Increasing your Take-Home Pay as a Contractor

You might be thinking that by switching to contracting you will be swapping the security of your salary for a lower income. We know from our experience that this is a misconception. 
With the right strategy and mindset, you can match and exceed your original income while getting all the added benefits that contracting provides.
Here are some of the tried and tested approaches our clients have used that helped them secure their success.

Review Your Pricing Strategy

Setting a goal is the best way to get started. When you know what you want to achieve it is much easier to work backwards. Once you have a final target in mind, the next step is to break it down. You should create a pricing strategy that balances how many clients you can work on and how much you need to charge per client to reach your goal. Don’t forget to include all costs such as tax and expenses - check out the last section to find out more!

If your final price is higher than what you are currently charging, this is your sign to change your prices. Be disciplined and firm with your clients. As time passes your skills will develop and your clients' needs may become more complex. This should be reflected in your prices.
Make sure to do some research around pricing to help you set a goal and why not talk to someone who can answer any questions you have by requesting a call back from Icon.

Focus on Higher Value Clients

It can be easy to take on low paying clients. When you first start contracting you might be eager to take any work that is available, but you must remember your pricing strategy. 

A useful tip is to figure out what your unique selling point is and present that to your clients when you are discussing the potential relationship you could have with them. This can help set you apart from your competitors and give you an advantage when negotiating a contract.

Employing contractors can be more efficient for a business than hiring a full time employee. They get to complete projects or tasks without the costs of an extra employee. This means they are more prepared to pay the higher price you charge and if they aren’t then the collaboration may not be suited to you. At Icon we can help you navigate these conversations and our renowned customer service team will give you all the information you need to make informed decisions when it comes to signing contracts.
 

Book Regular Long-term Clients

Long term clients will be the pillars of your business. They return to you for all their contracting needs and will be a recurring source of income.

Your long-term clients should be reflective of your goals since you will be investing your resources in their business. Over time as you begin to build a relationship with your clients, you will gain a better understanding of their business. This lets you provide a more valuable tailored service for them. Don’t forget to set a strong example with these clients by increasing your prices each time you renew your contract; the more value you provide, the more you should charge.

The relationship you build with these clients will be more beneficial than you think. With a strong business relationship there will be an increased likelihood of referrals to like minded businesses. This will give you the chance to expand your business by taking on more clients that will seek you out based on word of mouth.

Change Your Mindset

Charge your worth and don’t underestimate yourself. As a contractor you will rely on your own skills and experience. You are the only person who can quantify this. Don’t sell yourself short, be sure to charge a price that is reflective of the resources you will be using for each client.

Join a community so you are surrounded with likeminded people. At Icon accounting we pride ourselves on creating a space for contractors to come together. We hold in person events, webinars and send out monthly newsletters to keep you up to date!  Why not check out some more blog posts on our website too. They are full of helpful tips that can set you on the right path for contracting with success.

Optimize your Accounting and Reduce your Expenses

Outsourcing your accounting is the number one way to optimize your accounting. At Icon we pride ourselves on looking after contractors' accounting. You can benefit from our expertise and experience in wealth management.
As a contractor you can avail of extra tax credits on your income and can claim tax relief on business expenses.Why not try our tax calculator on our website to calculate your income.
 

If you are a professional that is interested in hearing more about the benefits of working as an Independent Professional in Ireland, please reach out to our team by emailing info@iconaccounting.ie or by calling 01-8077106.