{"id":28383,"date":"2017-10-11T22:29:07","date_gmt":"2017-10-12T02:29:07","guid":{"rendered":"http:\/\/www.andysowards.com\/blog\/?p=28383"},"modified":"2023-04-21T02:06:39","modified_gmt":"2023-04-21T06:06:39","slug":"woes-freelancing-financial-obstacles-solutions","status":"publish","type":"post","link":"https:\/\/andysowards.com\/blog\/2017\/woes-freelancing-financial-obstacles-solutions\/","title":{"rendered":"The Woes of Freelancing: Financial Obstacles and Solutions"},"content":{"rendered":"<p>Freelancing is what I recommend for anyone feeling that entrepreneurial \u201citch\u201d.<\/p>\n<p>The path allows you to leverage existing skills into a viable business offering services. Plus, you get to improve your skills with each new project.<\/p>\n<p><a href=\"https:\/\/andysowards.com\/blog\/2016\/freelance-contracts\/\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" class=\"alignnone size-full wp-image-28393 lazyload\" data-src=\"https:\/\/andysowards.com\/blog\/assets\/The-Woes-of-Freelancing-4.jpg\" alt=\"The Woes of Freelancing 4\" width=\"680\" height=\"583\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 680px; --smush-placeholder-aspect-ratio: 680\/583;\" \/><\/a><br \/>\n<em>Freelancing Contracts: Are They Necessary?<\/em><\/p>\n<h3>It&#8217;s a win\/win.<\/h3>\n<p><a href=\"http:\/\/infinigeek.com\/thinking-of-starting-your-own-business\/\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" class=\"alignnone size-full wp-image-28389 lazyload\" data-src=\"https:\/\/andysowards.com\/blog\/assets\/The-Woes-of-Freelancing8.jpg\" alt=\"The Woes of Freelancing8\" width=\"680\" height=\"315\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 680px; --smush-placeholder-aspect-ratio: 680\/315;\" \/><\/a><br \/>\n<em>Thinking Of Starting Your Own Business? It&#8217;s Time To Get Planning<\/em><\/p>\n<p>The cost to launch a service-based freelance business is relatively low. A portfolio, business cards, and a bit of marketing are about all you need to get up and running.<\/p>\n<p>The hard part comes when you make the shift to full-time\u201d\u00a6 mainly the finances.<\/p>\n<h3>Financial Obstacles in Freelancing<\/h3>\n<p><a href=\"https:\/\/andysowards.com\/blog\/2017\/8-steps-to-becoming-a-freelancer\/\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" class=\"alignnone size-full wp-image-28390 lazyload\" data-src=\"https:\/\/andysowards.com\/blog\/assets\/The-Woes-of-Freelancing7.jpg\" alt=\"The Woes of Freelancing7\" width=\"800\" height=\"450\" data-srcset=\"https:\/\/andysowards.com\/blog\/assets\/The-Woes-of-Freelancing7.jpg 800w, https:\/\/andysowards.com\/blog\/assets\/The-Woes-of-Freelancing7-768x432.jpg 768w\" data-sizes=\"(max-width: 800px) 100vw, 800px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 800px; --smush-placeholder-aspect-ratio: 800\/450;\" \/><\/a><br \/>\n<em>From Zero to Hero: 8 Steps to Becoming a Freelancer<\/em><\/p>\n<p>Client diversity is what allows you to weather the hard times, such as:<\/p>\n<p>\u00b7\u00a0 Slowdowns during the holidays<\/p>\n<p>\u00b7\u00a0 Health or relationship problems<\/p>\n<p>\u00b7\u00a0 Mental\/personal breaks<\/p>\n<p><a href=\"http:\/\/infinigeek.com\/legal-dangers-gig-economy\/\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" class=\"alignnone size-large wp-image-28388 lazyload\" data-src=\"https:\/\/andysowards.com\/blog\/assets\/The-Woes-of-Freelancing9-1024x768.jpg\" alt=\"The Woes of Freelancing9\" width=\"1024\" height=\"768\" data-srcset=\"https:\/\/andysowards.com\/blog\/assets\/The-Woes-of-Freelancing9-1024x768.jpg 1024w, https:\/\/andysowards.com\/blog\/assets\/The-Woes-of-Freelancing9-768x576.jpg 768w, https:\/\/andysowards.com\/blog\/assets\/The-Woes-of-Freelancing9.jpg 1200w\" data-sizes=\"(max-width: 1024px) 100vw, 1024px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1024px; --smush-placeholder-aspect-ratio: 1024\/768;\" \/><\/a><br \/>\n<em>The Legal Dangers of the Gig Economy<\/em><\/p>\n<p>Most freelancers hold onto their 9-to-5 to keep stability in their income. The freelancing is a side-gig that begins to take off once higher-paying clients come in. This is aligned to most other forms of startups you&#8217;ll get into (so it sets a good example).<\/p>\n<p><a href=\"https:\/\/andysowards.com\/blog\/2016\/important-financial-management-tips-help-business-owner\/\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" class=\"alignnone size-large wp-image-28392 lazyload\" data-src=\"https:\/\/andysowards.com\/blog\/assets\/The-Woes-of-Freelancing-5-1024x683.jpg\" alt=\"The Woes of Freelancing 5\" width=\"1024\" height=\"683\" data-srcset=\"https:\/\/andysowards.com\/blog\/assets\/The-Woes-of-Freelancing-5-1024x683.jpg 1024w, https:\/\/andysowards.com\/blog\/assets\/The-Woes-of-Freelancing-5-768x512.jpg 768w, https:\/\/andysowards.com\/blog\/assets\/The-Woes-of-Freelancing-5.jpg 1300w\" data-sizes=\"(max-width: 1024px) 100vw, 1024px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1024px; --smush-placeholder-aspect-ratio: 1024\/683;\" \/><\/a><br \/>\n<em>Important Financial Management Tips To Help a Business Owner<\/em><\/p>\n<p>The financial obstacles generally arise when <a href=\"https:\/\/www.fastcompany.com\/40428201\/three-freelance-clients-you-need-to-steer-clear-of\" target=\"_blank\" rel=\"noopener\">working with bad clients<\/a>.<\/p>\n<p>These are the clients that nit-pick your work and delay project completion. They sometimes abuse the professional relationship which throws your schedule and finances out of whack. Worse is when you&#8217;ve completed work and they refuse to pay.<\/p>\n<p><a href=\"https:\/\/andysowards.com\/blog\/2017\/5-financial-mistakes-small-businesses-make-avoid\/\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" class=\"alignnone size-full wp-image-28387 lazyload\" data-src=\"https:\/\/andysowards.com\/blog\/assets\/The-Woes-of-Freelancing10.jpg\" alt=\"The Woes of Freelancing10\" width=\"960\" height=\"633\" data-srcset=\"https:\/\/andysowards.com\/blog\/assets\/The-Woes-of-Freelancing10.jpg 960w, https:\/\/andysowards.com\/blog\/assets\/The-Woes-of-Freelancing10-768x506.jpg 768w\" data-sizes=\"(max-width: 960px) 100vw, 960px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 960px; --smush-placeholder-aspect-ratio: 960\/633;\" \/><\/a><br \/>\n<em>5 Financial Mistakes Small Businesses Make and How to Avoid Them<\/em><\/p>\n<p>Other instances of financial troubles tend to form around:<\/p>\n<p>\u00b7\u00a0 Not allocating funds for taxes leaving you with a big bill during tax time<\/p>\n<p>\u00b7\u00a0 Not having an emergency fund when work dips or clients hop ship<\/p>\n<p>\u00b7\u00a0 Not diversifying services leaving you susceptible to low-balling<\/p>\n<p>It all comes down to A) having a fallback and B) always seeking new clients.<\/p>\n<h3>What Do I Do If?<\/h3>\n<p><a href=\"https:\/\/andysowards.com\/blog\/2017\/good-health-care-plan\/\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" class=\"alignnone size-full wp-image-28386 lazyload\" data-src=\"https:\/\/andysowards.com\/blog\/assets\/The-Woes-of-Freelancing11.jpg\" alt=\"The Woes of Freelancing11\" width=\"800\" height=\"544\" data-srcset=\"https:\/\/andysowards.com\/blog\/assets\/The-Woes-of-Freelancing11.jpg 800w, https:\/\/andysowards.com\/blog\/assets\/The-Woes-of-Freelancing11-768x522.jpg 768w\" data-sizes=\"(max-width: 800px) 100vw, 800px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 800px; --smush-placeholder-aspect-ratio: 800\/544;\" \/><\/a><br \/>\n<em>How Good is Your Health Care Plan?<\/em><\/p>\n<p>Alright, so you&#8217;re thick into this freelancing thing and it&#8217;s going well. Money&#8217;s coming in and clients are happy. It looks like you&#8217;re squared away with funds\u201d\u00a6 then you have a medical emergency.<\/p>\n<p>I&#8217;ve been through this and can honestly say it sucks &#8211; it&#8217;ll set you back <i>months<\/i>. Plus, hopefully, clients will understand and stick with you else those funds dry up <i>real fast<\/i>.<\/p>\n<h3>Here are a few ways to balance it out:<\/h3>\n<p><a href=\"https:\/\/andysowards.com\/blog\/2017\/5-financial-mistakes-small-businesses-make-avoid\/\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" class=\"alignnone size-full wp-image-28398 lazyload\" data-src=\"https:\/\/andysowards.com\/blog\/assets\/The-Woes-of-Freelancing15.jpg\" alt=\"The Woes of Freelancing15\" width=\"822\" height=\"462\" data-srcset=\"https:\/\/andysowards.com\/blog\/assets\/The-Woes-of-Freelancing15.jpg 822w, https:\/\/andysowards.com\/blog\/assets\/The-Woes-of-Freelancing15-768x432.jpg 768w\" data-sizes=\"(max-width: 822px) 100vw, 822px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 822px; --smush-placeholder-aspect-ratio: 822\/462;\" \/><\/a><br \/>\n<em>5 Financial Mistakes Small Businesses Make and How to Avoid Them<\/em><\/p>\n<p><strong>Online installment loans<\/strong> provide a payday loan alternative that&#8217;ll drop up to $1,250 into your account within moments. These loans have flexible payment options which work well if you have projects lined up which would go toward the repayment.<\/p>\n<p><a href=\"http:\/\/infinigeek.com\/advantages-e-wallets\/\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" class=\"alignnone size-full wp-image-28385 lazyload\" data-src=\"https:\/\/andysowards.com\/blog\/assets\/The-Woes-of-Freelancing12.jpg\" alt=\"The Woes of Freelancing12\" width=\"640\" height=\"480\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 640px; --smush-placeholder-aspect-ratio: 640\/480;\" \/><\/a><br \/>\n<em>What Are The Advantages of e-Wallets?<\/em><\/p>\n<p><strong>Credit cards<\/strong> will help you get out of a pickle but it&#8217;s imperative you&#8217;re using them for the essentials. The high APR can kill your finances quick. Yet, the savvy (good credit) business folk will at least draw it out by transferring funds to a 0% interest card until repayment is on track.<\/p>\n<p><a href=\"https:\/\/andysowards.com\/blog\/2017\/5-unconventional-funding-solutions-for-startup-growth\/\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" class=\"alignnone size-full wp-image-28397 lazyload\" data-src=\"https:\/\/andysowards.com\/blog\/assets\/The-Woes-of-Freelancing16.jpg\" alt=\"The Woes of Freelancing16\" width=\"733\" height=\"466\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 733px; --smush-placeholder-aspect-ratio: 733\/466;\" \/><\/a><br \/>\n<em>5 Unconventional Funding Solutions for Fantastic Startup Growth<\/em><\/p>\n<p><strong>Cash from friends\/family<\/strong> is the last option but one that works if you can provide a paper trail of your business income and expenses. Small $500-$1,000 loans could float a payment or two before invoicing comes through. Plus, you probably won&#8217;t have interest tacked on.<\/p>\n<p><a href=\"https:\/\/andysowards.com\/blog\/2017\/futures-business-needs-embrace\/\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" class=\"alignnone size-full wp-image-28394 lazyload\" data-src=\"https:\/\/andysowards.com\/blog\/assets\/The-Woes-of-Freelancing3.jpg\" alt=\"The Woes of Freelancing3\" width=\"640\" height=\"427\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 640px; --smush-placeholder-aspect-ratio: 640\/427;\" \/><\/a><br \/>\n<em>The Future&#8217;s Here and Your Business Needs to Embrace It<\/em><\/p>\n<p><strong>Timesheet apps<\/strong> like ActiveHours let you add work info (if you&#8217;re still at a 9-to-5) and get paid for that day of work. The payback is usually tip-based with these apps. This option is great if you have something posting soon that could cause an overdraft.<\/p>\n<p><strong>The All-Important Emergency Fund<\/strong><\/p>\n<p><a href=\"https:\/\/andysowards.com\/blog\/2017\/successfully-steer-company-out-of-cashflow-crisis\/\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" class=\"alignnone size-full wp-image-28391 lazyload\" data-src=\"https:\/\/andysowards.com\/blog\/assets\/The-Woes-of-Freelancing6.jpg\" alt=\"The Woes of Freelancing6\" width=\"275\" height=\"183\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 275px; --smush-placeholder-aspect-ratio: 275\/183;\" \/><\/a><br \/>\n<em>How To Successfully Steer Your Company Out Of A Cashflow Crisis<\/em><\/p>\n<p>It just sucks that your effort in starting a business can end because of an accident or slip-up. Even more of a reason to have an emergency fund.<\/p>\n<p><a href=\"https:\/\/andysowards.com\/blog\/2017\/4-ways-increase-earning-power\/\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" class=\"alignnone size-full wp-image-28399 lazyload\" data-src=\"https:\/\/andysowards.com\/blog\/assets\/The-Woes-of-Freelancing14.jpg\" alt=\"The Woes of Freelancing14\" width=\"713\" height=\"475\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 713px; --smush-placeholder-aspect-ratio: 713\/475;\" \/><\/a><br \/>\n<em>4 Ways to Increase Your Earning Power<\/em><\/p>\n<p>You could always do more work but <a href=\"https:\/\/andysowards.com\/blog\/2016\/financial-tips-business-owners-need-to-know\/\" target=\"_blank\" rel=\"noopener\">time is limited<\/a>. When you&#8217;re already overworking and have a financial setback\u201d\u00a6 it&#8217;s the end times. To alleviate this, you need to put aside money every invoice (first-and-foremost) toward the emergency fund.<\/p>\n<h3>Pay yourself first.<\/h3>\n<p><a href=\"https:\/\/andysowards.com\/blog\/2016\/ready-to-start-a-business\/\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" class=\"alignnone size-full wp-image-28395 lazyload\" data-src=\"https:\/\/andysowards.com\/blog\/assets\/The-Woes-of-Freelancing-2.jpg\" alt=\"The Woes of Freelancing 2\" width=\"850\" height=\"600\" data-srcset=\"https:\/\/andysowards.com\/blog\/assets\/The-Woes-of-Freelancing-2.jpg 850w, https:\/\/andysowards.com\/blog\/assets\/The-Woes-of-Freelancing-2-768x542.jpg 768w\" data-sizes=\"(max-width: 850px) 100vw, 850px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 850px; --smush-placeholder-aspect-ratio: 850\/600;\" \/><\/a><br \/>\n<em>Are You Ready to Start a Business? You Decide [Infographic]<\/em><\/p>\n<p>Allocate 10% of your invoice toward a high-rate savings account. Keep doing this until you have a 3-6-month buffer. Enough to cover rent and usual spending. Do this along with using the appropriate resources and you&#8217;ll weather those harsh storms in business.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Freelancing is what I recommend for anyone feeling that entrepreneurial \u201citch\u201d. The path allows you to leverage existing skills into a viable business offering services. Plus, you get to improve<\/p>\n","protected":false},"author":1,"featured_media":28395,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_bbp_topic_count":0,"_bbp_reply_count":0,"_bbp_total_topic_count":0,"_bbp_total_reply_count":0,"_bbp_voice_count":0,"_bbp_anonymous_reply_count":0,"_bbp_topic_count_hidden":0,"_bbp_reply_count_hidden":0,"_bbp_forum_subforum_count":0,"footnotes":""},"categories":[109,225],"tags":[1375,6464,7699,7693,5891,7695,7701,7400,5973,7321,6866,276,4464,4512,7700,7116,7697,988,578,6278,7694,7692,688,1011,7696,5994,7163,277,1520,4051,6135,730,1076,7691,7698,2244,6027,6019,984,5608,2438,628,442,1399,115],"class_list":["post-28383","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-freelance","tag-accounting","tag-angel-investors","tag-being-prepared","tag-book-keeping","tag-business","tag-business-reports","tag-business-continuity-plan","tag-business-owner","tag-business-plan","tag-business-risks","tag-capital-investment","tag-career","tag-cashflow","tag-challenges","tag-continuity-plan","tag-crisis","tag-emergency-fund","tag-entrepreneur","tag-finance","tag-financial-reporting","tag-financial-reports","tag-financial-risk","tag-freelancer","tag-freelancing","tag-full-time","tag-funding","tag-funding-solution","tag-growth","tag-health","tag-insurance","tag-investors","tag-job","tag-legal","tag-loans","tag-obstatcles","tag-product","tag-remote-working","tag-risk","tag-services","tag-start-up","tag-stocks","tag-strategy","tag-success","tag-taxes","tag-tips"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The Woes of Freelancing: Financial Obstacles and Solutions<\/title>\n<meta name=\"description\" content=\"Freelancing is what I recommend for anyone feeling that entrepreneurial \u201citch\u201d. The path allows you to leverage existing skills into a viable business\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/andysowards.com\/blog\/2017\/woes-freelancing-financial-obstacles-solutions\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Woes of Freelancing: Financial Obstacles and Solutions\" \/>\n<meta property=\"og:description\" content=\"Freelancing is what I recommend for anyone feeling that entrepreneurial \u201citch\u201d. 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