| Topic Name: |
Transition from salaried to contractor |
| Message Name: |
many ups and downs |
| Date Posted: |
12/07/2006 |
| In Reply To: |
I am seriously thinking about becoming an independent contractor and wanted to get opinions on the pros and cons of people who have transitioned from being full-time salaried employees to independent contractors. I already have a good idea of the advantages and disadvantes but was interested in hearing what others have to say who have made the switch. |
| Message: |
Upside:
1. You choose your clients; Bob Sutton's rule applies 100%
2. You choose your hours and time you wish to work or not work
3. You make more money in a few hours (if you are good) then some make in 2 months. AND you can write off expenses of commuting etc (but get tax advice in your country).
4. Happy clients like to give repeat work.
Downside:
1. You will not always work on your hands but you will always have bills; in fact be prepared in early days to spend 80% prospecting and selling and only 20% billing - upside is this teaches you a great deal of financial discipline
2. You need a high degree of self-motivation to keep working even when feeling lonely, and not to bunk work on a sunny day! (latter esp true if you live in olde or new England)
3. Many corporate job holders will look down their noses at you; dont get upset. You probably make more money than they do and you are nobody's slave, even if you dont have a secretary
4. A lot of paperwork - invoices, receipts and bills for book-keeping, proper filing etc. I suggest pay an accountant to do your taxes and bill your time instead.
Good luck
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