Self-employment tips: What it takes to be an independent contractor

There are many reasons why someone wants to be self-employed and be his own boss. Perhaps you see it as a primary or secondary source of income. You may want to pass your experience, information, craft or knowledge on to others. Some people aren’t in it for the money but merely wish to do good to others, or want to do something useful after retirement. Whatever your reason, your expertise or your drive, there will always be a demand for independent contractors.

An independent contractor can be a consultant providing services, a skilled craftsman, an artist, a developer or a designer, a manufacturer producing goods, etc. All offer different types of services. What they have in common is that they work for more than one client outside of an employer-employee relationship, and do so on their own behalf.

But how to survive as an independent contractor? This article will help you find answers to this question.

How to survive “doing it all by yourself”

As an independent contractor, being a small business working on the basis of personal relationships, survival begins with integrity. Ethical behaviour is essential. Further, due to the fact that you are “doing it all by yourself”, you must work efficiently. Adequate time management will prevent you from running around achieving nothing. Next, there are several general tips that can make life a lot easier.

How to work effectively as an independent contractor

• In any stage, be prepared for the worst situation. Think of the most difficult task you can face in a project, the reasons for rejection of an offer, or withholding of payment. Thus, if something comes up you are prepared to reason, rather than a coming up with a defensive response.

• Avoid taking sides. Often, you are hired to provide an objective view or solution. Taking sides defeats the purpose and, as those sides are by nature often personal, will not result in finding a structure or policy to work with.

• Use lists: to-do lists, priority lists, lists with targets at the end of a period, follow-up lists and reasons for that follow-up. Don’t spend too much time making and formatting such lists; rather, spend a Monday morning to strategise the rest of the week and jot the priorities down. If anything comes up during the week you can add it. Don’t let the lists become a goal onto themselves. If in doubt, adjust.

• No matter how perfect you are, you will face a learning curve. Start small so that your mistakes are small and you can handle them well. Admit mistakes and correct them (at your own expense and within the promised time frame).

• Continue your marketing efforts even if you are very busy. Marketing pays off only after a while. If you neglect your marketing efforts now you will feel the pinch one year down the line. If you pick it up then the results will only follow a few months later. In the mean time you will have lost income.

• Try making arrangements with your creditors and stick to the agreement. Your credibility is at stake; whenever you face a similar situation you will find vendors less prepared to work something out if they experienced that they could not rely on you earlier.

• Organise your work environment to avoid distractions. The tools you rely on should be properly maintained; nothing is worse than your printer being out of ink on Sunday night when you have to submit your report on Monday morning. Set priorities according to your efficacy. You know whether you are a morning person or an evening person. Work accordingly on priority issues or tasks that require focus.

• Set time limits. Not posing time limit means going over time. Keep deadlines reasonable and meet them. Basta. Don’t fight red tape but learn how to operate within set procedures.

• Do not discount your rates if it is not asked for. You are worth what you cost. Discounting voluntarily is not credible and sounds desperate. If you need to discount because a client asks you to, offer less goods or services in return.

• Whether a job is big or small, there is no difference as to quality. Keep in touch after the assignment or project is over. There may be new work down the line.

If you want to learn more about being self-employed, read “Working as an independent contractor” written by August G. Minke.