Thinking about running a self-employed contracting business? You’re not alone. According to the US Bureau of Labor Statistics (BLS), there are 9.379 million self-employed contractors in the United States as of November 2020.
Self-employed professionals enjoy the benefits of being their own boss, maintaining a good work-life balance, and taking control of their daily schedule. But as great as it sounds, becoming a full-fledged independent contractor requires time, effort, and commitment.
Fortunately, there are a few things you can do to prepare for self-employment. In this article, we’ll share five tips on how to run a successful self-employed contracting business.
1. Build a Strong Network
Building relationships and connecting with other people can effectively grow your self-employed contracting business and secure a pipeline of clients even before you officially open for business. Networking hones your interpersonal skills and helps you build confidence when marketing your services.
Here’s how: One of the best ways to build your network is to attend networking events specific to your industry. You’ll be able to learn the latest trends and helpful tips and tricks when running a self-employed contracting business. But if there aren’t any events these days, you can join different Facebook groups and connect with other independent contractors.
Having a mentor also helps in giving business-related guidance. Mentors can be extremely valuable when you’re starting out as an independent contractor because they speak from experience. They could also provide recommendations and advice to steer you in the right direction.
2. Market Your Skills Through Blogging and Social Media
Creating a strong social media presence connects you with your target audience and positions you as a trusted authority in your industry. As a result, it’ll be easier for you to market your skills on social media.
Here’s how: Create a LinkedIn account if you haven’t already and use it as your virtual resume. You can also use it to build your network and connect with people you want to work with. Facebook and Twitter are great platforms to share interesting posts and maintain professional relationships with your network.
Blogging is another way to showcase your industry knowledge to potential clients. For instance, if you’re an aspiring virtual assistant, blogging can help expand your reach and establish yourself as an authority. You can write about topics that educate your target audience, including how virtual assistants can make your life easier, where to look for VAs, and how to spot quality VAs.
Instagram can also be a great place to market your skills. You can even buy followers on Instagram at first, in order to gain momentum.
3. Establish Your Personal Brand
As more and more people become independent contractors, it’s important to stand out from the crowd. Developing a strong personal brand is a crucial part of running a successful self-employed contracting business. Your clients should clearly understand the type of services you offer.
Here’s how: Think about what makes your business unique from the others. What makes you stand out? Some of the things you can do to build your brand include establishing a social media presence, get a proper logo, keep an updated portfolio, and let your personality shine through. However, be sure to stay consistent. Incorporate your branding and message throughout your website, social media channels, and other marketing platforms.
4. Assess Your Finances
Before you jump ship and fully transition to self-employment, you need to closely evaluate your finances. It’s best to have a cash cushion of several months’ worth of income (at least six months), so you’ll be financially secure while you’re starting to look for clients and projects. The unpredictable nature of independent contracting requires you to manage your money wisely.
Here’s how: The first thing you need to do is to separate personal and business finances. This makes it easier for you to track your income and expenses, and having a detailed record of your capital allows you to efficiently work on your taxes. The next step is to create and follow a budget. Calculate your average monthly income and factor in your rates so you’ll have an idea of how and what to budget.
5. Apply for Funding
Like many small-scale independent contractors, you’ll likely need financial assistance to support your business. Cash flow struggles are common among gig workers because of the delayed payments from clients. When you’re strapped for cash, it’s your responsibility to secure financing.
Here’s how: One of the ways you can access additional funds is to apply for loans for self employed. The money you receive from the loan can be used for business purposes, such as equipment purchases, day-to-day expenses, and more. Keep in mind that you need to keep an organized record of your finances to streamline the loan application process.
Final Thoughts
Leaving your 9-5 job to become an independent contractor is easier said than done, but with these tips, you’re on your way to becoming a successful independent contractor.
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