CONTRACTING – WHERE TO START?

During my 27 years as a contractor, one of the most common questions I have been asked is

 “Where do I start if I want to become a contractor?”

The truth is, it’s all about you and taking “ACTION”.

The first thing you need to do is to assess the Pros and Cons of contracting from your point of view. Everybody is different so look at this from your personal set of circumstances. Make sure you do your research before leaping into something.

If you have a clear idea of the pros and cons and are still considering the leap from permie to contractor, start by researching contractor rates in your area for your expertise and check out the supply and demand in your region. You will also need to understand IR35 even if it is only the basics and the differences between and Umbrella company and a Limited company.

When you have completed all the research, you will have to choose your path. Are you still considering contracting or would you be content staying as an employee? When I made the leap into contracting, this was not a hard choice for the reasons listed below…

·      More money

·      More freedom

·      Being in control of my life and career

This became an easy choice because I I had a clear idea of what I wanted my future to be. So this is the next exercise you need to do. Identify your vision and set your goals. It is really, important that you make the right decision for you. Assess your finances and create your plan. 

You now need to transform people’s perception of you. This can be one of the hardest exercise you can undertake. Most of us are really poor at selling ourselves but that is exactly what you are trying to do when you apply for a role, whether it is a permanent or contract role. You need to fully understand you. Identify your skills and achievements. Know your strengths and weaknesses then identify your USP or ‘unique selling point’. Only when you have completed this will you be able to create a truly killer contractor cv.

Then it is time to sort out your infrastructure. You will need to find yourself an accountant that specialises in contractor law. You need to set up your Limited Company or choose a PAYE Umbrella Company. Very often, your accountant will be able to help you with opening a Limited Company but it really isn’t as difficult as it sounds or expensive. Open your business bank accounts, which your accountant should be able to help with. As a contractor you will need insurance, so shop around but the prices again are much lower than you may think.

Then, it is up to you to design your logo and create your invoice template. After all, you want to get paid. If you don’t want to do this yourself, again, there are places you can go to get it done for you.

You are almost there but still a little way to go. Most employers will check you out on social media so it is really important that you make a good impression and don’t put anything on there that you don’t want a potential client to see. If you have not done so already, build your profile on LinkedIn. If you already had a profile, make sure you update it with the new information you have learnt about yourself. Remember to update Facebook, Twitter and any other social media profiles.

Upload your CV to job sites. I have always found this really, useful. You can also set notification in the sites when a suitable role becomes available. Register with recruitment agencies. Don’t under- estimate the power of making a good impression on recruiters. When you register, they will want to interview you as they will want to put the best candidates forward for contracts so brush up on your interview techniques beforehand.

Now all that is left to do is for you to negotiate and secure your first contract. Apply for contract roles and negotiate your rate. Remember you have already researched rates in your area so this will give you a benchmark.

When you are offered a contract, make sure you check your contract thoroughly. This is especially important given the new IR35 rules that come into play in April 2020. Only when you are happy with the terms, hand in your notice and leave your current role.

When you start, make sure you set your boundaries. It is really important to maintain a healthy work life balance.

In summary, you need to take ACTION.

A - Assess

C - Choose

T - Transform

I - Infrastructure

O - Online presence

N - Negotiate and secure

If you would like any help on your journey transitioning from Employee to Contractor, email me

[email protected]