Do you know that the Global Construction market will reach $8 trillion by 2030?
It tells us how much opportunity lies for the contractors even in today’s times. Many companies and individuals often work with contractors to get the best quality and timely delivery of their projects.
By now, there may be many questions arising in your mind. Contracting is not for everyone, as it requires certain qualities. You have to be a risk-taker and self-starter.
So, if you’re considering starting a contractor career, you are at the right spot. This article will describe contracting and factors to consider before you start.
Who Is a Contractor?
A contractor is a person or company hired on a contract basis to perform particular work for another person or company. There are usually two types of contractors:
General contractors are in charge and look after the whole project. The responsibility of the entire project lies in their hands.
Subcontractors are hired further by general contractors who possess a specific skill. They are responsible for completing a particular portion of the project.
Many organizations hire contractors instead of permanent workers for specific tasks or projects. The reason is that it is less expensive and can be completed in less time.
8 Things To Should Consider Before Going Contracting
Though there are several factors to consider if you are going to be a contractor, here are the top 8 things you should know.
1. Get a Surety Bond
Before you start working with individuals and companies, you need easy surety bonds to ensure nothing goes wrong between you and your clients.
It doesn’t matter what business you’re involved with, and risks are everywhere. So, it’s better to get a surety bond.
A contractor surety bond is a kind of agreement between you and the owner with a guarantor that ensures that you complete work on time. You are bound to follow all terms and conditions in the contract.
2. You Need a Contracting Mindset
You need to ask yourself whether you are ready to take this responsibility of being a contractor or not. It would help if you also found out why you chose this background.
The possible reasons could be shifting from a permanent job, career growth, and love to work on your terms.
Whatever it is, first make your mindset and start thinking like a contractor.
With the right attitude, you’ll grab the opportunity and provide the clients with excellent results. The profession needs various skills, strengths, and how you deal with situations.
3. Find Out Your Skillset (Niche)
Today contracting is not only limited to construction works. With the growth of the digital age, the requirements of contractors have increased in different fields like IT, management, medical, financial, etc.
Once you have set your mindset, try to find a niche where you can provide your best services.
You can take the help from the internet and explore your niche to gain more knowledge. Other learning options are webinars, blogs, social media, books, and industry experts.
4. Aware of Financial Implications
Once you’ve figured out your skill (niche), you need to see the requirements and market rates. Thorough research will lead you to know what other market contractors are charging.
It depends on various aspects like market strength, requirements, experience, and type of project. Most organizations pay high rates to get their job done in less time. It costs them less than a regular employee.
And since you are a beginner, you can charge accordingly and earn a good revenue after cutting all your expenses for the project.
5. Umbrella Companies or Limited Companies?
Once you’re all set, you need to determine whether you want to register as an umbrella or a limited company. Both have their pros and cons.
If you choose to go with an umbrella company, you don’t have to worry about financial management, taxation, pension contributions, etc. They’ll manage everything on your behalf and ensure you are done with these things on time.
When you start contracting under a limited company, you’ll be responsible for tax returns, finances, etc. Here, you can save some extra money for yourself. Also, select an appropriate name for your business as it helps to attract the ri.
6. You Should Learn to Lead a Crew
If you get a big project, you need a dedicated team to complete it on time. You may hire subcontractors and skilled professionals under you. It’s you who ensure workers complete the assigned task on time.
Here, you need to learn how to lead a team. If you’ve never been in such a leading position, you must know its importance and handle your team effectively and safely. It is a must-required skill for a contractor in the long run.
7. Flexibility And Communication Skills Required
As you’ve promised your client to deliver the work at a preferred time, you must be entirely focused.
You may have to work at odd hours, even on holidays. You may travel and stay in a different city until your project is completed. So, you need to be flexible with time and location.
A contractor must also have strong communication skills. Healthy communication is the backbone of customer-client relationships. It helps you create a positive work environment.
8. Marketing Knowledge is Must
In the early phase of your career as a contractor, you are responsible for the advertising and marketing of your services. That’s why you need basic marketing skills to reach out to potential clients.
You can take the help of online mediums like social media, email campaigns, and paid advertisements for marketing.
Online mode can benefit you to reach a broader range of desirable customers in one click. You can also opt for an offline method to get customers near your locality.
These are the eight factors to consider before starting your career as a contractor. You need to be flexible and hone your skills such as marketing, finances, and communication to put an impact on the clientele.
You also need to have a contracting mindset, get a surety bond before the commencement of the project, and learn to lead a team.
Overall contracting is a responsible job profile where you must deal with several factors. So, first, you must check whether you are ready to consider everything mentioned above.