Make The Transition From Freelancer to Small Business

Freelancers are driven by the same motives as solid businessmen. You want to be your own boss and do things your way. However, the big difference between a freelancer and a small business is how much you can grow your client base. But did you know that online businesses are becoming a bigger part of the global industry? After all, it’s projected for e-commerce to have a 22% share of retail sales worldwide, according to a survey made by Statista. 

For those looking to expand their business and become more competitive, they need to reach the point of readiness to jump from freelancer to entrepreneur. 

Research and Prepare

Freelancing provides you with the tools and attributes you’ll need as a fully-fledged entrepreneur, such as self-discipline, business development, and financial management. But it is also important to understand that running a business also comes with extra responsibilities on top of your core service. In the early stages, you will likely face a steep learning curve in areas such as team management, finance, leadership, and marketing your brand on a bigger scale. 

Take On Legal Responsibilities First 

As an employer, you have certain legal obligations that didn’t affect you as a freelancer. Aside from registering as an employer with HMRC, investing in an employer’s liability insurance is also a legal requirement.

Not only is business insurance is a great addition to an expanding enterprise, it helps protect businesses from financial loss by providing wage and medical benefits, according to Cerity insurance. Also keep in mind that the cost of your small business insurance will depend on what your company does and how many employees you will have in your brand. 

Grow the Organization 

A digital freelancer often starts with a one-man team and gradually builds a solid team with 2-5 people in place. If the revenue target is meeting the 10-million range, much more people will be needed. However, this depends on the product and business model.

Without employees, you are technically still a freelancer. So take the initial steps and consider the skills you need from employees based on the business you want to build. A great strategy for small startups is to hire talented junior staff who are cheaper and can be trained in line with your company’s ambitions.

Scaling up your digital business requires extensive research to succeed. With this guideline, you’ll be ready to transition from freelancer to entrepreneur in no time.