Setting out on your own in the new year? Here’s what you need to know.

Contracting is massive right now as many businesses look to meet skills shortages or build capacity without committing to taking on employees, so what better time to get into it.

To help you get started as a contractor, here are a few tips:

Create a Business Plan 

If you’re starting up with no clients in place, sit down and write yourself a business plan that sets out your goals, your customer demographic and the services you can offer to meet their needs. Your business plan should also include:

  • How you are going to market your business to prospects,
  • Finance needed to get going,
  • Equipment needed to deliver on your offer,
  • Financial targets, and
  • How you’re going to measure and monitor your success.

Create a Nest Egg

You’ll likely need to self-fund for a few months while you build your business and wait for invoices to be paid. So, consider the money you need for day to day living and build a nest egg.

Arrange Your Finance

Before you jump out of full-time employment, consider the investment you’ll need to make in equipment, premises, etc. and get your finance into place – a loan will be much easier to arrange while you’re in paid work.

Get Your Admin Under Control

There is plenty of administration to be managed before you can get going. You’ll need to determine the best way to structure your company, then register its name, apply for an Australian Business Number and GST number. You may need professional indemnity insurance as well as personal insurances, including health, accident and injury, and income protection. Research tools that will allow you to manage your accounting, at least in the first instance, as this will save you on costs, and be sure to always set money aside to cover your obligations, like tax, rent, supplier invoices, and superannuation. A small debt will snowball into a massive debt before you know it, putting your business, your personal assets and your reputation at significant risk.

Get Yourself Known

If you’re lucky enough to have clients ready to come with you, that’s a great start. But if you’re not, you’ll need to start getting your name out there. Word of mouth is always best, so contact family, friends and business associates who know, trust and will recommend you. Join any relevant professional organisations, including small business networks and community groups, and build an online profile. 

Grow Your Reputation

Your reputation will determine your success so from day one, look and act the part. Dress appropriately, respond to enquiries with professionalism, be honest in your dealings and only ever make promises you can keep. Be appreciative of business that comes your way, and if something goes wrong, ensure you rectify the situation.

Love What You Do

Don’t start a business if it’s not something that you love doing today and will love doing well into the future. Your customers will notice your passion for your work, and it will help carry you through the good days and the more challenging days too.

The Ayers Group Can Help

Contracting brings massive rewards, as long as you set out with a clear plan and an understanding of your administrative and legal obligations. At the Ayers Group, we can help you manage your commitments and connect you with tax advisors and financial experts to help you grow your business and your wealth. Talk to the Ayers Group today.