Becoming an independent contractor is a natural step in the career of many professionals. Stepping outside of the traditional employee / employer model offers many advantages, not least financial.
There are many advantages and a number of challenges associated with working as an independent contractor relative to holding an employed position. The main differences include the following:
- You will be responsible for finding your own contract work, either working through agencies, through contracting job websites, via your own network or by building and maintaining relationships direct with potential clients
- You will be self employed and therefore have a small business to run in addition to finding, winning and delivering contract work
- You will need to manage your cash flow carefully. When you have contract work, your income is likely to be significantly higher than it was as an employee (on an equivalent day rate basis), but you need to allow for the reality that you are not likely to be chargeable for a full year i.e. their will be gaps between contracts. Therefore, you will need to put money aside to cover these quiet periods in order that you can meet your monthly living expenses, cover your business overheads and pay tax on your business profits when due
Difference between a contractor and consultant
As each year passes, different models of work and employment continue to evolve and often the distinction between different ways of working becomes blurred. It is important when you're considering becoming an independent contractor that you are very clear on the distinction between these different models, and in particular the distinction between a contractor and a consultant.
The authors of the content on independent-consulting-bootcamp.com have worked both as contractors and consultants over many years and are delighted to be able to share a practical resources, insights and experience with you as you contemplate a move in to independent contracting or start that journey for yourself.
There's no doubt it can be a daunting and sometimes scary process, but the majority that take that step and persevere through the first 3-6 months, look back upon the transition from 'secure' employment to becoming an independent contractor and affirm that they would make the same decision again.
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