| Topic Name: |
Doing the Independent thing... |
| Message Name: |
Easy? |
| Date Posted: |
08/23/2003 |
| 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: |
I did it about 2 years ago.
Its not as easy as you would initially think. I know and have great relationships all across the country, but this was something that you really need to think about before you dive in.
Compensation: My income has at least tripled since i did this.
Risk: You acquire so much risk when you do this its almost so much of a deterrant that it outways your benefits... For example: What if your client doesnt like your work? and just decides not to pay you? Well. now that you have a project with 4 resources on it.. are spending wads of cash on their salaries and expenses.. and the client (who was supposed to pay 3 months in the rear anyway) doesnt want to pay? guess what.. your bankrupt.- hasnt happened to me yet.. but ive seen it happen to a number of folks. There are various options to get you out of that situation.. but its definately a risk.
another example: Lets say you just want to be "independent" and no "worker bees" under you. Thats fine. Thats what i did.. still do.. and its alot of fun. no big 5 "corporate" structure to deal with anymore.. just you and the client... Downside? its tougher to keep up on trends in the workplace.. whereas before you had other groups to consult "solutions" with ect.. you really have to keep up as much as you can on your own in your spare time. I've found that to be somewhat inconsistant with me depending upon workloads..
. just my thoughts.
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