Primary Blog/What becoming a contractor looks like in 5 realisations

What becoming a contractor looks like in 5 realisations

It’s been a rocky few years, hasn’t it?

From a global pandemic to the cost-of-living crisis, the landscape of work has changed. It's led to a growing trend of people in recent years looking to get more freedom, more money and more time back from their work. There’s been the rise of the side hustle to make money, workers upskilling and even reskilling to tap into more lucrative markets, but most interesting to me is the new wave of full-time employees considering self-employment in the hopes of becoming a contractor.

But what does it mean to be self-employed?

Being self-employed means you work for yourself as a contractor for clients and run your own business rather than working for an employer as an employee. As a self-employed individual, you are responsible for finding your own clients, setting your own rates, working hours, and managing the day-to-day operations of your business.

The financial benefits, time savings and freedoms of becoming a contractor can be rewarding, but being self-employed also comes with some important changes. In this blog, we break down the 5 key realisations you’ll be grateful to know if you’ve begun planning – or are currently planning – your transition into contracting:

1. You become your own boss

As a contractor, you are generally considered self-employed. This means you get to set your own schedule, choose your assignments, and work on your own terms. However, it also means you are responsible for managing your own workload, invoicing clients, and staying organized. Contracting isn’t a side hustle to make money, it’s a state of mind!

A self-employed person dancing when they remember that they're their own boss

2. You have more flexibility

Contract work can be more flexible than traditional employment. You may have the ability to work remotely or from home (make sure your setup’s ready to go!), and you can often set your own hours. This can be especially appealing if you have other obligations such as childcare, school, or another role.

But be careful what you wish for... there can sometimes be unwanted visitors during your home office Zoom calls!

3. You may have to manage your own benefits

As a contractor, you typically don't receive traditional employee benefits such as health insurance, a pension scheme or paid time off. It’s never been more crucial to find your own insurance coverage, set up a retirement account, and plan for time off.

Thanos from Marvel's Marvel Cinematic Universe saying "I'll do it myself"

4. You are responsible for your own finances.

As a contractor, you are responsible for managing your own finances. If you’re not up to the task of managing it yourself, make sure you’ve set aside enough money to pay your accountant.

There’s the option of contracting through an umbrella company (but that’s another blog entirely), where you receive your pay and benefits from the umbrella company rather than the end client, but you forfeit a significant amount of your take home earnings through this approach.

Mr. Krabs, a businessowner, agonising over his finances

5. You have to market yourself

Saving the best till last: marketing. As a contractor with over 20 years’ experience contracting and consulting, you’d be surprised how many self-employed people I’ve met who don’t think marketing is their problem. If you’re self-employed and it’s not your problem, then whose is it?

A woman saying "that sounds like a you problem"

As a contractor, you are responsible for finding your own clients and marketing your services. This means you need to set up a funnel, social media accounts, develop a marketing strategy, and reach out to potential clients to secure work. But don’t worry, I can provide free help for that.

Becoming a contractor doesn’t have to mean realizing things too late

Overall, becoming a contractor can be a great way to take control of your life and work on your own terms. However, it takes a lot of effort and dedication to build a successful contracting business. It's important to weigh the pros and cons before making the leap and to be prepared to take on the responsibility that comes with becoming a contractor.

If you think you might be ready to become a contractor but you're not 100% sure, join our free Circle community that's packed full of people who've been where you are (so they can share the honest truth about what becoming a contractor looks like!).

Hi, I Am Karen Frith

CEO Of Best Blog Ever

My passion is to help you make money from the skills you've developed throughout your career!

I've been a contractor for over 25 years and I've helped over 6,000 people get freedom from the 9-5 and take control of their futures.

By using your professional expertise as a contractor, you will provide an amazing life for yourself and your family.

I'd love to share with you every secret I've learned to make all of your dreams possible.

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Copyrights 2023 | Allthesecrets.com | Terms & Conditions
Designed With Love By  Mujtaba Safdar