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