CONSULTANTS ?

CONSULTANTS

Sheep in Wolf’s Clothing

By Gary McQuownData and Analytic Solutions, Inc.

Disclaimer

The following information is general in nature and intended for informational purposes only. It is not to be construed in any way as financial or legal advice.

You should consult with a trained professional familiar with the laws and regulations of your area for specific advice.

Topics

What is a “Consultant”?

Why (not) become one?

Pros and Cons?

Questions?

Consultants

An individual that provides a temporary service to another for profit.

Consultants

Temporary

Service

Profit

“Oldest Profession”

Consultants

Sense of Humor

Thick Skin

It’s True

Wolf or Sheep

“Expect half of the employees to hate you before you arrive”

“Hope the other half don’t hate you before you leave”

Hunting / Marketing First in line for : Blame and Layoffs “Family First” “Ethics, Truth and Honesty”

Consultants .. Employer

Temporary Resource

Discretionary Spending

Budget Breaker

Scapegoat

Consultants .. Employee

“One of THEM”Overpaid CompetitionKnow It AllIdiotBonus BreakerScapegoat

Consultants .. IRS

INDEPENDENT CONSULTANT(1099)

EMPLOYEE (W2)

20 Rules IRS Revenue Ruling 87-41

In General

Employee: Controlled & Protected

Independent Contractor : Independent & Accepts

Risk

WHY ?

Profit

Power / Control

Warm Fuzzes

Yin Yang

Higher Income Lower Income or Loss

Write Offs Business Expenses

Greater Flexibility Uncertainty

No Boss Clients

Interesting Activities Non Billable Tasks

Independence Greater Responsibility

Unlimited Success Unlimited Failure

Profit

Revenue

Rate * Billable Hours

- ExpensesWagesTaxesOffice & Supplies Professional ExpHealthOther

REALRATES.COM, SALARY.COM & Friends

Professional Expenses Insurance

(Professional Liability, General Liability, Errors and Omissions, etc.)

Legal (Contracts, Incorporation, Problems)

Accounting(Taxes, Book Keeping, Billing)

Marketing, Training & Development (Classes, Conferences, etc.)

Non Billable & Unpaid Hours

Marketing HolidaysAccounting VacationsBook Keeping Sick LeaveNetworking TravelTraining Between JobsAdministration Lack of Work

40 Billable Hours = 40 + ??? Actual Hours Worked

Profit

(Wages + Expenses + Profit) Rate >= --------------- Billable Hours

Profit

Low Rate = High Billable Hours

High Rate = Low Billable Hours

Right Rate = Right Billable Hours

Frequently Asked Questions

• What will I do?• How do I start? • How do I get jobs?• Recruiters?• What contract will I use?• Where will I work?• Will I make more or less?• What happens if I fail?

What will I do?

What you do now? Only Better!

“Bench Warmer”

“Builder”

“Fire Fighter”

How do I start?

Save Money and Network

Do the Paperwork

Get a Contract

Quit Regular Job

Paperwork ..

FICO

Buy a House

Incorporate

Insurance

Paperwork .. Incorporating

Protection, Benefits and Cost

Doing Business As = None Limited Partnership = Moderate Chapter S = Significant Chapter C = Greatest

Paperwork .. Incorporating and Insurance

Bench Warmers May not matter

Builders Foolish NOT to Fire Fighter

MUST

How do I get jobs?

Employer

Employer’s Competition

Networking / Marketing

Recruiters

Recruiters?

Lower Rate

More Billable Hours

Less Non Billable Hours

What contract will I use?

Anything Agreed Upon

Theirs with “Minor” Adjustments

Legally Binding

What contract will I use?

Security and Non Disclosure

Non Compete

Penalty Clauses

Late Payment / No Payment

Where will I work?

Onsite

Telecommuting

Travel

Will I make more or less?

More

or

DON’T DO IT

What happens if I fail?

Return to W2

Try again

Questions?

www.DASconsultants.comwww.ICCA.com

Thank You

Sheep in Wolf’s Clothing

By Gary McQuownData and Analytic Solutions, Inc.