15 ways to make freelancing/self-employment successful

re: 15 ways to make freelancing/self-employment successful

John Galt — Sun, 12 Jul 2009 17:04:18 GMT

Be prepared to learn/understand what many business people complain about----high taxes. (The system is set-up to hide true tax rates from employees, as the business pays half of them. No wonder tax day is opposite the calendar from election day. Imagine how voting would be effected if you voted at the same time you were writing tax checks to the IRS?)

As a self employed person, you will pay 15.3 percent of your net earnings in SS and Medicare taxes. Plus any State income taxes. Plus the federal income taxes.

Then learn about another item business people complian about --health insurance. Be ready to pay hundreds per month for this expense.

These expense will probably take about 1/2 of your "net." That's right, you will work for the government/society about 1/2 of the time. Is it any wonder few people succeed? Or have the incentive to try? For example, in my State (Michigan) the taxes would be (at the 28 percent Federal bracket) 28+15.3+4.6= 47.9 percent. Then you have other fees---LLC annual incorporation, etc. If you hire employees to work for you, you can add workers compensation insurance.

Also, have enough savings to cover at least one year of expenses. Business will take time to ramp-up (if you are successful).

re: 15 ways to make freelancing/self-employment successful

Pdan — Mon, 06 Jul 2009 21:07:30 GMT

I've graduated from business school, I currently have a job that pays pretty well, my wife works, I'm interseted in having my own business. My problem is that I do not know what I would offer as a service or product. I simply draw a blank when I think of it. I feel that if I were trully cut out to be self employed I would know exactly what my passion is without a doubt.

re: 15 ways to make freelancing/self-employment successful

Jrum — Mon, 06 Jul 2009 18:34:26 GMT

Don't forget to put money back for the tax man.

What you make isn't all for you to spend.

re: 15 ways to make freelancing/self-employment successful

yahwey — Sat, 04 Jul 2009 15:07:04 GMT

plan to work 5 AM to 7 or 9 PM 7 days a week. If you log fewer hours, you're not trying hard enough.

re: 15 ways to make freelancing/self-employment successful

Grrrboy — Sat, 04 Jul 2009 12:47:16 GMT

Don't change from a secure good paying job that you hate to a less secure, lower paying self employment that you hate. Having expertise is not loving what you do, and to be self employed you need to love what you do. If you do, the tight budget, cutbacks in luxuries, and long hours are all very much worth it.

re: 15 ways to make freelancing/self-employment successful

jreed — Sat, 04 Jul 2009 10:52:07 GMT

Trent forgot to mention the most important part of his business plan; keep your spouse working for the insurance and basic expenses.