How to go freelance after redundancy
Tools & Resources
Key Learnings
- From graphic design to cake making, and accountancy to fire safety, you might be surprised what you can do in a freelance capacity.
- It is recommended that you have between 3 to 6 months’ worth of living expenses in the bank before you plan to go freelance.
- Some businesses include a clause in termination or redundancy agreements that prohibit former workers from working in their sector or contacting their clients for a fixed amount of time.
- Once you're sure you want to proceed, you can improve your chances of success by conducting market research and writing a business plan.
Being made redundant can be a stressful event and, whatever reason your organisation may have had for making you redundant, it can dent your confidence. Choosing to go freelance is a great way to put your skills and experience to good use and can lead to a highly rewarding career post-redundancy. Here, UMi partner Transmit Startups suggests what to ask yourself before you commit to self-employment.
While redundancy is hard, it might just be the catalyst you need to start a successful freelance business.
Many successful entrepreneurs started their businesses after being let go by a previous employer and there is no reason why you couldn’t do the same
Below are the key questions you have to ask yourself before giving freelance a go.
1
What does freelance mean?
Going freelance just means that you no longer offer your services via a business. Instead you offer them as an individual. There are lots of in-demand professional skills that lend themselves to freelance working.
From graphic design to cake making, and accountancy to fire safety, you might be surprised what you can do in a freelance capacity. Today could be the first day of your freelance life. It is a lifestyle that two million others in the UK share and swear by.
2
What are the pros and cons of going freelance?
Freelancing certainly offers flexibility in terms of how and when you work. You get to choose the who, what, where and how of your business. But it can also be stressful, busy and lonely.
You’ll have to make all the decisions, do all the work, and pitch for business alongside delivering your services day-to-day. Speaking to other freelancers to fully understand the pressures and benefits will help you make an informed decision.
3
What do I need to consider before going freelance?
The first thing you must consider is whether there is demand for your skills. If you have been made redundant, this may be because of a downturn in demand for the skills you offer. So, make sure there is a need for your services before investing time and money in your freelance business. Consider your unique selling points (USPs) and identify your transferrable skills so you can be agile and responsive to changing customer need.
The second thing to consider is have you got enough money to live on? It can take time for a freelance business to take off and you might have several months when you are pitching for work but not bringing in any income. So, think about the start-up costs associated with your business, such as marketing, website building and aim to keep these costs low. Think about what you need, not what you would like.
It is recommended that you have between 3 to 6 months’ worth of living expenses in the bank before you plan to go freelance. However, if the decision has been forced by redundancy, just make sure you understand that you won’t earn straight away and plan accordingly. Be aware of the minimum amount of money you need to live on each month. Take a look at our personal survival budge article and template and explore different types of funding to start a business
4
Are you allowed to go freelance?
Some businesses include a clause in termination or redundancy agreements that prohibit former workers from working in their sector or contacting their clients for a fixed amount of time. Check this out before you start planning your freelance business.
Once you're sure you want to proceed, you can improve your chances of success by conducting market research and writing a business plan.
Next steps...
- If you’ve decided to take the plunge, make sure you’re well prepared with UMi’s guide to everything you need to know to become self-employed.
- While money is tight and you’re looking for new clients, consider these cost-saving suggestions for doing business development on a shoestring.
- Register your limited business, for £14.99 with Tide, open a free bank account and receive £50 cashback.