So you want to be an independent contractor?
Posted by Diana Needham on Monday, March 16th, 2009
During times of layoffs and economic downturns, many laid-off professionals decide to turn away from traditional employment and begin thinking about the option of being an independent contractor or consultant.
On the surface, this may look very attractive. You say to yourself “There is very little (if any) security within companies anyway. How great to be my own boss!” In addition, as CNN has recently pointed out, there’s a growing need for freelancers.
If you’re considering this path, think it through very carefully. It requires a broad skill set, strong self-discipline, paying for your own medical insurance, having financial resources to fund the start up phase and lulls in business, and covering any training you will need.
Ask yourself these 5 questions before deciding to embark on being an independent contractor.
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What are your key marketable skills? Are they in-demand? Demand for contractors is predicated upon experience and marketable skills. The more highly educated and highly skilled you are, the bigger the demand for your talents.
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Are you self-disciplined? You must deliver results unsupervised. No one will be holding you accountable for your time and efforts.
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Do you have adequate funds set aside to do this? It will likely take some time to get this up and running. You will need to pay self-employment taxes and be prepared to survive illness or lean times. Be aware that independent contractors are often the first to be let go when the business climate changes, and they aren’t covered by unemployment insurance.
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Are you a good salesperson? At least 30 percent of your time will be spent marketing your talents, even when you have an engagement in process.
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Are you adaptable? One minute you’re marketing, the next you’re sending bills and following up for payment. You have to adjust to new work environments and co-workers quite frequently if you are a contractor inside companies.
If you answered yes to these questions, this may be a great option to pursue.
I’d love to hear from those who have chosen this path. What lessons did you learn?
What worked well and what didn’t?
If you were to do this again, what would you do differently?
Filed in Career, Career Planning, Consultant, Contractor, Transition | No responses yet
