UK Contractors must make the right choices if they are to succeed. It’s easy to be an unsuccessful contractor – and it is nearly as easy to be a successful contractor.
1. The unsuccessful contractor doesn’t get acceptance for many interviews as his or her CV is not fit for purpose
He, or she, doesn’t have a two page summary, doesn’t tailor the CV for individual opportunities and doesn’t have the minor skills in the CV.
If an agency has a list of 7 skills needed, when they search their database, they will just look at those contractors with all 7 skills. If you leave out minor ones like SQL then you won’t be getting interviews
2. They have a lot of interviews before he or she gets a contract.
It could be bcasue they are not much good and don’t know their stuff. However, it is more likley that they haven’t prepared by finding out about the company, they seem unenthusiastic during the interview or they haven’t prepared any questions toask the interviewer about the company or department.
3. They don’t get renewals very often so spend a lot of time ‘between contracts’
It is crucial for contractors to be working most of the year. If they aren’t, then they are using their hard earned money to support themselves when out of work. The usuccedssful contractor will have a three month contract with a couple of months ‘between contracts’ followed by three months on and and another couple off looking for work.
4. They picks the wrong option in terms of Limited Company or Umbrella Company.
It is important to choose between risk and high returns and low risk but low returns. A contractor using an Offshore Umbella Company will retain from 85% to 90% of their money. One using a Limited Company will retain 75%. A contractor using an onshore umbrella company would retain around 60% and one paying PAYE would retain around 55%.
5. They doesn’t invest wisely
The unsuccessful contractor invests his, or her, money in the Stock market when he, or she. has plenty, i.e. during an economic boom when the Stock Market is soaring. When the economy and jobs market turn down, and he, or she, is out of work, they find themselves having to sell their shares at a much lower price than they bought them for.
If it is a prolonged downturn, they end up spending all their hard earned cash at the very bottom of the stock market.
Are you a successful contractor or an unsuccessful one? Do you know others who are oneor the other?
Let us know in the Comments below.