8 Ways to Set Yourself up for Success as an Independent Professional

The world may be a very different place to where we began in 2020, however, there are some things that remain the same, regardless of any external forces.

Unfortunately for many, Covid-19 has forced us to revaluate plans, find new employment opportunities and align themselves to what is being called ‘the new normal’.

One consistent factor of any economic downturn is the success of start-ups that rise like a phoenix from the ashes.

WhatsApp, Groupon, Slack, and Uber all share a similar story, they were formed during financial downturns, where funding was near impossible and optimism levels were deflated. Even more impressive than that, their founders all shared the common belief that it was possible for a recession to serve as a launchpad for global success.

The below outlines 8 steps to overcome before making the leap into self-sufficiency.

Talk to your Significant Other/Family

A career change can have a major impact on your partner, if you are the main breadwinner, you are putting the family’s income at risk.

If you are not the sole breadwinner, do not underestimate how your transition will impact you and your partner whether it be through finances or upsetting the smaller things such as a routine of household jobs.

Communicating your desires and goals will help to analyse the pros and cons of the transition, but without support from your partner or family, it will be a stressful decision and transition.

Identify your future Client

If you aim for everything, you hit nothing. The same principle applies when you are starting as an independent professional.

You should be able to answer the below questions about the people you will solve problems for:

- What industry are they in?

- What is their income level?

- Why do they want these problems solved?

- How will you make their lives better?

- Who so they currently look to for help on these problems?

Expertise SELLS but Confidence TELLS

Confidence signals expertise and expertise is what you will be selling when you quit your job to take on your own clients.

Confidence is not always easy to build and maintain in the wild, probably has something to do with the fact that your livelihood is dependent on getting prospects to say yes.

Don’t’ wait until you quit to start feeling and acting like an expert, use your job to start feeling like an expert using some of the tactics below:

- Speak up in team meetings

- Hold meetings and teach others

- Pitch internal improvements that your department could do better

- Email your department to recommend blogs/articles/podcasts and books

Do Favours

When you leave, you want to leave in such a way that your old employers still respect and value you. If you are going to do the same work, just as an independent professional, you really want your old employer to think well of you, they could become a source of referrals for ever and beyond.

Here is where to start:

- Take responsibilities away from your boss, if your expertise or skills can cover a problem hanging over them.

- Make your co-workers look good – they could be clients one day!

- Pitch new ideas to executive decision makers.

- Do a favour for third party organisations, this will help to build up the network of contacts that you will require to succeed.

- Sometimes a favour can be double edged, it may be doing someone else a favour, but it is also something you can use as an example in a portfolio of previous work

Winner Mentality

The last thing you want to do is start a new venture with ‘zero wins’ under your belt. In order to close a prospect, you need to be able to demonstrate that you can solve the problems the prospect is struggling to solve.

Here is how you can build your pitch:

- Make a list of projects that you know performed well

- Make a list of projects where you exceeded expectations

- Collate the final results of these projects

- Sort them into a Portfolio of Wins

Take on more projects and repeat

Start on the Side

Even with an impressive portfolio, a range of contacts and impressive skills, it will take some time to get to a point where you are making serious money or have fully replaced the old salary.

The amount of time you must get over the hill is dependent on your other sources of income.

Keeping your job until you have built up the side business that is an adequate source of income not only takes away the pressure of ‘must succeed, cannot fail’ and instead gives you a chance to grow your confidence whilst having a guaranteed income to fall back on.

Here is how to get your second source of income off the ground:

- Make a simple and basic website – Fiverr, Wix and many other platforms available to outsource or learn as you build

- Talk about your expertise on social media – share articles, answer questions and always remain active on LinkedIn

- Ask your friends for questions, then blog the answers

- Make a list of prospects and pitch them until they buy from you

Observe the Market

Find out what kind of jobs go to the independent professionals in your industry. The more you understand what roles may come up, the more you can position yourself correctly in terms of expertise and also price.

Research competitors and ask colleagues who their favourite suppliers are, patterns will emerge leaving a clear and concise path destined for success.

Plan your First 3 Months

Jumping ship without a solid plan is a race to the bottom and more frustrating than anything else, you are letting yourself down.

You may succeed without a plan, but you will be one of the very few that successfully gamble on the mercy of luck and fortune. In this scenario, you will be forced to go wherever the wind takes you and that may not be a very exciting destination.

You do not have to write an overly formal business plan, but you should at the very minimum complete the below checklist:

- Speak to a preferred provider regarding set-up, compliance and responsibilities as an independent professional. They may even be able to provide some calculations or even break-even points.

- Have work lined up, real billable work.

- Have a plan to get more work – a list of 50+ prospects and an engagement plan.

- A schedule

- Time management will become more important than ever before, make a schedule and stick to it.

Starting something new can be both daunting and exciting and 90% of the time, the emotion felt matches the preparation invested.

Nobody thinks they are going to fail when they first start but by strategically planning ahead of time, you can set yourself up for success when you make the leap.

If you are considering a career change whether it be through the spectrum of an independent professional or a start-up SME, reach out to us. We are always happy to help – info@iconaccounting.ie

Breaking into a Bank doesn't require a Drill or Sledgehammer Anymore

 “A Ukrainian computer “genius” masterminded a plot to steal more than €1 billion by hacking into banks and ordering cash machines to spew out notes.  Named only as Denis K, the man who was arrested on March 6th, is said to have devised malware used by a gang to attack financial institutions in more than 40 countries”

The Covid-19 era has given criminals ample opportunity to ply their trade, here are a sample of some common scams.

The criminals behind these bogus schemes view everyone as potentially easy prey and everyone should be on guard.

- Phishing

Potential fake emails or websites looking to steal personal information. Criminal Investigation has seen a tremendous increase in phishing schemes utilising emails, letters, texts, and links. These phishing schemes are using keywords such as “coronavirus,” “COVID-19” and “Stimulus” in various ways.

These schemes are blasted to large numbers of people to get personal identifying information or financial account information, including account numbers and passwords. Most of these new schemes are actively playing on the fear and unknown of the virus and the stimulus payments.

Do not click on links claiming to be from the Revenue and be very wary of emails and websites as they may be nothing more than scams to steal personal information. As a reminder, the IRS will never initiate contact with taxpayers via email about a tax bill, refund or Economic Impact Payments.

- Fake Charities

Criminals frequently exploit natural disasters and other situations such as the current COVID-19 pandemic by setting up fake charities to steal from well-intentioned people trying to help in times of need. Fake charity scams generally rise during disaster times like these.

Fraudulent schemes normally start with unsolicited contact by telephone, text, social media, e-mail, or in-person using a variety of tactics. Bogus websites use names similar to legitimate charities to trick people to send money or provide personal financial information.

Be particularly wary of charities with names like nationally known organizations.

- Threatening Impersonator Phone Calls

Revenue Official impersonation scams come in many forms such as receiving threatening phone calls from a criminal claiming to be with Revenue where the scammer attempts to instil fear and urgency in the potential victim. These types of phone scams or “vishing” (voice phishing) pose a major threat. Scam phone calls, including those threatening arrest if the victim doesn't pay a bogus tax bill.

The fact is, Revenue will never threaten a taxpayer or surprise him or her with a demand for immediate payment. Nor will it threaten, ask for financial information over the phone, or call about an unexpected refund or Economic Impact Payment. Taxpayers should contact the real Revenue or consult a tax and accounting professional if they are worried there is a tax problem.

- Social Media Scams

Social media enables anyone to share information with anyone else on the Internet. Scammers use that information as ammunition for a wide variety of scams. As such, taxpayers need to protect themselves against social media scams, which frequently use events like COVID-19 to try tricking people. These methods of trickery include emails where scammers impersonate someone's family, friends, or co-workers.

Social media scams have also led to tax-related identity theft. The basic element of social media scams is convincing a potential victim that he or she is dealing with a person close to them that they trust via email, text or social media messaging.

Using personal information, a scammer may email a potential victim and include a link to something of interest to the recipient which contains malware intended to commit more crimes. Scammers also infiltrate their victim's emails and cell phones to go after their friends and family with fake emails that appear to be real and text messages soliciting, for example, small donations to fake charities that are appealing to the victims.

- Senior Citizen Fraud

Seniors are more likely to be targeted and victimized by scammers than other segments of society and fraud. Financial abuse of seniors is a problem among personal and professional relationships but seems to be less of a problem when the service provider knows that a trusted friend or family member is keeping an eye out and taking an interest in the senior's affairs.

- Invoice Redirect Fraud

A finance team employee received an email from one of their creditors notifying them of a new account number for payment.

Invoice redirection fraud occurs when a business receives a fraudulent email claiming to be from an existing supplier, advising of new bank details for payment. They might not necessarily request a specific payment at the time of the notification, but the next legitimate payment will be made to the fraudsters account.

Fraudsters will even go as far as to changing the telephone number of the invoice, so to verify any change, please speak with a known team member of the supplier.

- Ransomware

Ransomware is malware targeting human and technical weaknesses to infect a potential victim's computer, network, or server and is a rapidly growing cybercrime. It doesn't just affect individuals either. Recently, Garmin was the victim of a ransomware attack and asked to pay $10 million in “ransom” to restore its systems.

Malware is a form of invasive software that is often frequently inadvertently downloaded by the user. Once downloaded, it tracks keystrokes and other computer activity. Once infected, ransomware looks for and locks critical or sensitive data with its encryption. In some cases, entire computer networks can be adversely impacted.

Victims generally aren't aware of the attack until they try to access their data, or they receive a ransom request in the form of a pop-up window. These criminals don't want to be traced so they frequently use anonymous messaging platforms and demand payment in virtual currency such as Bitcoin.

Cybercriminals might use a phishing email to trick a potential victim into opening a link or attachment containing the ransomware. These may include email solicitations to support a fake COVID-19 charity. Cybercriminals also look for system vulnerabilities where human error is not needed to deliver their malware.

Take Action

Speed is the Key element in dealing with any scam, if you think you have been a victim of fraud, contact your bank, IT provider and then the Garda National Cyber Crime Bureau (GNCCB).

 

https://www.wired.co.uk/article/carbanak-gang-malware-arrest-cybercrime-bank-robbery-statistics

Accountancy services in Dublin - With over a decade of experience, we work hand in hand with Recruitment Agencies throughout Ireland and the UK to provide a seamless experience for Limited Company Contractors. Our mission is to provide the best Accountancy services in dublin, Ireland & most efficient contractor support through a professional and friendly service.

Lockdown Upskilling - Tax Relief on Training Courses

 Take advantage of tax relief for training course as a day-to-day business expense. 

Allowable Training Courses

Tax relief claimed on training courses which are required for a specific contract. 

All training courses must be carried out within the timeframe of the contract and demonstrated as a direct requirement for the contract.

Should you wish to undertake a training course and can show that it is relevant for your contract you will be able to claim tax relief at up to 52% through your limited company.

Supporting Information Required:  

Receipts must be made out in name of the Limited Company & completed the pre-approval form submitted.

In the event of a Revenue enquiry you must be able to show how the course was a relevant business expense for your limited company. 

Non-Allowable Training

Long term educational courses including Diploma/ Degree/Masters.

Courses which exceed the duration of an assigned contract.

Personal Educational or Training courses that are related to your line of work.

Other Courses 

Certain education courses may be claimed through your personal tax return as a tax credit at 20%

Should you requrie more information please don't hesitate to get in touch by email at info@iconaccounting.ie or call 01 8077106.

Accountancy services in Ireland - With over a decade of experience, we work hand in hand with Recruitment Agencies throughout Ireland and the UK to provide a seamless experience for Limited Company Contractors. Our mission is to provide the best Accountancy services in dublin, Ireland & most efficient contractor support through a professional and friendly service. 

Why Contractors Earn More - Icon Accounting

For over a decade, independent professionals have played a hugely important role in driving economic performance. 

Highly skilled independent professionals earn more than twice the earnings of equivalent employees according to Andrew Burke, Dean of Trinity Business School.

In the comprehensive study completed by Andrew Burke, he examines the role of an independent professional and the growth of the project-based economy.

Below, I examine why contractors earn more than the traditional PAYE worker.

Higher Rate of Pay

As an independent professional, you are typically only paid for the days and hours that you physically work, your daily rate of pay is reflected as a result of this to account for holidays and bank holidays.

It is worth noting that contractors are paid in lieu of the value they bring to an organisation, they are not overpaid. Independent professionals require very little overheads if any, often require no training and always hit the ground running.

Contractor’s bet on themselves, and there is a certain element of risk to navigate through.

We always advise that if you are contemplating making a switch in your career to contracting, calculate your target rate of pay as an independent professional first - include a premium of 20% on top of your current salary, in line with the industry standard.

You can use our Online Calculator to calculate your recommended rate of pay, or get in touch directly – we’ll be happy to do the calculations on your behalf, we’ll even provide sample payslips.

Tax Efficiency

You are not limited to paying Class S PRSI contributions if you decide to go contracting, however, those that do set-up under a Director Umbrella solution or a PLC, benefit from a reduced PRSI contribution of 4%. This is a substantial saving when compared to the PAYE solution which includes contributions to Class A PRSI (11.05%).

There are numerous other avenues that you should be taking advantage of if you are contracting long term, including but not limited to, making contributions to an executive pension.

As a Director of an Umbrella company or your own PLC, you can claim full tax relief on these pension contributions, making it an extremely efficient way of retaining more of that higher rate of pay!

Expenses

Contractors have the ability to claim business expenses. There is tax relief applied to these allowable expenses which gives the independent professional another opportunity to maximise their income.

The most common expenses include general equipment that may be required for your role, relocation expenses, training and up-skilling costs and mobile and internet costs. You can check our YouTube channel for more details around claiming expenses.

If you are a client of Icon Accounting, your dedicated Account Manager will proactively ensure that you are expensing any business costs that are allowable.

The Role of a Contractor

The rise of the independent professionals in Ireland has been evident since the last economic downturn in 2008. The primary reason for the rise in popularity is the mitigation of risk for the hiring company while accessing a specific skill set that is required. Contractors are experts in their field, constantly evolving and learning new skills but as mentioned previously, require little if any training or management and are focused on completed a project from the day they first engage.

According to Andrew Burke, contractors play a pivotal role in economic growth and create more employment opportunities within an organisation.

As a result of the uncertainty looming in the global economy, more and more businesses from more industries than ever before are now examining the advantages and options of hiring independent professionals, which means demand for independent professionals is set to surge.

When times get tough economically, contractors excel, picking up new skills and knowledge along the way as organisations adjust and adapt to their environment.

Shoudl you have any questions on what it takes to start contracting, consider reading our blog piece for First Time Contractors or get in touch directly – info@iconaccounting.ie or 01-8077106. 

Icon accounting is one of the top Accountancy firms in Ireland & Accountants in Ireland visit now!