Freelance jobs are flourishing faster than ever, and it’s estimated that the population of freelancers in the U.S. numbers 62 million people. In the course of the next ten years, the number is expected to be higher, around 85 million, which is almost half of working Americans.
In the beginning, freelancing was perceived as a side business or something people liked doing for themselves when they finished their “real” job. But as it turns out, there are some advantages to being a freelancer like, for example, flexibility, freedom to choose your own hours, and higher incomes. So if you seek more control over your earnings and projects, freelancing is what you should focus on.
With more and more people entering the freelance world, new types of market are opening up with the purpose of answering the need for freelance workers. Some of those markets are in the developing stages nowadays, while some don’t even exist, but are waiting for the right time to appear in the market.
If you are a business owner who hires freelancers, you might want to stay with us while we elaborate on some of the things that you’ll use in the future.
Banking Options for Freelancers
Turning into a highly-paid freelancer isn’t something that’s hard to imagine today. Namely, from the record from 2018, one in five freelancers, circa 3,3 million people, earn s$100,000 or more annually. In spite of high salaries, freelancers have difficulties applying for loans and mortgages. What’s more, a self-employed person cannot get a business credit card.
A bank that provides things to freelancers would consider their salaries. At some point, those banks could provide financial aid, for instance, debit and credit cards, which are in accordance with their money flow.
Acquiring insurance of any type is practically impossible for the ones who don’t work in a company. And there is a non-profit organization, Freelancers Union, which links freelancers with insurance carriers. That can include health and dental insurance, term life insurance, and disability and liability insurance.
There is a chance that insurance providers start designing insurance coverage, which is custom-made for freelancers and their needs. For instance, if freelancers are unable to work for a month, or if they have some
other needs, they will probably need coverage which is tailored based on their circumstances.
There are many ways for freelancers to save their money for future times, and the most frequent is an individual retirement account (IRA). It’s not that uncommon that people get a bit perplexed with the thought of retirement plan and aren’t aware that there are other options. So IRA could be a way to go, but oftentimes some other options can maximize your returns.
Companies don’t usually offer 401k plan and other options to freelancers, but hopefully, more will take part in it. Perhaps opting for a formal retirement plan could come in handy regarding tax-savings, which wouldn’t be possible if freelancers opted for a regular savings account.
Workspaces for Freelancers
Nowadays, in fact, there are workspaces like WeWork that freelancers can use if they don’t want to stay at home. But many of these co-working spaces consist of small teams that are trying to succeed in some areas. A self-employed individual might don’t want to work from the same place each day. Oftentimes they just need to go away from their usual environments when they want to finish some tasks and converse with other people.
Certain cozy coffee shops are good solutions, but what freelancers really need is a place where they’ll be able to share their stories and experiences. That’s the reason why I believe there are going to be workspaces for the freelance community — the places where they can go when they start feeling lonely (and it’s inevitable after a while).
Opening Up a Business versus Working Alone
When a group of people decides to start a company, they don’t have a problem finding one which would help with administration services, legal matters, and their taxes. But who is going to help freelancers who don’t want to incorporate their business with others?
There is a demand for services whose prime goal is to help freelancers legalize their businesses and get assistance for their legal matters and taxes. Note that freelancers with average incomes cannot afford attorney fees. So those companies who are willing to help freelancers wouldn’t offer such a pricey fee in turn for their services — for instance, if they need for a contract to be reviewed by an expert or help with their taxes.
We will have to wait and see if these services will become available from 2020, but one thing is obvious —freelancing has become a way to go. All in all, if you start a company in some of the industries where freelancers can be useful to you, consider providing them with options and some benefits.