THE PAY IS TOO DAMN LOW

[haele]

30. Problem with independent contracting is retaining work.

It's a good gig if you can sustain it, but similar to management jobs, there's only so much sustainable independent contractor work.
And if you aren't a niche specialist, there's always someone trying to break into the business who will undercut you and get your customers - no matter how good your reputation and work is.
Without a serious cushion for the first few years (successful working spouse or savings in the upper five to six figure at least), you can end up pawning your tools just to keep the lights on or feed your kids between jobs.

I've known too many technical/engineering contractors that have, after five or ten years of chasing contracts, had to either throw in the towel and get into more secure work.
Most either take a job at an established corporation for lower wages or get together and try to incorporate to protect themselves and get the capital investments to keep going over the lean times. (Small businesses that start like this have their own pitfalls and from experiance, usually ends up with the business becoming a subsidiary/subcontractor to a bigger corporation that suckes the profits off the top, or in bankruptcy to all partners, because one of the partners is stupid with money and uses the company as an ATM).

But again, if you can survive long enough to make a consistant living off independent contracting, great.

I couldn't, similar to most people who get into contracting go in with the usual little financial cushion (on average starting with $5K - $20K savings, equity loan, or gift; and if lucky, an established customer base, vehicle, and tool collection).
Sadly for most contractors, for the first few years, contracting income is the same (or less) than hobby jobs; pretty much just a bit more than it takes to cover the expenses one has just getting and doing the work.
Not everyone has the talent or temprement to last that period out and build a stronger base or take the financial hits.

So for those many people who need to have consistancy in life; to pay bills, put a roof over the head, food on the table, and raise kids, and "grow the economy&quot as it were), there needs to be a significant number of reliable jobs with steady wages that are compensitory for the skills and labor these people are giving the employer in trade for those wages.

Haele