Some Guidelines For First-Time Contractors

To move from permanent employment to contracting is a tough decision to make for many people. This is because of the myths associated with contracting jobs some of them being the income may not be much more than that one can get in a permanent job, skills will become outdated, contractors are liable for costly errors, etc. These are not true and there is nothing that cannot be overcome. As with anything else in life, there are pros as well as cons to contract jobs. However, you need to first make the decision as to whether you want to take the risk of becoming a contractor and earn more or continue to earn whatever you are earning as a permanent employee. It is also important at this juncture to keep in mind the fact that there is nothing called ‘job security’ these days.

Preparation

When transitioning from a permanent job to becoming a contractor, there are several steps to consider. First, initiate the process of quitting your permanent job while simultaneously searching for contracts. Contracts often require a quick start, so being prepared to begin work within two weeks is crucial. You may use an agency to secure a contract or approach clients directly. Prior to diving into contracting, important preparations include deciding on your company structure and selecting an accountant or an umbrella company. Additionally, establishing partnerships with suppliers and equipment rental companies is essential to acquire the necessary resources for your work. For instance, if you’re starting as a landscaping contractor, you can reach out to providers like CORE Commercial, by CORE Landscape Products, along with equipment rental companies, to ensure you have the tools needed for your job. Once all preparations are complete, you’re ready to sign contracts and embark on your contracting journey.

Set Up Finances

Setting up a business as a sole trader is quick and easy, but many contractors find it doesn’t work well for them. In that case, you can either start your contracting business as a limited company or join an umbrella company. Either way, you might need to find a way to get money for your project. Nowadays, many companies offer help with money for specific types of contractors, like this one that offers Home Improvement Financing. You can check out these companies and see if you meet their requirements to get the money you need.

Find a Contract

Before applying for contracts, you have to keep your killer CV ready and establish your market rate. The next step is to send your CV to all agencies so that your name gets entered in their databases. The agencies list is available in Jobserve. Typically, advertisements of all contract jobs are published on the Internet. The major online job boards are Jobserve, CWJobs and Monster. You can apply for different roles based on your skill set, but to give yourself the maximum chances of getting a contract you should submit targeted applications.

Contract Negotiation

In order to maximize your career as a contractor, you should learn to deal with agents and build relationships. It is also important to know negotiate your contract rates as well as respond in the right manner when asked to provide your lowest rate. It is recommended that contracting rates are not negotiated on the basis of permanent employee salaries. As a contractor, you should expect a higher payment than a permanent employee, especially if the demand for the specific skills that you possess and experience is high.