16 Aug Precautions Every Freelancer Needs To Take
Working as a freelancer comes with a lot of freedom. It’s great to be your own boss and to really get the chance to do what you do best, without a corporate umbrella stifling your creativity.
But alongside all of the perks of working freelance, there are also some downsides to working alone. Things like accounting and admin become your responsibility, while you might lack some of the resources that come with working for a company or organisation, like HR help or IT support.
In time, you’ll find your feet and come to know all of the ins and outs of running your own business. For now, however, here are some precautions that every freelancer needs to take to protect their business.
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Create an emergency fund
An emergency fund will be a very useful thing to have when you run your own business. It can help cover you during quiet periods and be there if you become ill or face some urgent business expenses. Try to have 3-6 months of expenses available to help cover you where needed.
In addition to an emergency fund, you should have an ongoing strategy for acquiring new clients. Network regularly and find ways to connect with potential clients. You could try growing your business through blogging too.
Get insured
Insurance is something every freelancer needs. There are different types of insurance for freelancers that can cover you in a range of situations, including professional indemnity, income protection, and contents insurance for your business equipment or home office. Having insurance can be a small price to pay for the peace of mind that you’re covered if something goes wrong.
Stay up-to-date with record-keeping and data protection
Admin can be at the bottom of your to-do list when you’re a freelancer, but it’s a very important part of keeping your business running smoothly. Staying on top of your invoices and expenses will help you manage your cash flow more effectively, but it will also help you avoid issues when it comes to your tax bill.
Strict record keeping can also help you manage data protection within your business. Data protection is incredibly important and any breaches could land you in trouble with a client. Having IT support in place can also be valuable to keep your technology safe and secure, reducing the risk of breaches and helping you get back online in the event of a problem. Take the right precautions and maintain high standards when it comes to running your business.
Protect your work/life balance
Finally, it’s important to protect your work/life balance. When you work for yourself, it can be hard to take a break or switch off at the end of the day. Some of the best ways to simplify your work/life balance include creating a structure through a proper home office and adopting a solid work ethic. Be organised with yourself to help you create a manageable work schedule that helps you do what you need to get done, while still being able to enjoy some free time too.
As a freelancer, all the responsibility for your work rests on your shoulders. Take the right precautions to protect you and your business to help you enjoy all the great things that come with working for yourself.