Working as an Independent Contractor

An independent contractor is in business for himself. He's not under the authority of an employer because he is the employer. You may not realize that many individuals we contact on a regular basis are creating their own business. You make regular trips to the doctor's office, right? Especially when you have young children! Maybe you've hired a lawyer who has helped you buy a home or write a will. Do you utilize lawn care or pool care professionals to keep your property neat and clean? Have you used a tutor to help further your child's education? Perhaps you've hired a personal trainer to motivate you to get into shape. All these individuals and many more work under the title of independent contractor.

Advantages

Being your own boss is just one of the advantages. You can set your own schedule without being confined to office hours or an employer's preference. Your business can grow as rapidly as you can find customers, and there's no limit to the money you can make as your business grows! Being your own boss also requires discipline since you are the only one to manage your schedule and pay the bills.

As an independent contractor, you can build a business around an activity that you love. Do you enjoy working out? Consider becoming a personal trainer and using your love of exercise to inspire others to reach their fitness goals! Are you a gifted writer? Your talent can be used as you write freelance articles or author your own books. What about starting a lawn care business servicing surrounding neighborhoods? And if you have a flair for design and a green thumb, landscaping may be a fun career. There's no end to the possibilities!

When working as an artist or author, your own business allows you total control over your creations. An artist or author who works under a company must often surrender the copyright of their painting, photograph, sculpture, or written work to the company.

Many contractors who work on their own develop a large network of clients. It can begin with friends, family, cold calling, generously passing out business cards, participating in trade shows, and a number of other venues. Once you've found a niche, your business will also spread through word-of-mouth, especially if your clients really like your work!

Disadvantages

Along with the many advantages to owning your own business, come some disadvantages. As an independent contractor, you'll be solely responsible for many financial incentives that would be provided by a company. Insurance, retirement, taxes must be paid in full from your earnings with no one supplementing or matching your investment. Also, you won't qualify for worker's compensation or unemployment insurance if you're company has problems. However, with thorough financial planning during the booming days of your business, you should be able to squirrel away enough to help you survive the short periods of drought that may come along.