How to be a consultant
Be your own boss.
Ben DeBow Midlands PASS Chapter April 5, 2007
Agenda
Incorporating, Contracts, Insurance and Retirement Making the change and becoming a consultant
Finding work
The Engagement Managing clients and business relationships Being successful Pro’s and Con’s of consulting
What is a consultant?
A consultant is an expert that sells professional services in a certain area of specialization. Technology is a great field for being a consultant.
Incorporating, Taxes and Retirement
Incorporating
S-Corp, C-Corp, LLC and others
http://en.wikipedia.org/wiki/Incorporation_%28business%29
Incorporate in your state then with the federal gov’t Keep the business separate from your personal life http://www.gaebler.com/Incorporating-in-South-Carolina.htm
Key Federal forms - 941, 940, W2, W9, 1099s Retirement (www.investopedia.com)
SEP-IRA - $44k for 2007 Simple 401k Profit-sharing plans
Contracts
Contracts
Most contracts are provided by medium to large companies. Projects for small companies - Supply contract if they do not provide one.
Advice: Do not work with companies with less than $500K in revenues. Have a lawyer look over the contract. How does a contract help me? Always keep all documents for a project. Get everything in writing, no exceptions.
Insurance
General Liability Worker Compensation Commercial Auto Errors and Omissions ($1million) – Recommended
This type of insurance may be appropriate for anyone who gives advice, makes educated recommendations, designs solutions or represents the needs of others, such as teachers, consultants, software developers, ad copywriters, Web page designers, placement services, telecommunication carriers or inspectors.
How to make the transition?
Side projects\Moonlighting
Gain experience and make contacts Bid on projects (www.thecentralmall.com, www.elance.com) Build relationships and get repeat business Know your company’s policy
Use existing business contacts Get a long term contract Incorporate Obtain Insurance
Steps before the Job Hunt
Build a consultants resume
Strong resume is key Create a resume for different job types Consultant vs Full-time resume
Determine your worth What is your ideal job? Dealing with recruiting companies Interviewing
Prepare – Company profile Relax Just another conversation
Places to Find Work
Online job sites
dice.com, computerjobs.com, monster.com, careerbuilder.com
Dice.com – SQL server, 40miles from 28202 = 136 jobs\90 Contract
Professional groups
sqlpass.org, user groups, industry conferences
Online communities
Sql forums, blogs, linkedin.com
Business contacts Co-workers and their contacts
The First Day
First impressions are everything Listen twice as much as you talk Learn the key players Clarify the engagement goals Try to gauge the political and organizational environment
Sample Issue
Discovery Analyze the data Identify the problem Possible solutions
Estimate Risk and Effort
Prepare proposal Which solution would you implement? 1. High, Medium or Low Risk
Building Confidence
Complex systems, New Environment The first change should be “Low Risk” Goal: Build Confidence Sometimes the last change is the 1st Enables continued enhancements Results are seen versus theory Time to start the analysis over again
Engagement
Goals of Engagement
1) 2) 3) 4) 5)
6)
7)
Make the client happy Complete tasks\Solve issues Build relationships Identify other projects Documentation Knowledge transfer Look outside your tasks for other opportunities
Managing clients and business relationships
The best business is repeat business Don’t burn your bridges! Beyond the business
Invite your boss or co-workers out for an event. Christmas cards, Golf outings, Dinners
Swag
Being Successful
Satisfied clients Be an expert at something Know a little about a lot Give back to the community Building long-term relationships Having fun Build your own company
Pro’s of Consulting
Be your own boss Meet many different people Learn many industries Get paid for every hour worked Change Diversity Higher pay Tax advantages Contribute more to Retirement
Con’s of Consulting
No job security No employer-provided benefits Find your own work Risk of not getting paid No workers comp No workers unemployment
Summary
Consulting
Great experiences Meet many people Learn many industries Travel (if you want to) Situations could be complex or laid back.
Consulting is not for everyone