| Topic Name: |
Doing the Independent thing... |
| Message Name: |
Look long and hard before you leap |
| Date Posted: |
07/02/2003 |
| In Reply To: |
I'm a Sr. Manager at a top consulting firm and am considering some solid independent consulting opportunities at the moment. Already have a potential client lined up and am looking to structure a nice contract that will most likely cover 1 yr. Does anyone have any advice on what things to take into account when structuring an independent consulting contract with fees, hourly bill rates, costs incurred of going inpdependent, incorporating, benefits, pto, overhead, etc.? I'm obviously looking to set up something sweeter than what I currently have at the firm I'm with. So, I figure I need to take into account that my contract should cover total comp and costs as well as a nice profit. I've heard not to underestimate costs such as benefits and other overhead. Any other tricks to the trade that I should be aware of?
Any advice is greatly appreciated.
Thanks. |
| Message: |
bmg74, if I'm hiring a consultant, something I've done a lot of in the past, I'm not interested in whether he or she is going independent, needs benefits or any other such thing. I certainly don't want to see it in any contract. I would also be loath to sign a one year contract unless there is a termination clause to get me out of it. If I or someone else in my company dislikes you, on any level, and would prefer to work with someone else, I need the option to switch. When I contract with a "consulting firm" I will not be locked into specific individuals unless I ask for someone I particularly like and even then I won't be locked in. I only have to worry about hourly rates and out of pocket travel/lodging costs. That's all I'd want to worry about with you. Your rate should reflect whatever it costs you to do business and make a profit. It's of no concern to me what your cost of doing business is or what your start up problems are. You state your rate and I either hire you or not.
Remember too that your typical I.S. consultant no longer gets charged out at ever increasing rates, it is a tight competitive market. Unless you can drag in other "employees" of your own, in the long term you will likely be earning less than if you remain in a corporate job and climb the ladder. I know (have hired) many independents who some years back were earning twice my salary. I stayed corporate and grew and now they earn half my salary and have the worry of finding and keeping clients. I have worries but not to that extent. Be prepared for a bumpy ride. I wish you all the best.
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