Self-Employed As A Programmer: The First Steps And Hurdles

Self-Employment, Financing, Sales, And Communication

Year after year, the demand for computer scientists rises to a new high. As a self-employed programmer, there is the prospect of higher wages than in an employee relationship. There are also more prospects for career advancement. Self-employment can be worthwhile, provided the associated hurdles can be overcome. This article assists.

Registration At The Tax Office And Financing

The first steps are to register yourself. This is done by filling out and sending in a form from the tax office. At the same time or after the official founding, financing must be planned so that the company’s resources and marketing can be financed.

Programmers Are Usually Freelancers

First, we dispel a myth of the supposedly necessary business registration. As a programmer, you can save the amount for registering your business and going to the trade office. The reason for this is the evaluation as a freelancer: According to the BFH judgment of May 4th, 2004 (XI R 9/03 ), the legislation found that a programmer can carry out an activity similar to an engineer and is considered a freelancer. 

This is the case if he has to plan, construct and monitor the development of the software. On the other hand, if the programmer does not do this because he is converting existing systems and does not create any individual applications or other digital products, then he is considered a trader. Working as a trader is associated with comprehensive tax obligations and increases the costs for the tax consultant compared to freelance work. 

Since an exchange seldom applies to a developer, he has delegated a consultant and is at first obliged to a pay overflow computation. It is best to go to the start-up department of the tax office and have the sheet handed over to you to register as a freelancer. Alternatively, the forms can also be found online.

Financing In Four Practical Ways

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

1. Combination with employment: Here you work in an employment relationship while you take the first steps toward self-employment. The salary from the employment relationship gives you financial security.
2. credit from a bank: If you get a loan from a bank, you have more financial resources at your disposal in one fell swoop. The self-employed have had positive experiences with loans from ING. Banks check liquidity before lending to protect themselves.
3. Funding from the KfW Bank: The KfW is a state financial institution that supports business ideas, freelancers, companies, and other actors with financial resources at low-interest rates, provided they are found to be eligible.
4. Financing from savings: If you have protection from an inheritance, from your own life, or for other reasons, you can invest them in your self-employment. Not least, given the low-interest rates on the savings account, an investment in one’s skills is always to be regarded as sensible.

Build A Web Presence

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

Use it sparingly, though, as a website that presents one effect after another can overwhelm and confuse the viewer. Creating separate example pages and linking to them is worth it if you want to show off your skills.

Assign Responsibilities If Necessary

The web presence involves aspects that go beyond the work of a programmer:

1. web design
2. search engine optimization
3. copywriting
4. Individual marketing measures

Consider whether you feel comfortable doing all of this work. A programmer doesn’t have to be a good designer – without wanting to offend you. If necessary, have a designer create a coherent layout for you. This saves you workload and is a good template for your work. You can use this template to make your adjustments using programming.

The same applies to search engine optimization and copywriting: whoever delegates who directs – leaves these areas of responsibility to the people who deal with them daily and are specialized accordingly. You withdraw into the role of observer and guide and, in the end, only enter the texts or specify the budget to advertise your website via good SEA.

Building The Website As The Key To Initial Collaborations

Contacting other digital service providers and freelancers is worth contacting because you can tap potential beyond your website. You get to know business contacts that you can use to offer your customers more comprehensive services. There is a technical term for this: vertical cooperation. In this, two or more entrepreneurs from one industry (digital services) but different stages of the value chain (you as a programmer and a copywriter/search engine optimizer) join forces to win customers or advertise for each other. 

This cooperation makes sense because many customers are interested in complete packages. Although it is easier for programmers than other digital service providers to be hired separately due to the high demand, in combination with copywriters, search engine optimizers, designers, and other service providers, the likelihood of winning companies and individuals as long-term customers through comprehensive service packages increases.

Sales And Communication With Customers

If it is not your strength to communicate with customers or convince them of your services on the phone, then hiring one or two freelancers as commission-based salespeople is optimal. When communicating with customers, you should be optimally prepared to operate a successful objection management.

We have also compiled a helpful article on salary negotiations in the IT industry. Although designed for negotiations with employers, this article will also help you in negotiations with clients. Networking with the IT industry via talent pools helps make contacts. This makes communication with companies much easier for you.

Also Read: What Are The Characteristics Of A Good Chatbot?