My there! My name is Steve Kwan. User experience design is my passion.

7 reasons to be a contractor

(March 21st, 2009 - 4:37PM)

Several months ago, I left the security of my full-time job to start Zen Point, my UX contracting company...and I haven't looked back.

I think you should switch to contracting, too. There are a ton of benefits to being your own boss, and after several months of living the life, I can honestly recommend it to you. Here's why.

1. Save a TON of money in taxes.

   When you're a contractor, almost everything you spend money on is a tax write-off. Car insurance and gas? Write-off. Dinner out with a friend? Write-off. That PS3 you just bought? Write-off.

   As long as the expense is even remotely related to work, you can write it off. You will save you so much money with these write-offs that it's worth considering contracting for this reason alone. It's like getting a massive raise.

2. Work when and where you want.

   Ever read Timothy Ferriss' excellent book, The 4-Hour Work Week? If not, you really should. It's one of the best and most inspiring business books I've ever read. You can buy the audiobook version on Audible - the narrator does a great job.

   Anyway, the reason I bring up The 4-Hour Work Week is because in the book, Timothy Ferriss argues that one of the keys to true happiness is mobility. Being able to free yourself from the 9-to-5 confines of the office is a huge bonus that will make achieving your life goals much easier. And if you're a contractor, freeing yourself in this fashion is trivial.

   I actually only go "into work" about twice per week. I might even phase that out at some point. I can shuffle my hours around to make my day more convenient and relaxing. I can sit on my couch and write code. Definitely a perk.

3. More job security.

   Everyone seems to think that full-time, salaried employment is the key to job security...but is it? Are you really more secure if 100% of your income is coming from a single source? What if that source dries up? Wouldn't you be better off diversifying your risk?

   When you're a contractor, you can pull money from multiple sources. If one of those wells dries up, you only lose a fraction of your income. On the other hand, if you're working full-time for a company and they no longer require your services, you lose all your income.

   There are certainly some benefits to working full-time, but if you or a friend have been laid off, you know that with salaried employment, stability is just an illusion.

4. Remove aspects of your work life that frustrate you.

   If you don't like the company you work for...fire them.

   Ever worked for a really miserable company, where you hated your job but were afraid to quit because you needed the money? Well, if you're a contractor, the solution is easy: fire the client.

   If you're a full-time employee, firing your client is more difficult because they represent 100% of your income. But if you're a contractor, clients can be replaced much more easily.

   It's nice to be able to pick and choose the projects you want to work on.

5. YOU decide when it's time for a raise.

   At most companies, salaried employees get a review once a year, where their compensation is bumped up around 5%. But why should your salary be increased at a scheduled time once per year? It's not Christmas.

   When you're a contractor, you choose what you get paid. When you want more money, you raise your rates. Your clients will be remarkably willing to toss you a few extra bucks if your work is good.

   Get paid what you deserve, not what someone else thinks you deserve.

6. Build your social network.

   When you work full-time for a company, you live inside their social bubble. You'll get to meet your co-workers, your clients, and perhaps a few contractors...but you're more or less limited to working within the social confines of your company. If you're a social butterfly like me, this drives you crazy.

   I want to meet new, interesting people. I want to expand my horizons. I want to know everyone. That's why I became a contractor. Now I get to work with a wide variety of different people, in vastly different lines of work.

7. Work on a wider variety of projects.

   Working on the same project for several years is kind of a drag. I much prefer having several projects on the go at once. This exposes me to new technologies, methodologies and business processes. I can honestly say that each new client has taught me something really useful.

8. Work for 61 minutes and charge for two hours.

   I think this one's pretty self-explanatory. ;)

So now you're convinced that contracting is a good idea, right? Well, in the future I'll probably write some tips for getting started. Stay tuned.