July 8, 2009 at 9:09 pm
Starting to think about going independant (1099) after the economy to comes back. I've always been a w-2 employee. Can anyone suggest a good book on going out solo? I'm guessing it there is more to then a linkedin account and a website.;-)
David
July 9, 2009 at 2:20 pm
I don't know about any reference books, but I suggest looking into Limited Liability Company (LLC) information and other Small Business designations. Why? Protection of your assets. If you form a company and the company defaults on something, you can be liable for any renumeration. However, forming a LLC or some other form, can protect your personal assets. Basically, it means that legally the business is separate from you even though you own it.
My wife and I are getting into rental properties and set up a LLC so that if there is a lawsuit or anything against our rental business, our personal assets can't be included (someone sues us and our rental business doesn't have enough assets, they can't go after our house or our personal bank accounts). It does mean you have to do more accurate book-keeping to keep the assets separate.
I don't know all the details as my wife is the financial wiz in our family. But check into it to protect yourself.
-SQLBill
July 18, 2009 at 9:20 am
Hmmmm, thought this would be a more popular topic.
Can folks share any valuable lessons they learned in the process of going independant?
David
July 18, 2009 at 9:55 am
Do you mean solo contractor? I haven't seen a lot written from the IT perspective. Have you ever contracted for someone? Meaning working for a consulting company? I'd say that is a good first step to get an idea of how the business works.
July 28, 2009 at 6:54 pm
Things to consider about going SOLO.
It can be quite lucrative to become a contractor as long as you can keep up with the governemt required bookwork and come to terms with paying for you own holidays, sick leave and superannunation.
I know one guy who works 11 months out of the year and goes overseas to surf on other month, he's done this for years and it works well for him and his clients. Employers seem more able to facilitate starting and finishing your working day outside the normal office times which is a plus.
The downside as I see it is if your contract gets cancelled, or not renewed then you are stuck with whatever financial responsibilites you have and no way of paying them. It comes down to lifestyle and commitments, if you are 'solo' then it works, if you have a house and family think seriously about whether this is a smart career move.
July 29, 2009 at 7:55 am
I have to agree with Steve. Keep your eyes out for short term contracts. You can build up your network of potential customers while getting a somewhat stable income. If you are contracted to clean up performance on an in-house app from the backend, you can use that as a foot in the door, looking for potential areas for improvements, automation, or systems integration, all big selling points. Incorporating (LLC is also what I would recommend) in my opinion is more for when you start doing smaller jobs without a formal and clearly defined contract, so I wouldn't do it until you need to. It does cost a bit, but more importantly takes a lot of time and adds red tape. Time is extremely valuable when flying solo. Also, I would recommend plugging any gaps in your skill set with a solid network of other freelance IT people. No one person knows all aspects, so if your expertise is SQL Server Administration, find a SQL Developer, an Application Developer (at least .Net, but as many diverse languages as you can find), a security expert, a Network expert, etc. The larger your network the less jobs you have to turn down.
I am not aware of any books with good advice or a good strategy for making the jump. I have taken several chances in life that has led my career to where it is today, and the only advise I could offer is to take your time, be patient, make every preparation that you can, build your client network and your technical support network... those are your safety nets, and when you think you are ready take the plunge without regret. If you try and it doesn't work out you may be forced to go back to a W2, but even in "failure" you will be better for the experience.
Just my one and a half cents.
July 31, 2009 at 12:23 pm
I tried a google search on "independent software contractor book" and got the following:
http://www.nolo.com/resource.cfm/catID/450464AB-FA7C-4AAC-B374F1BCE305E4DB/111/159/
http://www.poplarware.com/bizstart.html
I don't know if they are any good but it could keep you busy.
I always thought I want to start my own business but it looks like that is only going to happen when I retire.
Steve
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