January 22nd, 2015
Free for all
It seems freelancing is having a bit of a moment. There are now 4.6 million self-employed people in the UK – that’s a massive rise of 39% since the year 2000. In 2013, self-employed professional contributed £95 billion to business turnover: that’s more than the automotive industry.
This growth in freelancing is by no means UK-specific. Across Europe, there’s been a rise in the number of independent professionals, called ‘iPros’ for short. And according to Forbes magazine, a third of US workers are now either full or part-time freelancers.
But what’s the reason for this massive rise? It’s likely this dramatic increase in the number of freelancers is a response to the 2008 recession. Figures from IPSE show that people going freelance replaced 85% of jobs lost in the financial crisis.
It also seems this increase is due to people working past the standard age of retirement. Self-employment among those aged 65 and over has doubled from 241,000 in 2009 to 428,000 in 2014. In fact, there are now more freelancers than there are employees among 50-64 year olds.
Here to stay
Although the growth of freelancing might have been a response to the economic recession, most experts agree it’s not just a short-term trend: the rise in self-employment is here to stay.
According to Chris Bryce, Chief Executive of IPSE: “with a total yearly increase of 5.5%, the latest ONS statistics show the meteoric rise of self-employment in the UK shows no signs of slowing down.”
Izzy Hatfield, a representative of the Institute for Public Policy Research, echoes this view: “the UK’s self-employment-led recovery looks like it is the start of the “new normal” for the British economy, with more people working not as employees but as self-employed sole traders.”
Should you go freelance?
With all this in mind, if you’ve been thinking about becoming your own boss, maybe 2015 should be the year you finally take the plunge and go freelance.
Most freelancers will tell you about the benefits to running your own business. Being your own boss gives you more flexibility with your working hours and the type of work you take on, as well as the ability to build up your business and increase your earnings.
Of course, there are potential negatives. Proactively chasing clients can be hard work, especially if it’s because they haven’t paid their invoices. There can also be lots of ‘red tape’ holding back freelancers, as well as the occasional necessity of working well into the small hours just to get a job done.
As rewarding as it can be, going freelance certainly isn’t a decision to make lightly. If you’re looking for some help making that decision, a useful tool to use is PolicyBee’s online ‘should I go freelance?’ tool. It’s not meant to give definitive answers, but it can help weigh up the pros and cons of being your own boss. Since it only takes five minutes, it’s definitely worth a few clicks before rushing off to hand in your notice.
Feeling supported
Taking the plunge into freelancing can feel daunting and overwhelming, but there’s a wide range of help and support available from different sources.
The government has a variety of different schemes to help entrepreneurs and freelancers. These offer things like financial support, training, apprenticeships, and vouchers. Check out the gov.uk website for full details of help available.
One of the biggest mistakes a freelancer can make is underestimating the importance of social media. Not only is it a valuable marketing and networking resource, but it’s also a way of getting support and advice. Look out for regular Twitter chats used by other small businesses. These can be useful for getting feedback on new ideas, and answers to questions that are puzzling you.
One of the biggest perks for many freelancers is the flexibility to choose when and where you work. Although many people choose homeworking, this isn’t always a viable option. If this sounds familiar, have a look at Basepoint business centres.
Basepoint offers workspace on flexible terms for any size of company – even freelancers and sole traders. As well as being a place to work, our fully serviced offices and workshop units provide you with a host of facilities that are invaluable when you are just starting out, including a professional business address, onsite receptionist, onsite IT support, modern phone and internet connections, and more. You’ll also get access to Basepoint’s new MiBase service – a free online business and information and training resource designed to help you up the learning curve of running a business. Alternatively, for those who don’t need an office just yet, Basepoint also offer virtual offices together with access to serviced meeting rooms, which can be an ideal option for a new freelancer wanting a professional space in which to meet clients, but without the overhead of office rental. For more information on Basepoint and the benefits they offer to users, check out their website.
