You're the boss

ON YOUR OWN: Many people who have lost their job in the recession are thinking about starting their own business. Career experts warn, however, that the world of freelance work is different from the nine-to-five of office jobs.

“It’s all brand new to somebody who is used to getting a pay cheque every two weeks,” says Kate Lister, author of Undress for Success: The Naked Truth About Making Money at Home . Lister advises that potential freelancers should look at industries or professions they know a lot about, and then find an area in which to specialize. Check out online job lists and project proposals on job boards such as oDesk.com or Guru.com . “Try to figure out where the unmet need is,” Lister told The Wall Street Journal.

Deciding on rates is also difficult for people new to freelancing. Lister says freelancers should avoid fixed-rate projects. “Fixed prices are very difficult because you don’t really know what you’re going to encounter. Try to do it on a time and materials kind of basis,” she says.

"Behind the small job, there is maybe a bigger company with lots of jobs," says Fabio Rosati.

These days, it is very important for freelancers to have an online presence. New freelancers should create profiles on online job boards as well as social-networking sites like Facebook and LinkedIn. Creating your own Web site can also be helpful. “We see a lot of people with incredible backgrounds in the traditional world of work,” says Fabio Rosati, chief executive officer of the freelance job board Elance.com. “In that market, they are fully and completely established, but when they move to this new market, they have to build their reputation again.”

Rosati says that new freelancers should not turn away small, low-paying projects at the beginning. “Behind the small job, there is maybe a bigger company with a lot of jobs,” he points out. “The first job is the tip of the iceberg.” Kate Lister advises that pro bono or volunteer work can also be useful, as this can build relationships that may lead to paid work later on.