In France, freelance work is booming. According to a 2021 Eurostat study, there are 930,000 freelancers in the country. This figure reflects a 33% increase in interest in this type of work over the past six years. The many advantages of this work arrangement explain this upward trend. Freedom, flexibility, attractive pay, comfort, independence, and the absence of hierarchical constraints and pressure are among the perks of life as a self-employed worker. So, how do you become a freelancer? This guide outlines the steps to follow to embrace self-employment, start your own business, and prepare for your role as a project leader.
Gain a Deeper Understanding of Your Industry
Mastery of a particular field or specialty will serve as the starting point for your entrepreneurial venture. It will define the services you offer.
Identify Your Area of Expertise
Freelance work isn't limited to fulfilling client orders. It involves a wide range of responsibilities. It places the project leader at the center of attention. This person wears many hats: accountant, salesperson, manager…
It is essential to think things through carefully before launching your project. Preparation is the key to your business's success.
Next, identify the field in which you excel. Make sure you have the general and specific skills, as well as the theoretical and practical knowledge, required for your future role.
Theoretical knowledge is acquired through several years of university study and professional training. Experience comes from hands-on practice in the field.
Assess the current state of the market
Willpower is the driving force behind your project. However, it alone is not enough to guarantee its success. Market research is essential. This analysis will shed light on any areas of uncertainty. Above all, it will identify your primary targets—in other words, your core target audience—as well as your secondary targets. It will also highlight your direct and indirect competitors.
This first step sheds light on the opportunities available as well as the constraints that could hinder the success of your project. It reveals whether the market is viable or saturated.
After the feasibility study comes the creation of a business plan. This administrative document sets out your production methods, turnaround times, pricing, and your project in its entirety. With an eye toward securing initial investment, it will help you raise funds.
Estimate the cost of your service
Self-employed workers have the privilege of setting their own rates and developing their own pricing policies. Hasty, guesswork-based estimates have no place in the freelance world. There are two common methods for setting rates: calculating the average daily rate (ADR) and benchmarking.
The average daily wage (TJM) refers to your earnings for a single workday. There are two methods for calculating it. The first is based on your expected gross monthly salary. Add 10% to that amount (to account for business expenses and payroll taxes). Then divide the total by the number of days worked in a month. The second method is based on your target net salary. Add 50% to that amount to cover your daily expenses and payroll taxes, and divide the result by the number of days worked in a month.
Benchmarking is a comparative technique. It involves setting the price for your service based on the market baseline. The analysis focuses in particular on the rates charged on online platforms and by your direct competitors.
Comply with the legal, regulatory, and tax requirements of the entity's status
Being a freelancer means subjecting yourself to the legal, tax, and regulatory requirements that govern self-employment status.
Choosing a Legal Structure
To ensure compliance with the law, freelancers choose a legal structure. Your choice will depend on the project, your need to protect your personal assets, and your future prospects. Legal structures include:
- Micro-enterprise;
- EURL/SARL;
- EI/EIRL;
- the SASU/SAS.
As an accessible tax regime, the micro-enterprise structure is designed for entrepreneurs who want to avoid tax obligations. The tax regime is, in fact, simple and flexible.
A Single-Member Limited Liability Company ( EURL) and a Limited Liability Company (SARL) are both legal entities. While the former allows for the formation of a company without any partners, the latter requires at least one partner.
A Sole Proprietorship ( EI) anda Limited Liability Sole Proprietorship ( EIRL) are business entities owned by individuals without capital.
The Single-Member Simplified Joint-Stock Company ( SASU) and the Simplified Joint-Stock Company (SAS) protect your personal assets.
Comply with legal obligations
When you launch your business, you will agree to:
- set up your terms and conditions of sale (T&C);
- draft your sales or service contracts;
- draft the legal notices for your website;
- comply with the data protection rules of the GDPR (General Data Protection Regulation) when conducting business in the IT industry;
- resolve disputes with your suppliers or customers.
To ensure accuracy and in case of any difficulties, seek the assistance of a lawyer when drafting your contracts.
Comply with tax and accounting obligations
Freelancers are subject to tax obligations. They are liable for the VAT applicable to their status. From an accounting perspective, they issue invoices and manage their books in accordance with the rules. They also prepare an annual balance sheet.
If necessary, he can delegate these tasks to another service provider who will handle tax matters, manage the legal aspects of his business, and take care of his accounting.
They can also use an umbrella company arrangement, a legal structure involving a contractual relationship among three parties: the freelancer (the employee under the umbrella company), the umbrella company, and the client. The freelancer is freed from the legal, tax, and accounting obligations, which are now the responsibility of the umbrella company.
Take Advantage of the Social Benefits of Self-Employment
Established in 2006, the Social Security System for the Self-Employed (RSI) provided service providers, artisans, and merchants with a range of social security benefits (health insurance, retirement and disability benefits, family allowances, etc.).
However, the General Social Security Scheme for the Self-Employed (SSI) replaced the RSI in 2020. It applies to all employment statuses, including wage portage.
Budgeting Your Project
Starting a freelance business requires some initial capital, but how much?
Create a startup budget
Assess your financial situation. Take a close look at your current income, daily expenses, bills, savings…
Next, analyze the cost of your freelance work based on several factors:
- investments in equipment;
- taxes;
- design costs;
- expenses related to the smooth operation of your business.
Your legal structure entails costs that vary depending on the services you offer and the type of structure you choose. A micro-enterprise has lower startup costs but comes with less favorable social security contributions. That is why some freelancers prefer the SASU structure. It offers favorable social security contributions but involves significant startup costs.
Your starting capital will be determined based on this budget review.
Applying for Public Financial Assistance
To assist entrepreneurs facing financial difficulties, the government has established various programs. The Public Investment Bank (BPI) supports entrepreneurs through financing services, as well as management and investment advice.
Pôle Emploi paysthe Business Takeover or Start-up Assistance ( ARCE),the Return-to-Work Assistance ( ARE), andthe Specific Solidarity Allowance ( ASS).
The Association for the Right to Economic Initiative ( ADIE) is a nonprofit organization. It offers microcredit programs and other forms of support for entrepreneurs.
These measures will offset your initial losses during your first few months in business.
Possess the necessary qualities
Interpersonal skills, technical knowledge, and expertise are what make a freelancer a good entrepreneur. In addition to these qualities, there are other essential virtues.
Demonstrate independence
Freedom is the benefit of professional independence. Certainly, this status frees you from oppression and hierarchical tensions. However, freedom requires autonomy. As the key quality of a freelancer, it is the driving force behind your productivity. It ensures the efficiency and progress of your project.
In addition to independence, interpersonal skills are an important quality for self-employed individuals. They make it easier to connect with clients and help build trust among stakeholders.
A project leader also has a knack for spotting opportunities.
How to Sell Your Skills
Being an entrepreneur takes you out of your comfort zone. It requires a certain level of business acumen. In addition, it demands the ability to persuade through words and actions.
Being a freelancer requires mastery of sales pitch, public speaking, and the art of negotiating with clients.
These skills come with practice—and, in particular, a solid sales pitch.
Questioning oneself
Your potential is what sets your services apart from those of your competitors. Some freelancers strike out on their own in the hope of developing their skills and becoming experts in their field. However, starting your business with limited experience undermines your profitability. You won’t have any references or experience to draw on. Training will therefore be necessary.
Other freelancers first work as employees before going into business for themselves. This approach strengthens their foundation and helps them accumulate the funds needed to launch their business. Even so, it’s still worth reevaluating this path to gain better control over your business.
How to Manage Your Business
Management is an intrinsic quality of a freelancer. Knowledge of business management helps you avoid pitfalls related to taxes, accounting, and legal issues. No matter what your field of work, you must be able to manage:
- your cash flow;
- your accounting;
- your invoices;
- your insurance policies.
If necessary, delegate the task to a service provider—in this case, a certified public accountant. You can also rely on specialized accounting software for assistance.
Finding Your First Customers
Generating leads is key to the sustainability of your business, but how do you go about it?
Going on a prospect hunt
Defining your target audience kicks off the prospecting phase. Digital communication seems essential for all projects. Make good use of digital tools: blogs, social media, online directories, etc.
When they’re just starting out, freelancers typically sign up for online marketplaces where independent service providers and clients connect. Others prefer well-known social media platforms, specifically LinkedIn. Even so, traditional methods still pay off, such as business cards and trade shows. Use every tool at your disposal to increase your visibility.
Take on temporary and one-time assignments
Word-of-mouth seems like an age-old approach, but it’s still an effective way to build your reputation. It helps you find prospects who might be interested in what you have to offer. It also helps maintain your image.
The first few gigs are the hardest to find. Fortunately, freelance platforms have made this task easier.
Each platform has its own method. Some rely on an indirect approach. They draw on freelancers’ creativity to impress and win over clients. Their process is simple: the client posts a request and waits for responses from service providers. The client then chooses the expert best suited to meet their needs from among the proposals.
Others take a direct approach. They outline the assignments and invite freelancers to complete the task while following the client’s instructions.
You'll also find platforms that simply act as intermediaries between customers and service providers.
Organize Your Daily Life
Work time, break time, leisure time, and time spent on chores all factor into the equation, which is why good organization is essential. How can you balance family life and work?
Setting Up a Home Office
Most freelancers work from the comfort of their own homes. This choice requires a few adjustments without the need for major renovations. Set aside a specific room to serve as your office—preferably one that’s separate from the rest of the house and easy to access.
Arrange the space to suit your needs. Let natural light flood in, but install sufficient lighting for nighttime use. Set up the equipment you need for your work: a desk, a comfortable chair, and your laptop—or a workshop with a machine, a chair, and a long table…
Choosing a Workplace Outside the Home
Other freelancers leave their homes and set up their own workspace in a new location, usually a coworking space. This is a place dedicated to freelancers. This solution offers several advantages: access to a fully equipped, ready-to-use space; a productive, quiet environment that fosters a sense of community; and it’s ideal for freelancers who feel cut off from the rest of the world. However, using this space requires paying a rental fee that is split among the various occupants.
Many freelancers work directly at their clients’ offices. In this case, the service provider is known as a time-and-materials consultant.
Creating a Productive Schedule
You won't be able to devote all your time to your work. A significant portion of your time will be taken up by administrative tasks. So organize your schedule based on the volume of work.
Organization involves creating a detailed daily schedule. The allocation of tasks depends on the scope of the work and the deadline. This requires setting achievable daily goals.
There are several tools—some free and others paid—that can help you create your schedule (Trello, Bitrix24, Google Calendar, Canva, Doodle).
Keep your family and friends informed about your schedule, and avoid any distractions during your work hours.
How to Become a Freelancer: A Summary
How do you become a freelancer? This guide walks you through the steps, one by one, to become self-employed and adopt a new way of working.
Knowledge of your industry will get the ball rolling. Identify and master your field. Conduct market research and develop a business plan. Then, set prices for your services.
Familiarize yourself with the formalities governing entrepreneurship. Choose from the available legal structures (SASU/SAS, EURL/SARL, micro-enterprise, EI/EIRL). Ensure your business plan complies with legal, accounting, and tax requirements.
Examinethe financial aspects of your business. Review the initial budget and offset expenses with available government assistance.
Freelancing requires certain inherent qualities: independence, business skills, a willingness to question oneself, and management skills.
Now it's time to start prospecting. Social media and online platforms will be a great help to you.
Finally, organize your workspace. You have a variety of work locations to choose from: your home, coworking spaces, or your client’s office. Then, plan your daily schedule based on the scope of your tasks. Now you’re ready to become a freelancer.
What do you think of the world of freelancing? Are you tempted to join this large community? Share your thoughts in the comments.
