Tips and Tools to Help You Get Going in the Gig Economy

written by Katie Conroy | katie@advicemine.com

Are you looking for ways to become your own boss? Thanks to the gig economy, opportunities abound — even in the age of COVID-19. Here are some tips and tools for getting started.

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Understanding the Gig Economy 

Many people are still learning about the gig economy. The phrase refers to short-term or freelance work typically made possible through the internet. As the BBC explains, workers enjoy flexibility and freedom, and employers enjoy the opportunity to receive quality work and goods without the overhead involved with traditional workplaces. The kinds of gigs are richly varied. You can find work as a courier, dog walker, bookkeeper, consultant, website designer -- the possibilities are virtually unlimited. Mic points out the gig economy provides an opportunity to set your own hours and workload. Some workers are participating in side gigs, keeping their day jobs, and freelancing to supplement their income. Others are trading in the traditional work environment to be their own boss, jumping into the gig economy full-time. 

Getting Started

There are many points to consider when starting a gig business. For one, you should get advice on your taxes. Depending on where you live, what you do, and your personal situation, there are smart ways to set yourself up to stay on track with Uncle Sam. Many freelancers choose to set themselves up as an LLC as the pass-through taxation offers financial advantages and requires less paperwork. Surprisingly, this is a pretty straightforward process, particularly if you use a formation service to file for you. 

You should also establish a work schedule and maintain it, which will help you stay timely and meet deadlines. It can be all too easy to get off-track when working remotely and without anyone structuring your days for you. Don’t let distractions keep you from your work commitments! Also, treat your business professionally so others will think of it professionally. This includes marketing your business (such as developing a social media presence), creating a pitch for telling others about your work, and handing out business cards.  

Platforms

You can get a jumpstart on building your business through a gig economy platform. Basically, a platform is a place to exchange goods and services. You might list your product or service on a platform website, and clients or customers visit the site to engage you. Some platforms are very specific, while others are broader. For instance, if you’re into fitness and are interested in becoming a personal trainer, you can list yourself on a site specifically designed for people to hire personal trainers. Many of the platform pages do background checks on service providers, and some offer the opportunity for feedback, which means potential clients feel more confident when they decide to hire you. 

Apps

With most people using smartphones these days, it makes sense to take advantage of apps designed to make your gig work easier.  There are apps for freelancing oriented to assist you with specific tasks, such as building your own mobile website, creating proposals, and checking marketing analytics. Another important tool that can promote your success in the gig economy is an invoicing app. A lot of these apps are free, easy-to-use, and allow you to monitor whether accounts are paid up.  

Retirement Funds

Since gig workers typically don’t have an employer setting aside retirement funds on their behalf, one suggestion is to invest for your retirement yourself. You can either put money into a Roth IRA (individual retirement account) or a SEP IRA (simplified employee pension), or you can save for your retirement through other investments. The important aspect is to find a way to save funds that meets your needs, has low fees, and is cost-effective when it comes to taxes. How much should you save? Some experts suggest a minimum of 4 percent of your income. If you’re starting late, a general rule of thumb is to have $1 million to $1.5 million saved by the time you retire. 

You can enjoy flexibility and freedom through gig employment. Be professional about jumping in and make good use of the tools available to you. Thanks to these smart tips, you can enjoy success in the gig economy!