Starting a freelance medical writing business can be a great way to combine a passion for medical research with scientific writing skills.
Furthermore, the flexibility that a freelance writing career provides makes working as a freelance medical writer (MW) highly desirable.
Whether you’re launching your freelance business with no other obligations or you only have a couple of days a week to devote to writing, freelance medical writing can be flexible based on your own needs, both in terms of marketing and in completing client work.
I’ve established a freelance medical writing business twice. The first time was back in 2020 to earn money whilst I was between jobs (as my husband’s career had moved us abroad). The second time was earlier this year when I decided to set up as a freelance MW once again to free up more time for other activities. It’s proving to be a great way to work independently and flexibly around my family’s schedule whilst also providing a good income.
Prior to setting up these freelance writing businesses, I’d been an employee my whole working life. I had no idea of the business basics needed to establish and grow a freelance writing business. A lot of this I learnt through trial and error, and by talking to other freelancers who were already running successful businesses.
If you’re thinking about setting up as a freelancer yourself, there are 6 key basic considerations that you’ll need to deal with up-front whilst establishing your business:
1. Choosing a legal structure
There are two main legal structures open to you when you’re setting up as a freelance MW:
- Sole trader/proprietor
The first time I worked as a freelancer, I did so as a sole trader. This is because I had no idea if I could make a success of freelancing and it required very little up-front effort to register my business as a sole proprietorship. It was low-risk, quick and simple, and meant I could start trading very quickly. It suited me very well at the start of my freelancing career.
The downside of operating as a sole trader is the larger tax burden that you have to pay, as it is based on your sole proprietorship income, which can expose you to the highest income tax rates if your business is doing well. You also don’t enjoy the same legal protections that might come with a more complex business model.
Once I’d experienced success as a freelance MW, the second time ‘I set up shop,’ I opted for a more structured business model.
- Limited company/corporation
In this business structure, all money received from clients is paid to the limited company and not to you directly. The limited company then dispenses the funds to you either as a salary or dividend. Essentially you become an employee of the limited company and you have to pay the relevant taxes based on what you are individually paid.
Corporation tax in most countries tends to be less than income tax, and the company can purchase equipment and services needed to run your business. You may also find that some clients (often larger organisations such as big pharma or large agencies) will only use your services if you are registered as a limited company. This is because they don’t want to contract individuals, which could expose them to worker’s compensation claims (e.g. pensions, sick pay and other benefit claims).
The downside of forming a limited company/corporation is that it costs money and often requires specialist advice to set up correctly in many countries.
2. Tax planning
I can hear you yawning already, but one of the implications of running your own business is that it puts the responsibility of paying taxes (to the full amount and on time), firmly in your hands. Get it wrong and you could face hefty fines.
For this reason, I am a strong advocate of obtaining the services of an experienced and knowledgeable accountant. Ideally an accountant who has experience with representing self-employed individuals. From personal experience, this has a huge impact in exploring tax minimization strategies, enabling you to take full advantage of all the deductions you are entitled to as a freelancer.
Another tip is to set aside more tax than you actually need. This will ensure you have enough to pay at the end of the tax year (I currently apportion 30% of my earnings).
Bookkeeping is required to keep track of income and expenditures to help your accountant work out how much tax you owe. I find bookkeeping and invoicing for medical writing trading relatively straightforward, so I handle it myself on a simple spreadsheet. Although you can use an online accounting system or even hire a professional bookkeeper to help if you prefer.
3. Setting up a business bank account
One of the most important ways to establish your freelance MW venture and be viewed as a legitimate business is to open a business bank account, and avoid any commingling of your personal funds. Tax and business operations would be very challenging if your freelance business income and expenditures weren’t kept separate. Remember not all the money you earn is your own, you need to pay taxes on the income.
I like to use an online bank for my business ventures that doesn’t have a monthly fee associated with it. But it will take a bit of shopping around to find a bank that offers the best service to meet your company’s needs.
4. Insurance
The freedom that working as a freelance MW brings in being your own boss, also brings heightened responsibility for the work you produce. If an unhappy client decides to take legal action against any of the work you’ve done, you’ll need protection for your business.
Professional indemnity insurance offers the best protection for freelancers. It will cover both compensation and legal expenses should a claim arise. Many clients will also ask if you have this in place before they’ll contract you, so it’s essential to have insurance set up before you begin trading.
You may also want to consider public liability insurance if you intend to have clients visiting your premises (in case of accidents), insurance to cover accidental damage and/or theft if you travel with your laptop, and cyber security to protect against system hacking or data breaches.
5. Professional workspace
Setting up a dedicated workspace with all the tools you need to make your business a success is needed from the start of your freelancing journey. This will take upfront investment and will need to include:
- A computer: In my experience most clients use Microsoft Windows and therefore a PC is better than an AppleMac for freelance medical writing work. Buy a dedicated computer for your business, keeping your personal computer work separate
- Software: Microsoft 365 (Office), a reference manager, and a PDF tool (e.g. Acrobat Reader) are the basic essentials you’ll need to run your freelance medical writing business. You may also want to invest in copy editing or invoicing/bookkeeping software for your business
- A desk: With enough space for your computer and a separate monitor. The additional screen makes life a lot easier when cross-checking work across more than one document
- A printer/scanner
- A desk lamp
- Storage space: For stationery and printer paper
- A headset: For client calls
- An office chair: As a writer you’ll be spending a lot of time in your chair, so investing in an ergonomic one that prevents discomfort is a good choice
6. Marketing
Carving out time for marketing is important to help you avoid a feast or famine cycle in your writing business. I learnt the hard way that it’s easy to rest on your laurels when work is available, but after those jobs are wrapped up you can find yourself with few opportunities on the table and limited cash flow.
Building in a marketing strategy from the start can avoid these issues. Carving out a small amount of time each day for networking and building connections pays off hugely in the long-run, and ensures you have people to reach out to when contracts are winding up and your capacity increases.
Being a freelance MW is an exciting and interesting profession and there is plenty of demand for experienced writers. If you’re ready to put your medical writing skills to use, don’t hesitate to take action on these 6 key steps to setting up a freelancing business and put your writing skills to use!