than they plan. Geier says it is important to think about the hours spent to manage the business, market it and do paperwork. Those are hours you won’t be paid for. One of the biggest problems facing people trying to make a go as a full-time contract worker is health insurance costs. Since the health care industry has been particularly rocky over the last few years, this issue became a huge problem for Geier’s bottom line.
Back into the workforce
At this point, Geier has gone back into the workforce full time. Contract work she was doing at St. Francis led to a full-time opportunity there. Going back to work full time was not something she expected, but it was the right fit at the right company, working in an industry she enjoyed. Geier still maintains a few clients for Stacey Ink Marketing, but the full-time job is her main focus. She says her experience doing full-time contract work has broadened her confidence. “Now, I know I can work for someone else, and I can work for myself. I feel like no matter what life throws at me, I can land on my feet and I have some skills to offer,” Geier says.
Changing your work status
Les Streit still has a desk at the place where he used to be an employee. Instead of being on the payroll, he is offering his services as a contractor. Streit is like a growing number of workers in local companies. Streit’s path to his work as a contractor began when he was the director of the Washburn Small Business Development Center. He was looking for a way to phase into retirement. Working part time seemed like a good option, but Streit was leery of getting too much work on his plate. He also wanted the freedom to work for various companies and organizations. His answer was to hang a shingle out as “Streitline Small Business Consulting” and go right back to work where he left off. Now, he works under contract to consult with small business owners on an as-needed basis. Streit says his main reason for choosing a contractor status over employment status was an issue of time management.
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Winter 2011
TK...Topeka's Business Magazine
“The bottom line was protecting time and not let a half time position get out of control like it can on a university setting. If you bill hours, then you are compensated for that time,” says Streit. There is a trend in people like Streit – those near or at retirement - finding the sole proprietorship business model appealing. By offering professional skills on a contract basis, a business owner does not have to worry about the management, hiring, retaining and supervising of employees. “It’s a
simpler, easier lifestyle to work for yourself,” Streit says.
Things to avoid
Streit recommends taking the following steps to avoid unwanted surprises when becoming a contractor. • Understand the tax requirements of contracting. A self-employed person will have to pay extra taxes. That is something that can catch people by surprise. • Contractors should avoid becoming too dependent on key accounts. “If most of your revenue comes from a couple of companies that lose funding for your work or can’t use you anymore, then you’re out of businesses,” he says. • Investigate the health insurance Les Streit issue before jumping into a contract position. Currently Streit has an HSA, but says premiums have doubled in the five years since he became a contract worker again. That can make a huge difference in your ability to make contract work a successful option.
Making a business plan work
Martha Piland says hiring contract workers has always been a central part of her business plan and company’s “Fat Free Advertising” brand. When she started MB Piland Advertising & Marketing in 1998, the idea came from a practical need to be able to compete with agencies that had bigger budgets. Piland realized her company could offer a unique benefit to clients by using contract workers to tailor-make creative teams, instead of hiring full-time employees. The model worked. MB Piland only has three employees. However, over the course of a year, Piland says they work with “tons” of contractors.