A new year is a great time for contractors to take stock of their achievements from the previous year and plan for the year ahead.
Whatever stage of your contracting career you’re at, whether you’re new to it or have years of experience under your belt, the start of 2025 is a great time to plan for a successful year ahead.
To help every contractor have a happy and successful 2025, in this guide, Umbrella Search outlines our top tips on planning for the year ahead.
Budgeting is key
A new year is a great opportunity to take stock of your finances and plan for the coming year.
After all, the nature of contracting means that contractors typically have fluctuations in their income due to working on different contracts at different times. There will be times when one contract will come straight after the other, and there will be times when you face a break between contracts.
That’s why it’s so important for contractors to budget accordingly and plan for all scenarios.
Contractors should work on setting a budget taking into account:
- Expected income and any fluctuations between contracts
- How much you will need to pay in umbrella company fees and any other deductions
- Any expenses you will incur, such as equipment you might need to purchase
- How much will you need to pay in tax? Set aside enough to pay your tax bill if you pay through self-assessment
- Decide how much you will need in an emergency fund when your income is lower or unexpected costs occur. It’s usually a good idea to build up around 3-6 months of salary for peace of mind to cover most scenarios.
Set your goals
Whatever goals you may have for the year ahead, it’s important to set manageable goals that will push you to succeed in 2025.
Make sure that your goals are achievable, and set yourself a realistic number of goals. After all, setting yourself 100 goals will likely make you stressed and burnt out.
Write down your goals in a way that works for you. Many find a checklist to be helpful, giving you a sense of achievement when you tick one off the list.
Upskill and develop your career
Whatever industry you’re in, and at whatever point in your career, chances are there are areas in which you can upskill or improve to give you a leg up, improving your chances of winning new and higher-value contracts.
To start, contractors should look at the skills that are in demand in their sector. Whether that’s learning to use a new piece of software or gaining expertise in a niche area, do your research to find out what areas you can go into and what skills you can gain to give yourself a competitive edge.
Once you’ve identified the skills that would be beneficial to gain, the next step is to find the right training resources to achieve your goals. Whether that includes enrolling in workshops, classes, online courses, or even professional qualifications, find out exactly what you need to do to upskill and how you can do this.
Focus on networking
This is a great time to focus on how you can use networking to your advantage going forward.
Networking isn’t only invaluable in helping contractors find new work and opportunities; it can also be a great source of support from other individuals in your sector.
If you don’t already have a LinkedIn account set up, then it’s a great idea to do this.
If you do have LinkedIn, it’s a good time to think about how to use it to connect with potential clients and fellow contractors. You should also review the content you share on the platform. It can be worth drafting a plan for the year ahead of the content you will share on the platform and how this can help you connect with others and market you for new contracts.
Review your umbrella company
Any contractor that opts to use an umbrella company will know that they play an important role in the contractor’s life. That’s why the start of a new year is a great time to review your current umbrella company and ensure that they are working for you.
Contractors can start by reviewing the umbrella company fee they currently pay. Are you happy with the value for money you are receiving, or do you think you could be getting better value elsewhere? Remember, although small fees can be tempting, it doesn’t always mean you will receive the service and support you need.
Next, you can look at whether you feel your umbrella company sufficiently supports you. Is their customer service up to scratch? Do they respond to your enquiries promptly? Do they offer strong advice on issues that are important to you?
Finally, it’s crucial to ensure that the umbrella company you are using offers the correct levels of services that you need.
Every contractor is different, and each one has a different set of needs. That’s why the umbrella company you use must offer these services to ensure you realise your full potential. Whether you need help with your pension and advice on salary sacrifice, or if you have children and need guidance with child tax credits, take stock of whether your umbrella company is providing you with everything you need and pinpoint areas of improvement.
Find an umbrella company that’s right for you
If, after reviewing your umbrella company, you believe that you can find one that works better for you, the next step will be to use an umbrella company comparison site such as Umbrella Search to find the perfect fit for you.
At Umbrella Search, we take all the hard work out of finding an umbrella company for you. Finding out what you require from an umbrella company, and your contracting needs and wants, we will do the research and due diligence to provide you with a refined list of companies that will work well for you.
To see how we can help, and to make a positive change going into 2025, get in touch with the Umbrella Search team today.
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