Here I share the lessons I’ve learnt during my first twelve months in self-employment. Having made the move, what are my top 10 takeaways? If you’re currently considering self-employment, I hope some of my reflections will help you decide whether it’s the right path for you. If you do, I hope some of my rookie errors will save you some time.
Should I stay or should I go?
Exactly one year ago, I left the security of nearly 40 years in full-time employment to transition into freelance work. It took me a long time to decide to make the change. Several close friends couldn’t quite believe I’d finally done it and kept checking to see if I hadn’t changed my mind. I remember asking a friend who’d made the move a couple of years earlier, “How do you know when it’s the right time to go?” She replied, “Trust me- you’ll just know.” About a year later, I woke up one morning and made the decision. Something I’d been grappling with for such a long time suddenly became easy. I gave my boss six months’ notice and immediately felt lighter.
I should say that I’d decided to draw my workplace pension once I left my job, so the risk for me was marginal. Ideally, I’d get work, but I would be able to survive if I didn’t. Not everyone will be in that fortunate position. I was also far from unhappy in my role. I’d enjoyed many rewarding years in Higher Education. Ultimately, the fact that I would be able to spend my time on the things I enjoyed most, that mattered to me and were good at that tipped the scales.
Moving into self-employment has been a steep, though highly enjoyable learning curve. Here are my top 10 tips.
1. Outsource the things you’re not good at
I debated for some time whether to build my own website. My experience of creating my blog was something, which although rewarding, was stressful and time-consuming, so I decided to outsource this and pay an expert. This was an excellent decision, as I’m very happy with the result. My website designer was also able to integrate my blog. I also invested in a professional photographer – another good decision. For years, having considered myself far from photogenic, on my website I look good!
While I outsourced the web design, of course I still had to create all the content, which was time-consuming. However, it was a useful exercise. It helped me to focus on exactly what work I would be offering and who I wanted to attract as customers. In turn, this made it easier to refresh my LinkedIn profile.
After several rages at my new laptop, I also invested in IT support with a local firm, which has helped ironed out various technical issues for me. When you leave a large organisation, you’ll no longer have an in-house IT team to blame when the technology lets you down. Although you often can’t beat my husband’s advice of “Have you tried turning it off and on again?”
Ultimately, my investment in these services have saved me both time and money. My website has also attracted some paying clients.
2. Build and maintain your connections
Long before I’d made the decision to leave my full time job, I invested time in meeting my existing connections and cultivating my ‘tribe’ on LinkedIn. I spoke with many of my contacts who generously shared advice and tips from their experiences of moving into self-employment.
These meetings, whether in person or online, have been hugely beneficial in building relationships. By regularly creating content, posting it and commenting on others’ posts, I’ve expanded my network of like-minded professionals. Not all are from HE- but we all share similar interests.
This has led to a number of collaborations. I invited some of my connections to contribute guest posts to my blog. In turn, I’ve been interviewed for a podcast. I’ve also contributed quotes to books and referred to others’ books or work in my blog posts.
I’ve also been invited to deliver webinars to different groups. I’m currently collaborating on a joint article with an academic connection. I’ve had referrals for work through my connections. In turn, I’ve referred some clients to my connections when they have the expertise I don’t.
Don’t forget to keep reminding people what you do. One of my connections shared that at the end of her weekly LinkedIn posts she always finishes with: “Think of me when you need…” and inserts the service she’s promoting.
Ask for LinkedIn testimonials so you have recent examples. You risk losing credibility if your testimonials are several years old. I’ve also added a list of my clients onto my website and LinkedIn profile.
3. Take time to smell the roses
Stepping away from work has been the hardest aspect of self-employment for me. That pull to the desk- to be forever doing something purposeful after so many years of full time work is hard-wired. I have to remind myself I no longer have to work 8.30-5.00pm every day. I can enjoy midweek cheap lunches out with friends and family. I can go to off-peak gym classes. There is little point in moving to blended retirement /self-employment if it’s only about the work. I’m a work in progress on this one, although I have booked an extended holiday to Canada to safeguard four weeks where I won’t be doing any work.
5. Allow plenty of preparation time
For each new piece of work I accepted, I spent an inordinate amount of time finessing it. I spent many hours preparing for one particular assignment. The fee I received in no way reflected the true cost of the time I put in. However, it was a really interesting assignment, and a great learning opportunity, so it was a worthwhile investment.
6. Manage your business income and expenditure
I’m fortunate; I have a husband who understands accounting. He advised me early on to invest in an accounts package. I use Xero. Other packages are available, but I have now more or less grasped the essentials. It’s not expensive if you have a basic package. There are often very cheap deals available when you initially subscribe.
Tip: keep a record of all your income and expenses. Store all copies of receipts electronically. I have a separate work bank account. which makes it easier to keep track of my money. Keep your finances under control by capturing income and expenditure as you go. It will make completing your tax return much simpler and less time-consuming. For someone who is not strong on the financial side of the business it’s surprisingly gratifying when my accounts balance at the end of each month.
Depending on the kind of work you do, check whether you’ll need professional indemnity and public liability insurances. Most organisations will request copies of your certificates.
7. Make getting paid easier
All universities will require you to complete documentation to ensure that as a self-employed person you are compliant with the Inland Revenue. You may be be asked to complete a tax form as well as institutional documentation.
Tip: Create one master document with all your key info on it– bank details, tax reference and National Insurance number. Keep a copy of your responses to the IR questionnaire. Trust me when I say this will save you a lot of time when you’re having to provide the same information time and again for each new piece of work.
Some institutions have slicker processes than others; some are extraordinarily bureaucratic. Some pay swiftly, others do take 28 days.
You’ll also need a signed contract for each piece of work you undertake which contains details of your Ts and Cs. Have a blank version you can adapt and tailor it each time you need a new one one.
Don’t forget to register with the ICO to ensure you’re compliant with data security storage. (Yes, it turns out all that tedious Information Security training was useful, after all).
7. Congratulate yourself when things go well
I keep a paper diary and award myself a sticker each time I’m proud of an achievement. As a friend who gifted me the diary and stickers said, “There are days when you’ll be really chuffed with something you’ve done. You’ll turn around to share your success but no-one’s there to say “well done.” You no longer have colleagues you can turn to. Your husband’s probably not interested. But it’s important to pat yourself on the back anyway.” It’s a way of reminding yourself that you’re doing a good job.
8. Reflect on what you’re doing
The economic climate will impact on the kind of work you’re offered. Universities are going through tough financial times, so less money is available. However, it’s cheaper to hire a freelancer than to employ a staff member, so don’t assume all your work will dry up. Keep reviewing your offer and check you’re offering services people are willing to pay for.
9. When to accept work and when to turn it down
When I first set out, several contacts had warned me about taking on work that didn’t align with my offer. I didn’t imagine that would happen to me- I was just keen to get going and say “yes” to as many things as I could. However, there have been three occasions to date where work I was approached to deliver just didn’t feel right. After much deliberation, I either turned the work down or referred the person/organisation to other more suitable people. Now I’m clear about my boundaries, it’s much easier to decide on work I’m willing to consider.
I had several conversations with colleagues working in similar spaces to ask their advice on what I should charge. This was hugely helpful. On the one hand you don’t want to overcharge. There a range within which institutions will be willing to pay, so it’s helpful to know roughly what the market will bear. However, it’s also not about a race to the bottom. Being the cheapest may call into question the quality of your offer. I’ve been challenged a few times about my rate and one or two have tried to haggle. Generally, institutions approach people they know or who have been recommended. If it’s you they want, most will pay.
Unpaid work
Of course there will be some work that’s very interesting but for which there may be no fee. I’ve offered some free webinars and keynotes as these help create awareness of my brand. For example, I’ve been invited to a European conference later this year year. While the organisers aren’t able to pay a speaker fee, they will pay for my accommodation and travel- and I have a friend who lives nearby so can visit her after the event, so there’s the added bonus of a cheap holiday.
10. Keep learning
The world is changing so fast it can be challenging to keep abreast of developments in your field. I ordered several books that were published this year in my professional area. I read HE news articles and attend professional development days. While events are an expense, these and the cost of travel to attend them are tax deductible. And of course the opportunity to network at events is invaluable.
In conclusion
Despite some of the challenges of the past 12 months, I have absolutely no regrets about becoming self-employed. I’ve had the opportunity to focus on the work I’m good at and enjoy and use my strengths to cultivate my connections, collaborate with others and slowly build my brand. I will of course continue to make mistakes along the way, but by constantly learning, I’m continuing my professional development journey and regaining my sense of purpose.