The path to the indie contractor can be rewarding but difficult. Here's how to ease into the transition.
So, you're thinking about striking out on your own – leaving the comfy confines of your cubicle, hanging out your own shingle, being your own boss and, hopefully, making more money all while enjoying life a little more.
Well, take a deep breath because you're in for a reality check since the life of an independent contractor is not as easy or glamorous as it may seem. There may be more than a few issues you haven't considered that come as part of the indie package, according to some who've made the career move.
Be realistic
"Being a consultant is hard," says Dianna Moses a New York-based network infrastructure contractor specialising in the financial sector since 1991. Moses, who's consulted for JP Morgan, Goldman Sachs, and Dominion Securities, warns that there's zero job stability as an independent.
"These silly employees with a wife and kids thinking that they're going to quit their job and become a consultant, and suddenly they're going to be rolling in dough, are disillusioned. There are a lot of advantages to being a consultant, but there's also a lot of perks with being employed somewhere," she says.
While indies are in command of their workday, making their own decisions on what jobs to take and not take, there's also the paperwork and administrative duties that come with running a business. But the toughest nut as an independent, most say, is the marketing and self-selling consultants must do, and do well, in order to land work.
"That's where it broke down for me," says Grinnell Almy, a 44-year-old senior programming engineer who works full time for hosting service provider Web Visions, in the US. Almy went the contractor route in the early '90s when he thought he'd do better financially. But it wasn't the role for him.
"You need technical know-how, which I have, combined with the ability to sell yourself, which I don't have," he says. "In the corporate world, I have the luxury of concentrating on engineering and letting the marketing department handle the sales work. When you're independent, you have to do both."
Learn to sell yourself
While Steven Anagnostis admits that finding job leads and handling the office work are the toughest part of consulting, the good part – working on different projects at different places – is worth the tradeoff. Anagnostis is owner and principal of network support provider Twin Technology Solutions, in Marlton, N.J. He worked in retail and manufacturing for 12 years before moving into IT contracting two years ago.
He recommends that new contractors take a class on marketing and sales, and also a small business class.
"The jobs don't fall from the sky. You need to have a plan and do lots of networking with people beforehand," he advises.
While there's usually lots of work in a good economy, the slow times can be tough, he adds. Between consulting gigs, Anagnostis sells hardware and software in addition to his programming and project management services.
"I have a broad base to fall on for revenue, but times do get tight," he says.
Not only do indies need a solid skill set, they really need to know their stuff, says Almy.
"If you don't know what you're doing, you may survive in a corporate environment for a while, maybe even indefinitely. But if you're flying solo, you'd better know what you're doing," he warns.
Experience earns bragging rights
A big plus in contracting, all say, is the opportunities to boost skills and develop strong project management and problem-solving skills.
"The life of a contractor is not for the weak-hearted, easily stressed person," says Moses, who adds the bonuses can go a long way in terms of career success.
"I'm one of the best in the financial technology areas due to all my varied experience. My exposure to so many different environments has let me foresee problems, develop contingency plans, and create better infrastructures because I've seen so many things go wrong."
