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It is not surprising that in recent years a growing number of business professionals have begun working as independent contractors. Much of this is due to a global pandemic that literally forced many small to medium size businesses to shut their doors forever.
Not only did these businesses lose important revenue when being ordered to shut down, even temporarily, but many lost employees to the pandemic and others found it difficult to entice workers to come back to work when little was known as to the safety of working in close proximity to others who could be carriers of this lethal virus.
As a result, many business professionals began working from home if that alternative was offered by their employer or they began contracting their services so that they controlled their working conditions. In any case, there is a growing number of entrepreneurs now who are starting a business as an independent contractor, so this guide should help you better understand just what this involves.
How to Set Up an Independent Contractor Business?
Begin with a Plan and the Legalities
When you want to register a business in the UK, it all starts with a plan. You want to know what kind of business entity you want to register with, how you expect to make money, the types of insurance you are required to carry, and all the other permissions needed before you can actually begin doing business legally.
Your business plan will be necessary when registering your business on the UK portal. The government site has all the information on what you need to do in order to set up a business so that should be a fairly straightforward process. However, this is just the beginning as there are other things to consider as well.
Tools You May Need When Working as an Independent Contractor
When you were working for a company, many of the tools you needed to do your job were probably provided by your employer. For example, if you were often on the road meeting with clients, then a company car was probably issued to you for your use in the line of business. Now, you may not have a vehicle to use in your line of work or it may not be reliable or inexpensive enough to operate.
If you need a new vehicle, you may also need financing. That business plan mentioned above will be necessary if you are buying a car in your newly organised company’s name. However, you also need to consider the costs involved when owning a vehicle for business use.
With the rising cost of petrol and government legislation that will prevent the sale of new petrol or diesel vehicles after 2030, you might need an electric vehicle that can be charged and driven up to 100 or more miles on a single charge.
Repairs and upkeep are not as expensive on EVs, but you still may be teetering on the fence wondering if an EV is right for you. One thing you can do is check out the information on the ElectriX starting with this comprehensive guide that will help you understand everything from the cost of buying an EV to what it takes to keep it running and on the road.
Marketing for Business Growth
This is something else you probably haven’t considered yet. While you were working for a company that sent you out on jobs, you probably never gave a thought as to how they grew their client base. You will need to understand how and where to market your services as an independent contractor. This is something that will take a bit more thought and effort than even starting your business.
There is much information on the UK.gov website spoken of earlier that will walk you through all the stages of registering and starting your business as an independent contractor. That information is black and white. You either follow it or you don’t start your business!
However, when it comes to marketing, there is no simple right or wrong answer. You may want to consult with a marketing firm that will help you build your unique brand in order to grow a customer base under your name. Just like the vehicle that was assigned to you, marketing was also the responsibility of your previous employer. Now it’s up to you to learn what it takes to gain recognition in your industry.
You Are Not Alone
Just remember that there are hundreds, if not thousands, of individuals looking to become independent contractors. Because of this, there is ample information out there on what it takes to start and run a business in the UK.
It may be confusing in the beginning since business administration is not your profession, but once you have a name and a marketing team, you can begin operating the way you want your new business to run. Even as an independent contractor, you are not alone.
If you are still a bit wary of branching out on your own, find a mentor and you will see that it is not only possible, but it is something many others are doing successfully day after day. You can do this! So, let’s get started.