I've been working in marketing for about 5 years at a mid-size company, and I'm seriously considering going freelance. I've got some clients already interested, but I'm worried about losing benefits and having inconsistent income. What should I do first - build up savings, sign clients before quitting, or just make the jump?
What's your actual financial cushion looking like - could you afford a couple of months with zero income? The other answer nails it about lining up clients first, but honestly the sequencing matters less than having a safety net. I know someone who went freelance with three solid retainer clients locked in but nearly panicked when two fell through in month two because they'd only saved enough for about six weeks. They survived, but it was stressful. My take: get 2-3 clients committed before you quit, build savings to 3-4 months of expenses minimum, and maybe look into health insurance and retirement options while you're still employed - that stuff's way easier to sort out beforehand than scrambling later.
How much runway do you actually have right now - like, could you live off savings for 3-6 months if clients dried up? That's the real question before you jump. Best move is to line up solid clients *before* you quit, ideally enough to replace like 70-80% of your current income, then build that savings cushion while you're still employed. Don't do it on a wing and a prayer with just "interested" clients - interest isn't money in the bank. Set up your LLC, figure out health insurance (marketplace plans aren't fun but they exist), and get maybe $10-15k set aside before you actually hand in notice.
Have you actually tracked how much of your marketing work is repeatable or productizable? That matters more than just client count. Lock in 2-3 solid retainer clients *before* you quit - not one-off projects, actual ongoing work that hits maybe 60-70% of your current income. The practical thing everyone skips: set up a business account and start invoicing those interested clients *while still employed*, even if it's just a few hours a week. This does two things at once - you get a real feel for cash flow timing and see which clients actually pay on schedule, and you build your financial runway faster without touching savings. Once you've got 2-3 months of actual freelance income in the bank plus your regular savings cushion, that's when you give notice.
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