It’s one of the most common questions asked when it comes to freelancing.
When is it time to finally make the switch?
For most people, it comes down to finances. Will you have enough stability to make it as a full-time freelancer? What do you do if you have a slow month (or two?)
Whatever may be holding you back, Entrepreneurial Journey has some great advice that can help you determine if you should make the switch to freelancing full-time.
“The key to leaving your job is to be realistic, rational and prepared. Here is what you should do…
- Know your numbers. How much money do you really need to survive? Cut out all the personal extraneous costs temporarily until your business can pay for them. Give yourself a target monthly figure as a bare minimum to survive, and make sure it’s realistic – cover every cost you have and a little extra for the unforeseen expenditures, including both business and personal.
- Get freelance/contract clients locked in before you quit. Contracting is a great stepping stone income source you can use to supplement yourself financially.
- Save a cash buffer. Some people run with a three month runway, others need six or twelve months to feel ‘safe’. Personally I would want to see at least a full year of my expenses covered in my savings buffer in case my business stopped making money suddenly.
- Have a ‘worse case scenario’ plan. If your business fails and you run out of money, what happens? You go back and get a job is the most likely outcome, so plan for this possibility by keeping in contact with key people who might have work for you.
Keep a part time or casual job. I’ve never had a full time job, but I did have casual jobs that supplemented my income while I grew my business. These jobs required ten-to-twenty hours per week and would cover my rent and food costs.”
Read the entire article at Entrepreneurs Journey.