On French soil, freelance work is in full swing. According to a study by Eurostat in 2021, there are 930,000 freelancers in the country. This number underlines a 33% increase in interest in this form of work over the last 6 years. The many advantages of the system explain this upward trend. Freedom, flexibility, motivating remuneration, comfort, independence, absence of hierarchical constraints and pressure are among the prerogatives of the life of a freelancer. So, how to become a freelancer: the guide lists the steps you need to take in order to embrace the status of autonomy, to start your own business and to prepare yourself for your role as a project owner.
Get to know your sector of activity
Mastery of any field or speciality will be the starting point for your entrepreneurial project. It will define your performance.
Identify your area of expertise
Freelance work is not limited to the execution of client orders. The activity has a variety of functions. It places the project owner at the centre of attention. He or she wears several hats: accountant, salesman, manager, etc.
Upstream thinking is crucial before starting your project. Preparation is the key to the success of your business.
Then identify the area of work in which you excel. Make sure you have the general and specific skills, as well as the theoretical and practical knowledge, for your future performance.
Theory is acquired after several years of university studies and professional training. Experience comes from practice in the field.
Taking stock of the market
The strength of will is the driving force behind your project. However, it is not enough to guarantee its success. A market study is imperative. The analysis will clarify all the grey areas. It highlights all the main targets, in other words, your core targets as well as the secondary targets. It also highlights your direct and indirect competitors.
This first step reveals the opportunities and constraints that could prevent your project from flourishing. It reveals whether the market is exploitable or saturated.
After the study comes the preparation of a business plan. The administrative document sets out on paper your production method, your lead times, your prices and your entire project. In the case of a start-up investment, it will help you to release funds.
Estimate the cost of your service
Freelancers have the privilege of choosing their own rates and developing their own pricing policies. Hasty estimates have no place in the freelance world. There are two methods of pricing: the calculation of the ADR (Average Daily Rate) and benchmarking.
The TJM refers to your turnover in one working day. It is calculated in two ways. The first starts from the expected gross monthly salary. Add 10% to the amount (corresponding to professional expenses and charges). Divide this over the number of days worked in a month. The second process is based on the net salary target. Add 50% of the amount to cover your daily expenses and charges and divide the result by the number of days worked in a month.
Benchmarking is a comparative technique. It consists of pricing your service according to the basic market price. The study looks in particular at the rates applied on the platforms and by your direct competitors.
Respecting the legal, statutory and fiscal formalities of the status
Being a freelancer means being subject to the legal, fiscal and judicial constraints that govern independent status.
Choosing a legal status
In the interests of regularisation, the freelancer selects a legal structure. The project, the need to protect personal assets and the future prospects will determine your choice. Legal structures include :
- Micro-enterprise;
- EURL/SARL ;
- EI/EIRL ;
- SASU/SAS.
The micro-enterprise is an accessible system for project owners who wish to avoid tax constraints. The tax system is indeed simple and flexible.
TheSingle Person Limited Liability Company (EURL) and the Limited Liability Company (SARL) are legal entities. While the first status allows the creation of a company without partners, the second requires at least one.
TheSole Proprietorship (EI) and theLimited Liability Sole Proprietorship (EIRL) correspond to natural persons without capital.
The Société par Actions Simplifiée Unipersonnelle (SASU) and the Société par Actions Simplifiée (SAS) protect your personal assets.
Comply with legal obligations
At the start of your activity, you will commit to :
- set up your general terms and conditions (GTC);
- draw up your sales or service contracts;
- write the legal notices for your website;
- to comply with the data protection rules of the General Data Protection Regulation (GDPR) when working in the IT sector;
- settle disputes with your suppliers or customers.
For the sake of veracity and in case of difficulty, seek the assistance of a lawyer for the drafting of your contracts.
Meeting tax and accounting obligations
The freelancer incurs tax charges. They are subject to the VAT associated with their status. From an accounting point of view, they draw up their invoices and manage their accounts in accordance with the rules. They also keep an annual balance sheet.
If necessary, it will offload to another service provider who will take care of the tax management, the legal aspects of its activity and its accounting.
They can also use freelance administration, a status in the form of a contractual relationship involving three players: the freelancer (employee), the administration company and the client. The freelancer is freed from the legal, tax and accounting constraints that are now the responsibility of the portage company.
Taking advantage of the social privileges of self-employed status
Established in 2006, the Social Regime for the Self-Employed (RSI) provided service providers, craftsmen and traders with a range of social protection benefits (health, retirement and disability cover, family allowances, etc.).
The general scheme of the Sécurité Social des Indépendants (SSI) replaced the RSI in 2020. It applies to all statuses, including freelance administration.
Budgeting your project
Starting a freelance business requires a start-up budget, but how much?
Setting up a start-up budget
Assess your financial situation. Take a close look at your current income, your daily expenses, your expenses, your savings...
Then consider the cost of your freelance work in relation to several indicators:
- investments in equipment ;
- taxes ;
- creation costs ;
- expenses related to the smooth running of your business.
Your legal structure involves varying costs depending on your services and the form of structure chosen. The micro-enterprise has a lower set-up cost, but low contributions. This is why some freelancers prefer the SASU regime. It offers advantageous social security contributions in exchange for high set-up costs.
From this budgetary inspection your starting capital will be determined.
Claiming public financial aid
In order to help project holders in financial difficulty, the State has set up various schemes. The Banque Publique d'Investissement (BPI) supports business creators through financing services and management and investment advice.
Pôle Emploi pays theAide à la Reprise ou à la Création d'Entreprises (ARCE), theAide au Retour à l'Emploi (ARE) and theAllocation de Solidarité Spécifique (ASS).
TheAssociation pour le Droit à l'Initiative Economique (ADIE) is a solidarity organisation. It offers micro-credit and other forms of support for entrepreneurs.
These schemes will compensate for the first losses during your first months of activity.
Have the necessary qualities
Soft skills, technical knowledge and know-how make a freelancer a good entrepreneur. In addition to these qualities, there are other indispensable virtues.
Demonstrate autonomy
Freedom is the advantage of professional emancipation. Of course, status frees you from oppression and hierarchical tensions. However, freedom calls for autonomy. The main quality of a freelancer, it is the engine of your productivity. It guarantees the efficiency and progress of your project.
Besides autonomy, interpersonal skills are an important quality of the self-employed. It facilitates the connection with clients. It consolidates the trust capital between the stakeholders.
A project leader also has a flair for spotting opportunities.
Knowing how to sell your skills
Being an entrepreneur takes you out of your comfort zone. It requires a minimum of business skills. In addition, it requires the ability to persuade with words and deeds.
Being a freelancer requires a mastery of salesmanship, public speaking and the art of negotiating with clients.
These skills come with practice, including a strong sales pitch.
Challenging yourself
Your potential distinguishes your services from those of your competitors. Some freelancers go independent in the hope of becoming experts in their field. However, starting your business with little background will put a strain on your profitability. You will not have the references or experience. Training will therefore be necessary.
Other freelancers go through the "employee" process before becoming self-employed. The process consolidates their base and helps them raise the funds needed to start their business. Even so, the challenge is still worthwhile in terms of getting a better handle on your business.
Knowing how to manage your business
Management is an intrinsic quality of the freelancer. Knowledge of business management avoids the pitfalls of tax, accounting and legal issues. Whatever your field of work, you must be able to manage :
- your cash flow ;
- your accounting ;
- your invoices ;
- your insurance.
If necessary, delegate the task to a service provider, in this case a chartered accountant. You can also rely on the assistance of computer programmes specialising in accounting.
Finding the first clients
Lead generation is the key to the viability of your business, but how do you get there?
Hunting for prospects
The definition of your target group starts the prospecting part. Digital communication seems to be a must for all projects. Make good use of digital tools: blog, social networks, online directories, etc.
During their first steps, freelancers usually register in marketplaces where freelancers and clients meet. Others prefer to use social networks with a high profile, such as LinkedIn. Despite this, old practices still bear fruit, such as: business cards, trade fairs... Mobilise all conceivable tools in order to gain visibility.
Contract temporary and ad hoc assignments
Word of mouth seems to be an age-old but still effective approach to building awareness. It helps you to find prospects likely to be interested in your offer. It also maintains your image.
The first assignments are the most difficult to find. Fortunately, the presence of freelance platforms has made this easier.
Each platform has its own method. Some rely on an indirect approach. They call on the creativity of freelancers to impress and convince clients. Their approach is simple: the client publishes his request and waits for feedback from the service providers. He then chooses from among the proposals the expert able to meet his expectations.
Others opt for a direct approach. They explain the assignments and invite the freelancers to carry out the task in accordance with the client's instructions.
You will also find platforms that simply act as an intermediary between clients and providers.
Organising your daily life
Working time, break time, leisure time and chore time all come into the equation, so good organisation is needed. How do you juggle family life and work?
Setting up a work space at home
Most freelancers work from the comfort of their own home. The choice requires some rearrangement without major work. Reserve a specific room to use as an office, preferably one that is isolated from the rest of the house and easy to access.
Arrange the location to suit your needs. Bathe it in natural light, but install sufficient lighting for the night. Install the equipment you need for your activity: a desk, a comfortable chair and your laptop or a workshop with a machine, a chair, a long table, etc.
Choosing a workplace outside the home
Other freelancers leave their homes and create their own workspace in a new location, usually a coworking space. This is a place dedicated to freelance work. The solution has several advantages: availability of a furnished and ready-to-use space, a productive, quiet and friendly environment. It is suitable for freelancers who feel cut off from the rest of the world. Nevertheless, their occupation requires the payment of rental fees shared between the different occupants.
Many freelancers work directly at their clients ' premises. In this case, the service provider is known as a "live" consultant.
Setting up a productive schedule
You will not be able to devote all your time to your work. A good part of your time is reserved for administrative details. So organise your time according to the volume of tasks.
The organisation is based on a precise daily schedule. The distribution of tasks is based on the scope of the work and the delivery time. It requires the setting of achievable daily targets.
There are several tools, some free and some not, that will help you put together your schedule (Trello, Bitrix24, Google Calendar, Canva, Doodle).
Keep your family and friends informed of your programme and avoid distractions during working hours.
How to become a freelancer: in brief
How to become a freelancer? This step-by-step guide shows you how to become independent and adopt a new way of working.
Knowledge of your business sector will set the ball rolling. Determine and master your field. Do a market study and draw up a business plan. Then price your services.
Find out about the formalities governing the entrepreneurial regime. Choose among the legal statutes (SASU/SAS, EURL/SARL, micro-enterprise, EI/EIRL). Comply with the legal, accounting and tax obligations of your project.
Look at thefinancial side of your business. Look at the initial budget and offset the expenses with available public support.
Freelancing has some intrinsic qualities: autonomy, business skills, questioning and management skills.
Now comes the stage of hunting for prospects. Social networks and platforms will be of great help.
Finally, organise your office. You have a number of choices for your workplace: your home, coworking spaces or your client's premises. Then arrange your daily schedule according to the scope of your tasks. You are now ready to become a freelancer.
What do you think of the world of freelancing? Are you tempted to join the big community? Share your answers in the comments.
