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How to Be a Successful Contractor

In today's booming technology market, skilled technical writers are 
commanding higher hourly rates that far exceed salaried rates. As a
result, 
many technical communicators are trading in their salaried positions for
the 
consultant's marketplace. If you can ditch your dubious salaried
benefits in 
favor of lucrative contract jobs, why not?

For the next two issues, we're examining the world of independent 
contracting. We'll fill you in on the essential skills, resources and 
strategies for competing in the contract marketplace and point you
toward 
great resources for improving your skill set. We'll share secrets for 
staying ahead of the game even when your current contract leaves you on
the 
skill-set bench. This month's issue introduces you to independent 
contracting and provides an overview of the enormous benefits of
declaring 
your independence.

http://www.sonic.net/ghirsch/wdt35/index05.htm

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<TD HEIGHT="15" BGCOLOR="#000000"><IMG SRC="space.gif" HEIGHT=15 WIDTH=2><B><FONT FACE="Verdana"><FONT COLOR="#FFCC00"><FONT SIZE=+2>WinHelp
Development Today 
<HR ALIGN=LEFT NOSHADE WIDTH="100%"></FONT><FONT SIZE=-1>Issue 35 - July
1998</FONT></FONT></FONT></B></TD>
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<DL>
<P><!-- start main headline --><A HREF="index.htm"><IMG SRC="setaback.gif" BORDER=0 HEIGHT=17 WIDTH=11></A><B><FONT FACE="Verdana"><FONT SIZE=+1>&nbsp;How
to Be a Successful Contractor<BR>
<!-- end main headline --><!-- start author --></FONT><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By
Ashley Baxter<BR>
<!-- end author--></FONT></FONT>&nbsp;</B></P>

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<TD><!--RIGHT SIDE LINKS BEGIN-->
<P><!--RIGHT SIDE LINKS END--><!--STORY BEGINS--><FONT FACE="Verdana"><FONT SIZE=-1><B>Declare
Your Independence! 
<HR SIZE=1 NOSHADE WIDTH="100%"><BR>
</B>In today's booming technology market, skilled technical writers are
commanding higher hourly rates that far exceed salaried rates. As a result,
many technical communicators are trading in their salaried positions for
the consultant's marketplace. If you can ditch your dubious salaried benefits
in favor of lucrative contract jobs, why not? <BR>
<BR>
For the next two issues, we're examining the world of independent contracting.
We'll fill you in on the essential skills, resources and strategies for
competing in the contract marketplace and point you toward great resources
for improving your skill set. We'll share secrets for staying ahead of
the game even when your current contract leaves you on the skill-set bench.
This month's issue introduces you to independent contracting and provides
an overview of the enormous benefits of declaring your independence. <BR>
<BR>
If you're experienced and looking for freedom, independent contracting
is the way to go. The pleasure of controlling your career is phenomenal.
<BR>
<BR>
<B>Prepare for the Competition<BR>
<BR>
</B>As an independent contractor you have the freedom to hone a full spectrum
of newer skills. This makes you better equipped for the new market competition.
When faced with dynamic and ruthless corporate environments, a well-equipped
contractor learns new technology (sometimes in the middle of a project!),
successfully completes the project, and builds a solid reputation. The
benefits are enormous: With each contract, the contractor's network and
skill set expands. In addition, the contractor's portfolio -- spanning
a variety of clients, products, and industries -- makes for a colorful
and impressive resume. </FONT></FONT><BR>
</P>

<P><B><FONT FACE="Verdana"><FONT SIZE=-1>In general, successful contractors:</FONT></FONT></B><BR>
</P>

<LI><FONT FACE="Verdana"><FONT SIZE=-1>Have excellent writing skills.</FONT></FONT><BR>
</LI>

<LI><FONT FACE="Verdana"><FONT SIZE=-1>Have a very well-rounded skill set
and expertise to provide professional &nbsp;&nbsp;&nbsp;&nbsp;services
to clients.</FONT></FONT><BR>
</LI>

<LI><FONT FACE="Verdana"><FONT SIZE=-1>Ability to quickly grasp technical
concepts and see the product from the &nbsp;&nbsp;&nbsp;&nbsp;user's point
of view.</FONT></FONT><BR>
</LI>

<LI><FONT FACE="Verdana"><FONT SIZE=-1>Ability to cope with deadline pressure.</FONT></FONT><BR>
</LI>

<LI><FONT FACE="Verdana"><FONT SIZE=-1>Ability to coax reviewers into reading
drafts and giving useful comments &nbsp;&nbsp;&nbsp;&nbsp;- before it's
too late.</FONT></FONT><BR>
</LI>

<LI><FONT FACE="Verdana"><FONT SIZE=-1>Need to have negotiation skills,
self-management skills, and a strong &nbsp;&nbsp;&nbsp;&nbsp;back that
does not bend under adversity. </FONT></FONT><BR>
</LI>

<LI><FONT FACE="Verdana"><FONT SIZE=-1>Must go the extra mile to build
lasting business relationships and &nbsp;&nbsp;&nbsp;&nbsp;aggressively
market to cultivate new ones.</FONT></FONT><BR>
</LI>

<LI><FONT FACE="Verdana"><FONT SIZE=-1>Command higher rates than salaried
employees and agency contractors.</FONT></FONT><BR>
</LI>

<LI><FONT FACE="Verdana"><FONT SIZE=-1>Work for more than one client at
once.</FONT></FONT><BR>
</LI>

<LI><FONT FACE="Verdana"><FONT SIZE=-1>Manage their own businesses, including
marketing, production, billing &nbsp;&nbsp;&nbsp;&nbsp;and collections.</FONT></FONT><BR>
</LI>

<P><BR>
<FONT FACE="Verdana"><FONT SIZE=-1><B>Shattering the Job Security Myth<BR>
<BR>
</B>When most salaried tech writers explain why they aren't interested
in independent contracting, they cite job security. But as forward-thinking
companies strive to be lean and mean, the old theories about job security
and benefits are fading into obsolescence. Your company doesn't owe you
anything, and when the going gets tough, your job can be eliminated easily.
<BR>
<BR>
Third-party contractors are also fooled into thinking that their agencies
provide a nice measure of job security. However, these contractors are
just as vulnerable because clients can cancel projects or job orders just
as quickly as you can say &quot;What Happened?.&quot; In addition, client
companies aren't clamoring to pay HIGH AGENCY MARKUPS when senior management
has dictated a corporate downsizing or other cost-cutting scheme. And who
wants to depend wholly on a transient agency recruiter's techno-smarts
or sales skills when seeking a new contract?<BR>
<BR>
<B>Debunking the Tax Myth<BR>
<BR>
</B>Another fear that enslaves tech writers is the fear of tax complication.
Hearing of the IRS's recent scrutiny of companies that use contractors
who file 1099 forms, many folks are convinced that independent contracting
is a risky and expensive way to make a living.</FONT></FONT><BR>
</P>

<P><FONT FACE="Verdana"><FONT SIZE=-1>The facts don't support this theory.
First of all, if you follow simple rules and provide adequate tax documentation,
you have no need to worry about the IRS rolling over you. In the event
that the client company breaks any rules, the IRS will likely seek money
from the company, not the contractor. Second, you will probably pay less
in taxes as an independent contractor because you can deduct your business
expenses.<BR>
<BR>
<B>Stay Away from Recruiters<BR>
<BR>
</B>The biggest drawback to agency contracts is the money you lose from
the agency's markup. For example, if the agency pays you $30/hour, they
can charge the client $50 - $65 hour and make a nice profit on your labor.
Only about 15% of this money is used to cover the cost of employing you.
The spread between your hourly rate and the client's hourly rate creates
the profit margin. This margin is grossly inflated by a tight employment
market; and explains why the number of profitable contract agencies has
exploded. On the other hand, if you are independent, you can charge the
client $50 - $60 hour and keep it for yourself.</FONT></FONT></P>

<P><BR>
</P>

<TABLE BORDER=2 CELLPADDING=5 >
<TR>
<TD><FONT FACE="Verdana"><FONT SIZE=-1>Work, legitimate work, was the source
of all wealth. That was to say, whether it was a sack of potatoes, a grand
piano, or a seven-passenger touring car, it came into being only by the
performance of work. Where the bunco came in was in the distribution of
these things after labor had created them. How this came about was explained
by the bunco. By tens of thousands and hundreds of thousands men sat up
nights and schemed how they could get between the workers and the things
the workers produced. These schemers were the business men. When they got
between the worker and his product, they took a whack out of it for themselves.
<I>The size of the whack was determined by no rule of equity;</I> but by
their own strength and swinishness. It was always a case of &quot;all the
traffic can bear.&quot; </FONT></FONT><BR>

<P><B><FONT FACE="Verdana"><FONT SIZE=-1>Jack London <BR>
Burning Daylight - August 1910</FONT></FONT></B></P>
</TD>
</TR>
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<P><BR>
<FONT FACE="Verdana"><FONT SIZE=-1><B>More Money, More Freedom<BR>
<BR>
</B>Contractors generally make more money and have more freedom and control
than salaried or third-party technical writers. These benefits alone are
enough to lure many technical writers from the salaried and third-party
ranks.<BR>
<BR>
<B>Money</B>. Because you're only a temporary cost, and the client company
doesn't provide medical benefits or other salaried perks, it can afford
to pay you a higher rate. For example, a salaried tech writer who makes
$40,000 per year might make $65,000 or more as a contractor. </FONT></FONT><BR>
</P>

<P><FONT FACE="Verdana"><FONT SIZE=-1>Contractor's rates vary according
to location, skills and experience. In general, most make between $50 and
$60 per hour. If you develop a good reputation and strong client relationships,
you can command higher rates. For more specific information on contractor
rates, check out the Consulting and Independent Contracting rate survey
on the STC's web site at <A HREF="http://www.stc.org/pics/cic/feature1.htm">http://www.stc.org/pics/cic/feature1.htm</A><FONT COLOR="#000000">.
The survey results are from 1996, but the rates haven't changed dramatically
since then.<BR>
<BR>
<B>Freedom</B>. You enjoy more freedom as a contractor because you pursue
your contracts and select the ones you like. For example, an independent
contractor with several clients can stay busy enough to turn down unappealing
jobs or negotiate higher rates. <BR>
<BR>
<B>The Price You Pay<BR>
<BR>
</B>The financial rewards don't come without a price. Independent contractors
can't depend on someone else to provide insurance and retirement arrangements.
They also must take greater financial risks by waiting for clients to pay
for their services and dealing with late-paying clients. Their training
and equipment is not free. But the freedom to manage one's finances and
career path with total autonomy pays nice dividends.<BR>
<BR>
You must be willing to invest about two years starting up your independent
contracting career. Once you've cleared this hurdle, you begin to realize
the rewards. Seth Maislin, a successful independent contractor, put it
this way:&quot; Getting started never seems difficult once you've done
so; I know few self-employed people who look back and say, 'It was hard
to get here; I'd never do it again.'&quot;<BR>
<BR>
<B>Successful Contractor Skill Sets<BR>
<BR>
</B>To be a successful contractor�your skill set must be current and competitive.
More than just a list of popular software programs, your skills are your
biggest assets when you're negotiating rates. If you can plan, create,
and implement savvy on-line help and print documentation, you are well
worth your client's investment. </FONT></FONT></FONT><BR>
</P>

<P><FONT FACE="Verdana"><FONT COLOR="#000000"><FONT SIZE=-1>So what kind
of skills should today's contractor bring to the bargaining table? First
and foremost, on-line help skills. Unless you plan to make a career of
designing manuals for industrial firms, WinHelp and HTML Help skills are
mandatory. <BR>
<BR>
<B>Your Skill Set - Check List<BR>
<BR>
</B>Wondering which skills will help you to hit the professional pay dirt?
<BR>
The following list provides a summary of skills that a competitive contractor
should have:</FONT></FONT></FONT><BR>
</P>

<DL>
<LI><FONT FACE="Verdana"><FONT COLOR="#000000"><FONT SIZE=-1>The WinHelp
Engine - While you don't need to know how to write a DLL, you must understand
the basics of how WinHelp works; and that means knowing what's going on
under the hood. </FONT></FONT></FONT><BR>
</LI>

<LI><FONT FACE="Verdana"><FONT COLOR="#000000"><FONT SIZE=-1>WinHelp Macros
- WinHelp provides a set of macros that enable you to control and enhance
the presentation of information in your WinHelp project. </FONT></FONT></FONT><BR>
</LI>

<LI><FONT FACE="Verdana"><FONT COLOR="#000000"><FONT SIZE=-1>VBA Macros
- Forget about WordBasic, Visual Basic for Applications (VBA) is the new
macro language for Word 97. If you've been writing macros in Office 95,
you won't have much trouble switching to VBA.</FONT></FONT></FONT><BR>
</LI>

<LI><FONT FACE="Verdana"><FONT COLOR="#000000"><FONT SIZE=-1>How to use
Microsoft's Help Workshop (HCW.EXE) to edit and trouble-shoot a help file.
When RoboHELP takes a dive, you can use Help Workshop to find out what
is really going on.</FONT></FONT></FONT><BR>
</LI>

<LI><FONT FACE="Verdana"><FONT COLOR="#000000"><FONT SIZE=-1>Graphics:
You must be proficient with Jasc Paint Shop Pro and WinHelp palette issues.
See issue 31 of WDT &quot;How to Create Optimized Color Palettes&quot;
<A HREF="http://www.sonic.net/ghirsch/winhelp/wdt.zip">http://www.sonic.net/ghirsch/winhelp/wdt.zip</A>
</FONT></FONT></FONT><BR>
</LI>

<LI><FONT FACE="Verdana"><FONT COLOR="#000000"><FONT SIZE=-1>How an application
calls help. The Help author and the application programmer need to work
together to implement Context Sensitive Help. Knowing how Visual Basic,
C++ and PowerBuilder call help greatly enhances your professional standing
in your development team. You don't have to be a programmer to know how
an application calls help. The October issue of WDT will provide a comprehensive
tutorial on context sensitive Help.<BR>
<BR>

<HR SIZE=1 NOSHADE WIDTH="100%"><BR>
<A HREF="mailto:endurance@mindspring.com">Ashley Baxter</A> is a technical
writer living in Atlanta, Georgia. Ashley has developed online help for
software development, manufacturing, and telecommunications companies in
Jacksonville and Atlanta. Currently, Ashley is a contract writer for Concert,
a telecom joint venture between AT&amp;T and British Telecom. </FONT></FONT></FONT></LI>
</DL>

<P>
<HR SIZE=1 NOSHADE WIDTH="100%"><BR>
<FONT FACE="Verdana"><FONT COLOR="#000000"><FONT SIZE=-1>Next Month<BR>
How to be a Successful Contractor - Part Two</FONT></FONT></FONT><BR>
</P>

<UL>
<LI><FONT FACE="Verdana"><FONT COLOR="#000000"><FONT SIZE=-1>Interviews
with four successful contractors</FONT></FONT></FONT><BR>
</LI>

<LI><FONT FACE="Verdana"><FONT COLOR="#000000"><FONT SIZE=-1>How to find
jobs and sucessfully market yourself</FONT></FONT></FONT><BR>
</LI>

<LI><FONT FACE="Verdana"><FONT COLOR="#000000"><FONT SIZE=-1>Negotiating
the terms</FONT></FONT></FONT><BR>
</LI>

<LI><FONT FACE="Verdana"><FONT COLOR="#000000"><FONT SIZE=-1>Sample contract
and payment schedule</FONT></FONT></FONT><BR>
</LI>
</UL>

<P>
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