Becoming Your Own Boss (BYOB, 2.1)

In the first and second articles (BYOB, 1.x) of this series you learned some of the facts related to the current employment picture and examined some of the choices that were available to you.

This set of articles (BYOB, 2.x) addresses the basic questions that you should ask yourself as you consider the idea of becoming an independent contractor. In answering all of these questions, your goal should be careful objectivity. Wishful thinking in this regard is unproductive and will almost certainly cause problems if you allow it to intrude into your decision making process. This article is part 2 in the process of Examining Your Situation.

Is Your Financial House In Order?

If you are to be successful as an independent contractor, your finances must always be in good order. If your finances are not in good order when you start contracting, you must improve the situation quickly if you expect to remain a contractor for long. You can get external help with this topic if necessary, but this is not something that can be avoided.

These questions will help you to focus on different aspects of the major question:

Are Your Bills Paid To Date? Financial solvency is an absolute requirement. Good financial management is also a requirement. If your current situation is not a product of planning (e.g., an unforeseen job loss has forced you to consider other career options), one of your first priorities after securing a job or contract must be to bring all your financial obligations to a current state.

Are You On Good Terms With Your Banker? Good credit is very important because income for an independent contractor ordinarily cannot be scheduled effectively, particularly at first. Dependent upon your skill as a financial manager, your ability to plan, and your self-discipline to not deviate from the plan, borrowing might sometimes be appropriate. Thus, your banker must believe in you as both a credit risk and an entrepreneur.

Can You Depend On Help From Others In Meeting Your Financial Obligations? You are seldom alone with regard to your financial condition. If married, you have a spouse and perhaps children who are affected by and might contribute to your financial condition. Relatives or other people close to you might be in a position to help.

Is Your Personal House In Order?

Your personal outlook and sense of well-being have a major effect on your chances for success as an independent contractor. A positive outlook and support from your family members will make it much easier for you to succeed as an independent contractor. On the other hand, personal and family problems are likely to degrade your chances for success in a new career field.

These questions will help you to focus on different aspects of the major question:

Are You On Good Terms With Yourself? The very possibility of success as an independent contractor depends on your answers to this question. If you are not happy with yourself, you will have difficulty in the interpersonal relationships (with both clients and client staff members) that are necessary for success. This might seem like psychological mumbo-jumbo, but it is very serious to the successful independent contractor. You must feel good about yourself. Selling your services in a competitive marketplace requires self-confidence and absolute faith in your abilities to perform well in trying circumstances. Then, maintaining your business, once you have it established, requires more of the same.

Are You On Good Terms With Your Family? Successful and understanding family relationships are extremely important, because income uncertainties almost always amplify family problems. Such problems can make a difficult work situation untenable.

The next article in this set (BYOB, 2.2) helps you examine whether you can succeed as an independent contractor.

To read the rest of the series click here