Did you know that 53 percent of Americans freelance instead of holding a traditional full-time job? Technology has given people the opportunity to break away from regular 9-to-5 in-person positions, letting them regain independence and flexible working hours.
If you are considering taking this step, you should know it can have its drawbacks along with its benefits. Read on to learn about the pros and cons of freelancing.
Pros and Cons of Freelancing: Chance to Work With a Diverse Clientele
When you freelance, you can choose the clients you work for. Instead of being forced into a niche, where you only work for one industry or sector, you can branch out.
Dealing with diverse clientele will also hone your skills and provide the experience you need to perfect your services.
Con: Taxes Can Be Challenging
One of the disadvantages of freelancing is the complexity of your taxes. Your clients will send you payment for your work without withdrawing taxes. It is your responsibility to declare your income and pay taxes on it later on.
Most freelancers require professional tax help.
Pro: You Control Your Schedule and Location
Freelancing lets you decide when and how you work. It allows you to work around your family life or your own creative endeavors. If you focus better at night than in the morning, you can schedule your freelance work around that preference.
Another advantage of freelance vs full-time work is your can choose where to work. You can take advantage of remote opportunities without stressing about the expense of commuting.
Con: Clients May Not Pay on Time
If clients do not pay on time, it will be up to you to chase after them. You have to set your payment terms and advocate for yourself if someone doesn’t pay.
There may be disputes about payments you will have to resolve. Having clear invoicing can help mitigate these problems by letting clients know what services you have provided and what they must pay. Turn to the best invoice template options for help in getting paid.
Pro: Chance for Better Income and Broader Profits
Working from home saves you money, letting you keep costs down and broadening your profit margin. When you work full-time, you will have a set salary, but with freelancing, you can take on as much work as you want.
Pay rates are also often higher for freelance work, and you can tweak those rates to accommodate for traveling expenses or other hidden costs.
Be Your Own Boss
When you know the pros and cons of freelancing, you can decide if it is the right choice for you. For a majority of Americans, freelancing offers the chance to be their own boss while widening their client base and experience.
To get more tips on how to succeed, whether freelancing or at a full-time job, turn to our Business page!