandable that parents, romantic partners, and other people in your life might be nervous about your current career switch. Especially if you haven’t had the chance to plan or discuss it in advance. Don’t dismiss their concerns, but try to get them on board with your decision if you can.
If you’re freelancing with small children, it can certainly add to the time pressures, financial worries, and the tendency for people to assume that if you’re self-employed, you’re automatically able to take care of nursery runs and the housework alongside a full-time career.
The more you can involve those around you, openly discuss your concerns, and reassure them that you’re taking the future seriously, the more likely it is that you’ll have support around you. It’s not always easy, but taking care of your mental wellbeing is massively important when you’re self-employed.
Like any freelancer, I’ve struggled at times. But in addition to support from family, including a partner who is also self-employed, one of the best things I did in my early self-employed life was starting a monthly meetup to find others in similar situations. Back then, remote working, self-employment and online careers were all still fairly unusual. And it’s still proving invaluable, 15 years later.
Be open to advice from mentors or coaches
When you’ve jumped into self-employment, it’s easy to dismiss well-meaning advice and guidance. If you’ve made it successfully through your first six or 12 months, then it can feel like you’ve got everything sorted.
But while many of us enjoy the constant change and novelty that comes with self-employment, it can also lead to unexpected challenges. A more experienced mentor or coach can help flag up potential problems before they happen, helping you through them more easily, or avoiding them altogether.
They can also provide the encouragement and support you need to take a chance on new opportunities. Or just the external reassurance that you’ve heading in the right direction, and accountability if you’re tempted to slack off occasionally.
Even experienced freelancers aren’t immune to still making mistakes occasionally, or feeling uncertain about the future. And it’s OK to disagree with the advice you’re given, but having your business and work examined and questioned occasionally will only make it better in the long run.
Looking back, it’s easy to see times when I spent time and money learning from my own mistakes, when a cost-effective training course and a mentor could have essentially given me a shortcut to make progress much more quickly.
Don’t cut corners on equipment and professional services
If you’re starting self-employment without any savings, it’s tempting to spend as little as possible on your equipment. And to avoid investing in accountants, legal services, or insurance unless it’s absolutely necessary.
I started out with an aging laptop on the dining room table, and while I made it work at the time, it definitely held me back. Setting up a better home office doesn’t need to be expensive, especially with discounts through IPSE membership, shopping second-hand, or taking advantage of freebies from friends or online. And not only does it help you to be more productive, it also lowers the risk of physical issues from working long hours. Which is definitely a priority for me as I get older.
When I finally spoke with an accountant, I realised how much I’d missed out on claiming expenses and structuring my business in the right way. The support basically paid for itself.
And the same has been true for legal documents. I could sacrifice a few days of working and probably come up with a perfectly adequate NDA or contractor agreement. Or I can keep earning, and just make use of the templates prepared by experts for IPSE.
Over time you’ll appreciate the value of backing everything up, and keeping spare equipment handy. But it’s better to invest in removable hard drives, power cables and an emergency internet connection before they’re needed, rather than learning from an expensive issue. Or in my case, having to run to the nearest electronics shop hoping they had a power supply minutes before a client meeting.
Don’t rule out returning to full time employment for a while
I’d been self-employed for just under a year when I interviewed for a great full-time role. And because I’d fallen in love with working for myself, when I was lucky enough to be offered the job, I turned it down.
I don’t regret that decision, because I felt it was the right thing to do at the time. But looking back, I realise that going back to employment for a couple of years would have given me time to plan, save a financial buffer, and build up potential contacts and opportunities before I needed them.
There’s no rule that stops you from switching between being employed and self-employed throughout your career. But you do tend to find the opportunities tend to become less frequent when you’ve worked for yourself for a decade or more. And the switch to being an employee can be trickier when you’ve become used to working in your own way.
Build your positivity and resilience
Self-employment can be the most amazing experience, but it can also be challenging at times. And if you’re working alone, it can be hard to remain positive and continue to push towards your goals.
Courses, qualifications, and mentorships can all help to build up your confidence, along with keeping records of previous highlights and successes. When things aren’t going as expected, it can be easy to lose confidence and forget that you’ve overcome harder challenges in the past. Or that even if you do everything right, sometimes you’ll encounter bad luck, changing market forces or other companies causing issues.
Any successful freelancer or self-employed individual will have had times when they’ve had to push and keep going despite setbacks. And that’s harder when you don’t have a safety net, but it’s still possible as long as you can keep moving forwards.
The big mistake many solopreneurs make is trying to deal with it all alone, shouldering all the responsibility, and not asking for help or support when they need it.
I’ve known and worked with probably hundreds of freelancers and self-employed people over the years, and I’d struggle to name a single one who hasn’t experienced a crisis of confidence, mental health challenge, bad client experience or business disaster at some point. And almost all of them are happy to share advice, support, or a friendly shoulder to lean on.
How IPSE can help
If you’re just starting out, and don’t have a plan or a safety net in place already, then IPSE can help in a number of ways:
IPSE Incubator
Going self-employed?
If you're making the leap into self-employment without a plan, it's not too late to get one! Our Incubator programme is designed to help you launch a new business in 30 days.
Need more advice?
Before a big life change like moving into self-employment, it’s a very good idea to research, plan and build up some savings. But circumstances can change suddenl...
Deciding how to set up your home office can be fun, as well as a key factor in your ongoing comfort, health, and productivity. And, a better home office setup can...
Thinking about working from home? It sounds like a dream—no commute, no office politics, total flexibility. But without the right habits, it can quickly turn into...
