There are numerous challenges that come with being a freelancer. Aside from spending countless hours looking for your own clients, you also need manage your timetable ensuring you are providing your current clients with a quality service. The perfect balance is to be able to do both and still have free time. As we get into the new year, a new challenge has occurred for freelancers.
Starting out as a freelancer can already be too hard for people to consider. Researching everything about the freelancer lifestyle, developing your services or products, and ensuring you have all the right legal entities setup is enough for anyone to handle. Now the challenging of getting your name out there and getting paid while you do it seem to be a new one.
A recent study has shown that freelancers are increasingly being ask to work for free by businesses. Claiming that it would look good on their portfolio, freelancers are being given the unfair choice of either work for established businesses for free to help impress future clients with their portfolio, or lose the deal altogether.
Working for free has a massive impact on your future success. Not only does is it disable you from earning any money for the amount of hours you will be working on the free project, but it also stops you from realising the true value of the service you provide. A common mistake for any self-employed person is to either charge too much or too little for their products or services. Only when they are able to properly test what they have on clients will they be able to accurately see the true value of what they offer. Working for free takes away this ability because you will not get any feedback from the client which relates to the price.
How to combat this
You will see that some potential clients find it hard to consider paying a professional freelancer at a business level price for the product or service. Just because you are an individual they assume it should be much cheaper. Registering a limited company can stop that. Having a limited company shows all potential clients how serious you are able the work you do. It frees them from the idea that they are just paying 'some person' to do a job than the reality of it being a professional.
A limited company also shows clients that you are expecting to grow because with a limited company comes the opportunity of employing people. Finally registering a limited company means you will be given the title of "director" amongst other things you do that relate to the services you provide. With a director status you will find others will treat you more seriously, deterring them from asking you to provide any service for free.
Setting up a limited company doesn't have to be stressful. PNGFormations specialises in setting up limited companies of all sizes, making the entire process quick and easier for everyone. If you are interested in setting up a limited company, you can contact one of our experts here today.