Things To Consider When Starting A Career As A Contract Worker

contract worker

Becoming a freelance contract worker has many perks – you set your own hours, become your own boss, and in many cases choose where you work from. It’s no wonder the expectation is that there will soon be more freelancers than full-time employees.

Despite the many perks, there are important things to consider before making the jump. Read on to discover what you’ll need to organize at the start of your freelance career.

Establish Your Pay Expectations

The biggest risk of becoming a contract worker is the instability. It’s this element of freelance work that puts many people off doing it, but with an income and budget plan, you can find work with confidence.

Identify how much money you think you need to make per day. You can have a longer-term goal, but to start with you just need enough to meet your financial commitments like paying your mortgage, rent, and bills. 

You can use a calculator for contractors to support you in this endeavor.

Inform The Relevant Local Authorities

If you’ve left the traditional workforce, you need to inform your local authority about this change. Especially when setting up as a sole trader, the local authority needs to know for tax purposes. Failure to inform them could lead to you being fined, so it’s very important.

Create A Portfolio

When applying for contract jobs, it’s common for the hiring party to ask for evidence of your previous work. If you’re a freelancer copywriter or marketing specialist, for example, you should be able to point to existing examples of your efforts with ease. 

Putting together your strongest work examples into a portfolio will save you scrambling around for this information each time you apply for contract work.

If you don’t do contract work in a field that creates much physical or digital evidence you can share with prospective employers, you can instead have a list of references ready.

Set Up A Pension

It’s easy to forget about your pension in the excitement of becoming a contract worker, which can have unfortunate consequences later in your life. 

Don’t let thirty years pass before you realize you’ve forgotten to put money away for your pension. It may turn out to be the difference between a state-of-the-art or a less pleasant retirement home.

Choose A Brand Name

Going out on your own in the job market can be daunting, but you can use a brand name to boost your confidence and impress employers. This is your opportunity to be imaginative, but remember to make sure your brand name is relevant to your field and isn’t too cheezy. It needs to be professional, but a little bit of flair would be ok too.

Have Savings In The Bank

It’s likely that your first few months as a contract worker may not be as fruitful as you hope, which is perfectly normal. It takes time to build great things, so you should try to have plenty of money saved to cushion you while you find your feet.


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