Freelancing has many advantages, but it also comes with its share of disadvantages. Being your own boss can be exciting, but it can also be nerve-wracking to take on the task of doing everything by yourself. To make sure you’re aware of all the positives and negatives to being your own boss, we’ve put together this guide on the 10 Advantages and Disadvantages of Freelancing.
1) The best way to find the right clients
Although no matter what type of freelancer you are, finding and landing your first client is a challenge—it’s just not easy to get someone to hire you when they don’t know your work. One key piece of advice from all our experts was to start with a personal connection. Network like hell, one expert told us. There are lots of ways to do that [but] my number one strategy for getting initial clients is asking people I already know who have worked with other freelancers. (We talked more about how you can make connections in Chapter 2.)
The freedom you can have on your own schedule
The major advantage of freelancing is that you can take on any project, at any time. You get to decide how much work you want, where you want to do it, how quickly you need to complete it, etc. There’s a lot of flexibility in being your own boss. While it might sound like an easy gig, there are some major disadvantages; The downside is that being self-employed requires almost total dedication—in fact, studies show that most freelancers work about 70 hours a week or more.
Self-discipline is required
While working for someone else, you don’t need to worry about self-discipline. Your boss is responsible for pushing you to work hard. But, when you’re a freelancer, you need to make sure that your motivation doesn’t lag. It’s your responsibility to make sure that you get enough done each day in order to succeed. This can be difficult because most freelancers tend to overwork themselves in an effort to do more and earn more money. So it's important that freelancers learn how much they can really handle on their own without sacrificing efficiency or quality workmanship.
The flexibility of your income potential
There is no such thing as a standard freelance rate. While you will typically earn less than someone with a full-time job, you can still earn more than enough to pay your bills. The cost of living in most metropolitan areas has increased dramatically over the past decade, meaning that many people work part-time for supplemental income. And when it comes to freelancing, there are very few jobs out there that pay six figures -- even for top performers. Being able to choose your own hours means being able to take advantage of opportunities that may not be available during typical office hours. Freelancers are paid per project, which means they can take on multiple clients at once -- providing extra income from different sources.
Entrepreneurship is a full-time job
Don’t believe people who tell you that freelancing is a part-time job. It might start that way, but after a while, you have to commit full-time just to keep up with your growing workload. Keep in mind that you’ll need to take care of your accounting, taxes, business development, networking, marketing and so much more. You won’t have time for much else besides work.
Lack of stability in employment and income
The biggest disadvantage of freelancing is that you never know when you’re going to get a paycheck. When you work as an employee, your boss usually deposits your pay on a regular basis into your bank account. This allows you to budget based on your expected income. When you’re freelancing, however, it can be tough to predict exactly how much money will be coming in over any given period of time. If you are living paycheck-to-paycheck (which many freelancers do), then you need to carefully plan how much money is needed to cover regular expenses before taking on work through freelance platforms. A single missed paycheck could create financial problems if expenses aren’t cut back quickly enough.
Work for multiple companies at once
Though many freelancers get stuck doing work for one company, a much more lucrative model is working with multiple companies at once. That way, you'll have a variety of different projects to choose from—and your income will be less dependent on any one client. Not only does having multiple clients mean greater potential for higher profits, but it also lets you hedge your bets: If one job starts to slow down or go south, there's another client ready to step in and pick up some additional work. However, it's important that you know what kind of workload you can handle; clients who want consistently quick turnaround times might not mesh well with those who need projects handled over a longer timeframe.
Competition between freelancers for contracts
Unless you’re a skilled freelancer with a rare, highly-sought skill set, you’ll have to compete for contracts—often with others who are just as skilled as you. These folks will probably charge less than what you’re used to making. Competition can be tough and discourages many freelance writers from entering this space—particularly ones who don’t want to work through trial-and-error. Not all writers are cut out for freelance writing. But if you love writing and meeting new people (and aren't worried about earning more money), it's a great way to spend your time!
Not as much vacation time as full-time employees get
Sure, you can take a holiday on any day you want, but do your employers know that? Without explicit approval from your boss, it’s entirely possible to piss off your employer by trying to work remotely one day a week or taking too much time off. Employers don’t like freelancers as much as they like full-time employees because they know if they need someone to show up every day with no excuses, freelancers aren’t reliable enough. This can lead to resentment or missed deadlines.
Going from employee to freelance takes courage
You need to be brave enough to take on a lot of new responsibilities. While freelancers have more flexibility in where, when, and how they work than employees do, that doesn’t necessarily mean it’s easy. From doing their own bookkeeping to cleaning up after themselves and paying for their own insurance, there are plenty of things freelancers have to think about that workers don’t. Many freelancers discover quickly that they didn’t realize how much it was costing them—in time or money—to work as an employee. Here are 10 advantages and disadvantages to give you a better idea if being your own boss is right for you.
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