The freedom of being your own boss, control over your own schedule and creative control over your work can all be rewarding aspects of being an independent contractor. With the right planning, advice and continuous commitment, becoming an independent contractor can be a great way to open up new opportunities and turbocharge your career. In this article, we’ll go over all the steps you’ll need to become an independent contractor, providing an in-depth look at how to get started and succeed.
Learn What An Independent Contractor Is
The term “independent contractor” is often used vaguely and inefficiently. To understand what it means to be an independent contractor, it’s important to clearly define the term.
An independent contractor is generally considered to be a self-employed individual who contracts with businesses to provide services in exchange for payment. Unlike an employee, an independent contractor must provide his or her own equipment and supplies to get the job done, and does not necessarily have to have any long-term commitment to the company for which the job is performed.
Define Your Niche
As an independent contractor, you have the unique advantage of specializing in whatever topic or field you feel best suits your personality and strengths. To properly define your niche, consider the following:
• What field or area do you want to specialize in?
• What area of expertise do you think you possess?
• What services can you offer ?
• What experience do you have ?
• What would make your services different or stand out ?
• What sets you apart from other contractors in the same field?
Once you’ve answered these questions, it’s time to move onto the next step of becoming an independent contractor.
Create Your Business Plan
Creating a business plan is an important step to get started and will give you a strong foundation to work off once you’ve launched. Most business plans will include the following sections:
• Business concept – Outline your business’s mission, goals and services.
• Market analysis – Research and evaluate the market for independent contractors in your field of expertise.
• Business overview – Provide a company overview which includes information about the company’s size, structure, employees, history and mission statement.
• Financial documents – Include sections on cash flow, income estimates, expenses and projected profits or losses.
• Breakdown of services – Describe the services that you offer, the cost involved and how long it will take to provide them.
Research & Develop Your Pricing Structure
As an independent contractor, you will need to create a pricing structure that works for both you and your clients. To develop this, research what other independent contractors in your niche are charging and evaluate your own services and experience to determine how you can compete favorably. Your pricing structure should be competitive to gain interest, but also profitable enough to make it worth your while.
Figure Out The Legal Structure Of Your Business
An independent contractor has two options when it comes to registering and legal structure of their business; a sole proprietorship, or an LLC.
• Sole Proprietorship – A sole proprietorship will use the independent contractor’s name as the legal business name and does not require any additional registration. This is the most basic form of business registration and is suitable for many independent contractors.
• LLC – A limited liability company (LLC) gives the independent contractor protection from any lawsuits or debt the company may accrue. In order to register an LLC, you must file Articles of Organization with the Secretary of State and pay the associated fees.
Assemble Your Team
As a new independent contractor, you’ll need to build a network of reliable and trustworthy professionals who can provide you with the assistance you need throughout your journey. Depending on the type of services you provide, your team may consist of:
• Accountants – An accountant is an invaluable resource who can provide you with financial advice, help you create a business plan, and provide tax guidance.
• Lawyers – Hiring a lawyer will ensure that you have someone to help you navigate any legal issues that may arise.
• Digital Marketers – Depending on the services you are providing, you may find it helpful to have a digital marketer who can help you with SEO, website optimization and other online marketing activities.
• Virtual Assistants – If you anticipate having a lot of administrative tasks such as scheduling, bookkeeping and communication, a virtual assistant to help with these is a great idea.
Set Up Your Website & Profile On Client Sites
Having a strong presence on the web is an important factor to consider when becoming an independent contractor. In addition to setting up your own website, registering with major customer service sites like Elance and Upwork can help you gain recognition and generate leads quickly.
These customer lead sites will ask you to create a profile which will include information such as:
• Your qualifications
• Your history of previous jobs
• Examples of projects you’ve completed
• Your areas of expertise
• Your availability
• Information about your services
• A portfolio of work
• Reviews from previous customers
Network & Market Yourself
It’s important to get your name out and build relationships with potential clients. Here are some tips for marketing your independent contracting services:
• Join online communities or forums related to your niche.
• Reach out to people and companies looking for independent contractors.
• Try attending trade shows or events in your field.
• Network via social media sites like LinkedIn.
• Share your work on industry blogs.
• Pursue freelance referrals.
• Connect with hiring managers on social media.
• Reach out to alumni networks and former colleagues.
• Consider utilizing influencer marketing.
• Utilize job-posting sites.
• Create newsletters to attract subscribers.
• Claim industry awards to give yourself more credibility.
Support Your Clients
Knowing when to say ‘yes’ and when to say ‘no’ is important when dealing with clients. To successfully manage customer relationships and make the most of your time and resources, here are some tips to help you:
• Gather feedback from clients to improve your services.
• Offer bulk discounts for repeat customers.
• Create teaming agreements with other contractors.
• Set clear boundaries for communication and expectations.
• Set payment terms and payment schedule in advance.
• Try to provide fast and accurate customer service.
• Keep your clients updated on any changes.
• Stay organized with tracking software.
• Track customer satisfaction and feedback.
• When in doubt, say “no” and walk away.
Independent contracting can be a great way to increase your earning potential and gain control over your own destiny. Success often comes down to understanding the needs of your market and providing exceptional service. With the right planning, commitment and dedication to customer service, you can become a successful independent contractor.
