so, you want to be a consultant?
TRANSCRIPT
So, you want to be a consultant . . .. . . (maybe)
Barrie GillisGeneral Manager, Global Consultant Exchange Services, LLC
What is a consultant?• Independent• Self-supporting• Works via contract with client• 1099 vs. W-2o Not fulltimeo No direct supervision o Independent Tasking
What does a consultant do?• Provide expertise not present within client
• Writes/contributes to documents • Develops/presents briefings• May represent client to client’s customer
Typical Consultant Engagements• Business Development• Management• Financial • Contracting• Subject Matter Expert• Mentoring • Direct Support
Why be a consultant?• You are a self-starter• Be your own business• Choose when you work • Keep more of the money you earn
(SBA: independent consulting
growing at 15% per year)
Why not be a consultant?• Uncertain income stream (a good
year: 9 months of income)• Extended work hours• Need to be available• May entail extended travel • Manage your own “benefits”,
estimated taxes, etc.
How do I become a consultant?• Financial planning / risk assessment
• Talk to your Family!• Consider incorporating yourself (LLC, S-Corp)• Acquire General & Professional Liability Insurance• Assess your skills / experience / training o Consider additional education / training (e.g.,
PMP)
How do I become a consultant? (continued)
• Pick your market(s)o Where can you make the best / fastest contribution?
• Establish your labor rate• Be prepared to negotiate
• Networking o Talk to your friends / colleagueso Join social media (e.g., LinkedIN)o Participate in affinity groups (MOAA, business
associations, PTAC)
How do I become a consultant? (continued)
• Ally yourself with a consulting firm1st Business Model:o “ classic ” (been around for the last 30 years)
Positives Immediate exposure to potential clients Assistance in finding engagements (The consultant firm markets you) Invoices clients on consultant’s behalf Provides tax documents (1099) May provide some “benefits”
Negatives Depress your market value (30% - 90% overhead load to clients) May require exclusivity to the consulting firm May pick your engagements May require fees to participate
How do I become a consultant? (the end)
• Ally yourself with a consulting firm2nd Business Model:o “ Contemporary ” (an entirely new business model)
Positives Web-based, uses social media technologies Immediate exposure to potential clients No Exclusivity requirements Negotiate directly with clients Consultant controls engagement selection No fee for consultants, ever Very low fee to clients No impact on consultant’s market value Invoices Clients on consultant’s behalf Provides tax documents (1099)
Negatives None I can think of!
