Going Contract?

[Russell]

Re: Going Contract?

And thus an accountant is a good idea haha. I got burned because by the time I realized what I did there was no going back.

[mDmVR6]

Re: Going Contract?

if you need a good cell phone plan PM me

[longsock]

Re: Going Contract?

if you need a good cell phone plan PM me

don't we all? lol

[RONDAL]

Re: Going Contract?

i was an incorporated contractor for 18 months before then making the switch the other way and going full time.
As people said, it's great when you're busy. LOVED having billable hours especially when its amounting to 60-75 hours a week of work every week for over a year.

The downside is making sure you aren't losing out.
With being employed by a company there is a lot of "free" stuff that you are able to take advantage of that you dont even think about. Things like professional development, technology hardware, and those benefits you never use but are nice to have.
They dont add up to a lot, but they sure can make a difference in the long run. Be sure to build some of this into your rates.
If you're good people will pay it, if you're not....

If you're going to be moving around you will also want to get good at marketing yourslef, and saying no. There is nothing worse than being unable to find work, and the flipside is having too much work that your current clients suffer as well. It's a balance. Some can do it well, some can't.

[Kona Bear]

Re: Going Contract?

Thanks for all the help thus far everyone. Like Blair posted before, I am currently employed & would be looking to become a contractor with the same company. I tend to stay with the same company for at least 5 years & I've been assured that we have enough work for at least that, so for me the jobs stable. One thing that does concern me though is I've been told that revenue canada doesn't like it when a person goes from staff to contract when working for the same company. Any truth to this statement?

M

[aliencurv]

Re: Going Contract?

Thanks for all the help thus far everyone. Like Blair posted before, I am currently employed & would be looking to become a contractor with the same company. I tend to stay with the same company for at least 5 years & I've been assured that we have enough work for at least that, so for me the jobs stable. One thing that does concern me though is I've been told that revenue canada doesn't like it when a person goes from staff to contract when working for the same company. Any truth to this statement?

M

I have a kona bear in my bike collection. it's been one of my favorites back in the day! it's been to MANY places and done a lot of travelling.

My employment has always been very strange. I spent most of my career working for start-up's as a key member in their product. I did this as employee with salary but would also negotiate stock options. The goal was to work for companies that would be purchased. Cash in my stocks and move onto the next. I did that 3 times and was financially rewarding. However, what was lacking in my life was life. Not everyone is cut out for 9-5... As you can tell by my online interaction, I'm kind of a outspoken and active individual.

in 2006, I was finishing up some R&D work for Symantec Corp as an employee. Being one of the key members of Security Focus, I was politically (and for a time partially legally) obligated to stick around until things were done (and options invested ). That was the end of my employment career. I left that building with a very excited and nervous road ahead! Contracting!

Now the problem was not finding work, at first. The issue was motivation. I found myself taking many contracts but spending my time working on cars and out of town biking. I never missed a deadline, but I sure the heck came close! I manage to _always_ negotiate working from home. Companies set me up with offices at their location, and I visit a few times a week. Sometimes I have to just because the hardware is there. Shaw Cablesystems doesn't let me take home a $500,000 Cisco DCM :(

So after the first year. I found myself not accepting many contracts. I started living off my savings and it resulted in taking 2 years off of work all together. I built my svt and xr4ti. biked. built a little cabin in ontario. Started realizing HOLY SH!T I need to work!!!!!!!!!!!

Now this is going to happen to you. Trust me! You're going to go through two modes. 1) Make lots of money and work real hard. 2) TAke lots of time off and spend lots of money. 3) Rinse & Repeat

So yes, keeping your business files seperate then personal. Purchasing CAA health insurance (or blue cross). Finding work, etc... Those are problems but not the MAIN problem. The main issue is going too 100% be finding your place and finding yourself. You'll bounce from one extreme to the other.

Then you'll figure it out one day. It takes 2-3 years. Some contracts might ask you to be 9-5 in their office. If that's the case, then you're an employee with contract pay and that's not really contracting now is it? It _is_ on paper and financial. But the personal gains are not there if you work 9-5 at an office everyday.

So now comes the personality challenge. How can you walk into a new business (a big one like maybe Alliance pipeline or something). And they say "here's where we are and here's where we wanna be". And you now have to sell yourself. Make them want you and lay down the ground rules. It takes a bit of confidence to know what it is you want. It takes time to feel you deserve it also!

Then comes the discussion of wage and the preperation for a PO. PO's are difficult because you quote time. They may have time set asside already. They may have an idea of time. But feature-creep can easily eat it up. You'll have other members of teams asking for your help. How do you bill that? Etc.. So you're discretion on communication is key.

It sounds exciting doesn't it? Because it is! I occasionaly go into one of my many client offices. I sit down. I chill out. Talk. Get some work done. Then come home and sit in the sun with my laptop all day. It's great! You'll love it. Just remember to not lose yourself in work. And contracting will VERY much definitely help you find yourself. You'll discover new parts of your career that you didn't know you enjoyed. And new responsibilities you'll take on.

It's great! Really is

[Canadian Turbo]

Re: Going Contract?

One thing that does concern me though is I've been told that revenue canada doesn't like it when a person goes from staff to contract when working for the same company. Any truth to this statement?

M

As long as you do it through a incorporated company there should be no issues. Sole proprietorships can get messy and I would be willing to bet your company would not allow you to do it that way as it can get bad for both sides.

[quirky16v]

Re: Going Contract?

Thanks for all the help thus far everyone. Like Blair posted before, I am currently employed & would be looking to become a contractor with the same company. I tend to stay with the same company for at least 5 years & I've been assured that we have enough work for at least that, so for me the jobs stable. One thing that does concern me though is I've been told that revenue canada doesn't like it when a person goes from staff to contract when working for the same company. Any truth to this statement?

M

No, Revenue Canada will not know where your income comes from as you will have no t4 to include for salary/wages/income. You will be self employed so you will just have to report the income at the end of your business year. If you do ultimately become a contractor, i suggest you consult with an accountant that can give you all the details you will really need to do it. You do not have to incorporate as a business but it does have it own benefits. You can actually have/be a proprietorship and reap the exact same benefits. (that is what I do) Be sure to be disciplined and save monthly for your tax bills - GST, Provincial, Federal.

my 0.02 cents

[Tuna]

Re: Going Contract?

Man, all this talk is making me want to go contract , I think I'll get a few more years experience under my belt first though.

[RONDAL]

Re: Going Contract?

its not to say contracting doesn't have its risks.

who were the first people in town to lose jobs during the recession in 2008? contractors!

you make hay while the sun shines but you better be prepared for the rainy days.

[aliencurv]

Re: Going Contract?

its not to say contracting doesn't have its risks.

who were the first people in town to lose jobs during the recession in 2008? contractors!

you make hay while the sun shines but you better be prepared for the rainy days.

I experienced the opposite. I watched companies lay off employees and hire contractors in replacement. That's at least how my industry was handling it. I think a forced downsize is great to clean up the dead wait. When times are good, companies hire everyone to have head count so managers feel important. They even hire devry grads :(

Even today when my clients have employee hiring freezes, they continue to pass me new PO's because they money comes from a different place. I'm considered to be a tool, or hardware, or even maintenance lol. So my pay comes from the departments operational costs.