It’s more possible than ever these days for anybody to be an entrepreneur in their own right. The rise of the gig economy’ has opened the doors for people to monetize their skills on their own schedule. There are plenty of websites available for freelancers to connect with clients for business support and independent contracting for various tasks and short-term projects.
This type of professional lifestyle is also incredibly attractive to younger generations entering the workforce, but it is certainly not limited to Millennials and recent college grads. More and more workers are finding ways to turn a side hustle into a major money maker. In fact, over one-third of the American workforce currently uses an alternative work arrangement as their primary source of income.
The great news is that as the gig economy grows, businesses are finding ways to incorporate data technology to ensure that opportunities abound and alternative entrepreneurs can succeed.
Let’s discuss how some of the latest trends in technology are making it possible for the gig economy to continue on its upward trajectory.
Cloud-Based Accounting Tools for Better Freelance Billing
One of the things that attracts most freelancers to the gig economy is the fact that they can set their own salary and charge based on their experience or the difficulty of the task. However, unless you happen to have a background in accounting, calculating hourly rates and deducting the proper amounts for tax purposes and expenses can be quite tricky.
Thankfully, data-driven tools are helping freelancers manage their time and submit accurate professional invoices. The CloudBooks app offers a powerful invoicing software that is easy enough for independent contractors or small entities to use to keep track of their accounts. Once the project is completed, this program will automatically generate an accurate invoice with expenses and deductions built in.
A good data-driven accounting tool should use information based on the freelancer’s working hours and productivity to generate projection reports and estimates. This type of approach means that freelancers offer full transparency to their clients, which can certainly lead to further opportunities and a better client relationship.
Cohesive Software for Stronger Sales Pitches
Finding the next gig for a freelancer is a huge task, especially if they are bidding on bigger projects with larger organizations. A freelancer generally has to prove their worth through the results from their past work. In many cases, this task involves a sales pitch based on CRM data that determines the ROI.
In order to obtain and organize ROI data from past projects, freelancers will need to utilize a data-backed tool that transforms all of this information into a sales pitch that can be submitted directly to clients. Programs like Proposify are using machine learning and big data systems to automatically generate proposals based on historical data. This system submits digital sales pitches that offer better insights for clients. The reports also track important metrics for the freelancer, such as areas that could use improvement.
By using a data-driven approach when pitching to clients, freelancers have the power to stand out among their competitors by offering more detailed information. A client is going to feel much more comfortable hiring based on past data, as opposed to estimated quotes and unsubstantiated promises.
Social Networking Tools for Better Collaboration
Since freelancers, by nature, are not tied down to an office location, they often have very little interaction with other professionals in their field. From time-to-time, they may need a little help from their friends.
Data tools are a fantastic solution for short-term collaborations between freelancers who may need a little assistance or a second opinion. For those in the creative space, social tools like Dribble help freelancers connect to other great designers and professionals for easy collaboration and connection. Just like other social networking sites, users can connect with people that match up to their needs and interests based on data-metrics like popularity or similar interests. From there, users can connect and reach out for collaboration projects or simply ask for opinions from other designers on a current project.
This type of platform is also incredibly useful for collecting valuable feedback data from other professionals in the field. Freelancers can upload pieces of their work which other users can view, like, and comment on. This helps designers get a better idea of areas that could be fixed or altered with reputable advice before they submit the final project to a client.
Brand Monitoring for Personal Sentiment Tracking
Personal branding is incredibly important for a freelancer as they are totally in charge of their reputation and marketing themselves for future clients. In the gig economy, your name is a brand. The way that people are interacting with you online matters quite a bit.
Data-driven tools like Brand24 keeps track of social media mentions for individual accounts in the same way that businesses monitor social interactions. This information can help to determine overall customer satisfaction and alert freelancers of social chatter in regards to their work – or even opportunities for future projects. This tool also provides data reports for freelancers to understand how their social media presence is influencing their reputation.
Gaining access to this type of social data can do wonders for a freelancer’s influence and reach, which can lead to greater opportunities down the road.
Conclusion
As the gig economy continues to grow and alternative employment structures become more commonplace, freelancers will benefit from a data-powered approach in the same way that businesses do. By using tools that create accurate datasets for both the freelancer and their clients, independent contractors and workers can build their own path to success.
