I'm interested in becoming an Independent Contractor & would like the Pro's & Con's from those that are currently or have been in this position...

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I only work as an independent contractor because I want to call my own shots.  I see no con's because you are responsible for yourself and everything you do.

I would be happy to give you some insight into independent contracting!

 

Basically, you are in business for yourself when you are an independent contractor. You may rent space within a salon or spa or Dr.'s office, but you are running your own business within theirs. You are responsible for keeping all your records, for setting up your own equipment and space, providing your business materials (Brochures and business cards) and probably your own credit card machine etc. The beauty of this for those who are motivated to have their own business is that you control everything. You decide what your hours of work will be, and if you want to, you can mark yourself out for a day or two if you need a break. You make the decisions. In this situation you should be able to bring in and retail your own product line(s) which can make you a good chunk of change in addition to providing services.

 

Be sure that when you are looking for an independent contracting situation that the landlord or salon owner understands that you are not their employee. They do not provide you with a pay-check or take out taxes etc. As such you should have the freedom to come and go and run your business as you see fit. Unlike an employee situation where the owner of the space may want you to be at the place of business regardless of whether you have clients or not, this is up to you as an independent contractor. Occasionally you will find an owner of the space you are renting that starts to forget this, it is important to clearly set the boundaries with a solid contract and agreement at the time you sign for the space. Below is a sample contract from ASCP website. Be sure you are clear on who does the laundry, what you are comfortable with, with a clear understanding (especially if you're renting space in a salon) that clients are not owned by anyone. They have free will and though they may see many different professionals in this same space, no one owns them. I have seen this get a little sticky with IC's where when their contract is up, and they move on to another space, the owner of the salon is upset as the clients often follow the professional they have grown comfortable with and want to continue their professional relationship. Consider how you will handle this and talk openly with the owner of the space about non-compete clauses. If you sign a non-compete (which means you are not allowed to contact your clients if you leave for a specified period of time) consider that carefully. I personally would advise against a non-compete. This is often a red flag with potential problems with the owner of the space if they are requiring this. I have seen owners do this that have a high turn-over rate with their independent contractors and feel that they 'own' their spa or salon clients.  I could go on about this, let me know if you want more information on how to protect yourself.

 

https://www.ascpskincare.com/img/members/Forms/ASCPSampleServicesCo...

 

The down-side to being an independent contractor vs an employee is that you do not have a steady pay-check, and you will not have the benefit of health insurance. You are a small business owner in this regard and will have to find individual coverage if you are not covered by a spouse's health insurance. It can be a challenge to not know what you will be bringing in from one week to the next, but it can also be very motivating and exciting to throw yourself into your business and enjoy being passionate about your career.

 

I would suggest networking with both other estheticians who are IC's and business owners, as well as other small business owners. Networking groups are often free and it's a great source of encouragement and advice- networking with local business owners can only benefit you!

 

All my best!

Kirsten

 

 

Thank you soo much Kirsten. Very good information & helpful. Thanks for responding.

 

You're most welcome!

Do not become an Indepedant Contractor and sign a non-compete - the worst thing you could ever do to yourself. If you are spending/investing all the money on products, supplies, training, etc then you should AT LEAST be able to keep the clientelle you've worked so hard building.

Also just a suggestion: I would make sure you have enough money to buy everything you need without putting it on a credit card. Then I would make sure you have enough money in the bank to pay for all bills, food, lifestlye, etc. for at least 3 months - that's without getting a paycheck for those 3 months.

Just another thought... Make sure it is clear how advertising would be shared.  Some both rent salons and spas "chip in" on advertising.  While making your budget to start, add in plenty of advertising.  If people do not know where you are and what you do, they don't know to come!!  Networking groups are GREAT!!!!  They can get expensive and be an additional time investment.  I chose MasterMinds of Biz or M.O.B.  They are less expensive and more effective than most.  I wish you the best of luck in your decision!!!

Thank you soo much Tiffany. I am finding this to be so true in regards to the expenses for advertising. I'm so thankful I have different one's placed in my path that is willing to help & assist where they can in regards to my marketing & advertisements. Thank you again for your input really means alot.

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