3 Reasons To Start Contracting In The Downturn

While you may find the concept daunting, there are three excellent reasons to give it a go, and it may prove to be a great long-term business opportunity.

First, even though many employees are being let go during the recession, the work those employees performed still needs to be done. By contracting with a company to do that work, you save the company money - some job duties take only a fraction of the day, or need only be done once or twice a week.

By using freelancers instead of full-time employees, the company can reduce expenses while still paying a higher rate for the work - because the rate is only being paid while the work is being done. This can help a small company weather the recession, and return to normal operations once the downturn ends.

Second, while contracting at a company that only needs a day or two of work a week may not provide you with your target income, contracting at two or three companies can. Instead of spending five days a week at the same company, you might spend two days at one company and three at another. This also helps you remain outside IR35, reducing your tax burden for the year.

Third, there is tremendous freedom in contracting. Running your own business can make you effectively immune to a future recession or downturn; the work always needs to be done, after all, even when companies are less willing to maintain full time staff. To fill that need, they will turn to contractors.

The key to making contracting work during a downturn or recession is ultimately to treat contracting as the business it is, and not as a temporary replacement for full-time employment. Correctly marketing your services and promoting your business can lead to even greater success and future prosperity for you and your family.

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