Very Successful Contractors
There are some very successful contractors and some not so successful.
The contractors that succeed are those that are able to take the mind leap from seeing themselves as being paid twice as much as a permie for doing the same job, to seeing themselves as small business people, ready to take opportunities as they appear.
There are lots of opportunities at most workplaces for getting more business with your client. ‘Permie replacement‘ contractors rarely see them or pick up on them.
Often this is because of the restrictive clause that they have in their contract which prevents them talking to the client about some extra business.
However, this needn‘t be a disincentive. Most agencies that we‘ve spoken to said that they would look kindly on this. They would come to some arrangement with the contractor that was mutually beneficial.
Agencies are not in the business of turning down money. Not those that are still open anyway.
Contractors Problem with Companies
The problem that most contractors have is that their company is only worth the amount of cash in it. You can’t sell the company and once the contractor stops working for it, it is worthless.
You can sell companies that employ people or have Intellectual Property Rights.
However, the average contractor business is worthless without the contractor working for it.
Most people who go contract do so thinking that they will make a whole pile of money and get out of it rich.
Few make it!
The best that they can become is comfortably off. The next downturn often gobbles up any savings that they have made
Successful Contractors Break Free
Therefore, the successful contractor is one who is able to break free of that straightjacket. The successful contractor is one who can start picking up extra business from his or her clients and then do the same for other clients too.
What sort of business can they pick up from clients?
There‘s plenty there.
There‘s project work, there‘s training work, and there‘s maintenance work.
If a contractor has a good business and / or systems knowledge of a customer‘s systems they are in a good position to see how they could be done better, or run much more cheaply.
Chief Information Officer and Contractors
When I was a Chief Information Officer at one company, about a quarter of the 80 people working for me at any one time would be contractors.
If any of them had come forward singly, or in a group, to offer solutions to the company that would be advantageous to us then I would have looked kindly on the proposal and would have considered it seriously.
However, in the three years I was there, none ever did. I don‘t think any of them even considered it.
It was a wasted opportunity!
Think About Company Problems
Have a think about it.
What problems does your client company have?
Could you do anything better or more cheaply than they can?
If the answer is Yes, then come up with a good proposal to put to your management. If you work for an agency get the backing of the agency for it. Management always like to know that you have the security of a big company behind you.
Either that or get the CVs of people you know who could help you, either from contractors already working at the company or others with similar skills and knowledge to you.
A client wouldn‘t want to risk putting a crucial part of the project or the system in the control of a one-man band.
Opportunities for Smart Contractors
Believe me the opportunities are there and the really successful contractors are those that can take the mental leap from seeing themselves as someone who comes in from 9 till 5 every day and gets paid twice as much as the permies, to one who is ever watchful for opportunities and able to tale those opportunities when they arrive.
These are the ones who WILL become rich from contracting.
The others will just have a little better lifestyle than they had before – if they can keep working through the next downturn.
Make sure you are one of the very successful contractors.
Ad – Contractor Services
If you do need an umbrella company you could try one of the following:-
Or would you prefer to get expert advice about which umbrella company is right for your specific needs? If so fill in the form below and they will be in touch.
For all necessary business insurance, including IR35, try Business Insurance for Contractors