Re: The BEST Things About Contracting

[N Kendall <k534 -at- EARTHLINK -dot- NET>]

> From: Katav <katav -at- yahoo -dot- com>
> Subject: Re: The BEST Things About Contracting
> ...I'd like to see you address (to the list)
> the "how to find jobs" issue...

Since I've been ask to address this to the list, here goes.

In the beginning, when I was looking for contract work, I first decided what
types of companies I thought could use my drafting expertise. Where I lived
at that time, there were a lot of small manufacturing and foundry companies.
I thought they might need someone to make drawings of their products. I sat
down with the telephone and the yellow pages and called every company (well
almost) in the yellow pages. I told them what I could do and ask if they had
any need for my services. I got a lot of "Nos", and learned I don't take
rejection well. But, I also got a few "Yes, we really need someone to make
some drawings."

For those companies that needed help, I set an appointment, met with them
and determined what they needed. When I promised a delivery date, I ALWAYS
kept that promise, even if it meant working 'til 4am, getting an hours
sleep, then starting a new day. Luckily I didn't have this scenario very
often! If a company wanted a job done by an impossible-to-meet date, I'd
tell them I could not do it in that length of time. However, I'd tell them,
I can have the work finished by XXX date. This usually worked.

After I gained more experience and education, I learned about "job shops".
In the begin, working with a job shop, I would take their word for what a
particular job paid. I was young and naive! I soon learned, as in any
industry, you have to do your "homework". Talk to other contract people.
Find out what they are being paid, if they will tell. Then, only believe
half of what they say! Average things out.

Read the salary surveys. Although these surveys are usually for direct
employees, it gives you a baseline from which to work. Most companies figure
the benefits they offer a direct employee are worth approximately 30% of the
employees salary. If you add 30% to the salary surveys, you have an estimate
of what a contractor should be making. I always like to gather salary/rate
info from a variety of sources then average them. Here's some URLs that may
help in your research:

  http://www.cedaily.com
  http://www.realrates.com/survey.htm
  http://www.homefair.com/homefair/cmr/salcalc.html
  http://policyworks.gov/org/main/mt/homepage/mtt/perdiem/travel.shtml

Don't assume "the shop" is making a fortune on your blood, sweat, and tears.
Most of them don't. The majority of shops charge an 18% to 35% markup above
what you are being paid. Very few charge higher than 35%, although there are
some. The last time I check, overhead costs for a shop ran about 17 1/2 to
18%. A shop that has an 18% markup is barely making a profit. Why so low a
markup? Often times this is what it takes to get them on that "qualified
suppliers list". I learned this the hard way. I few years ago, I missed
getting on "the list" by half a percentage! Oh well, live and learn. More
homework!

Something that I see happening the last few years that I don't like, is
large companies (Honeywell, Fujitsu, etc.) designating one shop to "oversee"
all other shops. With Honeywell, it's Manpower. You can work for a shop
other than Manpower, but then you have TWO shop overheads (plus profits) to
contend with. I don't like the direction this is going. What to do about it?
I'm not sure. First of all, so far I haven't been hungry enough to work for
Manpower. Second, I've started my own corporation. Why a corp? Most
companies see a corp as being more stable than a sole proprietorship. With a
corporation (or a sole proprietorship for that matter), I have as much right
to bid on contracts with the large companies as anyone else.

Most of the large company's out-sourcing contracts come up for bid once a
year. If there is a specific company you are interested in, write them a
letter, ask when their contract is up for bid. Do your homework. Place a
bid. Throw the dice. You might win. Then your work really begins!

If you don't want to go to the trouble of starting your own business and
bidding on contracts, then get the yellow pages out and call the job shops
that are listed. Talk to them. Ask them questions. Determine for yourself
whether you can trust them or not. I've worked for the big ones as well as
some small ones. I usually prefer the large "professional" shops.
TechniSource is one of my favorites. My experience with them was good.
That's not to say everyone would have the same experience.

Another thing about shops, send you resume to each and every one in the
book. Don't sign any "exclusive" agreements unless there is no other choice.
Make sure the shop is talking "real live currently available job" before you
sign anything. Chances are, other shops have the same requisition and might
be on better terms with the company. If a company has 10 contractors from
XYZ shop, and none with the shop you have a signed agreement with, the
company will probably choose a contractor from the shop with which they are
already dealing. Less hassle for them.

In addition to specific shops, list your resume with some of the online
resume retrieval databases. Here are two that I use:

   http://www.ceweekly.com
   http://www.net-temps.com

CE Weekly charges a small fee but they offer a lot of services for
contractors. Net-Temps is free but you have to "renew" your resume every 30
days or else it is deleted. Recently, I've gotten more job offers through
Net-Temps, but the services offered by CE Weekly keep me a subscriber.

I hope the above info helps.

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Nancy Kendall
Sr Documentation Analyst and Owner
Kendall Custom Documentation
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