consulting/freelance: who here?

nostatic · nostatic's Garage

I have an impending career change, and am pondering the possibility of moving to a part-time "stable" position so I have benefits combined with consulting and/or freelance work to make up the rest of my income. For those here who consult or are freelance, what are the major ups and downs? Anyone doing a hybrid approach like I'm considering?

techweenie · techweenie's Garage

I've had my own consulting business since 1987. No benefits, no stability, and lots of time spent chasing new business or past due bills. It's difficult to be 'hybrid.' My last big contract was 52-55 hours a week with a 2-1/2 hour daily commute. But since I got $7500 a week to do it, it was just fine that I had no time for other clients.

More typically, I used to chase project work ranging from $1,500 to $25K a crack.

These days, I'm finding companies that can't afford a $250K annual salary are happy to hire me for XX hours a month at $XXX/hr. Stack up enough of those, and it'll work. Otherwise, expect to sepnd 20-25% of your time pursuing new project work.

I suppose it depends on what you do. Marketing is always in demand in good times, and rarely in demand in weak economies -- exactly the opposite of what should be.

bryanthompson · bryanthompson's Garage

I'll consult, whatt'ya wanna know?

WOODPIE · 10-12-2005, 05:44 PM

nostatic,

Maybe you could find something here

Ed

cowtown · 10-12-2005, 05:58 PM

Quote:

Originally posted by WOODPIE
nostatic,

Maybe you could find something here

Ed

Wow, are those salaries accurate? Cronies or not, I can't believe how little those people make given the responsibilities/stress level of those jobs.

WOODPIE · 10-12-2005, 06:15 PM

Fringe benefits, like having your own personal ball washer, aren't mentioned.

dd74 · 10-12-2005, 06:30 PM

I consulted for a year or two in computer work when I dropped out entirely. I still get calls, however though I haven't done it in six years.

It seems, at least with computer work, consulting is still a good business.

M.D. Holloway · 10-12-2005, 07:35 PM

I think that success rests with your initial pitch - how do you think you will close the deal? What is your product that makes you better or different than the competition (both internal and external)? Does that 'advatge' reate to what your customer feeld is important? You would be surprised at how many companies and consultants really have no clue as to what the customer wants namely becuae they never really ask...

After 20+ years in the business, one thing holds true - people buy from people. Consulting is just selling an opinion. You have to be liked, well liked.

widebody911 · widebody911's Garage

I've been doing random gigs on the side for years, and I'm doing a 1099 gig right now. Can't really add much to what has been said other than the self-employement tax bit.

techweenie · techweenie's Garage

Quote:

Originally posted by SoCal911SC
I think they generally suffer the salaries because the real money comes later, with the connections made, etc.

Yes, that's most of it. Great resume padding. And private-sector consulting. But I think if the perks are figured in, it effectively increases the salaries. One thing I don't know about: Federal pensions for short-term appointees. The retirement deal for elected officials is pretty good...

HardDrive · 10-12-2005, 09:54 PM

I have done some consulting, but it generally turned into pretty stable long term deals.

The lack of predictability sucks, and don't kid yourself that you are some how 'free'. Your free to work your ass off, because the client has no obligation to keep you around, and has no obligation to consider your work hours, life, lack of sleep....

Manage it correctly and it can be a sweet deal.

Oh how I miss the late 90s. I hooked up with some training gigs. $100+ an hour to teach idiots how to be network admins. It was all at nights/weekends so I could keep my day job. Ka Ching.

alf · 10-12-2005, 10:09 PM

I consulted with a firm for the first 6 years out of undergrad. Partners did the sell job, us grunts did *all* the work, partners did the presentation. Maybe you should hire some undergrad grunts

Bill them out at $250/hr and pay them $15/hr.

david.avery · david.avery's Garage

Been doing it since '94. I owned a software development firm with 2 other partners, we went up to 14 people. Now, it's just me, the dollar to hours ratio is the same, and I don't have the same bull&^* HR wise.

Consulting is a good way to earn a living, but you have to be prepared for the down times. In this biz, it sometimes takes a year to convert a contact to a customer. Plan it out wrong, or have a good customer fold, and you're looking at eating ramen noodles every night for a while

island911 · 10-13-2005, 08:07 AM

Yep, I've done the part-time combined with consulting and/or freelance. . . but that's just because various employers had to have "employees" rather than freelance. (IRS scares a lot of them in to this, unless you're a lawyer)

Tho' w/o fail, after a bit, they (employers) start to act like they OWN all of your time.

That said, I just took a a full-time (employee status) position with a hooty-snooty

product development/engineering/design firm. Again, they had to have an "employee" (read; dillusional thoughts of ownership.) ...we'll see how that goes.

oh, also; If you carry your own insurance, you you are in a much less cornered position, IMO .... regardless of employment status. I mean it sucks that so many are afraid to lose their job because the med-insurance implications. -- carry your own, and you will have plan choice and portabiity.

arcsine · 10-13-2005, 08:37 AM

I did freelance-thing for a while and it was a love-hate thing.

Loved: being responsible for the success/failure of the business, Knowing I could work as much or little as I wanted, not having anyone I HAD to ask to do anything.

Hated: always being in sales-pitch mode, the endless taxes to prepare, being unemployed in the eyes of housing lenders.

Hope the new gig works out for you.

einreb · 08:56 AM

Its nice to have some diversity in your client base in case one goes kaput. The the pisser with selling your time rather than widgets is that you only have so much time to sell unless you want to scale up into a real company.

I have an 'S corp' and do work for several clients, but its pretty much just me doing the work. I have several 1099 folks that work for me on occasion when I get overloaded. I'm not at the point of wanting to deal with the hassle of employees.

I've been fortunate enough to not have to 'sell' work. I've got more in the pipeline than I care to do.

My wife is employed and I'm able to mooch her insurance benefits, so thats one less thing to worry about.

I like the s corp because it (if documented properly) can provide a little bit of protection for the owner, but more importantly it opens up some tax advantages.

Most importantly... I can't imagine ever actually working a 'real' job again.

-Bernie

RickM · RickM's Garage

I have many consultants on staff here. If going independent keep in mind that you may need to carry a considerable amount of insurance. They may include Workers comp, General Liability, Extended auto, Professional Liabilty (aka Errors and Ommisions) etc

Many organizations require coverage and will asked to be named as an insured.

One way to avoid the cost and some of the back office processing hassle is to "pass through" an established consulting firm.