I had moved to a new city and was interviewing around. A old friend approached me in desperation, offering a lot to work on one-time project for his company. That led to more offers, and those to more. Meanwhile I and friend were building prototypes around a business we might start. (So glad we didn't try to start that one!) Meanwhile, it wasn't until I did my taxes the next year that it hit me that I was now a freelancer.
Only then did I start to get my act together with billing and the rest.
But I've had to do a LOT of coaching whenever a friend starts freelancing. Even basic stuff like "a separate card for business expenses can simplify your life"
And these people usually do well. It's just that most people have no clue about even basic business stuff, and nor do their families or social networks, so no one tells them.
Did you have experience in a company, or a friend relative who had told you about business before?
Any recommendations?
Freshbooks have a fantastic free PDF called Breaking The Time Barrier that is about charging for value, not for your time. It's worth reading even if you don't use Freshbooks (I use Harvest instead). The PDF was actually recommended to me by a client, who I think was giving me a hint that I was charging unsustainably low prices.
After all, an entity is hiring _you_ because you have skills they can't do even though there are tons of books and sites on dev and web engineering. It's wise to do the same yourself for the skills you don't have, or don't have time to master.
BTW, I found lots of variability in pricing around lawyers and accountants, and some negotiation can go a long way.
Wait...what?
Before I even broke out into freelance consulting I hired an accountant. When starting your own business, I would think it's base-level knowledge that anything with legal ramifications (and that includes the IRS) should be handled by a professional.
Get an accountant. Get a lawyer (at least for one day to draft up your documents and make sure your business is set up or even use LegalZoom).
And within the first month of breaking out on my own, I must have read like 3 or 4 books on freelancing/consulting, 10+ blog posts, and podcasts.
True - no one is going to act like Clippy and say "Hey looks like you're starting a freelance career. Have you considered an LLC and liability insurance?"
But - do people not try and learn about what they're getting involved with anymore? Starting a business, even if it's a 1-person sole proprietor consulting firm, is a big task. And yes, davidscolgan is right that you should consider all business aspects beyond your primary skill. But it seems almost irresponsible to say that starting a business is going to be a huge shock. No one is going to tell you, but even a cursory search online will give you a torrent of information on freelancing, consulting, and starting your own business.
If I hadn't put in the initial legwork into studying the consulting landscape there is absolutely no way I'd: (A) still be consulting or (B) make nearly as much money. But the answers are out there. And yeah - get an accountant, it will drastically simplify your finances.