A contractor works independently and is not considered an employee of a company. As an independent contractor, an individual manages his own invoicing, expenses and marketing. The advantages of working as a contractor include a more flexible and variable work schedule, greater autonomy and potential for work variety. Challenges involve variable access to work, potential issues with collecting payments and greater attention to tax responsibilities. Here are the steps for working as a contractor.
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- 1Identify your expertise and offering. Contractors are hired by companies, educational institutions, non-profit organizations and other entities to perform finite tasks. Determine what value and skills you bring to the marketplace. Graphic designers, massage therapists, writers and carpenters are examples of individuals who offer contractor services.
- 2Establish your brand or business. Decide whether you will use your own name or work under a business name. Create a business image that promotes your services. Use business cards, uniforms, a website or building signs to inform potential clients of your availability and services.
- 3Develop your contractor documents.
- Create a contract template. Each client will have different needs. A contract agreement will guarantee that you discuss the most essential information with each client. Include details, such as a description of your services, your fee, payment policy and all information that will legally protect you and ensure the client of your reliability.
- Develop an invoice. Include your name, address, phone number and email address at the top. Date each invoice and assign an invoice number. Indicate the name and address of the client. Describe the services delivered and your fee. Include instructions about acceptable methods of payment and the payment due date.
- 4Market your services.
- Create a website. Use a logo that conveys the image of your business or service. Include details about your offering and your prices. Let people know how to contact you.
- Advertise your services. Use online advertisements and publish ads about your services in print publications. Describe your services in brochures. Enlist the help of a copywriter to highlight your unique skills and strengths.
- Network with other professionals. Notify other contractors in your field about your availability. Partner with those that can send you business leads. For example, if you are a copywriter, connect with graphic designers whose clients may also need marketing copy for their websites.
- Inform your personal network of your availability. Contact friends, family members and former colleagues to inform them of your services. Ask them to spread the word to potential clients.
- 5Develop time management skills. Contractors must structure their own time, which is different from an employer-employee situation that imposes a set schedule. Block out time on your calendar for completion of each task. Allot time for administrative tasks, such as invoicing and marketing. Schedule time off to avoid working without breaks.
- 6Research tax responsibilities. Contractors pay self-employment taxes, in contrast to an employer-employee relationship where taxes are deducted from each paycheck. Understanding your tax liability is important for paying the right amount of tax on time. Keep receipts for all business expenses for tax purposes.
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Article Info
Last edited:
April 13, 2012 by Katiekinz
Categories:
Work World
Recent edits by: Sammie Jones (see all)
In other languages
Español: Como ser un contratista
