Many employees decide to start entrepreneurship one day. However, it is not always easy to make the transition, and there is a certain amount of information to know before you become a freelancer. To help you transition from employee to freelancer, we’ve listed all the steps to take, as well as mistakes to avoid.
The difference between the two cases
Before explaining how to switch from one state to another, it’s important to keep in mind the differences that exist between employee and freelance status.
The main difference between remunerated and freelancer is compensation. In fact, in the vast majority of cases, the employee is guaranteed a fixed monthly salary even if his duties may vary from month to month. On the contrary, the freelancer is paid according to the work performed, and his turnover depends on his various contracts. He therefore does not enjoy comfort and guarantees through a fixed salary, but it is not limited to his wages because he chooses his contracts and rates by himself.
The method of work
Employees usually have fixed working hours, as freelancers can manage their working time as they see fit. In fact, if a freelancer wants to work more to earn more during a specified period, he can do so. Similarly, rest days are often set for employees (weekends in most cases). Be careful, choosing your hours and days isn’t always an advantage, and many freelancers find it hard to get off work, even if it means taking their evenings or weekends off. So it must be remembered that the employee benefits from a certain stability, with fixed and fixed hours, as the independent worker benefits from real freedom and flexibility in the way of working, but without guarantees of minimum wages.
Steps to a successful transition
To make a successful transition and transition from employee to entrepreneur without any hindrances, it is important that you go through some key steps. Note that until you find enough consistency in your eyes as a freelancer, you can combine your job as an employee with your freelance activity. We have listed 4 main steps to complete your transfer successfully:
You have a clearly defined entrepreneurial project
Before embarking on entrepreneurship, it is important to think about your venture and ask yourself why it would be a wise choice to become a freelancer. If flexibility, the possibility of a salary commensurate with the work done, the independence and desire for new things suit you, then you probably really want to take this step. Then think about the skills that you can offer as a freelancer, because they will be at the core of your business, and will form your sales proposal. When you have a well-defined project, and the resources to launch it, you have already taken a huge step forward. Post-market analysis can also be wise, to know how to position yourself and who your customers will be.
Choose the correct legal status
The launch of independent activity necessarily involves the creation of a company, and it passes through the choice of legal status. You have many options: micro-enterprise, sole proprietorship, SASU, wage transfer … each of them offers advantages and disadvantages, related to the cost of creation, sales threshold or even taxes.
You are free to choose the mode that suits you best, but beware, it involves different tax systems and obligations.
Find the right tasks
Choosing tasks as an independent factor is a very important step. In fact, it is up to you to find them using the correct channels. Feel free to search the Internet for tenders that match your services, but also to use your network, if you know people who are interested in your skills. It is not always easy to find the right tasks, but this is not a reason to have to accept all offers. Always keep in mind that a freelancer chooses their clients.
Establish a good freelance routine
In order to be efficient and maintain the rhythm of work that works for you, try to find the routine that works for you. In fact, as a freelancer, the lack of restrictions can sometimes lead to lower productivity. Feel free to make a precise schedule separating your work and personal time. When you find a good organization that works for you, you can easily increase your productivity.
Disguised salary: what you need to know
The term “disguised paid work” comes from everyday language, and does not conform to a precise legal definition. This is the case where a contractor is considered self-employed, but is working for one client under employee-like conditions. If this employment relationship actually corresponds to a wage worker relationship, it could have legal consequences for Social Security, labor law, and taxes.
Indeed, in the case of paid hidden work, the parties expose themselves to possible penalties (up to 3 years imprisonment and a fine of 45,000 euros to the employer, compensation of some social benefits or allowances to the contractor). However, you can still work for one client, if your activity is consistent with that of a self-employed person.