—
You may have heard that working as an independent consultant is the future of work. The freelance economy is growing as small, and large companies seek the flexibility of independent contractors. Many independent consultants enjoy the freedom of freelancing. Others find the precarious instability frightening. With a little strategy, you can survive and thrive as an independent consultant.
According to an article titled, How to Start an Engineering Consulting Firm of One, “Being a freelance engineering consultant means you get to pick your clients and projects and be flexible in how you spend your time.”
Even if you’re not an engineer, the above quote sums up one of the primary benefits of freelancing.
Other benefits of working as an independent consultant include:
- As your own boss, you control your own destiny.
- You negotiate your contracts and pay.
- You have the freedom to pursue best practices and fully explore your creativity and expertise.
- People who love being self-employed find they are never bored.
On the other hand, as an independent contractor work tends to come in waves of feast or famine. It is challenging to plan and budget with variable income. You also need to figure out your health coverage, vacation cover, and retirement benefits.
Choose a Specialized Niche
As a freelancer, you may feel tempted to keep your options open as you don’t want to miss any opportunities. However, when hiring a consultant, clients often assume a “jack of all trades is a master of none.” Avoid that trap but specializing in a niche that plays to your strengths. You may also accept contracts related to your niche, but the focus makes it easier to sell your services and command a desirable rate.
Learn Your Worth
According to a Time Magazine article, 50% of freelancers could find a paying assignment online or via social media within three days. Some of those projects pay a living wage and some don’t. Before you begin, research market rates for independent contractors within your industry. Keep in mind that you need to earn more as a freelancer than you would as a traditional employee since you pay for your own benefits and you are taxed at a higher rate. (You pay the employer’s share of employment taxes like Social Security.)
Once you know your rate and your value, bid accordingly. Avoid the temptation to undercut yourself to win work.
Set Up Your Platform
These days, most independent contractors need their own website, a branded email and possibly social media accounts. A professional looking website may attract new business to you, and it offers credibility if a potential client visits your website.
A Forbes article suggests at the very least every independent consultant needs their website containing information about your services, testimonials from previous clients and examples of your work. Also, this article suggests exploring freelance and gig-economy platforms to find leads and new business.
Be Your Own Best Advocate and Learn To Say No
This step goes along with knowing your worth. Sometimes clients may try to negotiate for a lower rate. Be aware of the opportunity cost. During a slow week, it may be worth offering a small discount, but if you offer too large a discount you may harm your business. What if you accept a low paying project then are offered more work? You may need to take both jobs and not do either to the best of your ability.
Network, Network, Get Out There
As a freelancer, you are your own publicist and marketing representative (unless you invest in hiring one). Get your name and face out there. Practice your elevator speech and print professional looking business cards. Whenever appropriate, talk about your business. You never know who may need your services or who may know someone who does. As an independent consultant, you are always looking for the next project.
MBO Partners suggest that you attend local networking and business events to learn about the latest trends and to see what others are doing in your area.
Once you land your first contract, be sure to “Under-promise but over-deliver.” The Balance suggests always operating with professionalism and integrity as your goal is to build long-term relationships. Happy clients also may refer friends to you and serve as your best sales representatives.
Most importantly, be sure that you want to strike out on your own as an independent consultant. The ride might be wild and bumpy, but it may also be thrilling if it is your choice. With planning and strategy, you may both survive and thrive as an independent consultant.
—
—
Photo credit: Getty Images