We’re in the midst of summer. For some, it’s the end of their studies; for others, it’s a time for reflection and reassessment. Regardless of your situation, you’re likely searching for a job or activity that will help you develop your skills and prove your worth.
Why not consider a freelance career? Independent worker, entrepreneur, freelancer – these terms all describe someone who starts their own professional activity. Unlike employees, freelancers can theoretically manage their schedules and tasks as they please. Interested? Follow us.
In this article, we’ll guide you to success, providing you with all the essential information to:
- Complete the steps to establish your business,
- Choose your legal status,
- Develop and launch your activity,
- Navigate through the advantages and challenges of freelancing.
The first steps to becoming a freelancer
Freelancing, that attractive independent worker status, allows you to take on various projects, ranging in length and scope. However, obtaining this status doesn’t happen overnight. You’ll first need to do some research to determine under which legal status to register your freelance application.
Good news: there are four different legal statuses. Whether it’s a Sole Proprietorship, SASU, EURL, or SARL, or even wage portage, there will surely be one that suits you. Another piece of good news: you can also receive unemployment benefits. Depending on how you plan to run your freelance activity, you could:
- Receive 45% of your initial benefits amount as part of your working capital,
- Combine your new income with unemployment benefits.
But before we dive into more details, let’s explore the different legal status options together.
Choosing the right legal status
Sole proprietorship (or Micro-Enterprise)
Choosing the sole proprietorship status is the simplest form to create. It doesn’t require handling extensive paperwork like social statutes or having a minimum capital to start your business. If you choose to position yourself as a sole proprietorship, the process is fully digitized. From creation to modification, everything happens on the INPI website under the “one-stop shop” section.
To launch your freelance business as a sole proprietorship, you will need to:
- Apply for registration: You’ll need a copy of your identification document, a parentage certificate, a proof of residence, a declaration of non-conviction, and a check to cover the registration fees.
- Open a bank account: You’ll be required to separate your personal bank account from your professional account to avoid mixing funds and creating confusion in your freelance finances.
Single-Person company
Another form of freelance status exists if you want to partner with another freelancer: EURL or SASU. For these types of businesses, the procedures are more complex:
- Draft the statutes: It’s highly recommended to seek the help of a lawyer or an accountant. They are knowledgeable about the law and can guide you effectively. These options can be costly, so you might consider using a LegalTech service, which offers digital legal services.
- Deposit your share capital: Necessary to establish your company’s financial foundation, you’ll need to provide funds in cash, which will be blocked in your professional account. You’ll then receive a certificate of capital deposit.
- Publish your incorporation notice in a legal announcement journal: This notice must be made in the department where your company’s headquarters will be located.
- Submit your file to the one-stop shop: This file should include the company’s statutes (names of the freelance individuals involved and the nature of the business), the capital deposit certificate, the incorporation notice, and other documents. Don’t worry, all the requirements are specified.
Once your file is accepted and validated, you will receive your SIRET number, the essential key to officially launch your business. You’ll only have a few registry fees to pay, ranging from €37 to €66, depending on the legal status.
Wage portage
A hybrid between employment and true freelancing, wage portage is another way to work. If you opt for wage portage, your status will be between that of an employee and a freelancer. This involves a tripartite relationship including:
- The freelancer
- The client company
- The company operating the wage portage
A salaried worker under wage portage retains advantageous status. You won’t have to handle administrative tasks as the company managing the wage portage will take care of contracts and invoices. If you choose this form of arrangement, you’ll have a contract and a fixed salary, either as a temporary (CDD) or permanent (CDI) employee. You’ll also receive benefits such as unemployment insurance and social security contributions.
Planning and strategy
Before diving headfirst into freelancing, take the time to lay the groundwork for your future business. And when we say “groundwork,” we mean the structure and form.
- Start with a skills assessment: This isn’t just for those looking to change careers or find their path. A skills assessment is a chance to review your talents and identify the areas where you truly excel. This crucial step allows you to define your specialization, stand out in a potentially saturated market, and truly understand if your profession is feasible as a freelancer. Professions like communication consultant, photographer, community manager, or accountant are well-suited for freelancing, unlike lawyers or nurses who can’t typically freelance in the same way.
- Next, build your business plan: Far from being just a theoretical exercise, it’s the foundation of your freelance activity, your roadmap for the months and years ahead! Your business plan will define your goals, your rates (including your average daily rate, or ADR, to ensure you don’t work at a loss), and your growth projections. Events, social and professional networks: your business plan also outlines the different acquisition channels to use to attract and find clients. We recommend getting help from an accountant or a legal expert.
- Ensure your freelance expertise aligns with market needs: For this, nothing beats thorough market research. Analyze the competition, identify trends in your sector, and, most importantly, engage with your potential future clients. Their feedback is invaluable for refining your offer and marketing strategy.
The advantages and challenges of freelancing
Becoming a freelancer means choosing a unique professional path that offers great freedom as well as some drawbacks. If you’re eager to embark on this adventure, it’s helpful to understand the pros and cons of this status.
Among the numerous advantages, we can count:
- True freedom and flexibility: As a freelancer, you can choose the projects you work on, your clients, and even your workplace. Want to leave your apartment and work from a different setting? It’s possible. You can also organize your time as you wish, allowing you to balance your professional and personal life. For example, you can choose to work in the evenings and enjoy activities during the day.
- Diversity of projects: Freelancing allows you to explore various fields and projects. You’ll engage in a variety of tasks, developing your skills and knowledge. Each project is a new experience that enriches your expertise and portfolio, creating unique moments in your career.
- Higher potential income: Unlike a salaried job with a fixed income, freelancing offers the potential for higher earnings. Depending on your accounting skills and your ability to manage your rates and contracts well, you can significantly increase your revenue.
- Independence: As a freelancer, you are your own boss. You have total control over your professional decisions. You choose the projects that interest you and can reject those that don’t align with your values or goals. It’s as simple as that.
As nothing has only benefits, we can count several challenges:
- Financial instability: Freelancing means irregular income. You’ll likely face stressful periods of low earnings, especially if you don’t have long-term contracts and need to constantly seek new projects. Precise and meticulous financial management is crucial to avoid financial difficulties.
- Administrative responsibility: As a freelancer, you handle all administrative tasks yourself. Accounting, prospecting, invoicing, managing social contributions – all these tasks can be time-consuming and require diligence and good organization.
- Lack of social security: Unlike employees, freelancers don’t benefit from the same social advantages. They may not necessarily contribute to unemployment insurance or retirement. It’s essential to be well-informed about the wage portage or micro-enterprise schemes to choose the solution that best fits your needs and contract.
- Competition: The freelancing market is highly competitive, especially since the pandemic. It’s essential to stand out through the quality of your services, skills, and everything you can showcase. Your services are unique. Building and maintaining a strong professional network is crucial to attract and retain clients.
- Isolation: Working as a freelancer can sometimes be lonely. Without colleagues to talk to, the lack of daily social interactions can affect your morale. Participating in professional conferences, working from coworking spaces, or attending networking events can help mitigate this aspect.
Managing your freelance activity daily
As a freelancer or self-employed individual, you are your own boss. You don’t have anyone to help you manage your business and tasks. To stay on track and plan for the future, it’s crucial to follow these principles:
- A solid organization: When working from home or moving between companies for various tasks, it’s easy to get overwhelmed. Create a dedicated workspace and use project management tools like Notion or Trello to keep track of your tasks. For invoicing, don’t get lost. Use software to save time and maintain professionalism. Set clear payment terms and rules to ensure you get paid on time. Your cash flow and quality of life depend on it!
- Good client relations: Maintain excellent communication, be responsive, and don’t be afraid to say no to projects that don’t suit you. Provide clear quotes and solid contracts to avoid any unpleasant surprises. As the saying goes, a satisfied client is often a source of new contracts!
Think about digital marketing to promote your services. You need a clean, clear, and concise online presence so potential clients can quickly determine if you’re a good fit for their needs. Create a website that showcases your portfolio and optimize it for search engines. Be active on social media platforms relevant to your field. Share only quality content that demonstrates your expertise. If you enjoy experimenting with different formats, consider adding blog articles, videos, or podcasts. Stay true to your personality while maximizing your visibility.
By following these tips, you can confidently embark on your freelancing journey. Remember, organization is key to staying on course. Also, make sure to determine your legal status and keep a close eye on your finances, as you are the sole captain of your ship! We wish you the best of luck in the world of entrepreneurship!
