When it comes to small businesses, there are many freelancers now who operate as sole traders. Along with larger SME's who employ staff, these sole traders are the lifeblood of the UK economy. As more and more people begin to discover the benefits of working freelance, it is a growing business sector. From being your own boss to setting your own rates and choosing your own clients, working as a freelancer has many advantages.
However, most freelancers will also come across some common problems when starting out. But what are they and how can you fix them?
People not wanting to pay the going rate
As noted above, being able to set your own rates is one of the benefits working freelance brings. You should know though that setting the rate you want to be paid is only half the battle! Persuading people to pay it is another. Many freelancers run into problems over potential clients wanting to pay as little as possible and well below the rate they set. This can often see you working for peanuts if you are not careful. To fix this, talk to clients about your rate and explain what they get for their money and what value you bring to their business.
Not getting your work/life balance right
In the same vein as setting your own pay, getting a better work/life balance is one of the most attractive things about freelancing. This, however, is another area which can often turn out a lot different than you may imagine. Many freelancers can actually work harder and longer than they would in a normal job. To avoid this, ensure you have set working hours which you stick too, take proper breaks and do not work every weekend.
Invoices not getting paid
For most freelancers, this is THE major issue. Many people take a client on at their preferred rate, complete the work and send the invoice in afterwards. Months go by though and no money shows up in their account as agreed! This then leads to a lot of frustration in chasing the payment and getting the money you are owed. In some cases, a lot of outstanding invoices can actually bring a business down. To fix this, think about using a service like Penny which provides instant invoicing for small businesses.
Let Penny help with cash flow today
Our instant invoice advances for small businesses means that late payments from clients or chasing them up for money is a thing of the past. Just submit your invoice via our handy online app and you will get paid in 24 hours!