4 Things to consider before becoming a contractor
- Mums Tips
- Mumpreneurs & Mums at work
- Published on Monday, 28 June 2021 19:28
- Last Updated on 28 June 2021
- Monica Costa
- 0 Comments
If you love renovation and have worked on a few home projects successfully, you have probably toyed with the idea of becoming a main contractor. This could be a great way to earn some residual or full-time income and live your passion.
There are many things you need to be aware of before starting a contractor business, however. Overlooking these could end up costing you a lot of money in the long run or slow down the process. Let’s take a look at some of the things you should consider before becoming a contractor.
The first thing you have to assess is whether you have the right mentality to be a contractor and self-employed business owner. You will now be the only one responsible for paying your bills. The pressure of finding the next client can be very high, and some people simply prefer the safety and tranquillity of working a regular 9 to 5 job.
Know that there is a lot of insurance that you’ll have to think about when starting a contractor business. You will need to get liability coverage in case you cause any damage to the property. This will also protect you in case someone on the premises ends up getting injured due to your actions. Next, you have to make sure that the people you work with are insured as well if you intend to take on employees.
In addition, you might want to look at bonding for projects and van insurance. If you want to keep costs low, van insurance is something you could save a lot of money on by using comparison sites. For example, Quotezone have some of the best deals you’ll find anywhere and they allow you to look up policies on their website before you sign up. They are one of the top comparison sites in the UK and have helped thousands of people save money on insurance, and the process is as simple as it gets.
Finding Your First Jobs
Finding jobs is something a lot of contractors struggle with at the beginning. Know that you will probably have to cut your desired price significantly when getting started. This will help you get some experience, as well as jobs for your portfolio and references. References will be absolutely essential at the beginning and you have to treat your first clients like gold. These are the people who will be spreading the word about your business and will be able to vouch for you. From there, you will have to do some work to get your name known in the community.
We suggest you spend a lot of time on building your online presence and marketing. Your website will be your most important asset. This is where you will be showcasing your work and where people will find you. You can also use your website to bring people to you indirectly. You can use a blog to attract clients to you by showcasing your expertise. It will also help you get noticed by search engines.
Speaking of which, local SEO is extremely important for contractors. This is one of the first things people will see about you, and you not only need to get visibility, but make sure that you deliver. The first thing you have to do is make sure that you have an account in the first place. The second is making sure that your name, address, and phone number are consistent on your website and everywhere you can find it online, may it be directories or your social media pages.
Pay-per-click marketing is another thing that could work for your small business. Pay-per-click, as the name indicates, allows you to pay for clicks sent to your site. This is done by bidding on certain keywords that people commonly use to search your business or businesses like yours. A small text ad will then be displayed next to search results every time someone searches for that specific term. This could be very powerful if you’re in a very specific niche or somewhere with little competition as you only pay for results.
Limited or Umbrella Company?
Also know that you have the choice to either work as your own limited company, or join an umbrella company. This is a good alternative for contractors who may be worried about things like their pension for example. An umbrella will also simplify the tax filing process for you. Know, however, that you will not be an owner and instead you’ll be pretty much like their employee. However, you’ll enjoy the same liberties as an independent contractor.
These are all things you have to keep in mind before you decide to become a contractor. This will allow you to start your business right and avoid legal mistakes.
Monica Costa founded London Mums in September 2006 after her son Diego’s birth together with a group of mothers who felt the need of meeting up regularly to share the challenges and joys of motherhood in metropolitan and multicultural London. London Mums is the FREE and independent peer support group for mums and mumpreneurs based in London https://londonmumsmagazine.com and you can connect on Twitter @londonmums