Freelancing in 5 easy steps

Research the market

Looking at both the geographical area you live and work in and the industry you work for, is contracting or freelancing well established?

If there is already a thriving freelancing or contracting market (such as in IT), you are likely to find it easier to establish yourself.

Conversely, if you work in an industry or area where there is very little competition, you may also be in a strong position to go freelance.

Analyse your skills

Now that you've established that there is a market for skills like yours, you need to make a realistic assessment of your own personal and professional skills.

Your professional skills

Given the market, and the demands of businesses for freelancers in your area, do you have all the skills and qualifications that you need?

If not, you could consider retraining, taking a short course, or even an online refresher course.

More information on retraining or adult learning of all sorts is available from the «Direct Gov» website.

The BBC also has resources for adult learning, «here»

Your personal skills

Being a freelancer, contractor or consultant, can bring financial rewards. But along with the potential for high earnings (in some sectors!) comes the likelihood of uncertainty and additional stress at those times when you do not have a contract. If you are the sort of person who needs stability and certainty in your working life, becoming a freelancer may not be suitable.

As a freelancer, you will need to have the confidence to negotiate contracts and sell yourself and your skills to potential employers.

Depending on your job type, you may also need to be happy working on your own for periods of time.

Set yourself up

Now you need to decide how to set yourself up in business.

Sole trader

The easiest way to start out is being a sole trader. You will have to tell the Inland Revenue that you are working as a sole trader, as you will need to make National Insurance contributions. You may find it easier to register with an umbrella company, to manage all your invoicing and tax payments, and to ensure that you comply with the IR35 tax rules.

Limited company

It is fairly straightforward to set yourself up as a limited company. You should get professional advice to ensure that you meet all your tax and national insurance obligations when you are paying yourself a salary through a limited company.

Set your hourly rate

Based on your inventory of your skills, and your research of your marketplace, you will now need to come up with a realistic hourly rate – and daily rate. Look on people4business to see what Sellers with comparable skills are charging.

Register on people4business

And finally… register as a Seller on people4business! It's completely free to register and gives you access to business Buyers throughout the UK.

Further information

To find out more about setting yourself up as a freelancer, contractor or consultant, take a look at the comprehensive guide to starting up in business, from «Business Link»

last updated 17.04.08