Taking the plunge!

Tomorrow begins my final week as a W2 employee. As of Monday, February 27th I become an independent contractor!

Through our local user group, I've built up a relationship with a local consulting company, SRT Solutions. They recently contacted me to see if I knew anyone for a position they were trying to fill in the automotive sector. I didn't really know anyone looking. Then they asked, "Would you be interested?". I thought it over for a few days and did some additional research, asked lots of questions and finally decided to do it!

It's an exciting opportunity to utilize .NET 2.0 in the automotive sector. Plus, I get to work with David White, a former Microsoft DE for the automotive sector who is now running his own startup company! It was an opportunity too good to pass up.

Although I've been doing a lot of research on becoming an independent contractor, I'll welcome any advice or tips to those of you who have taken the plunge yourself.

Published Sunday, February 19, 2006 10:52 PM by PSteele

Comments

# re: Taking the plunge!

Took it almost 4 years ago and have managed to do quite well. I would suggest that you take on only one major client and one minor one, it is far too easy to take multiple large revenue clients as you are enticed by the $$ signs but it is truly a two edged sword.

I think it is also important for longevity to properly manage your cash flow - clients WILL take longer than you want to pay you, there is no way around it. You will also find that a project/client transition could open up a gap of time without billable work, having a good cash reserve will keep you in the game in these cases. I probably know a dozen people who have tried and failed the 'indi' game because of cash flow alone.

Good luck.

Monday, February 20, 2006 12:39 AM by M. Keith Warren

# re: Taking the plunge!

Congrats! :) Being self-employed is something you probably won't give up once you've tasted it :).

Monday, February 20, 2006 3:16 AM by Frans Bouma

# re: Taking the plunge!

I agree with Frans, be careful when planning your finances though. Plan ahead because cash flow is king and you'll definately wait longer to be paid.

Monday, February 20, 2006 7:13 AM by Scott McCulloch