4 factors for successful self-employment
Why work for yourself?
Working for yourself as a sole trader can be incredibly rewarding. Great job satisfaction, autonomy, perception of value provided, and remuneration to name a few. However, one of the questions you may be pondering is “do I have what it takes?”
There are hundreds of articles on the internet on this exact theme: 5 things, 10 things, 100 things to think about before working for yourself. 100 things is probably overthinking it so I’ve been doing some reading and have concluded that these four things are as good a place to start as any.
1. Experience and marketable skill
Clearly, you’ve got to have a skill or knowledge that clients will pay for. You could test that out by asking potential clients what they need and then refining your ideas before you launch. Experience counts but I’m not going to limit anyone by putting a number on it. There will be people who have the confidence and personality to knock it out of the park with less experience than others. If it helps, update your CV thinking about all the direct knowledge of your industry and transferrable strategy, project, and people management skills you have. Get to know yourself and make sure what you’re proposing to offer makes you pumped to go to work too.
2. Characteristics and personality
No longer having a manager or administrators to keep you on track means you need to be self-motivated. As a sole trader, you will be responsible for making sure you meet deadlines. You will also need to keep upskilling yourself and carry out business administration to keep things running smoothly. On top of that, you need to put yourself out there and market yourself and your brand.
Resilience to setbacks, optimism, adaptability, and your ability to tolerate ambiguity were all skills linked to being more successful, having more billable work, and providing higher levels of satisfaction in freelancing according to a 2018 study (Eden McCallum and London Business School, 2018).
3. Financial situation
All the articles I read talk about having a financial cushion. You need to be able to weather any lulls between projects or take time to pivot in what you are offering. If you have a partner maybe this means they can cover the household expenses while you take a leap of faith. Or if you are by yourself maybe you have savings or other financial resources that you can fall back on. Taking some time to look at how much you actually need to live on and maybe changing up your life could also give you some more leeway in starting out on your own.
4. Strong networks
Finally, having a strong existing network is going to be your best resource (aside from yourself) as this will be the source of most of your business. Your network could be former clients, colleagues, or other people you have worked with in the industry. Amy Gailo (Gailo, 2016) and some of our followers recommend making time to set up lunch/coffee meet ups to let other industry professionals know you are out there and find out how you might be able to help. You will need to keep building your networks over time. Don’t forget about your so-called competition, they are a great source of information and present opportunities to collaborate on bigger projects.
You don't become what you want, you become what you believe. If you believe in yourself, you have everything it takes to build your business.
How about it?
You don’t have to have a plan that is 100% laid out. But putting some time into these questions will serve you well before you dive into the nitty gritty of deciding how to set up your business, the tools you will use, how to schedule your time, and how to get those clients. Good luck!
References:
- Boogard, K. (n.d.). 6 signs you should pursue a freelance career. Retrieved from Flexjobs: https://www.flexjobs.com/blog/posts/signs-you-should-pursue-freelance-career/
- Caza, B. B., Ashford, S. (., Reid, E., & McCallum, D. (2019, May 21). Are you ready to go freelance. Retrieved from Harvard Business Review: https://hbr.org/2019/05/are-you-ready-to-go-freelance
- Eden McCallum and London Business School. (2018). Independant consulting: a good gig in a changing world. London: Eden McCallum.
- Gailo, A. (2016, 20 16). How to become successful freelancer. Retrieved from Havard Business Review: https://hbr.org/2016/07/how-to-become-a-successful-freelancer
- McKay, A. (2023). Are you cut out for self-employment. Retrieved from Alicia McKay: https://www.aliciamckay.co.nz/start-consulting
- O’Dea, B. (2021, 7 16). Thinking of going freelance? Here’s 8 things you shoudl consider. Retrieved from Siliconrepublic: https://www.siliconrepublic.com/advice/freelance-things-to-consider
- Petriglieri, G., Ashford, S. (., & Wrzesniewiski, A. (2018, March-April). Thriving in the Gig Economy. Retrieved from Harvard Business Review: https://hbr.org/2018/03/thriving-in-the-gig-economy
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