A search about 'freelance' on the internet will provide you several freelance job sites many of which also provide payment escrow and arbitration services.

What is, however, not so readily available is information about 'preparations that you need to make' to go solo.

So, here we focus mainly on them.

What's Your Motive To Freelance?

Is it to earn some extra money working in your free time, or are you looking forward to enjoy the perceived benefits of working freelance such as -

Time flexibility in - when you start, how long and when you stop working.
Freedom to work from home most of the time.
Joy of being your own boss.
Cut down on commuting to and from work.
Freedom to work in your PJs.
Sense of accomplishment from successfully completing a project.

Whatever your motive to freelance, ground realities may not be what you expect it to be.

Your Mindset?

It's important to understand the challenges involved in working independently. Not knowing when or from where your next paycheck is coming requires a certain mind-set that not everyone possesses. Ask yourself if you really have what it takes to be successful doing so.

Here are some things to consider:

You're On Your Own. An entrepreneurial spirit is the key to success. You need to have that 'I can do it myself' attitude. You also need to have the attitude that this is not some slipshod operation you run on the side.

Your Self-Discipline. You'll need to develop deft time management skills and a strong work discipline to keep your freelance business running smoothly, not to mention an extremely long attention span. Here are a few tips to keep you on task:
Set your work hours. Set a time to start work every day and stick to it. Your work hours should be based on what times during the day you feel most productive.
Screen your phone calls & Emails. Keeping up with clients is important, but try to restrict your phone and e-mail follow-up to set intervals throughout the day.
Regulate casual attitude. If solid self-discipline isn't your strongest asset, you may want to make a point of getting fully prepared each day--get dressed, shave, eat breakfast, whatever you have to do -- before you start working.

A Money Mind. Most people have unrealistic expectations on how much money they will make and how fast. If you're the kind of person who spends whatever you have and more, then the freelance lifestyle may get you into all kinds of trouble.Not only do you need a squirrel-like ability to save for the lean times, you also have to plan ahead for health care and, if you're smart, money for your retirement. You also have to put aside money for tax time. So you'll need to:

First, develop a financial game plan. Decide on spending versus saving both in terms of business and personal expenses. Make sure you have financial backing to get you through rocky times. A spouse working full time always helps. And you should keep at least a six-month financial cushion in the bank.
Second, get a good accountant To help you navigate the tax system and stretch your dollars as far as they can go.

Plug in and Play-ability. Can you jump right in between, understand immediately what problems lie before you and what their solutions need to be, and then jump right out to your next job? Since it's often the freelancer's job to leap into things mid-flow, you need to be flexible enough to work well with a wide variety of companies, situations, and people without the benefit of context.

Ask yourself the following questions before you take the plunge:

1. Am I a jack-of-all-trades? You need to know finance, marketing, record keeping, and have some secretarial skills. Not having those skills can sink your business. A solid grasp of QuickBooks, Microsoft Office and the Internet will make you more self-sufficient and cut down on professional services fees.
2. Am I comfortable setting my own schedule? While everybody claims to want freedom, the truth is that most people are creatures of habit and routine. That's why it's a good idea to create some sort of schedule--even if it's artificial --to break up your day.
3. Am I good at setting goals? Just like creating a schedule can help structure your time, setting goals can give you milestones to shoot for and tangible rewards for achieving them.
4. Am I able to call it quits at the end of the day? No matter how much work still needs to get done, it's important to be able to call an end to your day. Even if you go back to the computer after dinner to check your e-mail or do some writing, it's important to set aside some time for your family and yourself.

What's Your Work Style?

The freelance approach you choose depends on the style of work you prefer. A freelancer may have to employ a wide variety of work styles, but you'll discover that you prefer one of these four styles:

Style1. Your professional reputation is at the top and so is your hourly (or daily) rate. You are called in to work on project-by-project basis. So while you miss out on the motivation of long-term goals such as the ultimate success of a company, you get the short-term satisfaction of completing a distinct project. Along the way, you get to meet interesting people, experience a variety of work environments and locales. On the flip side, you only have to endure horrible people for a finite period of time.

Style2. You have the right setup at home, with the room and equipment you need to do your work. This kind of work is perfect for people who abhor commuting or office politics.

Style3. You consider freelancing as a way to supplement your existing (steady) income. The ideal situation is where you hold down a part-time job and freelance on the side. You get all the social and monetary benefits of a steady job, but you have enough spare time to deal with your freelance work comfortably.

Style4. You tend to team together with other freelancers. Individuals can work on their own projects or team up to tackle larger projects together. As an added bonus, they can share office space, bandwidth, equipment (fax machine, copier, printer), legal services, and sometimes even health care and retirement plans.

What AreYour Skills/Talents?

If you feel you've got the mettle to freelance, you still have to decide what kind of freelancer you want to be. Since to be a freelancer is to be flexible, you'll probably end up doing all kinds of work. But to get the momentum to successfully move from job to job, you need to carve yourself a freelance niche (or a few distinct niches).

It may take some trial and error, but eventually you'll learn what sort of work you enjoy and do well and promote yourself accordingly. So as you struggle with what title to put on your business card, ask yourself this:

What type of an expert am I?

Do I know how to do one thing well, such as database programming, interface designing, or technical writing?
Or, am I a "company of one" who does a little bit of everything?
Or, am I a consultant, who has a keen eye for what other people should do?
Or, am I going to roll those sleeves back and do the dirty work myself?
Or, (place your own observation here...).

Once you know what kind of work you're willing to do, the next step is to figure out how you want to go about doing it.

Organize Your Workplace

Office Supplies
The first thing you'll need is an office space in your home, away from distraction and with plenty of light. A basic freelance business also needs the following:

An up-to-date and in-working-order computer. A printer and scanner are not always necessary, but a good computer is the one thing you'll use everyday--for completing projects and communicating with clients.
Dedicated, high-speed internet access.
Several computer programs, such as MS Word, Excel (for spreadsheets, invoices), and Power Point (for presentations), as well as WinZip or WinRAR for archiving and extracting files, and good antivirus software.
An email address and a telephone number at which you can easily be reached.
A portfolio of sample pieces and your resume for potential clients.
Having the right equipment to work with makes sure that your freelance business looks professional.

Create Collateral Materials
Nothing says you are a viable business more than having a company logo, business cards, stationery, and brochures, and possibly even a website. Keep it all simple, and do not order more than a three- to six-month supply of printed materials. Once these pieces are in place, do not be shy about using them.

Business Regulations and Requirements
There may not be any business regulations and requirements to fulfill, but be sure to do your research before you get started. Here are some things to look into:

Business license. Call your local county or city hall offices to find out whether or not there are limitations or licensing regulations for the kind of business you have in mind. Businesses that are within city limits, any kind of business, are usually required to meet specific regulations.
Zoning laws and restrictions. Local zoning laws can sometimes affect your home-based business. If you live in a residential zone that restricts commercial activities, you may be forced to relocate or close down your business. Call city offices to check these out.
Business insurance. Do you need it? Can you afford to go without it if something happens to your office equipment or space? Homeowner's insurance often doesn't cover things used for commercial purposes, so be sure to check this out.
Sales tax number. You'll need a sales tax number if you're going to be buying and reselling products. Check with your local small business administration office for details.

Market Your Services

Marketing is often a challenge for self-employed individuals because it is so time consuming as well as an unknown entity for people who haven't done it much in their prior careers. But when you are the whole business, marketing yourself becomes an everyday activity. Here are some low-cost activities you can do to spread the word about your business and keep the work rolling in:

Focus on Your Core Competencies. Know your target markets and the value your product or service will bring to them. Focus your sales and marketing efforts towards these groups. Avoid spending time trying to acquire customers you cannot properly serve.
Develop a Clear and Concise Message. Create a 30- to 60-second statement that clearly explains what you do and for whom, and why your target audience should buy from you. Have this message become your or your company's mission statement. Practice your message and notice how your target audience reacts to it.
Build your reputation through word-of-mouth. The best form of advertisement is your own work. Good work creates good references, who may in turn encourage others to hire you for future work. Treat every project as if your reputation depends on it--because after all, it does.
Join professional associations. These are a great source of networking and collaboration. Some professional associations plan events to include people outside of the association--ripe breeding ground for making some business connections.
Value pro bono work. A glowing recommendation from someone who was thrilled with your charitable work donation could be invaluable for getting future projects. Volunteer work is also a great way to get started with a new business if you don't yet have a steady roster of clients in place.
Keep in touch with past coworkers. After all, they know you and your working style, and can be an excellent source of potential business contacts.
Advertise past affiliations with well-known companies. This can be in the form of past employers or past clients. Nothing makes a sale like a known brand name--you may as well benefit from your past accomplishments, and the marketing your former employer has already done.
Don't be Afraid to Try. If you are serious about growth, spend time outside your comfort zone and try new things. Sometimes new ideas will work, and other times they won't. Either way, the process will teach you something new and valuable about yourself and your business.
Submit your work for awards. Why not get a little free praise for your work and a nice gem for your portfolio? Submitting for an award usually doesn't cost very much and could be the key to getting noticed on a larger scale. Check your industry publications for news on upcoming awards.

Final Words

While freelance business offers tremendous freedom and flexibility, it also requires a high degree of motivation, self-discipline and organization. Especially if you're used to working for a big corporation where you have a well-defined job description, employees who report to you or a manager who closely supervises your work, you may find it difficult to make the transition to freelance lifestyle. If, on the other hand, your job gives you a fair degree of independence and you're chafing at the bit for more, working freelance could be exactly what you're looking for.

Keep in mind that the going may be slow at first. After all, you are forging a path through an uncertain landscape, and you can't always see clearly what lies ahead. Don't be afraid to approach new business, take on challenging projects, and step outside your comfort zone. Developing professional credibility simply takes time, experience, and a little faith in yourself. And if you've planned carefully and equipped yourself with the tools to succeed, you could end up doing the kind of work you never even dreamed was possible.