I have been a "freelance" design guy for the last 16 years. It is a great business, but it is not for the weak of heart.
As mentioned above, you will not have a steady paycheck. I tell anyone thinking of starting to have at least 6 months of living expenses plus business startup costs before starting.
Computer: +/- $3k
Software: +/- $10k (This includes autocad, sprinkler design software, PDF editing, quickbooks, office software, etc...)
Insurance: +/- $10k. You do NOT want to try to be a solo design person without proper errors and omissions insurance. We live in a very litigious society. I carry $2M coverage. It runs me about $10k per year. I also carry $1M general liability for when I am on site doing survey work or something. Again, do not skip on this expense!!! That is only a couple hundred per year.
Marketing / Advertising: Figure at least $1-2k per year. It can be a lot less, but that is a good budget.
Then, you have to start getting work from your network. And, plan on taking about 2-3 months after completing a project to get paid.
You will need to get your pricing structure set up. It is far different than working as a salary employee. You need to figure in your desired hourly rate, all of the costs mentioned above, "vacation / sick / holiday" time (this was all built into your rate of pay, whether you realize or not). Don't go too cheap to start. It will be very difficult to raise your rates. I honestly have not been able to change my rates for the last 7-8 years. Don't go too expensive or you will price yourself out of work.
Feel free to contact me direct and I can help you with more startup issues.
Travis Mack
MFP Design, LLC
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