Becoming self-employed / freelancer in 9 steps

Introduction

Would you like to start your own business and do it in an approachable way? Then the easiest way is to become self-employed. Basically, all you have to do is register at the KVK and you can get started. But of course there are other things that need to be taken care of. What is involved in becoming self-employed and what should you pay attention to?

Zzp'er or freelancer?

A zzp'er is a self-employed person without staff. As a zzp'er, you work for different clients and no longer have permanent employment. There is no difference between zzp'er and freelancer: it is the same thing.

Zzp or freelance are not legal forms

If you are starting out for yourself, it is important that you choose the right legal form for your business. The legal form is the legal form of your business and you establish it when you register with KVK. It is important to note that both zzp and freelance are not legal forms. Freelancers and freelancers often choose the legal form of sole proprietorship. It is also possible that for your company the legal form of BV (private limited company) is more suitable than the sole proprietorship. You can read about the advantages and disadvantages here.

Roadmap

Are you going for entrepreneurship? Then make sure the following things are well taken care of.

1. Research

It is good to research a few things before becoming a self-employed person. Before you decide to become a self-employed person, consider the pros and cons:

Benefits of becoming self-employed

• Many people dream of becoming self-employed, and indeed freelance life has a host of advantages. As a freelancer, you can schedule your own time and decide who you work for. You take on the (varied) assignments you like to do. No boss telling you to be at your desk by 8:30.
• Requesting vacations is a thing of the past and so is your annual performance review. In short: freedom is an important reason to become self-employed.
• You can earn a lot more as a freelancer than as an employee, because your hourly rate is much higher. If you meet the hour criterion of 1225 hours, you also pay less tax.
• Being self-employed is also educational. Finding new clients, keeping records, plotting sales strategies: you need plenty of new skills to make your business a success.

Disadvantages of becoming self-employed

• The above sounds ideal, but everything is relative. There are also disadvantages to becoming self-employed. Especially in the beginning, you probably won't have your pick of assignments, but you still need to earn a living. You'll tackle whatever jobs you can get.
• Moreover, the added uncertainty of entrepreneurship can cause a lot of stress. Once you start running your own business, chances are you will soon run out of time. Organizing your own time is less likely: your main concern is to serve as many clients as possible.
• For some self-employed people, it takes getting used to not having colleagues. Renting a flex workspace can be a solution to that.
• Another disadvantage of freelancing is that you have to take care of your own social safety net. Taking out disability insurance, building up your own pension, making sure you have a buffer for lesser times: it's all important and expensive.
• Above all, don't forget that you also have to pay taxes on the money you earn.

Are you still as excited as ever to get started as a self-employed person? Then it's time to write a business plan. This is where you put all your plans and ideas on paper and research your surroundings. This way, you will discover your strengths and weaknesses, learn about the market and can use it to convince your financier of your plan. Read more about writing a business plan and business plan examples.

2. Choose your legal form

As you now know, zzp'er is not a legal form. So you will have to choose between a sole proprietorship or limited liability company. Take a good look at the pros and cons of both legal forms. Read more about setting up a sole proprietorship or a limited liability company here.

3. Becoming self-employed: register your business with KVK

As a zzp'er you are obliged to register your company in the Trade Register of KVK, the Chamber of Commerce. This obligation applies to every business in the Netherlands. After your registration you will receive a KVK number and KVK will pass on your details to the tax authorities. Then you can officially start your business.

4. Open a business account

It is advisable to separate business and personal life as much as possible. Even when it comes to your finances. Therefore, open a business current account and a business savings account as soon as possible. In the savings account, you can set aside money for your future tax liability. That way, you can be sure you have enough money for that and you won't accidentally spend the money.

5. Keep good records

It's not the most fun job, but good bookkeeping will save you a lot of hassle. Therefore, set up your records carefully and, if necessary, hire an accountant to help you. Consider the following:

• Make sure your invoices and quotes are compliant. Create overview so you know which invoices have been paid and what you still need to chase. There are several accounting programs that will help you do this.
• Choose a system to keep track of your hours. If you spend 1225 hours on your business, you can claim deductions, such as the self-employment deduction and start-up deduction.
• Make sure you have legally sound terms and conditions for clients.
• Know approximately how much tax you have to pay so that you can set aside a certain amount of money directly from each paid bill,
• Does your annual turnover remain below 20,000 euros? Then you may be able to apply for the small business allowance (KOR) from the tax authorities. If you use the KOR, you do not charge VAT on your deliveries.
• Make sure you comply with the General Data Regulation (AVG), the privacy law that all business owners must comply with. You must be able to demonstrate that you are properly protecting the personal data you work with.
• Do you work for companies and have few clients? Then you must be able to prove to the tax authorities, when asked, that there is no false self-employment or disguised employment. This can be done by entering into a model agreement with your client, which excludes employment. On the website of the Tax Office you can find model agreements for various industries.

6. Arrange your insurance, retirement and disability.

As a self-employed person, it is important that you cover some major risks. Therefore, take out liability insurance and legal expenses insurance at the very least. Next, look at options for saving for your retirement and disability insurance. You can't start saving for retirement early enough. Not every business owner takes out disability insurance right away, but it is important to list your risks and make an informed decision about them.

7. Determine your hourly rate:

Research the market and competitors to determine an appropriate hourly rate. Consider your experience, costs, profit margin and the value you provide to clients.

8. Findability and sales: develop a strong marketing strategy

Is everything taken care of? Then now you can really get started as a self-employed person. That also means developing a good marketing plan to attract clients. Think of a strong company name, an appropriate logo with accompanying corporate identity, a good website and a powerful brand strategy. This will ensure that your business attracts attention and that your customers know how to find you again and again.

9. Acquisition

Now that everything is in place, it's time to actively approach potential customers. You can do this by sending offers and following up on leads. Make sure you do this in a structured way to get as many new orders as possible.

Want to read more?

Want to read more about starting your own business? Read how to start your own business in ten steps here.