There’s no doubt that 2019 will bring both challenges and opportunities for contractors, with the continuing effects of changing legislation and the UK’s impending departure from the EU presenting those affected with unchartered territory to navigate. Although the contracting sector continues to offer good prospects for those who want to work independently and flexibly, contractors who actively seek out opportunities for sustainable growth will be best placed to cope with changes, while making the most of demands in strong and emerging markets. In this article, Umbrella Exchange takes a strategic look at how to target the right clients in 2019, from gaining an informed overview of your sector, to the step-by-step practicalities of securing the contract. Whether you decide to approach clients directly or through an agency, a targeted approach can involve time and effort on the contractor’s behalf. However, winning contracts with the right clients should be viewed as a major career investment. A proactive approach to acquiring the right clients can propel your career forwards, presenting you with numerous opportunities to:
Research key growth in the contracting sector
In order to target the right clients, a contractor needs to think about the particular services they offer. Although higher value clients are likely to be larger clients, depending on your sector, some smaller or medium sized companies may have large budgets for growth and development. This could particularly apply to niche-market companies within strong market sectors. For example, both construction and engineering achieved good growth rates for 2018, but the associated support services around both these industries each posted double-digit sales growth. Forbes reported that mining support services for oil and gas ranked among the top 10 fastest-growing industries, as did building-finishing and architectural services in the construction industry. IT also shows good potential for diversifying into niche markets in 2019, with cybersecurity and artificial intelligence continuing to lead the top tier of this lucrative sector. For contractors working across science and IT, the field of biotechnology, where living systems and organisms are used to develop new products for the cosmetics, pharmaceuticals and food growing markets has good specialist demand. Other niche markets for contractors to watch include a huge rise in the demand for travel consultancy within the telecommunications industry, and risk planning within finance.
Target potential clients
Once you’ve identified opportunities in your sector, make a list of companies that would have use for the service you provide. From this list, establish as much information as you can about the company, such as its services, history and plans for the future. If it’s a public company, their annual report can often be found on the website under the ‘Investments’ section. The report will provide you with a good source of material on a company’s activities and their financial performance. For privately owned firms you should visit Companies House for this information. Try to establish whether they already use contractors, in what capacity and from what source.
Optimise your credibility
While companies may tender existing contracts through recruitment agencies, this doesn’t mean that you can’t contact them directly to discuss a proposal. However you might find it easier and quicker to focus attention on the agencies they use and register with them. If you can anticipate demand and tap into a company’s long term ambitions, then you stand a real chance of gaining their attention. Before approaching the client, it’s important to give yourself the best chance of success. Attention to details such as personal branding will create a credible, professional impression, while anything you’ve done to build an online presence will also support this. Attempt to maintain a regular presence on major social media channels or publish articles that demonstrate your expertise on platforms such as LinkedIn.
Introduce yourself
Social media provides the easiest opportunities to make contact, but face to face meetings can make a stronger impression. If you have a contact that can introduce you, this is a definite advantage, as many companies tend to look more favourably on the associates of people they know and trust. LinkedIn is an excellent tool for researching a company’s employees and seeing if one of your connections knows people at your target company. Alternatively, a simple email explaining what you do and how you can help is a plausible first step. Companies will often provide details of senior employees on their websites with short biographies, but you can also look at some of the company’s literature and or press coverage to see who you could contact.
Negotiate your best terms
Many contractors make the mistake of signing whatever contract the client or agency puts in front of them. However this is a missed opportunity to negotiate your best terms. As long as you are fair, well informed on factors that might affect you and prepared to be flexible, the client should be willing to consider your terms of business. As liability for determining if 1R35 applies to a contract increasingly rests with the client, being informed and helpful should benefit your engager. Whenever possible your contract should clearly point to the fact that you are in business on your own account, with a substitution clause and references to your rights of control over your working practice. For extra security, especially as new legislation is tried and tested, contractors should consider having any contract professionally reviewed. Alternatively, working under a compliant umbrella company, especially for public sector contracts, will ensure that you’re not affected by IR35.
At Umbrella Exchange we offer guidance on a range of contracting issues, to talk to one of our team call: 0203 393 3881