by Kingcoal » Tue 02 Jan 2007, 11:04:35
$this->bbcode_second_pass_quote('smiley', '')$this->bbcode_second_pass_quote('', 'L')oki, sell your services freelance, there's no future in being an employee anymore. Don't waste one minute looking to get hired as an employee. Get out there and network.
I have great respect for freelancers, but I wouldn't take that step too lightly. Freelancing takes a lot of nerves and a keen business sense. I would give it some serious thought before I would embark on such a thing.
About 80% of the one-man-companies fail before 5 years. A lot of them result in personal bankruptcies. The most common causes are the lack of a good and realistic businessplan, and lack of good management.
- You have to do all administration yourself. That means taxes, write-offs and judicial affairs, but also you have to arrange your own pension. Those are things you have to take very seriously. .
- You have to have some sort of backup for if you fall ill. No work means no income.
- You have to be sure you have a stable client base. I know too many freelancers who are dependent on one client.
- You have to have realistic expectations. For most companies it takes 2 years to reach break-even. You have to have the financial means to survive that period.
I have thought for a long time about going freelance. I finally decided against it for the following reasons.
1) I am good at my job, I am also good when it comes to networking and getting people interested in my work, but I am terrible when it comes to administrative tasks etc. I don't like it and would probably neglect that part. A company ran by would probably within a year have problems with the IRS.
2) I haven't got the nerves. I find it very reassuring to know what I will earn next month and beyond.
So I do contract work at a private research institute. It works like this. I am responsible for getting my own clients and contracts. As long as I get the money I can basically do what I want, so from that perspective I am my own boss.
However I get a fixed base salary from the institute (+ bonuses) and I don't have to worry about the operational side of business. I just do the acquisition and the management of the projects. The institute takes care of all administration, making sure that I have the right people for the projects, taking care of the contracts and judicial affairs.
If you aren't very fond of taking risks (like me) something like this could be an option.
You're right Smiley, I've been doing it for 4 years and it's not for the light at heart. However, I doubt I could go back to a (J)ust (O)ver (B)roke again. If you are extreamely good at what you do and you take steps to remain among the best, it's the way to go.