How to Become a Successful Independent Contractor
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?Independent contractors are different from traditional employees, but many companies choose to work with them for their experience, skill and expertise. So many professionals take on independent work as contracted professionals, even while working in more typical employed roles. Figuring out how to become a successful independent contractor means dedicating time and energy to the trade while also landing lucrative roles.
Millions of Americans work as independent contractors in almost all industries imaginable.?
The independent contractor-employer relationship is different from other types of business relationships. Independent contractors are not typical employees, and their roles vary from company to company.
Understanding what being a contractor means will help any professional figure out if it is the right path for them.?
What Is an Independent Contractor?
An independent contractor is a self-employed worker with skills in a particular trade or profession.?
Independent contractors provide services or products according to contracts with employers. These contracts are usually for a set period or task, so they have a designated end date. Additionally, because independent contractors work for themselves, they can take multiple contracts with various companies (even competitors) if they wish.?
Although this is sometimes a challenging employment status to define, laws and regulations exist surrounding independent contractors?that companies must follow. Independent contractors must also follow strict government rules, including those related to taxes and business expenses.?
Often called “freelancers” or “gig workers,” independent contractors fall under a vast category of professionals. Anyone from part-time bloggers and musicians to doctors or lawyers may provide independent services and thus would qualify for independent contractor status.?
Benefits of Being an Independent Contractor
Independent contractors don’t receive the same benefits as employees, including minimum wage entitlement, overtime wages, paid time off or workers’ compensation. However, there are plenty of advantages to “being your own boss” that independent contractors enjoy.?
A few of the most prestigious benefits of being an independent contractor include:
Independent workers have total command over their work, schedules, pay and other factors, making this a lucrative working opportunity for those that can market themselves and find the right gigs.
Qualities of Successful Independent Contractors
Independent contractors need many skills and qualities to succeed in this line of work. In addition to building their skill sets and honing their talents, independent contractors should be:
Self-Motivated
Successful independent contractors must motivate themselves every day because they don’t have a manager or boss to do this for them.?
Independent contractors must keep their schedule, ensure they meet deadlines and practice excellent time management.?
Confident
A contractor should trust their skills, making them confident that they will do the job well. This makes it easier to market oneself as a professional when trying to land jobs, but it also helps create a better reputation over time.?
Successful independent contractors own up to those errors when mistakes happen and take responsibility for their actions. Remember that independent contractors are their bosses, so if something goes awry, they are responsible for fixing it.?
Flexible
In the life of a contract worker, technology issues, sudden requests, unforeseen project limitations and many other challenges arise.
Freelancers must be flexible and adapt well to changes in their workflow or schedules. Resiliency is essential in this line of work because days may not go to plan.
Self-Aware
Freelancers quickly become burnt out on their work if they don’t recognize their limits. Understanding how many projects to take on at a time and how much time to spend per project is crucial.?
Successful independent contractors should not accept jobs beyond their skill level, nor should they take on too many jobs at once to avoid missing deadlines.
Socially Skilled
Independent contractors must seek employment opportunities by looking up job postings and paying attention to their market. Additionally, they should make connections with others through networking sites and use opportunities to meet people that may give them more work in the future.
To do these things well, a person must have good social skills. Any successful freelancer should communicate clearly and confidently.?
Tips for Succeeding as an Independent Contractor
While independent contracting is a potentially attractive work opportunity, it is not the right fit for every professional. The challenges in this field become amplified if the person attempting freelance work doesn’t plan.?
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In addition to the qualities above, there are other factors that a person must consider before choosing to become an independent contractor.?
1. Set a Price
Consider what the hourly or salary rate would be as a full-time employee. Then, add a bit more to cover additional expenses, taxes and anything else that would count as a work-related expense.?
Focus on billable hours, overhead fees and other factors influencing the cost.?
Research how much people in the industry pay employees of your skill set and tenure to find these prices. When marketing to potential employers, it is vital to have a fee for the services in mind upfront.?
2. Find Companies With Generous Payment Policies
Independent contractors must consider whether pay is fair for the work requested when searching for potential opportunities. Most companies list their prices for offered jobs. Others ask you to name a price.
This becomes easier with practice, but independent contractors must think about:
Contractors with more expertise and ability will likely make more money, but even new contractors should research existing rates to see if companies offer fair pay.?
3. Establish the Business
Independent contractors are technically businesses from a legal and tax perspective. The business's legal structure may impact liabilities and taxes, so choosing the direction of the business right away is essential.?
Moving to a separate business structure, like an LLC, is not the best option for all independent contractors. Considering factors like personal versus business finances, personal asset protection and funding is important at this stage.?
4. Understand Each Company's Expectations
Companies will have set procedures and processes. Independent contractors should make sure they are always following the company’s desired guidelines and expectations.
This is a great way to make a professional impression and opens the opportunity for future work with that company.
Companies may provide you with more resources to do the job well as a contractor, so take advantage of this as an opportunity to expand your experience in the field. Knowing how to use standard industry tools and having access to what typical employees may work with makes you a more valuable worker.?
5. Create a Marketable Online Portfolio
Independent contractors must market their skill sets. Since they must apply for and track down their work, creating an online portfolio is a straightforward way to show their skills and talents at a moment’s notice.?
Not all professionals require a portfolio, but certain companies may request sample work to use as examples of your abilities. Using sites like LinkedIn, WordPress or Wix to highlight your talents makes this easy.?
6. Work With Multiple Clients
It is common for independent contractors to take on multiple clients at a time. This is a terrific way to make extra income, hone your skills even more and take advantage of opportunities as they arise.
However, independent contractors must ensure they are not violating non-competition agreements if a client has one. Additionally, independent contractors need to understand confidentiality and their rights with any written contract they sign.?
Should You Start a Contracting Business???
A professional wanting to pave their way, create their brand and become an entrepreneur should seriously consider independent contracting. It is an incredibly freeing, flexible option for initiative-takers and organized individuals.
However, contract work can be challenging, especially when starting. Keeping a schedule, staying ahead of deadlines and maintaining a work-life balance all falls on your shoulders as the head of the business.
Consider the pros and cons of independent contractor work before deciding. In addition to this, it is important to:
Remember that if independent contracting is not the right fit, switching back to being a traditional employee is always an option. Finding the right balance for your needs is key.?
Top Takeaways?
How to become a successful independent contractor
(Reporting by NPD)