Would you stop contracting if Plan B paid off?

[SussexSeagull]

If you could offer me a guarenteed 100k a year with no risk then I would probably get a permanent job, possibly outside IT. Knowing I didn't need the salary to survive would hopefully prove liberating in dealing with the politics.

[achilles]

If you could offer me a guarenteed 100k a year with no risk then I would probably get a permanent job, possibly outside IT. Knowing I didn't need the salary to survive would hopefully prove liberating in dealing with the politics.

Why would you not start your own business instead where you would not have a boss and no politics?

[WTFH]

Why would you not start your own business instead where you would not have a boss and no politics?

Maybe get a job at a charity, or something where you're helping others, because you have the time.

Running your own business can be a lot more stressful, a lot more risky, and a lot more time consuming than working for/helping others. But that's maybe just my different mindset.

[northernladuk]

Why would you not start your own business instead where you would not have a boss and no politics?

Because that can lead to a level of stress the poster doesn't need now they have the income.

[Antman]

I don't think I have posted on this forum despite contracting for 10 years in Software and reading threads on a regular basis. I dropped by to offer words of encouragement for going the way of your Plan B.

Fundamentally, exchanging your time for money limits your earning capacity even if you earn £2000 a day. Combine that with the repetitive nature of watching clients' projects burn with the perpetual cycle of outsourcing, insourcing, management interference and incompetence as well as all the headwinds such as the Off Payroll rules and the Conservatives apparent stance of being anti small business, I decided to make a change.

I'm now down to working 20 hours per week with my current client who will be my last when I finish up in August.

With many more contractors now working from home, there is an opportunity to dedicate some of your time each week to Plan B and building up multiple streams of income which is somewhat easier now commutes and a lot of office presenteeism has been banished.

However it is challenging and you must be prepared in the short term to cut expenses to the bone, be frugal and constantly upskill and push yourself out of the comfort zone (tricky for us introverted geeks).

If you can do that, the feeling of earning whether or not you you choose to work that day is unbeatable and I heartily recommend it.

Wow 1 post since 2015, top work!

[courtg9000]

Having a plan B is always a good idea, contractor or not. You never know what will happen next or when you will need it.
Speaking as someone who used theirs I was pleased to get away from traditional contracting. I still did some more along pureplay consultancy lines with a product/service combination.
I had to modify plan B severely and got slightly caught when I needed a plan C in a hurry 18 months ago.
My advice is to have a number of plans to cover situations and if you can get multiple income steams to work (not everyone can) especially passive or passiveish then do it!

[hobnob]

Running your own business can be a lot more stressful, a lot more risky, and a lot more time consuming than working for/helping others. But that's maybe just my different mindset.

A compromise would be to work through an umbrella rather than running your own limited company. That way you'd avoid politics, appraisals, etc. but you'd also be able to take gaps between contracts and only work when you get bored or want a bit of extra cash (assuming that your "plan B" covers your routine expenses).

[tl97]

My goal is for work to be something I can do if I want to, not because I have to - essentially the FIRE approach.

[ladymuck]

If I had a guaranteed income that required little or no maintenance on my part then, being about as driven as a wet lettuce, I'd get a little part-time job that would keep the brain cells from dying off but I wouldn't go about setting up companies and trying to be the next Branson (or whoever).

Some people are not born to be serial entrepreneurs we just like to turn up, get paid, go home.

[d000hg]

Why would you not start your own business instead where you would not have a boss and no politics?

No politics? You've never run a business with employees have you?
If you think the 9-5 is draining, try running your own business!