Freelance contractors are an essential part of the workforce that many people might not think about. Working as a contractor is also becoming more viable and appealing as the desire for flexible work options becomes increasingly popular.
Anyone can set up as a contractor, but not everyone can scale-up and make it a long-term success story. Maybe you want to broaden your customer base or explore new service opportunities and aren’t sure where to start. Whether you’re just starting out, or you’re already established, we’re here to give you advice on how to scale your business.
Thinking of scaling up? It’s time to take a step back and examine your business. To do so, ask yourself these important questions:
A business can’t thrive or succeed if it is constantly facing financial problems or isn’t making any profit. Many companies face a quiet period now and again, but we’re referring to consistent economic shortcomings. Look through your books or get your accountant to explain the financial state of the business.
A key component to the financial success of being a contractor is getting past the day rate and understanding your real costs. Yes you might be paid more per day, but after you factor in things like holidays are you going to be better off?
If customers like the work that you do or the excellent service that you provide when you do it, they might come back. Even if they don’t need to, they may have referred your services to a friend or former colleague which is also important. Look at your history, see if anyone has used your services more than once or if there’s evidence of a personal recommendation.
If you’re going to be a success in the long term, and have an abundance of opportunities, then getting referrals is crucial. People don’t have to refer you, so when they do it’s important to recognize and reward for it.
Linking to the point above, knowing what people think of your business and what they like (and dislike) about it can be key in helping it grow. If you have a social media presence, this can be an effective method of gathering feedback. Check out reviews and see what people say about your business on Twitter or on your company’s Facebook page. Perhaps some customers have experienced poor service that could be improved, or a slow response time to questions.
Of course, this point isn’t applicable if you work by yourself, but if you’re in this for the long haul then you might want to expand from being a one man band to having subcontractors or employees that work with you. Doing this is a good way to broaden your appeal, as you might not only offer high level strategy but an effective way to roll out the work that you do.
If you employ quite a few people, however, it’s valuable to see what your turnover rate is. Do people enjoy working at your business, feel valued and stick around? Or do you find yourself hiring replacement staff on a regular basis. Even if you use sub-contractors, you can gauge if they enjoy working with you by whether they choose to work with you.
Before you can scale your business, you need to resolve any key areas of weakness so that they don’t develop into big problems as you try to expand. A business is like building a house. If you have a weak foundation with gaps, the whole thing will end up crumbling.
It’s easy to get carried away by the idea of success. But before you can scale-up you have to know the facts. Think about the costs of expanding your business versus the realistic rewards of increased sales.
Lots of contractors have grand ideas about their own offices away from the home, but these come at a cost. Most people don’t realise that on top of rent, you may have equal or higher business rates to pay along with costs like phone bills and computer equipment. Savvy contractors put off having an office for as long as possible, even engaging sub-contractors that will work from home to avoid additional costs.
In order to understand what costs you need, verses the costs you don’t, do a sales forecast to get a clearer picture of your business as it grows.
As we mentioned earlier, having an online presence for your business can be invaluable. Even if you don’t want to have a busy Twitter page or promote your products on Instagram, there are some staples any business should have.
Make your business information easily available online, and have a clear, easy to navigate website. You can describe your services, why customers should choose you over competitors and make it easy to answer their questions.
Having a well-crafted, attractive and accessible website will make it simple for customers to decide whether to use you. You can also track website traffic to learn more about your customer base and which areas of your website get the highest and lowest response.
As a given, you should have a linkedin account and participate in niche groups relevant to your business skill set. Linkedin is in effect your online CV, so it should rank at the top of your marketing list.
While you might be an expert in you’re field, you’re never going to be an expert in everything. If you work by yourself, it’s still worth having someone to give you advice, or help you find the solution to a problem. Let’s say you struggle with the financial side of the business. Bring an accountant on board to ease your load if you can afford it. Talk to experienced people from your industry for tips, or even ask a family member with a greater deal of experience than you.
If you have employees, don’t hold yourself above them and think you know best. One of the best ways to scale your business is to invest wisely in those working for it. Pick people with fresh ideas that could help boost your project delivery or retain customers.
Go for someone who is willing to lend a hand rather than people that will just do the same thing without ever offering. You will be surprised how much you can learn when you get someone else’s perspective.
It’s also much easier to scale your business by helping your clients fulfil the projects you’re working on. Instead of trying to do everything yourself, you might decide to bring on subcontractors that can do different parts of the projects delivery chain.
Perhaps you’re the one that will define how a project will work, you might also have a number of tried and tested developers on call to help deliver your vision, meaning you charge them out through your company and earn a profit on their work, but crucially you don’t need to find any more contracts or make new connections.
The last piece of advice for contractors is to not let things slide. If you manage to successfully scale your business, that’s fantastic. But it’s important not to get too cosy thinking that everything is ticking over perfectly. Even if you outsource your accounting, marketing or social media, keep checking in. Try to make sure you understand what everyone who plays a role in your business is doing.
You can keep track of monthly ROI reports, sales targets and your finances to make sure that your business is the best it can be.
If you’re contracting and want more free time to plan scaling up, Umbrella Supermarket can help. We help contractors compare the best umbrella companies online. In just two minutes, you can find an umbrella company that provides all your statutory benefits and processes your taxes for the best monthly fee.
Any contractor considering switching to an umbrella company will want to know how to find the best provider to work with.
Although you could spend your precious time and energy searching the web for the best umbrella company, there is an easier way – using an umbrella calculator.
In this guide, Umbrella Supermarket explains why every contractor should use an umbrella calculator in 2021.
If you are considering contracting you will need to decide on PAYE or umbrella.
It can be a difficult decision to make and contractors will inevitably be questioning which option will be the best for them.
To help every contractor get on the right track for them, in this guide Umbrella Supermarket looks at PAYE vs umbrella, outlining the key differences and how this will impact you.
There are many reasons that contractors across the UK opt to work under an umbrella company.
Umbrella companies offer an easy way to contract and remove the need for the contractors to worry about the burdens of admin, finances, tax and IR35, all things that limited company contractors have to deal with.
For this reason, many contractors will be weighing up their options and questioning whether it is worth using an umbrella company in 2021. To help make the decision that little bit easier, Umbrella Supermarket has put together this guide on the pros and cons of using an umbrella company.
Any contractor that is considering operating through an umbrella company in 2021 will need to understand Umbrella Company fees - from why an umbrella company charges fees, how they are paid to how much the contractor will pay.
In this guide, Umbrella Supermarket answers those all-important questions to help every contractor know exactly where they stand when it comes to umbrella company fees.
If you’ve made the decision to contract through an umbrella company in 2021, you will next need to find an umbrella company that’s right for you.
After all, there are lots of umbrella companies out there, so how do you know which one to choose?
To help you find the best umbrella company for you, in this guide Umbrella Supermarket outlines what makes a good umbrella company, so you can rest assured you’re making the right move.
One of the many advantages to operating through an umbrella company for contractors is that they become an employee of their chosen provider.
In turn, this means that the contractor will be automatically enrolled onto the umbrella company’s workplace pension scheme.
To help contractors find out more about umbrella company pensions Umbrella Supermarket has put together this handy guide.
If you are considering contracting through an umbrella company you will naturally have questions and queries over how they work.
After all, making the move to umbrella can be a big step for contractors. To help, in this guide Umbrella Supermarket explains how to get started with an umbrella company and share our top tips for using one in 2021.
PAYE or umbrella is a question asked by every contractor. Which one you opt for will have a big impact on your contracting career and lifestyle. So, it's important to make the right decision for you.
To help makes things a little bit easier, Umbrella Supermarket has put together this guide on PAYE or umbrella, outlining the key differences between each, to help you make the best and most informed decision for you.
One of the many benefits to working through an umbrella company is that you will receive holiday pay as well as a range of other statutory benefits including sick pay, maternity and paternity pay.
To find out more about umbrella company holiday pay, and how to calculate how much you will be entitled to, Umbrella Supermarket has put together this handy guide.
Contractors must make several decisions throughout their contracting careers. One big decision contractors have to make is how they will operate.
One way that contractors can work is through an umbrella company.
Umbrella companies have become an increasingly popular way to contract in the past few years, offering many benefits to the contractor. But, how do you know whether this option is right for you?
To help every contractor make the right decision for them, in this guide, Umbrella Supermarket explains when not to use an umbrella company.
There are tons of benefits to using an umbrella company, which is why they have become such a popular option for contractors in recent years.
After all, an umbrella company takes away the stress and hassle of operating through a limited company whilst offering contractors a range of advantages, such as statutory rights, paying them a salary, deducting correct tax levels and National Insurance, and taking care of tasks like expense processing and invoicing.
However, as more and more contractors opt to use the services of an umbrella company, more providers have started to claim that they are HMRC approved.
To bust the myths around HMRC approved umbrella companies and get straight to the facts, in today's guide Umbrella Supermarket look at whether HMRC approved umbrella companies really exist, so you know exactly where you stand.
If you're considering making the leap to contracting, you will understandably want to know how much you will have to pay in umbrella company costs. After all, this amount comes directly out of the contractor’s pocket, so it’s important to be clued up on how much you should expect to pay.
To help contractors, in this guide Umbrella Supermarket answer the all-important question of how umbrella companies cost in 2021.
