Tight on cash as a freelancer? Read this.
/With all of the digital tools at our disposal and side hustle opportunities, becoming a freelancer or independent contractor has never been easier and more lucrative. According to CNBC, skilled freelancers earn more per hour than 70% of workers. There are now over 55 million freelancers within the United States which makes up 35% of the total workforce.
Of course, that’s not to say that running a small business is an instant path to wealth and total autonomy. Running a business is a lot of hard work and it does require some money to make money. Whether you’re setting up a fully functioning enterprise of your very own or starting out as a self employed freelancer, cash flow and consistent revenue will be part of the challenges you face.
As I always say, cash is king but cash flow is queen. And when the queen is not present, your business will immediately feel the impact. can send your nascent business grinding to a halt. It can make you unable to pay suppliers, lead to charges for late payments, drag your business deeper and deeper into debt, and force you to make rash decisions.
With that in mind, here are some fast and effective ways to break through the cash flow barrier.
Throw a sale
Black Friday, Christmas, Easter, New Year’s, Thanksgiving, Labor Day, you name it! Wherever there’s a public holiday there’s an excuse to throw a sale. Heck, you don’t even need to use the holidays as an excuse. Just reduce the prices on your services and promote the heck out of it on your social feeds and newsletter. A sale is a great way to inject some liquidity into your business while also getting rid of some assets which have been sitting on your shelves gathering dust.
It’s not just retailers who can throw sales. Copywriters, editors, graphic designers, anyone can offer limited time discounts to get would-be customers off the fence. While you might take a slight hit on your profit margins you can get fast access to the capital you need to survive and thrive.
Sell your annuity
If you have an annuity coming in as either a lump sum or structured settlement, this can be sold to create fast access to quick capital. Wondering “how can I sell my annuity?” check the link for details. Some people sell their annuities to ease cash flow and make capital investments for their business which can increase their efficiency and make them more money in the long term. Before you decide to do this, double check your financial portfolio and goals. Sometimes when we’re tight on cash, we make rash decisions so before you sell your annuity ensure that this will not harm your long-term financial goals.
Short Term Business Loans
Some businesses use short term cash flow loans as a means of easing up liquidity and keeping the bills paid. The benefit of these is that you get access to the cash much quicker and with a less rigorous application process than most other business loans. However, you can expect the rates of interest to be considerably higher. Thus, it is only recommended that you use this option if you know you have funds incoming in the short term. Otherwise you could drag yourself deeper in debt.
About Money & Mimosas: Money & Mimosas was started as a passion project by Danetha. A former NFL cheerleader turned entrepreneur, she started blogging as a way to combine all of her passions into a career. Money & Mimosas now has tens of thousands of readers in over forty countries with the same dream of achieving financial freedom without living frugally.
