The Self-Employed Checklist: Everything You Need to Do Before You Go Freelance

If the thought of being your own boss, making your own hours, and choosing your own projects is appealing, then we want to help. But taking the courageous leap into self-employed life is not automatically a good thing. Without careful planning, you might not be setting yourself up for the best and brightest self-employed future.

At Girlboss, we have seen enough of both the triumphant leaps and the avoidable stumbles to know that preparation is the difference. Consider the below your non-negotiable to-do list before you go freelance.

Figure Out Your Why

When times get tough — and in the freelance world, you are going to go through some tough times — keeping the reason you decided to strike out on your own will help you persevere. When the going gets rough, remember why you got off the corporate track to make this happen, and you will see yourself through any rough patch. 

This guide to going corporate to freelance is worth reading before you make the call, specifically for its staged approach to leaving that protects both your finances and your confidence.

Study Up

Anyone can have an idea, but only you can turn your unique idea into a business. Take the time to identify the pain point or need your business helps solve, get to know the competition, and identify what makes you and your business, service, or product better. It is important to understand the value you bring, because you cannot be the best unless you understand how and why you are better.

Be the Woman With the Plan

Every business needs a business plan. For some, the idea causes hives, but a business plan is nothing more than a list of your goals and the ways you think you can get there. Not only does it help you, but it also helps when you need to ask for help — from investors, advisors, or even a bank. The Small Business Administration has free business plan templates and guidance.

Know Your Opportunities

What is the demand for freelance work in your market, from businesses, agencies, and media? Get to know available work, know how much others are charging, and identify ways to deliver value for clients. This guide to calculating your freelance rate walks through exactly how to set a number that reflects your actual value.

Gather Your Industry Contacts

Start making a list of everyone you know and kind-of-know in your industry and related industries: current and former bosses and coworkers, people you worked on projects with. If they might be a client, or might be able to put you in touch with someone who could become one, put them on the list.

 Once it is filled out, let them know what you are up to — with the exception of current coworkers if you are not ready. Fight against that instinct to keep your new hustle secret until you are successful. In the freelance world, the only way to get there is to work.

Save, Save, Save

Even with a healthy savings account, you will still need to save before making the leap. Startup expenses like travel costs, office space, and marketing materials can creep up on you. Start putting money away now and think of ways to cut costs, like working from home until your business takes off. Also put a little aside for self-care.

Calculate all of your expenses: rent, utilities, food, clothing, as well as health insurance, retirement fund, and other benefits currently provided by your employer. Then, giving yourself a cushion to account for emergencies, weigh that number against your savings and other forms of income. If your savings can cover your expenses for three to six months, you are in a position to give it a go.

Charge What You Are Worth

Just because you are new does not mean you are cheap. Set your rates with your worth in mind. Charge a fair fee for your services because underselling yourself at the start only makes it harder to raise your rates later. And it will come up sooner than you think.

Register Your Business

Whether you are doing business under your own name or a brand name, register your business with your state. If you are a freelancer who takes on projects here and there without a lot of regularity, a sole proprietorship is probably right for you.

If you are using a name other than your own, you will also need a "doing business as" (DBA) registration. If you are working freelance with more regularity or with larger companies, consider registering as a limited liability company (LLC).

An LLC comes with a steeper fee and more paperwork, but it protects you personally from debt and legal liability. Register your company, pay the fees, buy your domain name, and get going. Contact your local Small Business Administration office for a step-by-step guide to registering in your state.

Give Your Notice

Pretty self-explanatory, but suffice to say: be brave, be professional, and give plenty of notice if possible.

At the end of the day, freelancing is not for everyone. But for some, it can be everything. If you are still not convinced the life is right for you, or you do not feel fully prepared, here are some resources that can help:

Now, the only thing left to do is leap. For an honest account of what the first few months actually look like, this first-person guide to going freelance without burning out is one of the most useful things we have published on the topic.