A decision about starting contracting is one that every permanent employee has to take early on in their careers.
Once a permanent employee gets to two years in his, or her, chosen profession, it is time for the big decision.
Should I stay as a permanent employee or should I become a contractor?
So, what are the considerations as regards starting out contracting?
Obviously, I took the decision to become a contractor so, perhaps I am biased. However, I can at least pass on some knowledge when coming to make your decision.
Contractors are Risk Takers
Contractors tend to be optimists, by nature. They tend to to risks.
If you want a safe, and secure, income that will pay the mortgage every month then stay as a permanent employee.
You might want the money, which is likely to be around double what you are currently making. However, you lose the job security, the holiday pay, sick pay, pension, maternity pay etc.
If you are determined to become a contractor but just want advice on the timimg I would say the following.
The more new, up-to-date skills you have when starting contracting, the more valuable you will be as a contractor. If your skills are a little out of date, try to get a permanent job with more up-to-date skills.
You won’t get much training as a contractor, so, you need to bring as many assets to the table as possible in terms of modern skills when starting contracting.
You should become a contractor when you have gone as far as you can as regards picking up new skills.
No Training as a Contractor
If you have a series of training course to go on, that is a bad time to quit to become a contractor. Don’t just go on the courses and become a contractor. It’s notoriously hard to get a contract with a skill where you have no working experience of the skill – just a training course.
The optimum time to become a contractor is when you have done most of the training courses you are going to do as a permanent employee and have used those skills on a project for at least a few months.
Remember that those hiring you as a contractor will expert you to be ‘fluent’ in any skill you possess.
Also, remember that you will be a long time contracting and you need to be as ‘tooled up’ as possible before starting contracting.
Are you thinking of starting contracting?
Here’s some advice on whether you should use a Limited Company or Umbrella Company
Click on Contractor Insurance for the insurance you will need as a contractor.
You’ll be on much more money as a contractor and will be able to afford a better house. It’s important that you use a specialist contractor mortgages broker, though, to get the best deal so click on Contractor Mortgages
For information on how to use your new contractor money wisely when starting contracting, click on Contractor Moneymaking
Here’s some great advice when Starting out as a UK Contractor