Any Freeper IT independent consultants?

None ^ | 25 Oct 2014 | Self

[tophat9000]

Good God man!. i just look at you FR profile listing you background.. we should be asking you for advice.. if you dont have several 6 figure jod offer on the table ..we are all in trouble.

So if you want to just go independent..be you own business.. you have a killer product in your skills.

Its the generic business and marketing of your skills just like and other professional, doctor, lawyer, dentist, architect, civil engineer, surveyor..ect. ...that would be new.

But again doing PCI (payment card industry) networks certification for business is hot..all businesses have to use credit cards to be competitive so they can’t afford not to be able to use them.

[Innovative]

I highly recommend you focus on finding a JOB. As others pointed out, with your qualifications you should be able to land a decent job, with benefits.

Being self employed is not as easy and rewarding as some people think and it’s definitely not for everyone.

Good luck!

[Innovative]

“My accountant’s advice was to let him respond once, confirm that his response had been received and then not make any additional attempts to contact the IRS.”

VERY BAD ADVICE!

I knew some people who did not owe taxes, had paid them, but somehow the IRS thought they did owe taxes, they had receipts and tried to straighten it out — the IRS actually froze their bank account and took the money out, after ignoring the copies of the canceled checks, that proved they paid. Then it was even harder to straighten it out - eventually they did, but I highly recommend you stay on top of it and follow up and especially if you get any other notices from the IRS.

[Reno89519]

Network. First, LinkedIn. Then via that and any local or regional groups. Become visible. Especially with the people who typically make hiring decisions for people with your skills.

Create LLC, work corp-to-corp, 1099, even W-2 if that is what they want. At the end of the day it is less important than the rate.

Rates... 1-1/2 to 2x or more your salaried rate. Remember, no work, no pay. You’ve got the burden of the lapses, of vacations, of health care, etc. Set your rate high, market as expert. What rate? Let 9 of 10 tell you you are too high and the 10th pays. (Do the math, better to work 6 months at $100 per hour, for example, than 12 months at $50)

Finally, make sure you can weather the feast-of-famine cycles that consulting often brings.

If you are glass-half-empty or your spouse is, better give extra thought to the whole endeavor.

[Texicanus]

Before I retired I was an independent computer consultant. I had twenty years of various mainframe application package knowledge and the hands on management and technical skills to install, maintain, and modify them.

Early on I needed a steady paycheck while my family was growing up. Although I took several contracts on the side for extra income during this period, I always maintained a full-time job. And in every job, I was always promoted into higher management and away from my technical skills which I loved. I was not the best people person and invariably it was up and out after a few years of higher management.

But my technical skills always allowed me to find a new job at equal or higher pay and that’s when I began to concentrate in niche markets and what people were willing to pay for my expertise and level of experience.

As I began to age, I began to notice age and wage discrimination. By this time, my family had grown up so I decided I would call my own shots and become an independent contractor.

Before becoming an independent contractor, I had acquired some of the following knowledge and skills:

I studied the various business organization types and which one best suited me. I chose sole proprietor. I avoided partnerships and corporations. Learn the pros and cons for whichever type you choose and choose carefully.

I knew something about small business accounting and taxation. But I did hire a CPA to setup my books, teach me how to track my expenses, file my taxes, and keep me out of trouble (audits) with the IRS. In other words if you don’t know what you are doing, find someone reliable who can teach you. The added cost is well worth it.

I joined organizations such as the ICCA (Independent Computer Consultants Association), PMI (Project Management Institute), and others related to the application packages like the Cyborg Users group that I specialized in. I joined Toast Masters and took Dale Carnegie courses (several times :) to improve my people skills.

I learned my immediate (local) market - which companies used the applications and the expertise I offered. How much they paid and how often they needed assistance by talking to their Human Resource departments. Many maintain a list of preferred vendors. Find out what it takes to get on their list.

I prepared a no-bullsh*t resume customized to the target company to sell my skills. BE SURE all spelling and grammar are correct. A poorly constructed resume full of typos and bullsh*t will get you out the door quicker than anything.

I learned business etiquette and how to sell yourself in interviews with key company personnel who need and can approve your services. Dress appropriately and display examples of your work if requested. You may even have to take a few people to lunch or golfing after you learn the business angles.

I learned how to negotiate, especially when it comes to the rates. Stay OPEN. Never quote a rate until you have defined what you will be doing, if travel is involved, and other factors which affect your income and expenses. AND get it in writing.

I networked with other local consultants to confirm the going rates and who was hiring them. Sometimes I paid a gratuity to other consultants for tips or leads if I was able to land a contract based on them. Likewise I passed information to them for the same reasons. Sometimes they are too busy or offered opportunities that are too big or too small or too long or two short that would fit your needs. Sometimes there was an opportunity to sub-contract to another contractor, which I avoided.

Some other important things I had to watch for:

When you contract, you are in a binding agreement between two parties. Learn how to read contracts and be sure you can fulfil your part. Some companies have a standard contract and many don’t. Be sure you know the ins and out for both parties. Be sure you have an out if you become sick or unable to complete the contract. AND be sure it specifies what you are hired to do as well as what you will NOT do such as train third world H2B visa guys or travel at your own expense to China.

Be sure you are paid directly and your income is reported as a 1099 contractor and never as a W-4 employee to the IRS. I have seen contractors paid in cash, gold & silver face value, and other forms but I avoided these.

You will have to carry your own insurance and benefits. Learn something about these, especially the SEP which can be of great benefit to you now and later.

Never attempt jobs for which you haven’t the time or expertise. In other words don’t bite off more than you can chew.

Make sure you have the tools to work with. They are tax deductible. Don’t count on the companies supplying these things to you. From pens and paper to technical and user manuals if need be. Reference books are a must.

I preferred to accept contracts for six months or less to avoid the IRS stigma that I was really an employee of one company hiding as an independent contractor. I tried to land contracts with more then one company during the year to remove all doubts.

This info may be outdated for your needs, but was relevant when I was working. Good Luck!

[martin_fierro]

(After four months the IRS has not yet admitted that this is their error.)

IMAGINE THAT WHAT ARE THE CHANCES

[Cementjungle]

I went from 30 years of doing IT full-time for corporations to consulting/contracting back in 2005.

I joined a couple of local chambers of commerce, attended the mixers/meetings and eventually picked up some gigs.

I reached out to contractors I had hired in the past and got a lot of work that way.

Have a website. Watch the Craigslist gigs listings.. not just in your area, but in other big cities. I've gotten a lot of work that way too.

Good luck!

[Junk Silver]

“The problem with consultancy.... is that you have to network, you have to advertise, you have to sell, you have to do billing, you have to do correspondence, and somewhere in there you actually get to do your job. “

After the company I worked for 10 years closed up shop I had to become self-employed. If you can get a good job I urge you to do so. Running a business, however small, ends up taking all of your time and energy. I used to devote lots of time to my hobbies when I was someone else’s employee, now that time is spent on billing, networking, shipping etc etc etc...

[conservative cat]

Everyone has given amazing advice. You might want to look into high end (not the job shop) consulting companies, too. I have done it in the past, and some of the companies pay well, have nice benefits and flexibility, and help you to network while you figure out your next steps. I met some super smart people consulting in the past.

[ClayinVA]

Good news, you hit the lottery in life, DOD is willing to pay big bucks for those certs. The CCIE alone is worth over 100K and the CISSP is just gravy. I would update the LinkedIn profile and start talking to the headhunters. If you did want to do the Contractor thing, a friend used to use MBO Partners which is an umbrella company that has some great tax benefits and is a GSA approved firm that can also hold a security clearance for you.

[Texicanus]

You are so correct. One should know these things before attempting a one man independent consultancy. There’s a lot more to it than meets the eye.

If they are trying to raise a family, schedule a yearly vacation, or pursue a hobby, they should get a good full time job and not attempt to spend the excessive time required to own, build, and maintain a consultancy.

Despite what Obama says, it takes a lot of overtime, sweat, frustration, and sacrifice to build a business. If they don’t love what they do and are not very good at it, they are wasting their time. But if they have the drive, skills, and know how to supply what the market demands, it can be very rewarding.

The primary reward for me obviously was the money and the secondary reward was the independence I achieved in my career. As I was getting older, I begin to worry about my job security and if I had enough retirement savings to retire if I lost my job. I had observed a number of people my age going through lay-offs and early retirements. This insecurity and the knowledge that my experience was worth something in the market, led me to quit and devote my full time to building a consultancy.

As an independent consultant, I pursued the jobs I wanted and did not have to rely on one company for my livelihood. And the money was good. Maybe not so good at the start but eventually it exceeded my full-time job (no extra pay for overtime) salary many times over, particularly for my age group and occupation at that time. I never regretted my decision, except that I had not made it sooner in my career.

The oddest thing I remember about the consultancy was being too busy at times to cash the checks and decide how to spend or invest the money. Also during periods of downtime between contracts, whether to kickback and “take some time off”.