Starting out as an individual consultant

Atomic Pineapple

I am just looking for a bit of advice from anyone who has done some freelance consulting. I currently work with a large multinational in an area that is gaining traction across both the industry I work in and wider. I have been asked on several occasions now for my advice and guidance from contacts I have throughout the industry. While I haven't had any paying gigs from it, I have begun to explore the possibility of understanding if there is potential to go out on my own in as a consultant.

I have started by doing the following:

• Looking at statistics to validate their are people willing to pay for the expertise
• Gathering research that backs up my proposals and the need for advice in the area I would consult on
• Begun developing a basic website to gather interest
• Begun looking into some online advertising to drive some traffic to the website
• Gathered articles I have published to showcase my expertise in the area

I am at a very early stage and really looking for advice on validating the idea. However, in addition to that is there any advice that anyone who has done this before would be willing to share? Is there any help I can seek in terms of financial backing or even educational help I can tap into?

y0ssar1an22

Atomic Pineapple wrote: »

I am just looking for a bit of advice from anyone who has done some freelance consulting. I currently work with a large multinational in an area that is gaining traction across both the industry I work in and wider. I have been asked on several occasions now for my advice and guidance from contacts I have throughout the industry. While I haven't had any paying gigs from it, I have begun to explore the possibility of understanding if there is potential to go out on my own in as a consultant.

I have started by doing the following:

• Looking at statistics to validate their are people willing to pay for the expertise
• Gathering research that backs up my proposals and the need for advice in the area I would consult on
• Begun developing a basic website to gather interest
• Begun looking into some online advertising to drive some traffic to the website
• Gathered articles I have published to showcase my expertise in the area

I am at a very early stage and really looking for advice on validating the idea. However, in addition to that is there any advice that anyone who has done this before would be willing to share? Is there any help I can seek in terms of financial backing or even educational help I can tap into?

before you do this commercially, have a look at your employment contract. may be specifically disallowed without consent of your manager, especially if you will be in competition with your employer.

wouldn't be any harm to register a business name, get a personalised email. will lend credibility if you decide to move forward.

there are a number of schemes to help finance the venture, but most involve you leaving your current job, or your family investing.

best of luck!

Liamo57

Make sure you have a set fee and do not deviatr from this. You wil have to become a businessman and harden up. Phoning for money that is owed to you is something you will have to get used to. My wife started out 30 years ago and has 6 consultants working for her. It was tough early on and she met a lot os bsrmtrards along the way, but she has a few very good government contracts and works hard but enjoys it. Its 7 days a week, be prepared for that and good luck. The word consultant is not well liked out there

ironclaw

y0ssar1an22 wrote: »

before you do this commercially, have a look at your employment contract. may be specifically disallowed without the consent of your manager, especially if you will be in competition with your employer.

This is very good advice. Also, look regarding your permitted interaction with past clients. You may not be permitted to work with them for a period of up to 5 years unless given expressed permission. Widely depends on the industry but this is commonplace in IT.

Another good place for market research is current tenders, both government and private. It can give you a good sense of what the market is like (Again, depending on your market) and a few medium to large tenders in your early years could be a huge boost in your credibility (and cash flow)

lomb

Atomic Pineapple wrote: »

...understanding if there is potential to go out on my own in as a consultant.

Alot depends as in anything on if you can add value ie reduce their cost, increase their profits or quality, reduce the consumers or business in this case downside risk and if its profitable for you. Thats the triangle of business.
You need a clarity and simplicity of offer also.

beauf

Free work is plentiful. Getting paid for it is the hard part.
You might only turn 5-10% of them into paying gigs. By paid I mean actually get money in the bank. That will be the only statistic that matters.

The other part is chasing people for money can be very time consuming and stressful. I know one guy that ended up spending 40% of time doing this, it made the business not viable for him.
Others I know have strict payment terms. They just don't consider any work that doesn't comply with those terms.
You've also got to consider larger places and govt work take a lot longer to pay. Factor that also.

lomb

Id rather government work than no work. Who cares about payment terms, a bank will lend off an invoice for 6%pa if you need the funds now with invoice financing
Wrt to company work, if they are credit worthy thats fine too. No one works for free afaik . Yes youd limit their downside but not by working for free, ie youd agree certain results for certain payments.

beauf

Nothing wrong with Govt work. I'm just saying you have allow for the lead times and payment delays.

These days its about having multiple payment streams, you might have few days a month in 10 different places and a regular gig at the same time.

So you're not dependent on one place or one revenue streams. But it can take to build that up.

onedmc

I went out on my own 7 years ago and it worked stright away. Its still working even with 9 months of cancellations after covid.

Firstly, people win you work/contracts, you need to make sure you have a good loyal network of people that will come to you. Build your network if you can do this while with your current employer then do it. Maybe some research work/papers that you can get you noticed and are also help your current employer.

Tender work is not available to you without 3 years history so dont bother.

Loans and financing is available from local enterprise but nearly impossible from banks, invoice discounters etc without at least 2 years financials.

I get paid, never had a problem generally find the bigger the organisation the longer it takes. Small companies pay within days larger consultancy firm can take up to 6 months. All my government work still comes through partners, none direct despite wining contracts and being on shortlists. I have even been deslected and ending up doing the work via partner.

Dont piss off your current employer they mught actually be your best customer and advocate.

Build partnerships, sales is 40% of your time or cost, you choose and price accordingly.