After all, look at all of the entrepreneurs out there who have achieved amazing success with their freelance work?
All it takes is the commitment, motivation, and hard work, right?
Not so fast.
Your enthusiasm is admirable, and it will take you far, at least in the beginning.
But there are some hidden dangers of freelance work that you may not have considered. Being prepared for them will help you recognize them and avoid falling “prey” to them.
Here are five categories of dangers that you will no doubt face when starting freelance work.
There is a lot to do to set up a business, and you cannot ignore any of it.
This is the crux of your business. Without customers or clients, nothing happens. And those relationships can be great, good, or just horrible. Your job is to avoid the horrible.
1. Get everything in writing.
Verbal agreements only create misunderstandings down the road. Suppose you are engaging in verbal agreements with clients. All of a sudden, a client complains that you did not fulfill the terms of your agreement.
Maybe he feels you missed a deadline or did not follow their instructions. You have no recourse when they decide not to pay you as a result.
2. “Creeping Clients.”
These are clients or customers who keep adding on to the parameters of the project during the course of completion. You want clients, but there comes a time when one is just too demanding of your time. You can avoid this in two ways. Again, have it all in writing upfront.
And second, have the self-confidence to speak up, explain that his latest “demand” goes beyond the contract and give him the extra fee it will be. And, get that in writing, too.
3. Finding the Balance
Finding the balance between keeping clients apprised of progress and not responding to unreasonable demands for reporting. You will have clients who want daily reporting from you. You cannot do this. Tell clients upfront, based on the breadth and depth of the project, when progress reports will be given.
Another tactic will be to hold office phone hours and inform clients of those times. Do not answer the phone at other times. Get a cell phone specifically for business, and you can stick to your schedule. Never give a client your personal cell phone number.
Yes, your social and family life will suffer, at least in the beginning. You will be building a business, your days will be long, and your weekends will not be your own.
This is a real danger of any freelance work. You do not have a work-related retirement plan. Your only source of retirement savings is your self-employment tax through social security. Certainly, you do not want to live on social security alone.
It can creep up on you, without realization. The symptoms include reduced ability to focus, trouble sleeping, irritability, and sometimes just a general lack of enthusiasm and positivity. You are probably responding to stress and burnout. It’s common among freelancers who are trying to please clients, meet deadlines, worry about income and have sacrificed their personal lives to build a business.
Your emotional health is critical to business success. Don’t ignore it.
If all of this sounds a bit scary or discouraging, understand this. Knowing these potential pitfalls of freelance work in advance will ensure that you can put into place those activities and behaviors that will avoid them. Freelancing is a great life if done right. You can do this!
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