Advice on Becoming an Independent Contractor?

miyako asks: "I'm 20 years old and going to be graduating soon with a degree in Computer Information Systems. I was thinking recently about the job market available and I began to realize that I don't want to spend the rest of my life using my skills to make someone else money. I've been making money these last few years doing odd computer related jobs, programming, networking, graphic design, but never steadily or on a big scale. What I've come to realize is that when I graduate I'd prefer to work for myself doing contracting jobs. I thought that I would put the question out to Slashdot since a number of you seem to be doing this for a living or to supplement your income. What's the best way to get started, especially for someone without a lot of professional experience under their belt?" Update: 10/08 11:20 EDT by C : After press time, another worthwhile related question popped up. Rather than post another story, it's probably better to handle both issues together. So in addition to the current question, what legal aspects should Independent Contractors consider, especially when it comes to writing contracts? "Is it better to be a generalist, or to specialize in a few areas? What can I do to get myself recognized in the sea of other people doing the same thing? Is the market really there and is it strong enough that someone could make a living only doing this? What do I need to be aware of on the business end of things?

I realize that I might make significantly less, at least at first, than I could working for a company, but I would rather make less money and be more fulfilled working for myself. In short, what advice would Slashdot readers give a new graduate who is looking to start a business doing contracting jobs?"

While considering the issues an independent contractor needs to worry about when starting out, it might also help to consider the aspects a starting contractor will need to tackle when confronted with an important aspect of his job: writing contracts. With that in mind, we have this addition from Clanner: "I've been working as an IT Contractor recently, and I have a few opportunities to do some independent contract work (IE: not through a contracting agency) for a handful of clients. While I plan on consulting an attorney at some point, I'd like to get a few pointers from the Slashdot community as far as things to watch out for in contracts with customers. I'm looking for both items to avoid having in a contract as well as things that I should make sure are included. I plan on using a balanced contract, where neither party is at any severe advantage or disadvantage. I'm sure there are plenty of experienced hands at this in the Slashdot community, and I'd like to hear any suggestions you may have and about your experiences in this type of work (good or bad). Thanks!"

Comments

Learn on someone else's nickel ....

[(H)elix1]

began to realize that I don't want to spend the rest of my life using my skills to make someone else money

There is a very good chance you will suck rocks for the first several gigs (or more). If you want to give it a whirl doing the freelance thing, find a services company and work for them a while. You will learn more about how stupid / demanding a customer can really be, how the bloody contract does matter, and what a bonus it really is when you have a good, organized, understanding customer. Take a year or two being someone else's meat popsickle - you can avoid many of the normal bonehead moves that most people make on their payroll. No worries, as you will get to learn a bunch more when you go independent.

(ps. Watch what you sign! These things can bite you in the ass)

In addition...

[Seraphim_72]

Chances are that the "jobs" you have gooten so far are the "kiss and a check" kind of jobs. They are the kind that after 10 hours of troubleshooting a job - because you couldn't talk the customer out of trying to put Wi-Fi in thier 4 story house and the WAP in the basement, you end up asking for $50 because -well, you didn't realy get the job done. So you walk out with your check, and a kiss for being a sweetheart about the whole thing.

I build computers for people on the side, and it is a fun hobby that makes me a little bit of money to support my Athlon64 habit. I go buy the parts, put it together, drop on your choice of OS, and preinstall the minimum of software so that getting on the net is not a death sentence for your new machine. Before I deliver it, I offer a $10 discount if I can install linux on the machine as a dual boot. I then deliver the machine (or they pick up) and and give them "The Talk" and answer questions (takes about an hour) - in the end I charge $50-100. Now for me this is a hobby, I am just under Dell for total price for the same hardware and I give free tech support for 6 months to boot.

In short - I and people like me are the death of your vision.

There are a lot of us out there and even with great networking you will not beat our niche. And you certainly aren't going to make a living out of it.

What you need to do is look for a real job, get the experience and start to collect a clientelle on the side. Hopefully someone you know will start a real business and need some outside consulting - and then you just may get on the road. Not to be unkind, but there are an awful lot of very good techies scraping the ground for any cash that will come up - dont plan on this buying groceries any time soon.

Somewhere on Slashdot there was notice about a three part series about becoming a consultant - wonderful to read, very honest and inspirational -cant find it though sadly :/

Sera

Re:oops

[Twylite]

Two words: "business acumen". If you don't have it, you're not going to succeed at running your own business.

If you want to be a contrator, get some real business management training, or team up with someone who has it.

If you want to have a successful business, you'll need technical experience and business experience.

Market yourself, build a portfolio, network. Focus on service -- people respect good service. Find a niche market and take control of it. Get your contracts in writing and understand the legal issues around them. Protect yourself by using a business form that provides limited liability. Understand the work involved in a contract and the amount of money you need to cover all expenses and required profits, and don't take jobs that aren't worth it. Prefer contracts that leave you with an opportunity for recurring revenue (more contracts from the same source, or reuse the work/knowledge in other contracts).