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Tips for Becoming an Independent Contractor

Contracting is a popular employment tool all around Australia. There is a distinct difference between contractors and full time employees as they have different benefits and tax obligations. Generally you are a contractor if you:

  • are paid for the results that you achieve
  • provide your own tools to get the job done
  • can delegate work to other people
  • have work flexibility
  • provide services to other businesses
  • can accept or refuse work
  • are in a position to profit or lose money from any given project.

Keep in mind that you are not an independent contractor just because you have an Australian Business Number (ABN).

 

Before you venture into independent contracting, it is good to be ready for the upfront risks in the industry. Unlike in partnerships where you share the costs and losses, as a contractor, you are on your own. There are a number of ways through which you can prepare yourself for the big task ahead.

  • Finances

Before you get into contracting, you need to ensure you have the financial backing needed to start up and run your business. Financial security is vital. You need money to buy equipment and pay your employees. You can get the finances from many sources. In order to attract clients, you need to have access to proper equipment. Get the right tools for the task you want to do. You need to ensure you have enough savings before you start this business.

  • Business plan

A realistic business plan is vital for the success of any business. If you are interested in venturing into independent contracting, you need to come up with a viable business plan. As part of this plan, you should consider the avenues through which you can secure financial support, find jobs and if worst comes to worst, abandon the venture.

As the overall boss, you will not share your paycheck with anyone. All the profits will be yours. After settling all the expenses, the remaining money will be yours.
As an independent contractor, take advantage of your past experiences in establishing a client base and finishing projects succesfully. If it is your first-time working as a contractor, you need to learn the necessary skills and practices to succeed.

  • Marketing the business

For any business to succeed, effective marketing strategy will be vital. There are a number of ways through which you can make your contracting business known. The first one is to make use of your existing customers to spread word of your business. You can also come up with a website. With the advent in technology, there are many people who surfing are the internet. Marketing your business online will ensure it reaches many people. Independent contracting will see you be your own boss. This is one of those rare benefits you will get. You will be able to work with all the flexibility you need.