5 Ways to Make Your Transition to Self-Employment Easier

Most people regularly dream about quitting their jobs and becoming their own bosses. For CSLS graduates, that dream is often realized quickly after graduation.

But, even though running your own company can be a wonderful step forward, making the transition isn’t always as simple as new contractors would like to think. All of a sudden, there are new tasks and responsibilities to deal with – not to mention challenges that are difficult to anticipate.

The key to starting off on the right foot and making a smooth transition to self-employment is to follow a few simple guidelines. Here are five that we can give you from our own personal experience:

1. Don’t necessarily move into self-employment all at once. There is no law that says you have to quit your old job immediately and move into contracting all at once. In fact, it’s often easier to make the transition in stages while you’re still earning a paycheck every two weeks.

2. Keep the right relationships. Likewise, it might be tempting to tell your boss to “get lost,” but that’s rarely a good idea. Many of our graduates get their first contracting projects from previous employers, and you might, too. Besides, it’s always a good idea to know peers in the industry.

3. Save some money before leaving your job. This is important, because you don’t want to be short of money as you begin life as a licensed contractor. Otherwise, you won’t just be stressed out, but might be tempted to cut corners so you can finish projects quickly, or well under-budget.

4. Remember that your construction work is only about half of your total work. Once you set out on your own as a licensed contractor, you’re responsible for marketing, bookkeeping, scheduling, and lots of other small activities, in addition to your construction work.

5. Try not to take too many jobs at once in the beginning. Most new contractors find that it takes them a little while to settle into a rhythm. With that in mind, you might want to schedule more time than you think you’ll need for the first five or ten projects.

Becoming a self-employed, licensed contractor can move from being a dream to an incredible burden very quickly. But, if you follow these steps and keep these tips in mind, you can make sure the transition goes as smoothly as possible.

If it’s time to take the next step in your career, click here to see our list of upcoming CSLS courses for California construction professionals.