5 Things IT Contracting Can Teach You About Running a Business

1. Understanding Finances

Running a limited company for the past 27 years has taught me a lot about running a business...

Although contracting isn’t a “business” in the conventional sense, you do learn the basics of business, and I have certainly used the knowledge and skills gained during my time as a freelance contractor to help me in my other business ventures.

Having an accountant, working with accountants, and using online accountancy systems have all helped me to understand the finances relating to business...

And working as a contractor you gain invaluable experience and knowledge around financial areas such as VAT, PAYE, payroll, invoicing, expenses, corporation tax, quarterly and year-end accounts.

It’s also meant that I have had to complete tax returns (which are now so much easier than when I first started out back in 1996).

2. Network = Net Worth

As a contractor you may have heard this phrase before...

Your network equals your net worth

It’s the same in many areas of business whether that be B2B selling, conventional B2C sales or other business areas such as property, for example.

But what does it mean?

Simply, the more people you have great relationships with the more successful you will be. I’m generalising of course, but you get the concept I’m sure.

Your “network” should include friends, family, colleagues (past and present) - basically ALL of your contacts!

Starting out as a contractor I didn’t see the benefit of this, but once you’re up and running you soon realise how connected we are all are, and one contract with one person at one particular client in one specific location may lead to additional contracts with the same person working for a different client in the future, maybe even years in the future.

It’s the same for the other variables too, simply working for one client in London for three months resulted in me working for the same client again in Singapore on two separate occasions...

The guy I was working for in Singapore changed companies and I did more work for him there, and when he then moved to Hong Kong and changed jobs again he asked me to do some more work for him there too...

Four international contracts all originating from one client in the UK!

Building your network as a contractor is just like building a lifelong tribe of followers (clients) for your business - it’s your lifeblood.

3. Understanding Marketing

As a contractor you have to learn to effectively market yourself, your skills, your abilities, your passion for what you do.

You have to get that message across in all your messaging - your CV, your LinkedIn profile, your website, your social media pages, your communications with employment agencies, and of course during interviews (both telephone & face to face).

It’s the same when running a business, but probably more focussed on the product or service you’re offering.

Obviously marketing yourself is a big part of this too, but if you can align your messaging regarding your products and services, your ethos and vision about why you do what you do, how you do it, and what you offer to the world, then you’ll create a tribe of raving fans.

Start with the “why” as Simon Sinek says. If you haven’t seen his great video then check it out HERE.

4. Passion into Profit

If you’re contracting in a field of IT that you are passionate about, that passion will often shine through and you will make a success of any project or contract you undertake.

I’m passionate about what I do, and I definitely have this deep-rooted desire to fix things, make things better, improve the systems I work on, and ultimately help people.

This drive has certainly helped me secure numerous contracts, and just as importantly, keep them, through multiple rounds of renewals...

It’s similar in business.

There’s little reward (in the long run) in doing something you have little passion for. If you have a real passion, drive and determination for what you are doing, what you are providing, then that will shine through and help you achieve success.

There’s a lot more to it of course, but if you have those qualities then it will make the journey far easier and more enjoyable.

5. Being the Master of Your Own Destiny

In my webinars I often show some quotes about being the “Master of your own destiny”, taken from the poem Invictus - and it’s true, being a contractor for more than 27 years now, I certainly feel like I have been in control of the work I do, who I do it for, and where I do it.

That’s the beauty of contracting to me - massive amounts of freedom in life...

It's one the four primary reasons I believe anyone would go contracting - money, time and confidence being the other three.

And once again, I see the same in businesses I have created...

You are in control, you have the potential to choose which path to take, what to sell, how to serve your clients.

It’s one of the main reasons people start up in business I think, and if you’ve already been a contractor then you’ll have had a great taste of what it means to be the "Master of Your Own Destiny" already.

Similar to contracting, in business if you don’t work at it, you won’t get any revenue.

You are ultimately in control but you need to take action to get great results.

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About the Author:

David Gerrish has been an IT Contractor since 1996, working all over the UK, Europe and further afield in locations such as Singapore, Hong Kong and Australia.

Dave's IT Contracting Academy Facebook & LinkedIn groups have thousands of contractors and aspiring contractors, making them invaluable communities for IT professionals seeking advice, support and to network with one another.