Make Real Money from Contracting
This advice helps contractors to find out how to make real money from contracting. So few contractors learn how to do this. They are worth only what they have in, or takeout of, their limited companies. This is the first part of a series on how contractors can make real money from contracting. The follow-up articles will appear over the next few days.
Contractors Small Business is Worthless
One problem that contractors have is that once they stop contracting, their ‘small business’ is worth precisely nothing. Other professionals like accountants, lawyers or small businessmen set up partnerships or small businesses, employ other people and have recurring income from the businesses or partnerships that they have created
However, contractors money dries up totally as soon as they have finished a contract. It dries up for good when they retire.
This makes it a very insecure profession.
Make Real Money From Contracting – Contractors Earning No Money
It means that contractors are going to have periods in most years when they are earning no money at all. It also means that when they finish their careers they have nothing to sell or get income from, so they have to rely on a pension or any savings or investments that they have made during their careers. Many, indeed, will get to retirement without a pension and without savings.
This is a very risky profession indeed ladies and gentlemen.
Even agents are able to set up their own small agencies, which they can later sell or derive income from. That’s how you make real money from contracting.
Create Income from Software Products
Those that create software products that they manage to sell have businesses that they can later sell or derive future income from when they are no longer involved.
What you shouldn’t do is to spend a lot of time building a software package without having a customer for it. Unfortunately a lot of contractors do this. There must be a tremendous amount of software out there that has absolutely no customers at all.
If you can’t find a customer for the software that you want to build, before you build it; it is probably not worth building it at all. You don’t find many software houses building software packages without having found an initial customer for the package.
The other thing that software houses do is to make sure that they keep the Intellectual Property Rights to the software package that they’re building. They let the initial customer have it a bit cheaper so that they’ll wave their rights to the IPR.
Over-Reliance on Recruitment Agencies
Also contractors rely on agencies too much to get them jobs, which puts the kibosh on any attempts to build more business with their clients – or maybe it doesn’t.
In the coming articles we will explore how contractors can make real money from contracting instead of having all the hassle of periods without money and having nothing to sell when they retire.
See also Contractor Moneymaking Opportunities with Agencies
and Get Your Own Customers – How to Make Real Money from ITContracting
Join our Contractor Dragons Investment Club on LinkedIn and use your money to make money. Get the opportunity to invest in Startups.
Ad – Contractor Services
If you think you can benefit from using an umbrella company, try the following:-
Best Umbrella Companies for IT Contractors
Umbrella Companies for Locum Doctors, Agency Nurses, Vets, Dentists and GPs
Do you need some professional advice on which umbrella company is right for you? Do you want to get better returns from your Umbrella Company? Fill out the form below to receive expert advice.
For all necessary business insurance, including IR35, try Business Insurance for Contractors