Independent IT Contracting?

airspirit · 06-05-2003, 04:33 PM

I've decided it is probably time to cut the strings from the companies I'm working for and become an independent contractor. I'd be providing the following services to 3-4 retail stores:

Web site construction/hosting/maint.
Network management/maint.
Computer construction/repair/configuration
Database design/maint/backup/recovery
Custom business programming

I'm going to try to charge in the neighborhood of around $850-900 per month (plus any necessary part costs and whatnot if I'm doing repairs or network installs) for those basic services (much of which can be done from home) while remaining on call for emergency services. I figure I could do pretty well with this, and if I don't have enough business (dropped contract, in between contracts, etc) I would just get a part time job for the evenings or something.

What are your guys' impressions of this kind of work? I'm tired of not being able to choose the hours I devote to each task at the two primary places I'm maintaining now, not to mention the assorted BS that gets piled on my duties when I have downtime that I'm not really getting paid to do. Is this a good idea in your opinion, or am I setting myself up to get screwed? I currently am pulling about $2500 a month home now and I realize I'll probably be doing the same if I do this, but I really am looking for a bit more flexability in my work along with an emphasis on what I'm supposed to be doing rather than the other crap that is just getting piled on my shoulders. In the end my hours will be a bit less, and I think it would be more enjoyable. Do you guys have any ideas or recommendations?

Puzzdre · 06-05-2003, 05:48 PM

I dunno the situation in the US, but think that one thing is the same everywhere: you'll be more satisfied being your own boss, and even in the beginning less money will come for more work, it's worth it. You choose the timing, working hours and ofcourse, the cost. I'm almost always available for couple of small companies here (mainly computer repairing and maintenance), and they really appreciate it. The job is more enjoyable, less stressful and if you do the job right (I'm sure you do), everybody is happy. You won't be a gazillionaire, but you'll be satisfied, more calm and you'll have the choice of choosing the free time to mess up with the watercooling

.

I'd say go for it.

my .02

bigben2k · 06-05-2003, 06:02 PM

I'd do it.

The key is establishing yourself, and keeping the new customers coming.

Financially, you have to keep a sharp eye on the amount of cash handy you have: it's the first thing that sinks a company.

iroc409 · 06-05-2003, 11:58 PM

yeah, establishing yourself can be the hard part

i do freelance web design and stuff, and it's getting better, but admittedly kinda slow. my main problem is i've been to busy to finish my portfolio site, and i have a few other projects of my own that are taking up a lot of my time, so that kinda hurts.

but, if you're good at what you do (which i imagine you are), you can make a pretty good dent in the world

airspirit · 06-06-2003, 09:40 AM

Since I'm already doing this work for two local companies, it wouldn't be hard to get a couple more companies on board if I can keep it cheap ... especially since they are probably already spending a small fortune to keep their IT stuff afloat.

As far as fund management, I already have the hardware and infrastructure to do the work, and I have a lead on someone who can do web hosting for me (in business for YEARS) for cheap, so there won't be much in the way of expenses, and in the contract I will just stipulate that any part needs will be paid upfront before the repair is done so I don't get stuck holding myself, so to speak.

KnightElite · 06-06-2003, 11:40 AM

Sounds like you've got a good business plan airspirit. Hope it works out for you

.

utabintarbo · 06-06-2003, 12:45 PM

Quote:

Originally posted by airspirit
...

As far as fund management, I already have the hardware and infrastructure to do the work, and I have a lead on someone who can do web hosting for me (in business for YEARS) for cheap, so there won't be much in the way of expenses, and in the contract I will just stipulate that any part needs will be paid upfront before the repair is done so I don't get stuck holding myself, so to speak.

Having done this for a few years "on the side", this pre-payment thing will tend to paint you as a "low-end" player. This will tend to limit your market to those who either know you (friends & family types), or those who can't get anyone else to do it. The second type usually become billing problems. Wait until you are adequately capitalized.

Just my $0.02.

Bob

airspirit · 06-06-2003, 01:00 PM

The odds of having to buy parts is very rare, and only in the case of system breakdown (when the part is immediately needed) or if they want a new system/network branch. I'll be working primarily with auto dealerships who are accustomed to paying up front for these kind of parts rather than billing for them. In any case, however, it would normally be less than a couple hundred a month assuming a lot of failures and if push came to shove I could cover that. Besides, in the case of an independent contractor on a revolving contract, if I invest in their business by using parts that I bought (even if they are going to pay me back) it could be construed that I am more of an employee than a contractor under Idaho contractor laws. If I end up having to be classified by the company as an employee then I will price myself out of the business.

Besides, nobody in the area allows for billing on IT repairs/installations except for one ISP that allows it if they have a service contract with you. The other two sources require up-front payment ... and unless you want to pay $40+/hr extra on top of the repairs, they require you to bring in the machine to be repaired. Field work in this area is a rip-off.

By having my contract on retainer and being immediately on-call for technical services, I would have an edge over the others. Since I will keep my business with only a few select clients, I won't risk being pressured out of the market by the "big dogs" either.

airspirit · 06-09-2003, 10:23 PM

Okay, here is the fee schedule I'm envisioning:

Web development/hosting: 100-300/mo depending on size/complexity. All photography will be done by me. Site updates will be more than weekly.

Data backup/storage: 50-100/mo. I have about 500GB available for this, so I should be cool. The less I worry about and the fewer the backups, the cheaper it is. I'll pick up a portable 200GB unit for ease of data mobility (no FTP bullshiz).

Data entry: negot. calc'd by $15/hr estimated ($10/hr in real situations, in other words)

Database design/maintenance: 100-200/mo depending on amount and complexity

PC maintenance/repair/tshooting/network crap: 200-400/mo depending on num/machines and complx of network. 100/PC built will be added (on top of part cost) and part cost for repairs would be added. This covers one on-site repair from the local guys, so its a pretty good deal for them. I'm on call.

For a medium dealer that just wants a webmaster for a decent site, some minor database design, PC coverage, backups, and NO data entry, I'll be netting around $600/mo for around 20-40 hrs/mo. I figure that's one hell of a deal to have a pro on-call from 8-7 M-Sat. What do you guys think? That sound reasonable? I figure with this scale I'll be averaging around 700/client, and I should be able to reasonably support five clients (around 110-180 hrs/mo). Most of my work will be done at home freeing me to work with more clients simultaneously.

airspirit · 06-09-2003, 10:25 PM

BTW, I think I already have three locations committed, and another one is strongly considering it. I still haven't hit the big-daddy store down the hill (over $1K for basic services due to it's size ... if I get it I won't do as many other stores because of the time investment).

06-05-2003, 04:33 PM	#1
airspirit Been /.'d... have you? Join Date: Jul 2002 Location: Moscow, ID Posts: 1,986	Independent IT Contracting? I've decided it is probably time to cut the strings from the companies I'm working for and become an independent contractor. I'd be providing the following services to 3-4 retail stores: Web site construction/hosting/maint. Network management/maint. Computer construction/repair/configuration Database design/maint/backup/recovery Custom business programming I'm going to try to charge in the neighborhood of around $850-900 per month (plus any necessary part costs and whatnot if I'm doing repairs or network installs) for those basic services (much of which can be done from home) while remaining on call for emergency services. I figure I could do pretty well with this, and if I don't have enough business (dropped contract, in between contracts, etc) I would just get a part time job for the evenings or something. What are your guys' impressions of this kind of work? I'm tired of not being able to choose the hours I devote to each task at the two primary places I'm maintaining now, not to mention the assorted BS that gets piled on my duties when I have downtime that I'm not really getting paid to do. Is this a good idea in your opinion, or am I setting myself up to get screwed? I currently am pulling about $2500 a month home now and I realize I'll probably be doing the same if I do this, but I really am looking for a bit more flexability in my work along with an emphasis on what I'm supposed to be doing rather than the other crap that is just getting piled on my shoulders. In the end my hours will be a bit less, and I think it would be more enjoyable. Do you guys have any ideas or recommendations? __________________ #!/bin/sh {who;} {last;} {pause;} {grep;} {touch;} {unzip;} mount /dev/girl -t {wet;} {fsck;} {fsck;} {fsck;} {fsck;} echo yes yes yes {yes;} umount {/dev/girl;zip;} rm -rf {wet.spot;} {sleep;} finger: permission denied

06-05-2003, 05:48 PM	#2
Puzzdre Cooling Savant Join Date: Aug 2002 Location: Croatia Posts: 969	I dunno the situation in the US, but think that one thing is the same everywhere: you'll be more satisfied being your own boss, and even in the beginning less money will come for more work, it's worth it. You choose the timing, working hours and ofcourse, the cost. I'm almost always available for couple of small companies here (mainly computer repairing and maintenance), and they really appreciate it. The job is more enjoyable, less stressful and if you do the job right (I'm sure you do), everybody is happy. You won't be a gazillionaire, but you'll be satisfied, more calm and you'll have the choice of choosing the free time to mess up with the watercooling . I'd say go for it. my .02 __________________ 'Out of cheese error... ...please reboot the universe (press the GBL to continue)'

06-05-2003, 06:02 PM	#3
bigben2k Responsible for 2% of all the posts here. Join Date: May 2002 Location: Texas, U.S.A. Posts: 8,302	I'd do it. The key is establishing yourself, and keeping the new customers coming. Financially, you have to keep a sharp eye on the amount of cash handy you have: it's the first thing that sinks a company. __________________ WBTA (Water Block Testing Alliance) Nordic Hardware WC 101

06-05-2003, 11:58 PM	#4
iroc409 Cooling Savant Join Date: Oct 2002 Location: midwest side, yo Posts: 596	yeah, establishing yourself can be the hard part i do freelance web design and stuff, and it's getting better, but admittedly kinda slow. my main problem is i've been to busy to finish my portfolio site, and i have a few other projects of my own that are taking up a lot of my time, so that kinda hurts. but, if you're good at what you do (which i imagine you are), you can make a pretty good dent in the world __________________ :shrug:

06-06-2003, 09:40 AM	#5
airspirit Been /.'d... have you? Join Date: Jul 2002 Location: Moscow, ID Posts: 1,986	Since I'm already doing this work for two local companies, it wouldn't be hard to get a couple more companies on board if I can keep it cheap ... especially since they are probably already spending a small fortune to keep their IT stuff afloat. As far as fund management, I already have the hardware and infrastructure to do the work, and I have a lead on someone who can do web hosting for me (in business for YEARS) for cheap, so there won't be much in the way of expenses, and in the contract I will just stipulate that any part needs will be paid upfront before the repair is done so I don't get stuck holding myself, so to speak. __________________ #!/bin/sh {who;} {last;} {pause;} {grep;} {touch;} {unzip;} mount /dev/girl -t {wet;} {fsck;} {fsck;} {fsck;} {fsck;} echo yes yes yes {yes;} umount {/dev/girl;zip;} rm -rf {wet.spot;} {sleep;} finger: permission denied

06-06-2003, 11:40 AM	#6
KnightElite Cooling Savant Join Date: Sep 2002 Location: Saskatoon, Saskatchewan Posts: 294	Sounds like you've got a good business plan airspirit. Hope it works out for you . __________________ Can anyone else here say that they have a watercooled monster that's 45" tall?

06-06-2003, 01:00 PM	#8
airspirit Been /.'d... have you? Join Date: Jul 2002 Location: Moscow, ID Posts: 1,986	The odds of having to buy parts is very rare, and only in the case of system breakdown (when the part is immediately needed) or if they want a new system/network branch. I'll be working primarily with auto dealerships who are accustomed to paying up front for these kind of parts rather than billing for them. In any case, however, it would normally be less than a couple hundred a month assuming a lot of failures and if push came to shove I could cover that. Besides, in the case of an independent contractor on a revolving contract, if I invest in their business by using parts that I bought (even if they are going to pay me back) it could be construed that I am more of an employee than a contractor under Idaho contractor laws. If I end up having to be classified by the company as an employee then I will price myself out of the business. Besides, nobody in the area allows for billing on IT repairs/installations except for one ISP that allows it if they have a service contract with you. The other two sources require up-front payment ... and unless you want to pay $40+/hr extra on top of the repairs, they require you to bring in the machine to be repaired. Field work in this area is a rip-off. By having my contract on retainer and being immediately on-call for technical services, I would have an edge over the others. Since I will keep my business with only a few select clients, I won't risk being pressured out of the market by the "big dogs" either. __________________ #!/bin/sh {who;} {last;} {pause;} {grep;} {touch;} {unzip;} mount /dev/girl -t {wet;} {fsck;} {fsck;} {fsck;} {fsck;} echo yes yes yes {yes;} umount {/dev/girl;zip;} rm -rf {wet.spot;} {sleep;} finger: permission denied

06-09-2003, 10:23 PM	#9
airspirit Been /.'d... have you? Join Date: Jul 2002 Location: Moscow, ID Posts: 1,986	Okay, here is the fee schedule I'm envisioning: Web development/hosting: 100-300/mo depending on size/complexity. All photography will be done by me. Site updates will be more than weekly. Data backup/storage: 50-100/mo. I have about 500GB available for this, so I should be cool. The less I worry about and the fewer the backups, the cheaper it is. I'll pick up a portable 200GB unit for ease of data mobility (no FTP bullshiz). Data entry: negot. calc'd by $15/hr estimated ($10/hr in real situations, in other words) Database design/maintenance: 100-200/mo depending on amount and complexity PC maintenance/repair/tshooting/network crap: 200-400/mo depending on num/machines and complx of network. 100/PC built will be added (on top of part cost) and part cost for repairs would be added. This covers one on-site repair from the local guys, so its a pretty good deal for them. I'm on call. For a medium dealer that just wants a webmaster for a decent site, some minor database design, PC coverage, backups, and NO data entry, I'll be netting around $600/mo for around 20-40 hrs/mo. I figure that's one hell of a deal to have a pro on-call from 8-7 M-Sat. What do you guys think? That sound reasonable? I figure with this scale I'll be averaging around 700/client, and I should be able to reasonably support five clients (around 110-180 hrs/mo). Most of my work will be done at home freeing me to work with more clients simultaneously. __________________ #!/bin/sh {who;} {last;} {pause;} {grep;} {touch;} {unzip;} mount /dev/girl -t {wet;} {fsck;} {fsck;} {fsck;} {fsck;} echo yes yes yes {yes;} umount {/dev/girl;zip;} rm -rf {wet.spot;} {sleep;} finger: permission denied

06-09-2003, 10:25 PM	#10
airspirit Been /.'d... have you? Join Date: Jul 2002 Location: Moscow, ID Posts: 1,986	BTW, I think I already have three locations committed, and another one is strongly considering it. I still haven't hit the big-daddy store down the hill (over $1K for basic services due to it's size ... if I get it I won't do as many other stores because of the time investment). __________________ #!/bin/sh {who;} {last;} {pause;} {grep;} {touch;} {unzip;} mount /dev/girl -t {wet;} {fsck;} {fsck;} {fsck;} {fsck;} echo yes yes yes {yes;} umount {/dev/girl;zip;} rm -rf {wet.spot;} {sleep;} finger: permission denied

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