On the Pulse of the Times
Being a Freelancer - Characteristics of a self-employed person
There are around 3.6 million (source: genesis.destatis.de, as of 2021) self-employed in Germany. About 2 million of them are one-woman or one-man shows:
Freelancers / Independent Professionals / Self-employed persons
Characteristics of a self-employed Person - as a Person
Independent professionals are people who
- show great courage when founding their own company
- have deliberately chosen this path and are happy to follow it
- show the highest willingness to perform and motivation
- enjoy their work
- have a very low disease rate
- bear the full risk for themselves and their small business
- make all business decisions themselves
- think and act in the "big picture".
- responsible for being "up-to-date".
Characteristics of a self-employed Person - as an Entrepreneur
Independent professionals are people who
- have several, also recurring clients
- often have several mainstays or want to build more
- regularly complete their advance sales tax returns
- make their tax return every year and pay their taxes to the tax office (income tax, trade tax)
- financial reserves form for additional tax payments due to higher sales and for times when incoming orders are poor
- pay their contribution to the Chamber of Industry and Commerce (not freelancers without trade licence, crafts, agriculture)
- pay for their own social and professional insurance
- private or statutory health insurance
- private or statutory pension insurance
- voluntary unemployment insurance
- disability insurance
- Business/professional liability insurance
- maintain their own office and business equipment
- Notebook/PC
- smartphone
- Multifunction device (printer, scanner, fax)
- telephone landline
- office supplies
- own a company car
- have had a work room accepted by the tax office
Characteristics of a self-employed Person - as a Knowledge worker
Independent professionals are people who
- have a wide range of knowledge/experience
- have already worked in a wide variety of company shapes and sizes, industries and hierarchical levels
- Due to their "know-how", after a short briefing, they can quickly find their way into new areas of activity and work independently
- provide their services reliably, effectively and competently at a high level
- have the innovative view from the outside
- usually have a higher education, a degree or diploma, speak several languages, etc.
Characteristics of a self-employed Person - as an Advertising Professional (Self-promotion)
Independent professionals are people who
- want to stay in touch through constant acquisition
- are represented with profiles on the most important internet portals in the field of social media (e.g. XING, LinkedIn, Freelance, Freelancermap)
- appear to the outside world as an entrepreneur
- own homepage, which is constantly updated
- own stationery (customer letters, invoices, address labels, etc.)
- own business cards and image presentations
- self-developed service contracts
- own logo
- Attend networking events and trade fairs
- are listed in databases of intermediaries/personnel consultancies
Characteristics of a self-employed Person - as a Market participant
Independent professionals are people who
- have a "market price" in the form of a fee determined by supply and demand
- on average 160 days a year for customers
- include the time spent for which they are "not" paid as a matter of course as part of their business (writing invoices, advance sales tax returns, etc.)
- rely on positive references and recommendations from their customers
- are in constant competition with their freelance colleagues
- are proud to exist in the market
Characteristics of a self-employed Person - as a contractual Partner
Independent professionals are people who
- are active in assignments that are usually designed for a "limited" period of time
AND / OR
- Serve several customers in parallel over a longer / possibly unlimited period of time
- are flexible in terms of working environment, time and place
- work together with their customers in an uncomplicated manner and on an equal level
- communicate directly with their client
- are not in competition with their customers' employees, because permanent employment is not their target
- do everything possible to meet the requirements of their customers
- build a relationship of trust with their customers and would like to support them again in future assignments
I have been a member of the VGSD (Association of Founders and Self-Employed Germany e.V.) since 2015 and support the association on a voluntary basis, among other things in the organization of round tables of the Munich Regional group.