The future of employment is constantly changing. According to Forbes, a significant majority of the workforce will be composed of freelancers by the year 2027. Freelancers are defined as part-time workers who are not contractually bound to any organization.
Besides being the future of employment, freelancing has the potential to democratize entrepreneurship. Many may disagree with this statement, citing the fact that freelancers are simply contract employees.
However, this couldn’t be further from the truth. From searching for clients to developing discipline, freelancing lays down the foundations for a business by equipping entrepreneurs with the skills that they need to get started.
Still find this difficult to believe?! Read on to learn why we believe that freelancers are this generation’s new entrepreneurs.
1. Freelancing doesn’t require capital
Freelancers sell two things to their client; the first being skills and the second being time. You’ll quickly notice that these two things do not require any monetary investment
In the past, starting a new business requires entrepreneurs to invest significant amounts of money and time and often at a great risk. This meant that business owners were usually out of pocket or in debt prior to seeing any profits.
On the other hand, freelance work only requires someone to possess a marketable skill and free time. From here, there’s nowhere else to go but upwards. As you build up a solid portfolio of clients, you’ll be able to earn a profit without exposing yourself to significant amounts of risk.
As freelance work doesn’t require any capital, this lowers the barriers for entry significantly. Hence because of this, starting a small business through freelance work is very much possible.
2. Freelance work is flexible
Time is of the essence for many of us. Usually, many entrepreneurs take up freelance work as a means of supplementing their existing income. The flexible nature of freelance work allows anybody with a computer and an internet connection to start work.
Alongside this, freelancers are free to dictate their own hours, a perk which enables many to hold day jobs while still freelancing. This removes a significant amount of risk and encourages potential entrepreneurs to try their hand at freelancing.
3. Organizations are optimizing
From copywriting and web design to even accounting, freelancers are experts in their chosen field. If you are an expert in sports, you can get a gig writing about your passion, which is a win win situation. Who would have known you could make money with your knowledge on the Super bowl predictions, for example?
Usually, most freelancers have experience working with multiple clients on a variety of different projects, thus allowing them to quickly build up their skillsets.
Nowadays with organizations looking to streamline their business operations, one-off projects and contract staff have become a part of life.
Rather than taking on a crew of full-time employees, freelancers give organizations the flexibility to hire skilled professionals for short-term projects.
Alongside this, full-time employees are entitled to a variety of benefits which can be quite costly. On the other hand, with a contracted team such considerations are secondary. As organizations look towards optimization and cost-cutting, the future for freelancers looks bright indeed.
4. The connectivity offered by new technology
With the connectivity offered by internet, freelancers are able to work with a variety of clients from around the world. Instantaneous communications allow for greater collaboration between partners which in turn drives productivity.
From a client’s perspective, the gig-based economy allows smaller businesses to leverage on a truly global talent market. In some cases, clients, freelancers and colleagues have never even met face-to-face.
As time goes on, we can only expect freelance work to increase in popularity. With a new generation of workers seeking greater autonomy, it’s only a matter of time before freelance work permeate all aspects of our lives.