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Freelance Consulting Advice

Advice for starting & growing your freelance consulting career

Dino

Essential Skills for Independent Consultants

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TLDR:
You need to be multi-skilled to be a successful independent consultant. In addition to being skilled in your area of expertise, and knowing how to manage your business, you also need some essential general consulting skills.

If you want to be an effective consultant and really deliver value to your clients, you need to have at least some proficiency in a range of consulting skills.

To be specific, the following skills are particularly useful to have in your toolbelt:

– Project management

– Observation and assessment

– Creative thinking, problem solving

– Communication

– Organisation and time management

– People skills

Let’s go through each one in turn.

Project management

I covered this in detail in a recent blog post, here.

Observation and assessment

Observation is a fundamental skill required by consultants.  In fact, you’ll often be hired specifically to provide an outsider’s point of view.

You need to observe how a company currently does things, how the people involved communicate, interact and execute their tasks, where things could be improved or need to be questioned, and so on.

I suggest that you take (lots of) good notes, and always keep one eye on the big picture.

You can then distil what you’ve observed, analyse everything, and provide feedback and recommendations.  You do all of this so that the client can make informed decisions.

Creative thinking and problem solving

Creative thinking and problem solving are key components of consulting.  Generally speaking, you’re called upon to solve a problem, or to work out how to implement the solution to a problem.  Both usually need some element of creative thinking and/or problem solving.

At the end of the day, that’s really what your clients are paying you for.

The only real way to get better at this is to practice.  To tackle and solve real problems.

There are also courses you can take, books you can read, and systems/frameworks you can use to help structure your problem solving approach, and encourage you to tackle problems from various angles, and incorporating different views and data.

Communication

As a consultant you will engage in a lot of oral and written communication with prospects and clients, as well as putting together and presenting reports (e.g. analysis and recommendations).

And remember, communicating also includes listening, which is just as important as writing and speaking.  Especially for consultants.

Outside of the actual client work you do, your communication skills will also be called upon for things like your website copy, and your marketing and sales materials.  This aspect can be outsourced, however.

If you’re not a good communicator, or you could do with improving in a particular area, it’s worth investing in.  To improve your presentation skills, I recommend joining your local chapter of Toastmasters.

How you communicate can have a huge influence on how you’re perceived by potential and existing clients.  You could be technically brilliant, but if you can’t communicate, it can hold you back.

Organisation and time management

As an independent consultant, you’ll play many roles – especially in the early days of your consulting career.  You are the whole business.

Your days will be a mix of many things, like: sales, project work, client meetings, sending invoices, or doing your taxes for the quarter.

With that in mind, you *have* to be organised and be able to manage your time effectively.

There are a multitude of time management methods and systems, which I won’t go into here.  If you don’t have any system in place though, I highly recommend you investigate a few and find one that works for you.

Staying organised and productive will not only make you a better consultant, it will also help you stay sane when things get busy!

People skills

People skills essentially refers to being able to develop and maintain good relationships with your clients, your network, and your partners.

There’s no real way to “teach” this skill – it’s really a matter of genuinely being interested in people and their problems, showing empathy, being trustworthy, and doing what you say you will do.

Look to really understand your clients’ problems and goals, and put yourself in their shoes.  And regularly reach out to your network, and think about how you can help them.  

Over time, you’ll become known as a genuine, trustworthy person – and that goes a long way.  Nobody wants to work with somebody they don’t or can’t trust.

How to improve your consulting skills

Networking is a great way to improve your people skills, and can also be crucial to your consulting career.

Getting a coach can also help, as can reading good consulting books.

Spend some time each week to work on and improve your consulting skills.  You’ll become a better consultant, which makes you more valued – and valuable – to your future clients.

Project Management for Independent Consultants

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TLDR:
Many consulting assignments can be thought of as projects in their own right, and therefore the issues and risks that consultants face can be approached using common project management methods.  In fact, project management can make you a more effective consultant.

One of the big differences between being an employee and an independent consultant is that, as an employee, your work is often structured for you.  That is, you’re given a certain task or set of tasks, and … 

Or you’re part of a team, and someone (i.e. a project manager) is coordinating and leading the work – and they’re ultimately responsible for the results.

On the other hand, as an independent consultant, it’s often up to you to determine (and communicate) how you will deliver the desired outcome.  You need to know that, and be able to clearly articulate it – often in order to win the work in the first place.

In fact, in many instances, your client will be hiring you specifically because you provide a structured approach (or system or framework) to address or solve a certain issue – because they don’t have the knowledge or experience to manage it themselves.

What that means is you take on the (additional) role of project manager by default.  That doesn’t mean you have to be a professional or certified project manager, but whatever the assignment, taking a project management approach can help.

Why is Project Management important?

Project management is a huge profession, with many flavours and variants, and even more certifications and training programs (I should know – it’s been the bulk of my work for over 20 years).  By taking some of the key aspects, you can increase your chances of completing client work on time, within budget, and to the required level of quality (the golden triangle of project management).

So how can you use a project management approach to help your work?  Let’s look at areas where consulting assignments and project management overlap.

Defining and controlling the scope of work

One of the fundamentals of project management is the scope of work (which goes by many names).  It’s particularly important for consulting assignments, especially when it’s a fixed price job.

You need to specify, in detail, exactly what you will – and won’t – do.  And have that signed off by both parties, before you start work.  And you then need to stick to the scope.  Any requested changes should go through a change control process, so that you can adjust the cost and time (budget and schedule, below) accordingly.

Working to a budget a schedule

Closely linked to the scope of work, you should develop a budget and schedule, detailing when milestones will be met/delivered, and also link progress payments to those milestones.

Maximising resources

As a result of a (good) schedule, you will have the type and number of resources needed, and also when they’re needed.  This helps you to be very clear to your client about what you will require to complete the job to the agreed schedule.

It can also help you identify resourcing constraints or shortages, and enables you to maximise the use of available resources.

Ensuring timely deliverables

As the job is in progress, you can track work against the schedule to ensure you hit your deliverables as they are due.

Managing client expectations

Project management is fundamentally a way to manage expectations.  Things rarely go to plan*, but with a well-managed project, you will be in a position to detect issues early, and advise the relevant stakeholders right away – allowing them to decide how to proceed, based on their priorities.

When it comes to projects, nobody likes surprises.

Next Steps

If you’ve had no exposure to project management at all, it might be a good idea to get an understanding of the basics, or even take a basic course.  There are plenty of courses available online, and a lot of free information too.

Learning how to use some of the tools and methods mentioned above will make you a better consultant, and could even save you from the many issues that can arise if your work isn’t managed well.

*One of my favourite quotes (a variation of Helmuth von Moltke’s “No battle plan survives contact with the enemy”) is Mike Tyson’s “Everybody has a plan until they get punched in the mouth”.

What do consultants do?

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TLDR:
Consulting is more than just giving advice.  Consultants help solve business problems, and they’re being used more often, and by more companies, than ever before.

It’s been said that a consultant is someone who borrows your watch to tell you the time, and then keeps the watch.

A little harsh maybe, but sadly this has too often been the case – in the past and still to this day.  However not all consultants are created equal.

Read on to find out what a (good) consultant does, and how to be (or hire) one.

What do consultants actually do?

So, what do consultants actually do – why do they exist?  The short answer is to solve business problems, to deliver value.  Consultants help their clients solve specific business challenges.  That can manifest itself in many ways, for example:

  • By providing functional expertise to deliver a specific outcome or result (filling a resource gap);
  • By objectively reviewing and advising on how a process or functional area could be optimised (providing an outside opinion);
  • By providing strategic advice in relation to a major threat or opportunity (providing specialised expertise).

In some cases, consultants are hired to (temporarily) provide or top-up skill gaps.  Other times, they are used where the skills required are not (and may never be) a permanent part of a particular business.  For example, for a company that is considering a merger or acquisition, or is embarking on a major software implementation.

Consultants are hired to work on specific problems, unlike advisors who generally have an ongoing relationship with their clients.

And consultants come in all shapes and sizes, from junior to senior, in areas as diverse as IT, project management, financial advice, marketing, human resources, change, and so on.

Who do consultants serve?

Consultants provide the services described above to all types of businesses – including small to medium enterprises, not-for-profits, large corporates, and state and national government departments.

Where there is a need for a specific skill set, you’ll find consultants available.

How much a consultant charges will vary based on the location (country and region), the specific area of expertise, the type of engagement, and the level of experience, and can range from $50 an hour to $20,000 a day.

A day in the life of a consultant

Day to day, consultants could be engaged in many different types of activity.

As an independent consultant, or sometimes as part of a firm, part of your time will be finding and winning work.  Generally speaking, the less experienced you are, the more time you will spend getting new clients.

Writing proposals is also a regular activity, linked to the previous point.  It could be a proposal to win some work, or proposing the scope of work for a new or existing client.

Often, consultants engage in analysis or reviews, followed by findings and/or recommendations.  This is usually where the bulk of a consultant’s time goes, and where they really earn their keep.  This is where you use your skills, draw on your analytical ability and experience, review data and statistics, and come up with advice and insights.  The better consultants have a framework that they follow for this whole process.

In some cases, consultants are more hands-on, actively involved in delivery (e.g. managing a project, or running workshops as part of business analysis).

Presenting is another common activity, be it to prospective clients (to win work), to new clients (confirming the details of the engagement), or towards the end of an engagement (presenting your findings and/or recommendations).

How to be a good consultant

First of all, don’t take yourself – or your work – too seriously.  After all, chances are you won’t be saving the world or curing cancer, so try to keep things in perspective, and enjoy yourself.  Besides enjoying your work (and life) more, you’ll find that you’re a better consultant that way too.

Remember that you’re there to help – to solve problems, and recommend or deliver solutions.  To make things better for your clients.  You’re there to serve.

To make it as a long-term, successful (whatever that means for you) consultant, the fundamentals hold true:

  • Be curious and open-minded
  • Always act with integrity
  • Under-promise, and over-deliver
  • Do what you say – be upfront, honest and reliable
  • Keep learning and improving

That last point is especially important.  For example, if you’re not great at presenting, get better.  Take a course, or join a Toastmasters club, and practice.  And be sure to keep your skills up to date.  Things always change, and you need to keep up.

What to look for in a consultant

Anybody can call themselves a consultant, which is part of the reason consultants sometimes get a bad rap.  There are always unprincipled individuals out there looking to take advantage of people (as there are in every profession), so it’s definitely a case of caveat emptor.

The best way to ensure you’re hiring a good quality, reliable consultant, is to look at their track record and references.  There is simply no substitute for this.

Having said that, what you’re hiring them for will determine how careful you need to be.  Hiring a junior project manager to run a straightforward project over a few months wouldn’t require the same degree of due diligence as, say, hiring an interim CFO for 6 months while you recruit a permanent replacement.

There are also some organisations, like the ICMCI, that promote consulting standards, which may also be useful when looking for experienced, reputable consultants.  They generally vet their members and require them to have a minimum level of credentials and experience, and often have a code of conduct which must be adhered to as well.

What’s so scary about being an independent consultant?

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The biggest fears of new independent consultants, and how to overcome them

TLDR:
Having some concerns about leaving your job to become an independent consultant is normal, but don’t let that stop you.  There’s so much to be gained on the other side of that fear.

I believe most people at least think about working for themselves at some point in their career.  If you have any kind of professional skill (like project management, graphic design, network security, preparing tax returns, or programming), there’s no reason you can’t freelance – so why do most people not take the plunge?

In a word – FEAR.

Or rather, fears.

Generally speaking, it’s fear of the unknown.  Being an independent consultant doesn’t just involve you doing what you’re selling, it also means running your own business.  And if you’ve only ever worked for others, it’s no surprise that you’d have some hesitation.

The good news is that, provided independent consulting does make sense for you, the transition to becoming a successful business owner is much more simple than you think.

As for more specific fears, these are the ones I hear about the most often.

Number 1 – Fear of losing a regular pay

This is overwhelmingly the biggest individual fear.  And it’s not just your fear, your significant other probably has the same fear.  This fear alone has no doubt stopped so many dreams.  But is it realistic?

We equate a regular pay with job security.  But job security is an illusion – especially today.  A regular pay creates the illusion of permanence, so we just don’t think about it.  In reality, you could lose your job at any time, for any number of reasons: downsizing, a global pandemic, acquisition or merger, cost-cutting, and so on.

And when you think about it, are you safer having one job that can disappear on a whim, or having multiple projects/clients bringing in revenue?

The truth is,  you can have more job security as an independent consultant than you could ever have working for someone else.

So how do we address this fear?  There are a number of things you can do.

First, have enough money saved to cover 6 months of living expenses, because when you’re starting out, it may take a bit longer to find work.  You could also start looking (or even start working) a little on the side whilst still employed.

Secondly, for most consultants, working just 8 months a year would make them the equivalent of a full year’s employee salary (roughly speaking), so it’s ok to have some small gaps between clients.

Number 2 – Fear of having to network/”sell yourself”

This is usually more about not knowing how to do those things, rather than a genuine fear.

Networking can be learned, and even managed strategically.  And there’s no need to “sell yourself”, as such.

You do need to be clear about what you do and who you can help, and you need to get that information out there so that potential clients can find you, but you don’t have to become a snake-oil salesman.

In fact, with options such as LinkedIn, Seek, and Expert360 (to name a few), it’s easier than ever to find work without even having to network or promote yourself in the traditional sense.

To look at it another way, you’re not selling yourself.  If you have a skill companies will pay for, and you believe you can add value to your potential clients, you’re not selling anything – you’re actually providing them with a solution to their problems.  Not doing so would be a disservice.

Number 3 – Fear of starting and running a business

Again, this is more about not knowing how.

And it’s totally reasonable.  If you’ve never done it before, you likely won’t know where to start, or exactly what you need to do.

And there are a lot of things to consider (business structure, marketing, invoicing, accounting, taxes, etc.), but that shouldn’t stop you.  All the information you need is readily available on the internet, and there are numerous resources to help you.

Working via a recruitment agency or consulting firm takes many of those things off your plate – for a fee.  Or you could even outsource the admin side of the business if you really want to.

And there are also plenty of coaches, like me (gratuitous plug!) and programs out there if you want to go faster and avoid the common pitfalls.

Just Do It

Independent consulting is growing, faster than employment, so if you’re seriously thinking about it, don’t let your fears hold you back.

Consider everything above, and do everything you can to maximise your chance of success, then get out there and do it.  It’s really not as hard (or as scary) as you might think.

How to Avoid These 12 Common Freelancing Pitfalls

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TLDR:
Becoming an independent consultant has never been easier – but that doesn’t mean you should just jump in blindly.

Whilst setting yourself up as a freelancer isn’t difficult, there are some things you should avoid to save yourself some pain.  I’ve seen these mistakes made over and over, and made a few of them myself in my first couple of years in business.

Read on to learn how you can benefit from the experience of other freelancers before you…

12 things to avoid doing as an independent consultant

1. Not having a plan (a.k.a. ”winging it”)

This was my very first mistake, and it cost me.

I just quit my job one day – with no plan, no clients, and no idea what I was doing.  I made it work, eventually, but it cost me time and money, and caused so much unnecessary stress.

It doesn’t take a lot of time or effort to come up with a plan.  Just do it.

2. Not having a buffer/enough savings when you start

Closely related to number 1, this was also me.  And it compounded mistake number 1.

Without a buffer, I *had* to make money right away (I had recently gone through a divorce, and had two small children to support as well).  Not a good situation to be in.

Combined with mistake number 1, it meant I had to borrow money – and it took me many years to finally pay that debt back.

3. Not understanding which business structure to use

This is not a deal-breaker, but it can save you some drama down the track.

It really just comes down to what your long-term plan is.  Are you going to start and stay as a sole trader, or set up a partnership, or even a company that you plan to grow?

You can change it later, but why not get set up properly in the first place?

4. Not specialising/defining your speciality well enough

This can also be seen as not knowing who your ideal client is.  Either way, it will be harder for you to attract quality leads, because you’ll be casting too wide a net, and/or prospects won’t be sure about exactly what you do.

You also open yourself up to more competition.  Which do you think is easier to sell: “I’m a project manager” (competing with every other PM in the market), or “I’m a project manager specialising in infrastructure builds for mining companies”?

5. Not using a contract/formal agreement

This is one of the most important items.

It’s also another mistake I made early in my freelancing career.

Long story short, when something goes wrong or a client doesn’t get what they expected (it will happen), not having a formal agreement will reduce the situation to a “he said, she said” mess.  Also see number 6.

6. Unclear scope/expectations/outcomes

This is closely related to number 5, and can have the same effect as not having a contract/agreement in place at all.

You can think of every client engagement as a project, and every project ultimately comes down to expectation management.  Be clear about what you’re delivering, up front, and in writing – agreed upon by all parties.

7. Having unclear (or no!) payment terms

Also related to numbers 5 and 6, this can cause huge problems for you because of the potential impact on your cash-flow.  Let alone the stress it can cause, and the time it can waste.

Unless it’s an ongoing engagement with weekly or monthly payments, get a deposit up front, and get sign-off and final payment before handing over the keys.

This is probably obvious, yet I still hear horror stories…

8. Under-pricing yourself (and overworking yourself to make up for it)

This would have to be one of the most common pitfalls – and it’s not hard to see why it happens.  Especially when you’re just starting out.

Yet another one that caught me out, partially due to my previous mistakes.  I was desperate to earn something, so I took lower-paying work.  It’s not great when you’re struggling and making less than you know you’re worth.  Worse is you end up working more to make up for it.

Closely related to this is taking on work that you wouldn’t normally do.  Not always a bad thing, but generally not advisable.

9. Competing on price alone

Similar to number 8, this never ends well, for the reasons stated above.

A better option is to offer something extra (make that clear), whilst charging your full rate.

10. Doing “free” work

As an independent consultant, especially before you have built up a name for yourself, you will undoubtedly be approached to do some free work in exchange for promotion/referrals/etc… which usually have zero value.

If you decide to do this, make sure you do so in exchange for a review/testimonial/case study and/or referrals – but be clear and upfront about this, and include it in your agreement.

11. Not budgeting/no cash-flow management

This one will bite you, and has been the reason many businesses (not only freelancers) have failed.

The phrase “cash is king” should actually read “cash-flow is king”.  Why?  Because no matter how much you’re earning, if you don’t manage your spending and expenses, you’re going to fail.  Making $200k per year?  Great!  Spending $210k?  Fail.

Not only that, even if you’re managing your spending and expenses, the timing of money coming in and going out can also hurt you.  If your clients fail to pay you for 2 months, but you have bills due this month, you’re in trouble.  Which is another reason item number 7 is so important.

12. Not networking and/or not promoting yourself

Whether you like it or not, you have to put yourself out there.  How else can you expect prospective clients to know that you even exist, or that you do great work?

Your network and connections have a huge impact on your ability to find and win work.  And finding and winning work is the biggest fear many freelance consultants have.

And promoting yourself doesn’t mean you have to be a sleazy salesperson, but you do have to let people know what you do and how it can help them.

Go Forth and Prosper

So there you have it.  Armed with the knowledge above, you know what not to do, meaning you’ll save yourself some heartache, and increase your odds of becoming a successful independent consultant.

And if you want to speed the process up, understand how to avoid all of the pitfalls listed above, and get a heap of time-savings tools and tips, as well as advice and accountability, check out my group and 1-on-1 coaching options.

How much can you earn as an independent consultant?

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TLDR:
How much do independent consultants really make?  The answer: it depends!  If you have even a little experience, you can generally make more than an equivalent employee.  And if you have a lot of experience and a good track record, the sky’s the limit – up to multiple 6 figures and beyond.

This is one of the most common questions I get asked.  Understandably, because even if you’re just toying with the idea of becoming an independent consultant, you want to know that your income won’t take a step backwards…

The good news is that, if you have some experience and a good track record, you can almost definitely make more (and often much more) than you could as an equivalent full-time employee.  Or to look at it another way, and this is the goal for many people too, you can earn the same amount for less work.  Depending on the rate you can command, you could even work for 6 months every year whilst making the same as a full-time employee doing the same work.

Factors Affecting Your Rate

There are several factors that affect the rate that you are able to charge as an independent consultant.

A big one is your level of experience.  Generally, the more experience you have, the more you can charge.  This is closely related to another factor, your track record.  The more you can show a history of successful assignments, the more you will be able to charge.

Another two related factors are your specific area/type of service, and the average salary/rate for that service.  For example, a strategy consultant will generally be able to charge more than a HR consultant.

Your location also affects how much you can charge.  Different countries, and even different states within each country, have different average rates.

And finally, the type of clients you are targeting or generally work with can affect your rate.  A small business or local government department may not pay the same as a multinational company, for example.

And having said all of that, remember that this is just a guide – at the end of the day, the market will determine how much you are able to charge.

Things to Consider

There are a few things that you have to consider when comparing your income as an independent to that of an employed consultant.

1. You will usually collect GST (or your country’s equivalent), and you have to pay that to the government (unless you’re working via an agency, and they handle that for you)

2. You will also be paid a tax-inclusive amount, meaning you have to set aside and regularly pay income tax (unless you’re working via an agency, and they handle that for you)

3. You need to manage/pay your own superannuation out of your income

4. You need to cover your own annual leave and sick leave

5. It’s also prudent to allow for the occasional gap between contracts

You need to allow for all of the above when setting your rate, and determining how much you need to work (i.e. how many weeks per year) – in order to cover yourself in areas that an employer would normally manage.

Calculating Your Rate

There are many ways to charge for your services, with the most common being:

Per hour, per day, (monthly) retainer, per project/assignment, or value/profit/ROI based.

Most consultants start with an hourly or daily rate, although many aspire to charging per month or per project.  I’ll cover the different methods in detail in another post, but regardless of how you charge for your services, you have to make sure you cover your needs in terms of the items mentioned above.

A rule of thumb I advise my clients to use is to assume you’ll work an average of 30 hours per week, for 46 weeks of the year.  That allows for some annual leave, sick leave, and non-billable time – and gives you the absolute minimum you should be charging.  I generally then round that figure up to the nearest $50 (if we’re talking hourly rates).

If you are a beginner consultant with not much experience, drop the expected hours per week to 25 or even 20, as you will spend more time winning work/projects.

Some Examples

Let’s say you’re a project manager with less than 5 years of experience, currently earning $100,000 per year (inclusive of tax and super).

$100,000 divided by 46 weeks and 30 hours per week equals $72.46 per hour.  Rounded up to the nearest $50 gives you $100 per hour.  If you were to work 46 weeks at 30 hours per week, you would earn $138,000 (inclusive of tax and super).

Now let’s look at a senior IT leader with 12 years of experience, currently earning $180,000 per year (inclusive of tax and super).

$180,000 divided by 46 weeks and 30 hours per week equals $130.43 per hour.  Rounded up to the nearest $50 gives you $150 per hour.  If you were to work 46 weeks at 30 hours per week, you would earn $207,000 (inclusive of tax and super).

These examples are generalised, and don’t take into account any specific services or target clients – use them as a guide only.  If the average consulting rate for your area of expertise is higher than your calculated rate, don’t be afraid to increase your rate.  Just don’t decrease it.

And remember to regularly (at least annually) review your rate, and increase it if you feel it’s justified.

So How Much Can You Earn?

As I said at the start of this post, and as I have hopefully made clear above, it depends!

To get a better idea, try my free Potential Earnings Calculator.  Or feel free to contact me, and I’d be happy to give you some advice.

In almost every case, however, you can earn more than you can as an employee, and the potential to increase your earnings (as you get more experience and more runs on the board) is virtually unlimited.  Coupled with a more flexible lifestyle, it’s hard to argue against.

One thing is for sure – there has certainly never been a better time to be an independent consultant.

Is now really the right time to quit my job?

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Are you asking yourself the question: “Is now really the right time to quit my job and become an independent consultant?”

If so, here’s some things you should know…

Businesses always have problems to solve.  And now, more than ever, they are hiring external experts to come in and solve their problems.  If your expertise can help, and add value to their business, then you can build an independent consulting business.

If you’re concerned that now isn’t a good time, remember…  it’s never the “perfect” time.

But the fact is, there has never been a better time to become an independent consultant.

How can I be so sure?  Don’t take my word for it, read on.

According to multiple respected reports, such as:

freelancing is growing – in all industries and regions – and freelancing market share is only expected to increase further in the future.

Businesses Want Independent Consultants

The pandemic has shown us that the work itself matters more than where the work is done.  Most companies had no choice but to change their business model to facilitate working from home, and have now learned that – in most cases – location doesn’t really matter.

So, it’s possible for a consultant anywhere in the country/world to land a major consulting project for a company based anywhere else in the country/world.  This was already happening, but has accelerated significantly due to the pandemic.

This provides independent consultants with an incredible opportunity – the target audience is no longer restricted to their city or country anymore.

Online Consulting Platforms Have Made It Easier Than Ever

Thanks in part to online consulting platforms, businesses can now hire consultants from anywhere in the world, and consultants can choose who they work with – a win-win for both sides.

From MBO Partners: “Online platforms and marketplaces have acted as powerful facilitators, making it easier, cheaper and more convenient for independent workers to start businesses and find customers.”

It used to be the case that the consulting industry was dominated by large consulting firms. And just because expert advice existed, not everyone could access it – it was usually only the big companies that had the privilege of (i.e. could afford) hiring consultants.

Today, online consulting platforms have turned the tables and made top consultants more accessible to all businesses – large and small.  Businesses can now easily hire people who have worked for big companies and consulting firms.  These independent consultants can bring vast knowledge and skill sets to a company, without making them spend half of their HR budget.

In fact, according to Business2community, 71% of freelancers reported an increase in the amount of work they were able to attract online over the last several years – with online platforms providing a great medium for connecting freelancers and companies.

Independent Consulting is Good For You

MBO Partners’ 11th annual “State of Independence” report states that 2 out of 3 full-time independent workers believe they are more secure than traditional workers.  Not only that, 87% say they are happier working independently, and 78% say they are healthier working independently.  Workers are finding more money, opportunities, and flexibility by going independent.

So, if timing is a reason holding you back from moving to independent consulting, know that there has never been a better time.

If it’s fear or a lack of information holding you back, get in touch – it’s easy and not as scary as you think.

Finding Work as a Freelance Consultant

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Finding work as an independent consultant (or rather the fear of not finding it) is probably the number one concern for most – especially new – freelance consultants.  In fact, that fear is what stops a lot of people from becoming freelancers in the first place.  And it can be tough sometimes, especially if the economy in your area/country is slow and there’s not a lot of work to be found.

But it doesn’t have to be that scary, as long as you follow some basic steps.

Recruiters & Job Boards

One of the first things I did when I quit my 9-to-5 job (back in 2007), was to sign up with and get to know a few recruiters.  I also set up searches on job boards (I mainly used Seek.com).  These are both great methods for finding contract work as quickly as possible, which allows you to show what you can do, build up some credibility, and make new contacts/build your network.

Outsource Yourself

Depending on the type of work you do, you could outsource yourself using services like Elance, oDesk, and Freelancer.  This is another great way to find work quickly, and get some runs on the board.

Today, there are even consulting marketplaces, like Expert360, and specialist services, like Essemy, that make it even easier to find consulting work.

Find Opportunities While You Work

As a consultant working in someone else’s business/company, you’ll find that you see opportunities for improvement everywhere.  If you see a genuine opportunity in an area that you could help with, let someone know that you could assist.  If they’re happy with your work, and they can see the value in your proposal, you could generate your next contract.

But don’t create an opportunity where there is none.  Being dishonest about that, or about your abilities, just to secure some work is a sure-fire way to ruin your reputation.  And as an independent consultant, your reputation is everything.

Use your network

I’ve written before about the importance of networking, especially when you don’t need to – when you’re busy working is the best time to be working on your network.  That will ensure that, when you do need some help, you have a network to call on.

Don’t be afraid to ask for work by letting people know you’re available, or that you will be soon.  Social media (particularly LinkedIn in my experience) is a great way to do this.

If you’ve put the work into building and maintaining your network, you’ll find that it pays you back ten-fold when you need it.

Building your network is the key to your long term success as an independent consultant.

Work Will Find You

When you’re starting out as a freelance consultant, it can be tough.  Ideally you’ll have some money set aside to get you through at least six months, just in case.  But even if you don’t (I didn’t, in fact I was in debt) you can still get by – you just have to try a little harder.

After some time, once you have built a reputation for good work, and built a solid network, you could be in a position where the work finds you.  And I can tell you that’s a great place to be.

Have any other methods for finding work?  Please share them by leaving a comment, thanks!

 

Cheers
Dino

 

Why the Hell Would I Want to Freelance??

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The case for becoming an independent consultant

Could you imagine anything worse?  Always worrying about getting your next contract.  Constantly stressed about not having a steady income.  Having to deal with all the ‘business stuff’, like marketing, invoicing, taxes, and so on.  No thanks!

Anyone against (or even afraid of?) freelancing can easily rattle off a long list of cons, like:

  • You don’t get paid sick leave, annual leave, or other employee benefits
  • You work on your own most of the time
  • You have to work long hours, and be on call
  • You constantly have to find new clients and work
  • You have no job security
  • And so on…

The reality is, it’s not all doom and gloom.  IMHO, most of the reasons given are either just plain wrong, or they’re actually positives looked at the wrong way.  For example:

  • You don’t get paid sick leave, annual leave, or other employee benefits
    I couldn’t live the way I wanted to if I was limited to 4 weeks of holiday per year! Especially not as a single parent with kids – they get 12 weeks off school every year.  Being a freelancer means I can take whatever time off I want.  And even if I’m working, my hours are flexible enough that I can work around my needs.  I’ve been to almost every performance or event for my kids since kindergarten.  This has easily been the biggest benefit for me personally.
    .
  • You work on your own most of the time
    This is not necessarily true, depending on your clients and specific work.  Even so, whether or not this is a problem depends on your personality. As an independent consultant, I spend most of my time working directly with clients, usually in their offices.  But even when I am working on my own, I use coworking spaces to be around people, and also organise regular coffee and lunch meetings with my network to break up my days.  And one other thing, as a contractor working on 3 to 12 month contracts, I can almost entirely avoid office politics – that’s a huge plus for me.
    .
  • You have to work long hours, and be on call
    This is simply not true.  I decided when I became a freelancer to not work full time, and that’s what I continue to do.  Even when I get asked to work full time for a new contract, I say that I will work a maximum of 4 days per week, and it’s never been a problem.  As for being on call, as an independent consultant, my clients are all professional businesses and they keep standard business hours.  Sure I’ve had the occasional 6am or 7pm phone call, but they’re rare.
    .
  • You constantly have to find new clients and work
    True – and that’s fantastic! I love the variety being a freelancer gives me.  I’ve expanded my field of expertise and domain knowledge by taking on varied roles over the years.  And with the right plan and system in place, ensuring you always have work is achievable.  Not to mention that my network is always growing because I keep working with new businesses.
    .
  • You have no job security
    This is also true, but you know what? Neither does anybody else!  Think having a permanent job means you’re secure?  Think again.  The only difference is your notice period.  And given that freelancers are used to finding their own work, it gets easier and easier.  Someone with a permanent role who is made redundant (I hate that term) suddenly finds themselves having to figure out how to go about finding work.

2020 update: The last two points are probably the greatest fears people face when considering freelance consulting, but the reality is, finding work is not that difficult.  And more than that, it makes you more adaptable and resilient – it prepares you for the worst.  When times are tough – like during a recession, or a COVID-19 pandemic(!) – people get laid off.  If you’ve only ever had steady employment, that can be really scary – I’ve seen the terror in the faces of my recently-made-redundant coworkers who haven’t had to look for work in 20 years.  But as a freelancer, you’re used to finding your own work, and not relying on anyone else.  It’s not so scary.

 

How Much Do I Really Need?

I also want to point out something that many people don’t seem to get.  Generally speaking, your hourly rate is much higher as a freelancer than as an employee.  So to earn your current full-time employee salary, you only need to work 3 or 4 days per week as a contractor.

Let’s say you’re on a $150K salary.  Assuming you can make $800/day as a contractor, that equates to 188 days per year.  That’s about 38 weeks (roughly a 3 month plus a 6 month contract), meaning you have 14 weeks of flexibility.  That’s 3 months to find your next contract, or to take as leave, or to work more if that’s what you want to do.

The point is, you don’t have to be working every day of the year for 48 weeks – that’s just what we’re used to because that works for employers.

 

So Is It For Me?

At the end of the day, freelancing is not for everyone.  For me, the best thing about freelancing is the freedom and flexibility.  If those are important to you, it might be worth a try.

Not sure if you’re cut out to be a freelancer?  This worksheet can help you decide.

 

Cheers
Dino

 

Why You Should Consider Coworking

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As a freelance consultant, you chose to work for yourself, but that doesn’t mean you have to work by yourself.

We all know it can be lonely as a freelance consultant, especially if you work from home a lot.  That’s why you’ll often find us at cafes – so we can work and be around other people.  Or we’ll organise meetups, where groups of freelancers can discuss common issues and problems, share ideas, or just socialise.

Or maybe you need a professional meeting place to take clients, but the idea (and cost) of a serviced office doesn’t thrill you.

Welcome to coworking!

What is Coworking?

At it’s core, coworking provides a place to work – that usually means desks, an Internet connection, and coffee, plus meeting rooms and a common/lounge area.  A coworking space is where freelancers, start-ups and other independent workers can come together in a shared office.  But it’s much more than that.

Coworking has exploded over the last few years and is still growing in popularity with new spaces regularly popping up all over the world.  CoworkingResources and Coworker estimate the coworking market to double between now (2020) and 2024.

What are the Benefits of Coworking?

Many people who leave their jobs to become independent consultants often miss the camaraderie and social interaction of the office.  Coworking can definitely help there.

I believe coworking is an excellent example of the saying “the whole is greater than the sum of its parts”.  It’s the collaboration and sense of community that differentiates it from other office environments.  What you get is a knowledge pool made up of people from various fields all, willing to share and collaborate, and that allows for the cross-pollination of ideas.

Not to mention it’s very handy to be able to bounce an idea off someone for a quick sanity check.  Add to that regular social and educational events, and often even access to experienced mentors, and the value to members is huge.

In short, the networking and connections that coworking enable are invaluable. 

Oh, and membership usually costs a fraction of what you would pay to rent an office or use a serviced office, and you can come and go as you please.

More Information

For more information on coworking, start here.  To find your nearest space have a look here.

I’d love to hear about your experiences with coworking.

 

Cheers
Dino