Partner Content

Contract work: 5 Things to know working as an independent contractor

on


Independent contractors do more than just make their own schedule. Keep reading for contract work: 5 things to know working as an independent contractor.

Becoming a private contractor is an amazing step to take in your working career. You no longer have to answer to any bosses, put up with annoying co-workers, or put in for time off.

However, contract work comes with its fair share of obstacles and challenges. Just because you’re working for yourself, it doesn’t mean things are going to be a breeze.

Your success ultimately comes down to how you decide to run your business and your work ethic.

However, you’ve probably already surmised as much, but keep reading for things you haven’t thought about.

Important Things to Know About Contract Work

For those who learn how to successfully work as a private contractor, the benefits can be sensational.

However, contract work isn’t for the faint of heart. Everything falls on you, there is no safety net.

1. You’re responsible for your taxes

First, when you do contract work, you’re responsible for your own taxes. When you work for an employer, they pay a significant portion of your taxes, it’s their responsibility. As a contractor, you’re responsible for 100% of your taxes.

This means you also have to anticipate what your taxes will be for the year, and pay quarterly installments. Otherwise, at the end of the year, you may find yourself owing thousands or tens of thousands to the IRS.

We highly recommend hiring an accountant to help guide you through this. We also recommend investing in a paystub generator to show documentation of payments. You can click here to learn more about them.

2. Freedom isn’t good for lazy people

Another important lesson for contract work is that it requires a certain level of work ethic. Lazy people rarely do well in working for themselves. You have to be intrinsically motivated and hardworking if you want to be successful as a private contractor.

As a contractor, you technically have the freedom to work as little as you want, but is it good for business?

3. Your pricing structure can make or break you

Next, contract work is very competitive. This can make deciding on a price point a little murky.

On one hand, you can beat everyone’s rates and charge super low amounts. However, this may not be enough to cover your own costs and afford you a salary. However, if you charge too much, consumers won’t look twice at you.

4. You have to cover your own insurance

Another expense most people forget to weigh into contract work is the cost of insurance. As a private contractor, you don’t have a protective umbrella company paying all your costs for you.

Depending on your type of work, insurance can be hundreds, or thousands of dollars a year.

5. You have to do your own marketing

Finally, when you do contract work, you are responsible for getting the word out about what you do.

Marketing is a responsibility that should be taken seriously, especially with all the digital marketing trends and strategies out there.

Do you know how to market locally? Do you have a website? Are you on social media?

These are important things to consider when marketing for yourself as a private contractor.

Contract work isn’t for everyone

Which is why we have the utmost respect for private contractors and business owners. We live in a highly competitive capitalistic society. It’s commendable for anyone willing to break away from the normal 9 to 5 jobs and make a living for themselves.

Good luck with your contract work and be sure to check out the rest of our articles for more helpful advice and information!

About Business Woman Media

Our women don’t want to settle for anything but the best. They understand that success is a journey involving personal growth, savvy optimism and the tenacity to be the best.We believe in pragmatism, having fun, hard-work and sharing inspiration. LinkedIn

Recommended for you

What Do You Think?

Your email address will not be published. Required fields are marked *