Embracing the Freelance Life: A Guide to Transitioning from Employee to Entrepreneur

Ever catch yourself staring at your computer screen at 3 PM on a Tuesday, wondering if there’s more to life than endless meetings and office politics? If you’re daydreaming about the creative freedom and work-life balance that comes with freelancing, you are not alone.

Freelancing isn’t just about swapping your commute for pajamas; it’s about starting your own business. This shift requires a rethinking of your relationship with work and may involve drawing inspiration from famous graphic designers or other creatives you admire.

Over the years, we’ve supported countless creative professionals in their transition to freelance life, with the 99designs community earning more than $500 million to date. With around 60% of freelance designers expecting their income to increase this year, we’ve compiled wisdom, tips, and advice from our designers to help you make a successful transition.

01. Think Like a Business Owner, Not an Employee

The first mindset shift you’ll need to make is simple: start thinking of yourself as a business owner from day one. When you’re an employee, you show up, do your job, and collect your paycheck. As a freelancer, you become the CEO, the marketing department, and the creative director all rolled into one. Every client relationship becomes an investment in your company’s future.

Research shows that creative freedom and personal flexibility are the primary motivations for most freelance designers, with just 5% saying they freelance out of necessity. Most people choose freelancing for more control over their careers, not because they’re desperate for work. Before you take the leap, clarify what success looks like for you.

Are you chasing higher earnings? More creative freedom? Better work-life balance? Write it down and prioritize your goals accordingly. You can’t do everything at once, and this clarity will help you focus your energy when challenges arise.

02. Make a Strategic Transition Plan

A note on timing: don’t hand in your notice just yet. First, check your employment contract carefully. Many agencies and companies have restrictions on freelance work, especially with competing clients. You don’t want to accidentally breach your contract.

If your employer is open to it, negotiate reduced hours to systematically build your freelance client base. When your freelance income can sustainably replace your salary at a comfortable level, making the leap feels much less daunting.

This approach has several advantages: you maintain a steady income while building your business, test the waters without fully committing, and avoid making decisions from a position of financial desperation.

Additionally, consider establishing an emergency fund. Financial advisors recommend having three to six months of expenses saved up, providing a safety net during lean periods that might otherwise force you to take work you’d rather not do.

03. Get the Basics Right

Once you’ve adopted a business mindset, it’s time to build your professional foundation. Start with your online presence—your design portfolio doesn’t need to be fancy, but it must be professional. A simple landing page that clearly explains what you do, who you work with, and how to get in touch is essential. Use a reliable website builder to create this.

Your portfolio should showcase your best work—quality over quantity is key. Your first clients will likely come from your existing network: former colleagues, university friends, and past clients. Don’t hesitate to let people know you’re available; most are happy to help, and word of mouth is a powerful marketing tool.

For pricing, calculate viable rates before approaching potential clients. Factor in all your expenses—rent, groceries, business costs, taxes, equipment, and software subscriptions. Don’t forget to account for time off, as freelancers don’t get paid holidays!

04. Make Sure You Have a Good Support System

Freelancing offers many benefits, but it also comes with challenges. It requires self-discipline, financial planning, and the ability to handle uncertainty. Some months will be feast, others might be famine, and that’s a lot to adjust to if you’re used to steady salaried work.

Working from home sounds appealing until you realize you haven’t spoken to another human in three days or you’ve been putting in 12-hour shifts back-to-back. Establish boundaries: set up a proper workspace, establish regular working hours, and proactively build a solid support system of peers through freelancer communities, co-working spaces, and your professional network.

The creative industry thrives on independent spirits. Going freelance means taking control of your professional destiny. With proper planning, the right mindset, and strategic execution, you can build a creative business that offers both financial success and personal fulfillment in a way that is uniquely yours.

If you want to get the right setup, check out our lists of the best laptops for graphic designers and best monitors for graphic designers.

Embrace the journey, and remember: the freelance life is not just a career change; it’s a lifestyle transformation.