Want to freelance? Be methodical and disciplined

The U.S. has become a freelance nation. Whether out of necessity (reduced hours, loss of job) or desire (flexibility, control over hours), more than 53 million Americans earn income from work that’s not a traditional 9-to-5 job. That amounts to one in three workers, according to Sara Horowitz, the founder and executive director of Freelancers Union.

Horowitz notes that while the trend of Americans piecing together an income stream from more than one source is more than two decades old, in the past few years the trend has accelerated because “online work platforms such as Uber, Airbnb, Etsy and Elance that connect workers directly to consumers and clients are completely reimagining the work relationship.”

In many respects, freelancing can be the perfect answer for those who are seeking to boost income both during their work lives and to supplement Social Security during retirement. The allure sometimes goes beyond money: A survey by staffing firm Modis found that more than 50 percent of respondents chose flexible work hours as the perk they most desire. Flexibility can mean working at home or not having to be in the office at the same time each day.

If you are considering starting a business or dipping your toe into the freelance pool, one of the best ways to do so is to experiment while you have a job. More than a quarter of the total number of freelancers — 14.2 million workers — are moonlighters who have a different full-time position. About a third of them say they would like to quit and freelance full time.

Whether you are just starting out or trying to make the leap to full-time freelancer, you need to treat the endeavor like a going concern, not as a side business or a hobby. That means you should create a plan that explains the new venture, your background and what differentiates your business from competitors. It should identify your target customer and include a competitive analysis of organizations and other freelancers in your space. You will also need to project the numbers to determine if any start-up financing will be required.

It’s important to be disciplined about how much time you will devote to your business. It has to be enough to judge whether or not it could be self-sustaining but not too much as to drain you and cause you to underperform at your full-time job. By spending 10 to 20 hours a week, you will probably get a sense of whether or not you like doing it and how much work it takes to run your own business.

If the experiment goes well, you may choose simply to keep that extra income stream and not make the jump to becoming a full-time freelancer. But if you are ready to go it alone, be sure to beef up emergency savings so you have a year of expenses stashed away. Consider the cost of purchasing your own health insurance through either a professional network like the Freelancers Union or through HealthCare.gov. Establish a separate business checking account and consider creating an LLC. Finally, have a system to pay your taxes.

There are great free resources available to help you develop your idea into an ongoing concern. The Small Business Administration (SBA.gov) offers advice and information on starting or growing a business. Many local offices often provide financial assistance for new or existing businesses through guaranteed loans made by area bank and non-bank lenders. There are also special SBA resources devoted to women, minorities and veterans.