getting started as a contractor

I jumped into the contracting pool over a year ago now without any savings and lived on my credit card for 2 months.

I would recommend that you have some money saved up before doing it as i didn't get my first pay for about 2 months. I did however move back home to the parents to minimize the living expenses.

I'm now in a position a year later where i can survive with comfort for at least 6 months and coming up to end of contract i'm government based with security clearance. Hopefully that puts me in a good position.

Most important aspect is to grow a beard. The best contractors have beards you could lose a badger in. Permies often try to imitate with some wispy bum-fluff, but never achieve the same density of whiskers.

Biggest mistake I made when starting was not to be prepared before that first contract.

Ensure that you have accounting procedures in place (just basic book-keeping), ensure you have invoice templates ready, expense templates ready, accounts set up, insurance in place and, most importantly, you have a contract template ready to put in place; one that has been vetted by solicitors and accountants - especially from an IR35 perspective. There is so much to set up at the start that it is easy to underestimate it.

Be sure that you are prepared for the start up teething problems and are committed for the long haul. I am finding it rewarding but initially caught off guard and learnt the hard way!!

If your finances are so delicate that timing your switch to the accuracy of a fortnight makes a difference to you, contracting might not be such a good idea yet.

As with everything, you need to do some research.

First find out if your skill set is marketable - at the moment the only real employer is the government and if you don't have government experience then you're going to find it difficult to get in. Also, establish if the rates offered are good enough as you will not be paid for times when you are not working.

Second establish if you can live for a period without work - for example if you're in a long term relationship, can your partner carry you for a period while you look for work or can you go and live with your parents for a while until you get started (it's always easier to get a contract if you are available for work immediately).

Finally, talk to your employer and explain your situation, maybe they would be willing to take you on as a contractor for 3-6 months (at a reduced rate) but to give you an opportunity to dip a toe into the water and at the same time give them a chance to find a suitable replacement. You will be able to establish yourslef as a contractor and put some money aside for when your 'contract' with your current employer comes to an end.

Get a contract offer first !

Sort out the leaving after, even if for some reason can't take the contract because they want you to start tomorrow (unlikely) then at least you know the market is good.

Hi all - advice please !

I am currently permanently employed ( 4 weeks notice, tricky small company to leave ) but want to go contracting.

Should I either -

1. resign, give 4 weeks notice then set about getting a
contract as 'immediately available' - having left permanent employment with nothing initially to go to

2. get a contract offer, accept then resign ( but will they wait 4 weeks for a contractor ?)

3. get a contract and say i'm available in 2 weeks

help please !

many thanks