3 Do you have the right personal skills to go freelance?

Setting up your own business can be very rewarding, but there are pressures involved. It’s not enough just to have a good, viable idea: you also need to have the right skills and temperament to make the opportunity succeed. Starting your own business is also a risky thing to do, so you need to be aware of what problems to look out for as early as possible. This will help you decide whether you’re willing and able to take those risks, and will also help you to apply strategies that will reduce them.

It’s time now to do some important self-analysis. Be honest and objective, and discuss your proposed career change with friends, colleagues, and relatives. They may know your strengths and weaknesses better than you do! Think about how you’ve dealt with past challenges as an indication of how you might respond to difficult new situations. This chapter will help you work out whether you have the right skills to go freelance.

Step one: Think about your personality

While the technical aspects of your business will require specific qualifications, skills, or experience, there are broader demands that are as important. These could include the ability to negotiate with suppliers, be sociable with existing customers or convincing with prospective ones, think clearly under pressure, take criticism on the chin, portray confidence, and use your time effectively.

There’s no single type of self-employed person, but experience has shown that there are some characteristics which successful self-employed people often have in common. They tend to be logical, perceptive, organised, and responsible. They’re usually extrovert and confident, and able to communicate and get their point across. They’re also often sociable, with the ability to lead. Self-employed people are generally single-minded, but able to take advice. They’re flexible and adaptable, quick to take opportunities, and ready to take risks. They tend to be tough-skinned, and able to handle failure. They’re usually creative and imaginative, always coming up with new ideas for the business, and also hard working, committed, and determined. Finally, they’re often individualists, who aren’t afraid to stand out from the crowd.

Does any or all of the above sound like you? Check how many characteristics can be applied to your own personality. The more you can tick off, the more likely you are to be successful when you start your freelance life.

TOP TIP

Surveys reveal that many successful businesses have been started by people in their 30s with only a little management experience. People over the age of 50 (sometimes called ‘third-age entrepreneurs’) are also responsible for many business start-ups—often they think about a change of direction only after taking early retirement. At the other end of the spectrum, young people have fewer domestic commitments, plenty of energy, new ideas, and the potential to develop and adapt to the challenges of self-employment. So it doesn’t matter how old you are when you go freelance. All you need is commitment, an objective, a thought-through plan of action, and the right personal attributes!

Step two: Consider what skills you’ll need

You’ll almost certainly need technical skills in your freelance life. If you’ve qualifications relevant to your business activity, this will obviously be helpful. Customers, and anyone lending your business money, will be much more comfortable if you can show that you’ve had relevant training. Additionally, certain businesses require exceptional ability, such as design, artistic, or linguistic skills.

Commercial knowledge is a huge advantage. When you’re freelance, you’ll need to understand the principles of business and management, including marketing, strategic planning, accounts, personnel and people management (you need to get on with your clients even if you don’t employ staff), and so on. Ideally, you should aim to get some basic training in business administration before you start. If this isn’t possible (and few people have the time or money initially), then read as much as you can to fill any gaps in your knowledge. Leadership skills are important, too. If you expect the business to grow, you’ll ultimately employ people, and the ability to lead your team well and to manage people will be critical.

All businesses require an element of selling, and you’ll need to develop skills in this area if you don’t already have them. Initially, you’ll need to persuade people to support you, and it’s crucial that you’re able to win over potential customers. It’s possible to learn basic selling techniques, but being outgoing and articulate are a good start.

Your organisational skills will also be essential to your success. To generate sufficient income, small businesses must be well run and efficient. It’s vital that you can keep on top of things, plan ahead, and manage your time— and be extremely careful not to over-promise, particularly in the early days, when you’re looking for work. You also need to have the discipline to set and meet deadlines. Try to think laterally about how many of these skills you have, and don’t be put off too easily. Becoming self-employed is challenging, yes, but think about the skills you already use in everyday life and how you could apply them to a different context. For example, if you’re a woman with a family, or one who has juggled full- or part-time work with family life, think about how you’ve developed your time-management skills, probably without even noticing it!

Step three: Assess your abilities and resources

Going freelance does involve taking some risks, so you should get to grips with them as early as possible. This will help you decide whether you’re willing and able to deal with them and will also help you to apply strategies that may reduce the risks. You need to ask yourself several questions:

Do you have the necessary financial resources, and can you afford to risk them? For example, you might take a secured loan based on the value of your home; what are your plans if your business fails and you’re forced to sell the roof over your head?

Do you have the experience and technical skills to perform the core functions of your business without the support networks of a corporate employer?

Are you familiar enough with the market to be able to assess its needs and adapt to its changes?

Do you have the tenacity and discipline to see through hard times when cash will be short and demands will be heavy (from customers, bankers, and, crucially, your family)?

While you might not be able to answer all these questions completely, it really is important that you’re honest and objective about yourself. If you’ve identified gaps in your knowledge, step four below will explain how you can fill them!

Step four: Consider professional training and support

Assessing your skills is a useful process as it’ll help you identify areas in which you need training. These in turn will contribute towards your chances of being successful when you’re self-employed. There are many sources of training available to small businesses, and several courses are run by local colleges and universities. The Internet is a great source of business information, and you could start your search at www.yell.co.uk for ‘Training Services’. Also bear in mind Trade Associations and Sector Skills Councils—they may run industry-specific courses.

Advice on, and assistance with, training is available from local Learning and Skills Councils (LSCs) in England, Education and Learning Wales (ELWa), Local Enterprise Companies (LECs) in Scotland (contact Highlands and Islands Enterprise, address below, if you live in Northern Scotland) and the Department for Employment and Learning (DEL) in Northern Ireland. Many of these organisations will also be able to provide details of any loans and financial assistance available to help with training for small businesses.

Business Links (Business Gateways in Scotland, Business Eye in Wales, Invest Northern Ireland), Chambers of Commerce and Enterprise Agencies will often run business courses and provide information on training providers.

Step five: Be prepared for the pressures

The pressures of being self-employed are inescapable. You may have to work long hours, and there will be times when things get on top of you. You may well get into debt in order to finance the enterprise. You’ll need to maintain your faith in your self and your business, often in the face of other people’s doubts.

There may be times when you feel lonely and isolated. If you employ people, you’ll need to be positive and show leadership even when you least feel like it. Sometimes, you’ll need to be tough and prepared to make difficult demands of your suppliers. You’ll need to be polite and helpful, even when an awkward customer is being difficult.

Many individuals who successfully start their own business have the backing of their nearest and dearest. You’ll be under pressure and your family must be prepared for the impact this can have on family life—especially if you have to work long and antisocial hours. Also, you must be sure that your family can accommodate the risks that self-employment can bring, especially in terms of lower income in the initial stages, and maybe even the implications of the business failing. Take time to talk to everyone who might be affected by your choice to be your own boss.

Common mistakes

You assume that being your own boss will be easy

At some point, most people come across a boss who makes their lives difficult, but don’t assume that working for yourself will be all plain sailing. Yes, there are many benefits, but you’ll have to get used to the idea that the buck stops with you. Make sure you’re ready take on that responsibility.

You go freelance for the wrong reasons

Whatever else you do, don’t go freelance for the money alone. Weigh up the pros and cons of your plan and the impact that being self-employed will have on all areas of your life. It will take a lot of effort, but you can do it if you really want to.

STEPS TO SUCCESS

Think seriously about whether you’ve got what it takes to be your own boss before you do anything rash. Have you got the right sort of personality? Do you have enough self-discipline and tenacity? Ask those closest to you for their opinion.

Consider your skills—do you need to acquire any new ones before you go freelance? Will you be able to handle the financial side of the business? Are there any courses you could take to improve in areas where you fall short?

Check your support networks. Have you got financial agreements or funding in place—just in case you have to survive a downturn? Will your partner, family, and friends support you, especially when you’re starting out? Talk things through with those you trust and you’re much more likely to be successful.