Self-employed Developer: The First Steps And Difficulties

Year after year, the demand for IT specialists rises up. As a self-employed developer, there is the possibility of higher wages than in employment. There are also more possibilities for career advancement. Self-employment can be worthwhile if the associated hurdles are overcome. This article provides guidance.
 

Registration with the tax office and financing

The first steps are to register yourself. This is done by filling out and submitting a form from the tax office. At the same time or after the official establishment, the financing must be planned so that your own resources and marketing can be financially supported.
 

 

Programmers are usually freelancers

First of all, let’s clear up a myth: that of the supposedly necessary business registration. As a rule, you can save yourself the amount for registering as a business agent as well as going to the trade office as a programmer.

The reason for this is the assessment as a freelancer: In the legislation, it was found that a programmer can perform an activity similar to that of an engineer and be considered a freelancer. This is the case if he has to plan, design, and/or supervise the development of the software.

If, on the other hand, the programmer does not do this because he is converting existing systems and not creating any individual applications or other digital products, then he is considered a trader. The activity as a trader is associated with extensive tax obligations and also increases the costs for the tax advisor compared to freelance work. Since a trade rarely applies to a programmer, he is classified as a freelancer and is initially only obliged to an income-surplus-calculation. Therefore, it is best to go to the tax office in the founding department and have the sheet handed over to you to register yourself as a freelancer. Alternatively, the forms can also be found online.
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Funding in four viable ways

The four most viable ways to finance self-employment are as follows:

• Combination with employment: Here you work as an employee while you take the first steps into self-employment. The salary from the employment relationship gives you financial security.
• Loan from a bank: If you get a loan from a bank, you will have more financial resources available in one fell swoop. Self-employed people have had positive experiences with loans. Banks check liquidity before lending to hedge.
• Financing from savings: Anyone who has savings from an inheritance, from their own life, or for other reasons can invest them in their own independence. Not least in view of the low interest on the savings account, an investment in one’s own skills is always to be seen as sensible.

 

Build a web presence

The 1×1 of online marketing also applies to programmers, which is why a web presence is required after registering with the tax office. Your main advantage is that as a programmer you can develop a website at a high level. It is ideal if you integrate sophisticated elements: Whether it is an animated header with effects or the plugins are modified in such a way that the work of a programmer becomes apparent – show on your own website how far your skills reach.

Use it moderately, however, because a website that presents one effect after the other can overwhelm the viewer and create a confused impression. If you want to show how good your skills are, it is worthwhile to create separate example pages and link to these websites.
 

Assigning responsibilities if necessary

The web presence is accompanied by aspects that go beyond the work of a programmer:

• Webdesign
• Search engine optimization
• Text writing
• Individual marketing measures

Consider whether you are confident in doing all this work. A programmer does not necessarily have to be a good designer – without wanting to offend you. If necessary, have a designer create a coherent layout for you. This will save you work and is a good template for your work. On the basis of this template, you can make your individual customization using programming.

The same applies to search engine optimization and text writing: those who delegate, who direct – leave these areas of responsibility to the people who deal with it every day and who specialize accordingly. You withdraw into the role of observer and driver and at the end only maintain the texts or set the budget so that your website is advertised through good SEA – Search Engine Advertising.
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Building the website as the key to initial collaborations

It is worthwhile to get in touch with other digital service providers and freelancers because this way you open up potential beyond your own website. You get to know business contacts, with the help of which you can offer your customers more comprehensive services.

The technical term for this is vertical cooperation. In this case, two or more entrepreneurs from the same industry (digital services), but at different stages of the value chain (you as a programmer and a copywriter/search engine optimizer), join forces to jointly acquire customers or advertise for each other. These collaborations make sense primarily because many customers are interested in complete packages.

Although it is easier for programmers to get involved separately than other digital service providers due to the high demand, in combination with copywriters, search engine optimizers, designers, and other service providers, the likelihood increases, To win companies and individuals as customers in the long term through comprehensive service packages.
 

Sales and communication with customers

If it is not your personal strength to communicate with customers or to convince them of your services on the phone, then it is optimal if you hire one or two freelancers on a commission basis as sales representatives. If it comes to communication with customers, then you should be optimally prepared in order to be able to operate a successful objection management.

We have also put together a helpful article on salary negotiation in the IT industry. Although designed for negotiating with employers, this article will also help you negotiate with clients. To make contacts, it is useful to network with the IT industry via talent pools. This will make it much easier for you to communicate with companies.
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