So you want to be a BI contractor?

Becoming a contractor can be very rewarding; you can be your own boss, you’ll probably earn more and, if you’re good enough, you’ll have the freedom to choose who you work for. But, moving into the world of contracting has its drawbacks. You won’t have the same job security, you may get lonely and there are no guarantees that you’ll find another contract when your current one ends. To be successful as a contractor you need to:

Be Flexible and Adaptable

If you find it difficult to settle into a new work environment then contracting may not be for you. Good contractors can adapt to different working conditions and are flexible when it comes to their work environments.

Continually Build Relationships

Successful contractors get on with other people and work hard to form relationships built on trust. They make an effort to keep all their contacts up to date with what they’re doing and where they can be reached. If you find it difficult to stay in touch or get on with people you’ll probably struggle.

Advise not Critise

A first-class contractor never makes disparaging remarks about someone else’s work and is always willing to help. They find it easy to share their knowledge, when asked to do so, and are sensitive enough not try to force their opinions on an unwilling audience. They resist the urge to lash out at incompetent managers or team members and are always professional.

Never Stop Learning

Too many contractors don’t see themselves as a small business - as a contractor you are the product being sold. Contractors seldom have the luxury of being sent on training at someone else’s expense so it’s your responsibility to keep your skills up to date. Buy or borrow as many books as you can, go on-line and become certified. Every skill you learn makes you more marketable and valuable and smart contractors use their time “on the bench” to update their skills and certifications.

Over Deliver and Under Promise

Integrity is an important part of being a contractor. Successful contractors are honest about what they can or can’t do. Never make promises you can’t keep - the BI industry is very small and you’ll be surprised at how quickly your reputation can be tarnished by under delivery.

See Problems as Opportunities

An observant contractor will see a problem as an opportunity for a new contract or extra work. If you can offer a solution to a problem, you’ve found an opportunity.

Disciplined and Self-motivated

Contract work requires discipline, enthusiasm and self-motivation, especially if you are working from home. You can avoid the traffic and be productive for more hours which usually means more money. Yup you can even start working in your pajamas and the taxman will even allow you to claim certain “home office” expenses.

Save Money

Contractors earn more money per hour than permanent employees, but contractors are not entitled to a bonus or leave pay. Try to put some money aside every month as a safe guard against economic downturns and the lean months when you don’t have a contract.

THE NEXT STEP
If, you believe, you’ve got what it takes to be a successful contractor then you need to start doing some research. Find out if there’s a market for your skills and what the average hourly rates are. To calculate what your hourly rate should be, take your gross annual salary and divide it by 10.5. This gives you a revised monthly salary with some fat added for leave and public holidays. Now take this figure and divide it by 160 if you intend working 8 hours a day and 100 if you’ll only be working 5 hours a day. Decide if you’ll be contracting through an agency or as an independent contractor. If you contract through an agency they’ll typically put a margin on your hourly rate before contracting you out.

Make sure your CVs up to date and that it’s in common format. Open a bank account and speak to your accountant if you have one or find one quickly. Too many contractors get into trouble by spending too much too quickly, thinking that they’ll save money for taxes later in the year or even worse that their contract is guaranteed for the next 12 months. Things change quickly and contractors are usually the first to go when a company goes through some hard times.

Finally get some insurance such as Professional Indemnity, Public Liability, Income Protection and Employers Liability. Brush up on your negotiation skills and interview techniques and then go out there and start selling yourself.