For years, I have been an independent contractor. I’ve grown my home business into something that earns a steady income for my family. In fact, I’m the primary breadwinner. Becoming an independent contractor is one of the most profitable small businesses to start this year.
As an independent contractor, I have a degree of freedom in choosing my own schedule, and even determining who my clients are. I’m also part of a segment of the workforce that is growing in demand. Many companies are turning to independent contractors because it can be less expensive. My hourly rate might be higher than the rates commanded by “regular” workers, but I save a company in other ways:
- No benefits to pay
- No overhead costs
- No payroll taxes to pay
A few years ago, CNN Money pointed out that an employee working for $14 an hour actually costs an employer $20 an hour. While most of my clients pay more than $20 for a project, the reality is that they just have to pay me for the project, rather than continue to pay me day in and day out, and pay the other costs associated with maintaining a full-time employee.
How Do You Become Self-Employed?
The independent contractor arrangement can be a win-win in many ways. If you are looking to become an independent contractor, either to replace your “day job,” or just to make a little extra money on the side, here are some steps you need to take: