Tackling Your Side Hustle From the Front
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It started when you thought you could turn your free time into a side hustle. You gained the opportunity to pick projects you were passionate about while earning additional income. Before you knew it, you are now at a crossroads where you’re thinking about turning your side hustle into a full-time freelancing career.
You are not alone. Globally, the gig economy is expected to grow from USD$204 billion in 2018 to USD$455 billion in 2023, at a Compound Annual Growth Rate of 17.4%. The number of gig workers appears to be on the rise locally as well. According to the Comprehensive Labour Force Survey 2020 by the Singapore Ministry of Manpower (MOM), there was an increase of own-account workers which was recorded at around 228,200 between June 2019 and June 2020. By contrast the 2019 edition of the survey reported a figure of 211,000.
This brings one to wonder why some are still at the sidelines. For most, it is the lack of stability, not to mention the change of perspective that comes with the transition to a full-time freelance career that gives them pause. In making the crossover, you are essentially running your own business; this means having to do your own administrative work, from marketing to pricing your services (yikes), you name it.
Jayce Tham, Chief Businesswoman at CreativesAtWork, shares insights from 10 years of helping creatives launch their freelancer career, “The key issues creatives face when making their transition are the lack of stability as well as the many unknowns that go with this career option. However, it is exactly the instability and the unknowns that will drive and propel an individual to take control of their own personal and career growth and development.”
Indeed, the survey by MOM cited major concerns faced by account workers that related to finding sufficient work and anxieties related to healthcare and retirement.
If you are still reading this (we promise this is not meant to dissuade you from taking the plunge), consider the equation to stability in your life. Does it include one or more of the following:
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Predictability
As a creative, this term could be an immediate turn off. What we mean here though is the expectation of work. In one creative’s account, you could be driven to work overnight by waves of work one moment and have it all dry up the next. Having the financial resources (most experts recommend setting aside 6 months’ worth of expenses) and mental wellness to get through both the peak and lull periods is key.
Have you also mastered the art of turning one-off gigs into long-term clients?
Health Insurance
While it is not a requirement to provide private health insurance benefits to employees in Singapore under the Employment Act, many organisations cover health insurance and even dental services to some extent, usually through a group health plan. Some companies choose to include an additional payment to subsidise employees’ individual plans. For most, especially the younger folks, health insurance may not be top of mind until a major illness comes knocking. Do you have an insurance plan that will help defray the costs of healthcare needs? Our podcast on Insurance for Freelancers explores this in greater detail.
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Taxation
As a full-time freelancer, you are effectively running your own business and are likely to have to file taxes as a self-employed person. According to the Inland Revenue Authority of Singapore, you need to file your taxes if your annual net trade income exceeds $6,000 or if your total income from all sources (e.g. trade, employment, rent) exceeds $22,000 in a year. Have you set in place the relevant record keeping measures to keep track of income earned and business expenses? Check out our quick guide to filing taxes for self-employed and freelance creatives.
Self-improvement
Employment in most organisations have provisions for training. And in today’s VUCA world, continuous skills upgrading is a requisite for meeting the demands of the fourth industrial revolution. As a freelancer, you will need to consider the dimension of keeping up as a business owner. Would you have the self-discipline in setting aside time and resources for upskilling? Our ebook provides some perspectives on how you could thrive in the business of freelancing. Tune in to the Freelancer Creative Exchange for micro-learning sessions on everything from creating your personal brand to opportunities in NFTs for freelancers.
Photo: Eunice De Guzman/Unsplash
Doing Your Best Work
We have spoken to some (Link to Joe Chan and Michelle’s stories) who are doing their best work and hence, living their best lives because they are experiencing flow in their freelance work. With this in mind, there is also increasing recognition that the concept of the lone genius is a myth. In The Practice, Seth Godin discussed the importance of finding your cohort to optimise the chances of reaching the pinnacle of your field. Working in teams allow for creative exchange of ideas. Do you have access to a network where you can discuss ideas? Do some of the projects that you take on allow for collaboration with other creatives?
To connect with a larger community, reach out via the CAW Discord and Facebook Group.
Mental Wellbeing
When starting out, feeling the pressure to land gigs could take its toll especially if someone else you know is getting a steady stream of work or if you see an ex-colleague celebrating a successful campaign or production on Linkedin. On the other hand, if you’re taking on projects one after another, there could be a real risk of running yourself to the ground and experiencing burnout.
Joe Chan, a freelancer art director and designer, shares about how one should have an at least a physical hobby to take your mind off work and recharge yourself. Do you have a routine for managing your own mental wellness?
If you have answered affirmatively to most of the above, you may be ready to make the leap or are probably in the midst of doing so (kudos for making that courageous leap!). For that extra boost of confidence, Jayce points out that she has yet to come across creatives that regret their decision to go into freelancing over the past decade.
What are some of the hurdles you’ve had to clear enroute to your full-time freelancing career? What are some challenges you continue to face in your everyday hustle? For those who have yet to take the plunge, does our list of considerations resonate with you? Tell us your story.
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