My previous blog was about whether now was the right time to start a business, and this one is in a similar vein, but focuses more on the individual, and the increase in people willing to freelance.
The rise of the gig economy has been a feature of our lives for the past few years with the growth of notable companies such as Uber and Airbnb which adopt the gig methodology.
Freelancing has always been a thing, but the gig economy is a more recent phenomenon that is driven by the technology that puts together the buyer and vendor more easily than ever. Think about it, 10 years ago, a Freelancer’s next gig would heavily rely on word of mouth, or networks built up over a number of years. Today, an array of tools can put you in front of the next opportunity. LinkedIn, Facebook groups and Twitter all serve as forums where companies can communicate easily with the Freelance community, and dedicated gig sites in the UAE such as Upwork and Fiverr show the model is getting some traction.
In this post (present?) COVID-19 landscape that we find ourselves in, many people have lost their jobs, and are turning to freelancing. Either out of necessity, as companies do not have the confidence to employ on a full-time basis, or just as a way of embracing the new trends of working that have been appearing in recent times.
Over the past few years Dubai has made it increasingly easy to become a freelancer, and has launched new initiatives that allow individuals to obtain freelance licenses. Abu Dhabi seems to be also moving in the same direction.
In Dubai, two of the most popular routes that people are currently using are, getting a license through Gofreelance.com, or getting a DED Trader license. In Abu Dhabi, check out the Instance License Initiative. You can check their websites directly (links below) for the activities that they encompass, but there is a diverse range covered that will suit most prospective giggers. They differ in costs, but with Gofreelance you do get the ability to apply for a visa, which is important for prospective freelancers who do not have company or family sponsorship.
How to start the right way:
First and foremost, you need to sort out your visa and license status. Get your visa and license set up properly. Reputable businesses will not work with you unless paperwork is up to date. Also, when setting up your license, make sure that that it covers the activities that you are performing, and the physical locations where you want to work. If you are unsure, speak to an expert.
Figure out your charge out rate. The key benefit for having regular employment in UAE is the guaranteed income that you will get every month, and the benefits that come as part of your employment such as visa costs, paid holiday, flights home, gratuity accrual, equipment (phones and laptops) and healthcare. Your rate needs to cover your pay expectations and the extra benefits that you would normally get from regular employment. We will be posting a blog soon with more details on how to calculate this, however there are two routes to consider: Charge by Day / Hour. Work out a figure that you are comfortable with, that covers your earning expectations as well as covering the cost of the benefits listed above. At the outset however, do not be completely wed to this rate. Consider the length of the contract, and who it is you’re working for. If your prospective client is a great company to be associated with then be prepared to flex a little for both the visibility on your resume, and for your new client to understand your true value. Charge by the Project. Consider a project fee, but be careful, and don’t get sucked into a project that ends up taking twice as long as initially intimated. Project fees are often an attractive option to employers who want clarity on their project cost, and if you can crash out the work in half the time, then
Think of yourself as a business, and act accordingly. You need to be organised. You no longer have an HR, finance or sales team behind you, you need to perform all of these functions yourself. This is where Camden Hill can help. You should consider setting yourself up with a basic accounting system, which for this type of business would cost the same as buying 4 lattes a month. An accounting system can organise and automate your finances. You can produce timesheets, issue professional invoices, record expenses and much more, saving you valuable admin time.
Look to the future, and understand VAT. In the UAE if you are working under a trade license (which the GoFreelance and the DED licenses are), you need to register for VAT if your 12-month income exceeds AED 375,000 or is likely to do so in less than this time, but in the next 30 days. Being on top of your finances will help you to understand when you reached the VAT threshold and when you need to take the next step.
Add Value. By becoming a Freelancer, you have turned yourself into a commodity. Your clients are hiring you as an industry expert, so you need to add value to their operation. You can’t coast along as a Freelancer, as there is a very visible cost against your engagement. You need to focus, get the job done, and leave your client wondering how they ever coped without you.
Be social and confident in your abilities. As a Freelancer, you can be walking into a new workplace every week. You need to be comfortable quickly assimilating into new teams and having your voice heard, and be able add instant impact to your new temporary work family.
Get yourself out there. Work your network, and all the social tools at your disposal to let people know the direction you’ve taken. Work on your LinkedIn profile for greater visibility, and use social sites such as Facebook, Twitter and Instagram for industry news, and opportunities. In most instances, your professional network should get you started, but there is nothing wrong with a bit of hustling either…
How can Camden Hill help?
Since the beginning of this year we have been working more and more with Freelancers and Startups helping them the get to grips with their finances and save them valuable time. We have even set up a package dedicated to Freelancers called the “Launch Pack” which covers all of the basics at an affordable cost.
As a Freelancer, every hour that you spend on business admin and financial control is an hour that you are not billing to someone else.
We can help you set up an accounting system that records every expense, produces invoices and reports at the touch of a button, and gives you professional credibility. We can advise you on your VAT position, and if you’re ready to register, we can go through your past expenditure to date and help you claim any VAT expenditure you have made in the past. If you would like to know more about VAT, please click this link to go to another blog post that I wrote on this subject: https://www.camdenhill.co.uk/post/vat-uae
A good accountant should save you more in time and money than it costs, and we firmly believe that we can do this for you.
Contact us today for a free consultation by either visiting www.camdenhill.co.uk or contact me directly on jo@camdenhill.co.uk
Useful links:
https://www.adbusinesswomen.ae/English/services/mubdiah/definition-rationale-behind-the-programme
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