{"id":28383,"date":"2017-10-11T22:29:07","date_gmt":"2017-10-12T02:29:07","guid":{"rendered":"http:\/\/www.andysowards.com\/blog\/?p=28383"},"modified":"2023-04-21T02:06:39","modified_gmt":"2023-04-21T06:06:39","slug":"woes-freelancing-financial-obstacles-solutions","status":"publish","type":"post","link":"https:\/\/www.andysowards.com\/blog\/2017\/woes-freelancing-financial-obstacles-solutions\/","title":{"rendered":"The Woes of Freelancing: Financial Obstacles and Solutions"},"content":{"rendered":"

Freelancing is what I recommend for anyone feeling that entrepreneurial \u201citch\u201d.<\/p>\n

The path allows you to leverage existing skills into a viable business offering services. Plus, you get to improve your skills with each new project.<\/p>\n

\"The<\/a>
\nFreelancing Contracts: Are They Necessary?<\/em><\/p>\n

It\u2019s a win\/win.<\/h3>\n

\"The<\/a>
\nThinking Of Starting Your Own Business? It\u2019s Time To Get Planning<\/em><\/p>\n

The cost to launch a service-based freelance business is relatively low. A portfolio, business cards, and a bit of marketing are about all you need to get up and running.<\/p>\n

The hard part comes when you make the shift to full-time\u2026 mainly the finances.<\/p>\n

Financial Obstacles in Freelancing<\/h3>\n

\"The<\/a>
\nFrom Zero to Hero: 8 Steps to Becoming a Freelancer<\/em><\/p>\n

Client diversity is what allows you to weather the hard times, such as:<\/p>\n

\u00b7\u00a0 Slowdowns during the holidays<\/p>\n

\u00b7\u00a0 Health or relationship problems<\/p>\n

\u00b7\u00a0 Mental\/personal breaks<\/p>\n

\"The<\/a>
\nThe Legal Dangers of the Gig Economy<\/em><\/p>\n

Most freelancers hold onto their 9-to-5 to keep stability in their income. The freelancing is a side-gig that begins to take off once higher-paying clients come in. This is aligned to most other forms of startups you\u2019ll get into (so it sets a good example).<\/p>\n

\"The<\/a>
\nImportant Financial Management Tips To Help a Business Owner<\/em><\/p>\n

The financial obstacles generally arise when working with bad clients<\/a>.<\/p>\n

These are the clients that nit-pick your work and delay project completion. They sometimes abuse the professional relationship which throws your schedule and finances out of whack. Worse is when you\u2019ve completed work and they refuse to pay.<\/p>\n

\"The<\/a>
\n5 Financial Mistakes Small Businesses Make and How to Avoid Them<\/em><\/p>\n

Other instances of financial troubles tend to form around:<\/p>\n

\u00b7\u00a0 Not allocating funds for taxes leaving you with a big bill during tax time<\/p>\n

\u00b7\u00a0 Not having an emergency fund when work dips or clients hop ship<\/p>\n

\u00b7\u00a0 Not diversifying services leaving you susceptible to low-balling<\/p>\n

It all comes down to A) having a fallback and B) always seeking new clients.<\/p>\n

What Do I Do If?<\/h3>\n

\"The<\/a>
\nHow Good is Your Health Care Plan?<\/em><\/p>\n

Alright, so you\u2019re thick into this freelancing thing and it\u2019s going well. Money\u2019s coming in and clients are happy. It looks like you\u2019re squared away with funds\u2026 then you have a medical emergency.<\/p>\n

I\u2019ve been through this and can honestly say it sucks \u2013 it\u2019ll set you back months<\/i>. Plus, hopefully, clients will understand and stick with you else those funds dry up real fast<\/i>.<\/p>\n

Here are a few ways to balance it out:<\/h3>\n

\"The<\/a>
\n5 Financial Mistakes Small Businesses Make and How to Avoid Them<\/em><\/p>\n

Online installment loans<\/strong> provide a payday loan alternative that\u2019ll drop up to $1,250 into your account within moments. These loans have flexible payment options which work well if you have projects lined up which would go toward the repayment.<\/p>\n

\"The<\/a>
\nWhat Are The Advantages of e-Wallets?<\/em><\/p>\n

Credit cards<\/strong> will help you get out of a pickle but it\u2019s imperative you\u2019re using them for the essentials. The high APR can kill your finances quick. Yet, the savvy (good credit) business folk will at least draw it out by transferring funds to a 0% interest card until repayment is on track.<\/p>\n

\"The<\/a>
\n5 Unconventional Funding Solutions for Fantastic Startup Growth<\/em><\/p>\n

Cash from friends\/family<\/strong> is the last option but one that works if you can provide a paper trail of your business income and expenses. Small $500-$1,000 loans could float a payment or two before invoicing comes through. Plus, you probably won\u2019t have interest tacked on.<\/p>\n

\"The<\/a>
\nThe Future\u2019s Here and Your Business Needs to Embrace It<\/em><\/p>\n

Timesheet apps<\/strong> like ActiveHours let you add work info (if you\u2019re still at a 9-to-5) and get paid for that day of work. The payback is usually tip-based with these apps. This option is great if you have something posting soon that could cause an overdraft.<\/p>\n

The All-Important Emergency Fund<\/strong><\/p>\n

\"The<\/a>
\nHow To Successfully Steer Your Company Out Of A Cashflow Crisis<\/em><\/p>\n

It just sucks that your effort in starting a business can end because of an accident or slip-up. Even more of a reason to have an emergency fund.<\/p>\n

\"The<\/a>
\n4 Ways to Increase Your Earning Power<\/em><\/p>\n

You could always do more work but time is limited<\/a>. When you\u2019re already overworking and have a financial setback\u2026 it\u2019s the end times. To alleviate this, you need to put aside money every invoice (first-and-foremost) toward the emergency fund.<\/p>\n

Pay yourself first.<\/h3>\n

\"The<\/a>
\nAre You Ready to Start a Business? You Decide [Infographic]<\/em><\/p>\n

Allocate 10% of your invoice toward a high-rate savings account. Keep doing this until you have a 3-6-month buffer. Enough to cover rent and usual spending. Do this along with using the appropriate resources and you\u2019ll weather those harsh storms in business.<\/p>\n","protected":false},"excerpt":{"rendered":"

Freelancing is what I recommend for anyone feeling that entrepreneurial \u201citch\u201d. The path allows you to leverage existing skills into a viable business offering services. Plus, you get to improve<\/p>\n","protected":false},"author":1,"featured_media":28395,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_bbp_topic_count":0,"_bbp_reply_count":0,"_bbp_total_topic_count":0,"_bbp_total_reply_count":0,"_bbp_voice_count":0,"_bbp_anonymous_reply_count":0,"_bbp_topic_count_hidden":0,"_bbp_reply_count_hidden":0,"_bbp_forum_subforum_count":0,"footnotes":""},"categories":[109,225],"tags":[1375,6464,7699,7693,5891,7695,7701,7400,5973,7321,6866,276,4464,4512,7700,7116,7697,988,578,6278,7694,7692,688,1011,7696,5994,7163,277,1520,4051,6135,730,1076,7691,7698,2244,6027,6019,984,5608,2438,628,442,1399,115],"yoast_head":"\nThe Woes of Freelancing: Financial Obstacles and Solutions<\/title>\n<meta name=\"description\" content=\"Freelancing is what I recommend for anyone feeling that entrepreneurial \u201citch\u201d. 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