(This is part of Take Charge of Your Money , a partnership between INQUIRER.net and Citibank to help readers handle their personal finances well.)
Question: The company I am working for already served us employees notice that it will close its plant within the year. Only a skeletal force will remain until next year when operations will be completely halted. We are devastated by the news and anxious as to our future. I am still working, but will be out of work by June. Given the tough job market now, I am thinking of going on my own as a marketing consultant. Would this be a good option?—Rose
Answer: Tough times are really upon us now. Newspapers report job losses increasing daily, not just abroad but also locally.
You have two options: seek employment or go on your own. Now as to your question, would it be good to go freelance and work on your own?
Advantages of working freelance There are a lot of people working freelance locally, and you may see a number of them working in coffee shops on their laptops, having meetings in mall restaurants, and squeezing in some gym time in the middle of a working day. Among the advantages of working freelance is the freedom to schedule your own working hours and hold office anywhere. For a lot of people, this can be liberating as they do not need to brave the rush hour to get to work at 8 a.m. every day and beat the Bundy clock.
Working freelance will also allow you to pursue and choose projects that you want to work on. You will also be able to chart your own career path and be your own boss. Your salary will also not be limited to a set amount every month subject to increase annually if you do well on your boss’s evaluation. Instead, you will earn as much as you work—it all depends on you.
Disadvantages of working freelance There are always two sides to a coin, though, and as there are advantages, there are also disadvantages when working freelance.
First of all, you won’t have the security of having a regular paycheck. You will be paid as soon as your clients pay you, which may or may not be as quick as you wish.
Second, you will have to assume the responsibility of paying your own taxes to the government and contributions to the Social Security System (SSS) and Philippine Health Insurance Corporation (PhilHealth). You will also have to say goodbye to employee benefits such as health insurance coverage, group life insurance, and even 13th month pay, bonuses and paid vacation leaves.
Third, you will be working alone most of the time so for a while you may miss the company of officemates converging at the water station or coffee machine or having lunch with them every day.
Fourth, you will have no routine. Now while this may be a welcome advantage to some, to others this may be a disadvantage especially if they like structure and need boundaries (and bosses leading them) in order to be productive.
Are you suited for a freelance career? Before you decide on going freelance, determine if you are suited for a freelance career. If you like the idea of taking charge of your career, being your own boss, and working by yourself, then go for it. If you prefer to be part of an organization and work as a team member, then you may be better off seeking employment.
Once you have decided to strike on your own, do these steps to ensure your success: 1. Assess your skills. Make an inventory of all your marketable skills and identify which ones you can offer to your clients. For instance, as a marketing consultant, you may be good at crafting marketing campaigns, from advertising to public relations and below-the-line advertising. Or you may be good at market research or a specific component of brand management. Find out your core competencies. 2. Start scoping the market now while you are still working. Network with friends, family, and business associates to find out if they or their contacts may have need for a marketing consultant. Check what the market may be in need of. 3. Build a financial safety net. Because a freelancer’s salary is never guaranteed to come every 15th and 30th of the month, start building up your savings. Start with an emergency fund that may cover at least six months’ worth of your regular expenses. Park this money in a stable bank that offers Internet, mobile and phone banking so you will be able to bank anywhere, anytime. 4. Scout for insurance coverage. You will be your best asset as a freelancer, so insure yourself. Get adequate health insurance coverage on your own beginning June after you get laid off. If you have dependents, get life insurance too so they will not be burdened should something happen to you. 5. Psyche yourself up to be ready for the market. You are a product to be marketed. Brush up on your skills and make collaterals (calling cards, etc.). Spruce up a corner in your home to start a home office. Invest in basic office equipment such as a computer and printer, and office supplies.
As long as you persevere and make an effort to do a good job, you will be valued by your clients. We wish you the best!
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