Why become a software freelancer?
On this page we answer the tough questions that occupy the minds of those considering becoming a software freelancer. We also open up the most common reasons why more and more software developers are moving from employment to entrepreneurship.
As an entrepreneur, you can charge for your work according to its value. You don’t have to pay for the company’s premises and the benefits it offers, but only for the things you need or want. This can leave you to over 50% more at the end of the month than as an employee, if you want to keep your expenses to a minimum. You set the hourly rate for your work. But the reality is that ultimately the customer decides whether to agree to the price. So a certain degree of flexibility must be kept. The hourly rate for senior developers in projects through Witted varies between 80-100 euros.
As an entrepreneur, you determine how much you work. In addition, you have more opportunities to influence your work: have you always wanted to work abroad? Do you want to holiday for 8 weeks of the year or do a shorter working week? As an entrepreneur, you have more opportunities to have a say in these matters.
However, it’s good to remember that entrepreneurship also comes with a lot of new responsibilities, so the total amount of work can rise. As an entrepreneur, you are responsible for the well-being of your employees, that is, yourself, so remember a reasonable amount of work and set aside enough time for leisure and relationships as burnout is not a joke.
Alone or with an agency?
There is a huge demand for software professionals, which reduces the financial risk of becoming an entrepreneur – an experienced developer is easily employed. However, it takes a considerable amount of time to find projects and meet potential customers, which is out of billable hours. So why not hire an agency to make customer acquisition for you, while also taking advantage of the stronger bargaining power of its vendor role?
Witted has helped hundreds of developers who are going freelance to get up to speed as entrepreneurs and even more who are already entrepreneurs to find long-term, business-critical projects.
Pros and cons
+ Freedom to choose your projects and how much you work
+ More opportunities to influence your own work
+ Opportunity to make more money
+ You can influence the operation of your company
+ You can choose what benefits you want. When you stay within tax-free limits, the benefits are corporate expenses.
+/- More responsibility
– The lack of similar support network and work community as with employment
– Financial risk
– Risk of burnout
+ Secure income even if you are on the bench (consulting houses)
+ Different benefits provided by the employer
+ Support network and work community
+ Training and events provided by the employer
+ Low financial risk
– Not necessarily the same freedom to choose your projects and workload
– Not the same opportunity for higher income
– Not always the opportunity to influence the company’s operations
Witted makes becoming a software freelancer easy
Setting up a company – We’ll plan the start together with you so that there is no break in the billed work. We can start looking for projects for you even if you haven’t established a company yet or are still employed. Setting up a company is fast and easy nowadays, and there’s no rush with it; we can do it together when you’ve found your first project.
Customer acquisition – Don’t waste billable hours on the lookout for projects, our agents will handle customer acquisition for you! You set your own terms, such as hourly rate and the specs of your ideal project (industry, technologies, duration). Our agents will search for suitable projects for you accordingly.
Running the company – There are over 1700 Nordic software freelancers in our community, and they have recommended several accountants, insurances and tools for fellow independent contractors. We will gladly pass on the tips so that your journey as an entrepreneur would start smoothly.
Becoming an entrepreneur
- How much could you make as a software freelancer?
- Why become a software freelancer?
- Five steps to becoming a software freelancer
- FAQ: Becoming a software freelancer in Finland
After starting a business
Running a business