Your route from a permanent role to contracting
So, now you understand what contracting involves. That’s the first step. But the journey from permanent employment to contracting can be a leap of faith. In this chapter, we’ll make that leap less intimidating.
We’ll walk through a brief overview of all the steps you need to successfully tackle the transition, with more detail in later chapters.
Assessing your skills and market demand
First, evaluate your current skills and understand the market demand for them. For example, the tech space is a dynamic field with constant shifts and changes, so it’s important to regularly upgrade your skills and keep up with industry trends. Use online platforms like LinkedIn, Glassdoor, and Indeed to assess the demand for your skill set and identify any areas you might need to improve.
Financial planning
Contracting often involves periods without work, as contracts can start and end unpredictably. So, before you transition, make sure you’ve got a robust financial plan in place. Try to save at least three to six months of living expenses as a buffer. It’ll come in handy while you're searching for your next contract.
Setting up your business
Depending on your chosen working arrangement and location, it’s best practice in the UK to set up a limited company or its equivalent in your respective country. Or you might decide to join an umbrella company or a similar arrangement available in your jurisdiction. Both these options have their benefits and drawbacks.
Crafting your cover letter, CV, and professional portfolio
As a contractor, your cover letter, CV, and portfolio are your most powerful marketing tools. They need to clearly communicate your skills, experience, and the standout value you can offer a potential client. Tailoring them to highlight your most relevant and impressive projects can increase your chances of securing contracts.
Navigating the job market
When you’re starting out on your contracting journey, familiarise yourself with the job market. That means understanding where to look for contracts, how to network, and building relationships with recruiters who specialise in contract roles.
Building resilience
Stepping into contracting requires resilience. There’ll be challenges along the way, like periods without work and the constant need to look for your next contract, so keeping a support network around you and adopting a positive mindset can help you get through them.
Moving on from permanent employment shouldn’t be taken lightly. It requires careful planning, a proactive approach, and, just as importantly, the confidence in your ability and the value you bring to your clients.
Action Checklist: The transition
Get ready for your transition into contracting with this checklist.
