As entrepreneurship becomes a growing trend in the business world, it may be extremely tempting to start working as your own boss and as a self-employed contractor. Finding success as an independent contractor is extremely rewarding, especially if you have invested all your time, energy and financial resources into your business idea.
However, despite the potential rewards of becoming a contractor, guaranteeing business success is a difficult challenge in itself. If you are looking to become a contractor and would like to increase your chances of finding success, below are a few tips you should keep in mind!
Plan around your finances
When starting your career as a contractor, it is important to create a business plan which takes your finances into account. You need to work out how much capital (if any) you will need to kick start and sustain your business operations. The financial cost of business elements such as your legal obligations, machinery, equipment and other utilities all need to be factored into your business plan.
In addition to working out the finances required to fund your business operations, you may also need to consider your personal finances as a contractor – especially if you are just starting out. The beginning stages of your contractor career will always be difficult due to your lack of connections and business opportunities. As a result, it is best to set aside some money for your personal expenses in the case that you don’t make much profit during your first few months working as a contractor.
Take advantage of social platforms
As mentioned previously, one of the biggest challenges of working as a contractor is the lack of networked connections and business opportunities (especially in the beginning stages). As a result, it is important for you to take advantage of all the social platforms available to you to increase your exposure in the industry. Not only does this include social media platforms, but it also means using third-party B2C sites which connect contractors to their target demographics (for example, Fiverr, GumTree and UpWork).
In addition to using these social platforms, you will also need to take complete advantage of them by playing to their rules and trends (for example, certain design elements or content format). Chances are, if you research well and understand what makes a good social media post or listing, you will find more individuals wanting to work with your service. Be sure to perform adequate research and apply what you have learnt to your posts and listings on such social and connective platforms.
Understand your legal responsibilities and rights
Last but not least, having a thorough understanding of your legal responsibilities and rights is a must when finding success as a contractor. If you have worked previously as an employee, it may be difficult to transition into work as a contractor as your legal rights and responsibilities are very different.
For example, in Australia, contractors will have to make their own super contributions instead of having their employer make their contributions for them. Drafting contracts to protect your rights as a contractor is also important as your whole career is based around legal transactions. It is best to work with a small business lawyer to draft your contracts for you.
Finding business success as a contractor is certainly not easy – however the above practical tips are sure to increase your chances! Remember to plan around your finances, take advantage of social platforms and understand your legal rights and responsibilities when working as a contractor.