8 Risks of Freelancing You Should Know Before Quitting Your Job

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Key Takeaways

  • Freelancing offers a elastic schedule and nan opportunity to beryllium your ain boss, but it comes pinch nan consequence of unstable income and financial instability. Consider starting arsenic a broadside hustle earlier making nan move full-time.
  • Freelancing often involves an inconsistent workload, pinch immoderate months being overwhelmed pinch activity and others struggling to find projects. Use task guidance devices and connection elastic deadlines to negociate your workload effectively.
  • Unlike accepted employment, freelancing does not connection benefits specified arsenic paid time off aliases status plans. You'll beryllium responsible for readying your ain clip disconnected and building your ain status savings.

The gig system is growing, and being a freelancer has ne'er been this popular. No matter wherever you go, you perceive stories astir group quitting their time occupation and taking their careers into their ain hands. This mightiness time off you wondering whether you should do nan same.

After all, who doesn't want to beryllium their ain boss, person a elastic schedule, and debar commuting successful postulation each weekday? But earlier you make nan switch, see these 10 risks of freelancing you'll person to carnivore if you take to prosecute it full-time. Let's return a look. You mightiness extremity up changing your mind.

1. Unstable Income

The biggest situation you'll look arsenic a freelancer is having an unstable income. This is nan biggest difference betwixt employment and freelancing. In nan former, you get a fixed monthly salary; successful nan latter, you get paid based connected nan number of clients you have, nan projects you return on, and what you complaint for your services.

If you're readying to go a freelancer, you person to beryllium consenting to tolerate consequence and financial instability. Even knowledgeable freelancers who person been successful nan business for respective years sometimes find themselves struggling financially.

To mitigate this risk, commencement retired by freelancing arsenic a broadside hustle. This way, you tin still gain a dependable paycheck while simultaneously pursuing freelancing for other income. After immoderate time, if nan second becomes much lucrative, you tin make nan switch.

2. Inconsistent Workload

A female looking stressed successful beforehand of her computer

One point that beautiful overmuch each freelancers kick astir is having an inconsistent workload. One month, you mightiness find yourself wholly overwhelmed pinch work, and nan very next, you mightiness beryllium struggling to find work.

Luckily, this is simply a solvable problem. There are galore project guidance tools retired location that tin thief you shape your tasks and debar wasting clip to maximize your productivity. Depending connected your goals and lifestyle, you tin create a schedule accordingly.

You tin besides complaint clients other who want their projects done urgently, and connection mini discounts to those who are consenting to push nan deadline to fresh your schedule.

3. No Benefits

While an employer mightiness ablution you pinch each sorts of benefits specified arsenic paid leaves, wellness insurance, status plans, and more, a customer will ne'er fuss pinch specified things. Why? Because their narration pinch you is constricted to their existent requirements.

Once these requirements are fulfilled, their liking successful you will expire, and you person to beryllium okay pinch this. It's up to you to determine really galore leaves to return and when. You'll besides person to scheme your status each by yourself, which is trickier pinch an unstable income.

4. Highly Competitive Industry

upwork homepageImage Credit: Upwork

Platforms for illustration Fiverr, Upwork, and Freelancer person made it really easy for clients and freelancers to meet and do business together. They're for illustration nan LinkedIn of nan gig economy. However, arsenic adjuvant arsenic they are successful helping you find lucrative gigs, they besides make it difficult for you to guidelines out.

Due to nan ranking strategy of these sites, knowledgeable freelancers support getting caller projects, while newbies thin to get ignored. It's a cardinal logic why caller freelancers can't find clients. Oftentimes, nan only measurement for a newbie to get clients is to connection their services for dirt-cheap prices, which is not a sustainable business model.

5. Isolation and Loneliness

Over time, nan isolation that comes pinch being a freelancer tin beryllium really harmful to your intelligence health. As an employee, you talk to your coworkers connected a regular ground astir activity and non-work-related matters, which keeps your societal needs fulfilled.

But arsenic a freelancer, astir of your clip will astir apt beryllium spent moving unsocial astatine location without immoderate outer input. To lick this, you tin activity astatine nationalist parks, participate unpaid programs, web pinch different freelancers, aliases join a coworking space.

6. Increased Responsibility

Being your ain leader is simply a awesome feeling, but it doesn't travel for free. Although you'll bask greater power complete your clip and income, you'll besides person to find caller clients, create contracts, group your ain deadlines, fig retired what to charge, and a batch more, each by yourself.

You'll besides person to build a portfolio, marketplace yourself, discuss pinch clients, negociate your projects, and proceed to upgrade your skills successful nan meantime. If each this sounds ace stressful to you, it's a sign you're not fresh to beryllium a freelancer and are amended suited for a job.

7. Fuels Procrastination and a Sedentary Lifestyle

Since you don't person to study to a manager, freelancing tin make it really easy to procrastinate and debar your owed tasks. Downloading to-do database apps tin help, but frankly, they are not a replacement for genuine activity ethic and discipline. You're going to person to thatch yourself really to enactment focused without needing outer supervision.

Also, since you're not having to commute to activity aliases get dressed, freelancing tin lead you into a lazy, sedentary lifestyle. It's communal for freelancers to activity successful bed, which we don't recommend. It's amended to set up your location office, truthful you person a designated area for work.

8. Price-Skill Mismatch

An illustration of personification paying money to nan beneficiary

Pricing is difficult for each business, from freelancers to area shops to multinational conglomerates. And if your prices are not apt to your skills and acquisition level, converting clients will beryllium a batch harder.

Initially, your privilege is to build a coagulated portfolio and get affirmative customer testimonials. You tin do this by temporarily mounting debased prices to lure clients successful and leverage them successful nan early arsenic grounds of your reliability successful converting high-paying clients.

9. Having to Buy Your Own Equipment

As an employee, it's your employer who provides you pinch each nan devices and instrumentality basal to do your job, but arsenic a freelancer, you person to bargain everything yourself. This intends you're starting retired your freelance profession pinch awesome expenses—how precocious these expenses are will dangle connected nan type of activity you do.

If your activity is specified that it requires a batch of computing powerfulness specified arsenic a video editor, you're astir apt going to person to bargain a much powerful laptop. If you're a schematic designer, you'll person to bargain a color-accurate show which will besides beryllium much expensive. And don't hide that you'll person to salary to set up a location office and support it too.

An iPhone showing each of nan Microsoft Office apps successful 1 folder.

If you're caller to freelancing and don't already person capable acquisition successful your industry, it tin beryllium really difficult and time-consuming to study really to usage industry-standard package programs.

There are devices disposable for beautiful overmuch everything: project management, time tracking, accounting, invoicing, CMS, CRM, social media automation, photo editing, schematic designing, information analysis, and galore more.

As an employee, you get due training connected really to usage specified tools. As a freelancer, you person to not only study really to usage these devices yourself but besides salary for their subscription.

Freelancing Is Not for Everyone

For astir people, having a occupation pinch a dependable paycheck is measurement amended and little problematic than being a freelancer. However, if you tin tackle nan risks we saw above, freelancing tin beryllium to beryllium much profitable, much fulfilling, little stressful, and much liberating.

But successful bid to tackle these risks, you'll request to study immoderate skills that you mightiness not person bothered to study arsenic an employee, including logical reasoning, problem-solving, speedy thinking, self-learning, and more. The much skilled you are, nan easier freelancing becomes.

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