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Things you should know before committing to life as a contractor (Part 1 of 2)

The Australian Bureau of Statistics estimates that there are now 1 million Independent Contractors[1], representing 10 percent of the total workforce in Australia. It’s a significant, growing sector and one in which the IT profession figures strongly.
The decision to become a white collar contractor (referred to as Independent Professional or IPro by Entity Solutions) can be exciting and scary. Exciting because of the appeal of becoming your own boss – work for a living and do not live to work, work when you want, where you want and for whom you want. Scary because there is no financial safety net or guaranteed monthly pay packet.
IPros are responsible for sourcing and retaining their own clients. They have to manage all aspects of their business from contract work through to their own administration and invoicing.
Our last blog post described the benefits of being an IPro, however it’s not an arrangement suited to everyone. Before you commit to life as an IPro there are 4 things you must first consider:

  • Making the decision
  • Personality
  • Clients
  • Keeping up your contacts

In this blog post, we will share with you the first two areas.
Making the decision
Why someone chooses to become an IPro is often thought to be a question of: were they pushed or were they pulled?  Is the rise in IPros due to retrenched professionals turning to contracting when they can’t find another full time job or are the lures that strong?
According to the IPro Index 2010 survey conducted by Entity Solutions and Monash University involving 372 Australian IPros, it’s resoundingly the latter.  IPros choose to engage in professional contracting because of the sense of freedom, variety of work and perceived ability to earn more. Push factors such as being laid off, fear of job loss, difficulty in finding work and the tight labour market play no role for the majority of IPros.  This is important because it means that IPros begin their consulting life with positive expectations.
If you are considering becoming an IPro it may also ease some of your concerns to know that this positive attitude is a feeling that lasts. The overwhelming majority of IPros are happy with their decision. Results show that 84% of IPros are satisfied working as an IPro and 88% are satisfied with the kind of work that they do.
Personality
The survey also shows that IPros tend to be proud of their work. They feel happy when they are working intensely, are enthusiastic and energetic. These are all signs of people who are matched to the right job. Their sense of personal wellbeing is high and this is no doubt an important contributor to their job satisfaction.
The independent way of working inevitably helps to build confidence. A high 97% of IPros feel they are prepared for most of the demands in their jobs and 99% are comfortable that they can usually handle whatever comes their way.  It’s a career choice that helps to develop highly competent and self aware individuals.
In the next blog, we will share with you the two remaining points to consider before committing to life as an IPro:

  • Clients
  • Keeping up your contacts

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