February 7, 2012 at 9:21 pm
Comments posted to this topic are about the item Going Solo
February 8, 2012 at 12:25 am
What you say is true, but I feel your forgetting something important that can be of value as well.
In Sweden we have umbrella cooperations that handles the marketing and sales for individual consultants who are in business for themselves. They do this for a cut of your income. I think this is something you should consider if your thinking about working as a consultant.
February 8, 2012 at 1:23 am
I have worked freelance since the last millennium...oh ok 1999. Anyway, I have dealt with many people running their own companies, working freelance, temps and permanent employees. The ones who are truly successful, read satisfied, are the ones who find a way of working that matches their personality especially when considering whether it aligns with their aversion to risk. If you are not a risk taker at all then maybe the security (stop laughing) of a permanent job is best for you. Having said that, if you are a complete risk taker some people will not take you seriously in business if they are aware of it.
It's simply down to preferences and skill set i.e. what way to you want to work and do you have the ability to do it.
Gaz
-- Stop your grinnin' and drop your linen...they're everywhere!!!
February 8, 2012 at 9:05 am
Some people see the glass as half empty, while others see it as half full. I can also show you 10 reasons why you should go into business for yourself, even during these times:
http://redstorm.ie/2011/10/top-10-reasons-to-start-up-in-a-recession/
and then, on top of that show you 7 more reasons:
http://ezinearticles.com/?7-Reasons-to-Go-Into-Business-For-Yourself&id=2234724
I am reminded of a saying that my dad always used:
"Man cannot discover new oceans unless he has the courage to lose sight of the shore.”
😀
"Technology is a weird thing. It brings you great gifts with one hand, and it stabs you in the back with the other. ...:-D"
February 8, 2012 at 10:00 am
I used to be an independent consultant and it was great! I did not do a lot of marketing because I had enough work to keep me busy. I was also not the primary bread-winner in my family and I had a second part-time job in the AF Reserve. However, after September 11, 2001, I had trouble getting clients. The current Reserve policy is that all Reservists will deploy 2 out of every 5 years. This does not include the ramp up and ramp down time, so basically 3 out of every 5 years. I couldn't even get any local government offices as clients-no one wanted a primary consultant who was a Reservist. I can't say I blame them.
I had to take a full time job after that. I have also left the Reserves, as there is just no way to have gainful employment and deploy 3 out of every 5 years. That ridiculous policy also would have not allowed me to be with my family and see my children grow up! I am the primary bread-winner in my family now, so employer-sponsored benefits are necessary. Maybe some day I can go back to that.......
February 8, 2012 at 10:09 am
hoo boy, can I relate to this topic. My husband started his own business when I was 2 weeks away from delivering our first child, quitting his job at Wang Labs (remember them?) - and the business he started dealt mainly with hardware service contracts where his customers had to give 3 months' notice to Wang to leave (and before starting with my hubby's company). And I got laid off after my maternity leave. Talk about scrambling! Those were definitely lean months. But he had the right personality for self-employment; me, not so much. I kid him that if I'd known he was going to start his own business, I might not have married him! I like the security of working for a company, with the associated benefits/vacation/etc. For a while I did work with my husband, doing the books, contracts, ordering, etc. - and collection calls are NOT fun. At the end of the day, was it worth it? I guess...but very stressful! And as far as vacations - we took 2 family vacations over 25 years.
February 8, 2012 at 11:29 am
I have often think about going solo; I am pondering towting for private work but, where do you start, how do you work out what is the going rate for work etc?
I wouldnt want to rip a customer off but at the same time i wouldnt want to give my services away for next to nothing.
***The first step is always the hardest *******
February 8, 2012 at 12:16 pm
You just have to do some research on your market. I knew what consultants with larger companies were charging and I definitely was not going to request that rate. I didn't need to anyways since my overhead was very low. However, you have to pay both employer and employee taxes, so consider that. You may also have to pay into workers comp, so there goes more of your $$ there. I was fortunate in that when I was thinking about starting a business, I had a company who was already willing to hire me as a consultant. I very much enjoyed my 5 years and I incorporated my business to make it nice and official.
I also used the free resources from the government-a small business consultant who met with me at the Chamber of Commerce who was very helpful. I also met with SCORE (retired executives), but they were not so helpful since they didn't understand IT at all! This was back in the mid-90's and it would appear that these executives retired prior to learning computers!
February 8, 2012 at 11:34 pm
This is a interesting topic. But I have a question. Is there any one out there currently who is having a career just by running a website related to SQL Server?
Is it possible really?
M&M
February 9, 2012 at 1:12 pm
mohammed moinudheen (2/8/2012)
This is a interesting topic. But I have a question. Is there any one out there currently who is having a career just by running a website related to SQL Server?Is it possible really?
Sure, there is a few of them, but that is not all they are doing either.:-D
"Technology is a weird thing. It brings you great gifts with one hand, and it stabs you in the back with the other. ...:-D"
February 13, 2012 at 8:27 am
Unforutantley, the jobs in the Milwaukee, WI area for solo consultants pay about $35-$45/hr for someone with .NET and/or SQL skills. A corporate 40-45 hr/week job with benefits is better than that rate(assuming you are experienced and good at what you do), considering I wouldn't expect to be able to find work for an entire year at $45/hour. I was looking more for $55-$65 per hour, but those were far and few between, and typically short term.
With that said, companies appear to have no problem paying other companies $100 - $200/hr for consulting work, but seem to have less interest in a solo person.
February 13, 2012 at 9:01 am
Question Guy (2/13/2012)
...With that said, companies appear to have no problem paying other companies $100 - $200/hr for consulting work, but seem to have less interest in a solo person.
Always the way. No idea why. Maybe they see individuals as being greedy and directly interchangeable whilst also having some perception that companies go further than an individual would.
Gaz
-- Stop your grinnin' and drop your linen...they're everywhere!!!
February 20, 2012 at 1:24 pm
The one big issue with 'going solo' is that you are the employer - you have to provide your own benefits. Health coverage doesn't come inexpensively. Paid vacation/sick leave just went out the door. 401(K)/retirement matching - not happening. All overhead is now yours...that's why consultants tend to charge much more than a regularly employed person. It's also why companies like consultants - it lowers their overhead.
-SQLBill
February 21, 2012 at 1:55 am
SQLBill (2/20/2012)
The one big issue with 'going solo' is that you are the employer - you have to provide your own benefits. Health coverage doesn't come inexpensively. Paid vacation/sick leave just went out the door. 401(K)/retirement matching - not happening. All overhead is now yours...that's why consultants tend to charge much more than a regularly employed person. It's also why companies like consultants - it lowers their overhead.-SQLBill
I'd have to disagree with regards to overheads. They exist in both scenarios. If a company pays for an expert it doesn't matter whether it is an individual consultant or a consultant from a consultancy. Either way all the costs need to factored in. Consultancies also tend to have additional costs such as shareholder profits to generate. Sometimes they have to cover things like sabbaticals etc which counter most economies of scale arguments. Individuals tend to spend their own time doing payroll/accounts so don't have HR/Payroll overheads. As for 401(k)/retirement matching <assuming it is a US thing> or pensions in general, companies have to get the money from somewhere to be able to do that. Training is often done by in company time by employees but individual consultants do this at evenings and weekends <braces for loads of employees complaining about the lack of company supported training>.
Consultancies cover their costs and generate profits by charging clients.
This is why consultancies have been able to afford to bring me in on numerous occasions and still make a healthy margin. Consultancies don't have to cover my overheads from their profits like they do with their employee benefits, it's all built in. Also, consultancies have to cater financially for redundancies etc which is a LOT more expensive than invoking a termination clause in a contract and saying "Thanks".
In general, the difference is in flexibility. There are economies of scale that consultancies employ to bring their costs down but they have to build in buffers for redundancies and gaps between work for staff.
BTW I am not against companies making money at all.
Gaz
-- Stop your grinnin' and drop your linen...they're everywhere!!!
February 21, 2012 at 9:20 am
I tend to agree with Gary. The overhead is always there.
As an independent you have to allow for it. You still get sick leave and vacation, you plan for it. That's where a lot of people struggle going independent. They budget as though they work every week and see a week off as a loss, rather than a benefit.
The same for health care. Arguably in the US most of us could be paid $5-10k more a year and we'd cover our own healthcare. As an independent, you should plan on spending that amount, and charge accordingly to make a profit on your business.
I have to admit that's one of my issues and one reason I struggle to be independent myself. However I have plenty of friends that are trying to help me see the light that budgeting a few weeks off is not a big deal.
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