Five Consulting Reality Checks
Updated: Jul 5, 2019
Plenty of friends and colleagues talk about starting their own businesses. It’s fun to chat about but hard to do: You work your ass off most days. You scour for jobs on the others. Your business and your personal life blend too much. Vacations are a rarity. And there certainly is no job security. While not an easy path, it’s very rewarding. I’ve known some folks who go in and out of consulting, but 99% either stick with it or not—there’s not much in between.
#2 We have different rates for different clients
There, I said it. This might come as a shock and even seem unfair, but consulting is not a one size fits all business. If you’re a big corporate client, for instance, I know the going rates versus a small business who can’t afford as much or is cheaper. Or a nonprofit. Or a friend of the family. Or the project is long-term versus a one-off. There are lots of reasons for different pricing. You can be sure I won’t gouge you, but all factors are taken into consideration to come up with that magic number.
#3 Expenses. Are. High.
I’m not asking you to take out the violin, but understand that even if you think you’re shelling out a small fortune, much of that money is already allocated: besides life expenses like housing and food, there’s health insurance, office costs, gas/travel, marketing, client meals and gifts, and that little thing called taxes every quarter. Know that a fair chunk of that 1099 check is going to it. The high rolling consultant trope is only a fantasy held by clients and well, us.
#4 We’ll work harder for you than the typical employee
This might seem presumptuous and even downright cocky, but there is a reason we put such effort into our work: We’re only as good as our last job with you. Employees have an ongoing flow of work and opportunities to show their stuff, not to mention a semblance of job security. Us?
We’re judged on every engagement. Being too comfortable can be the biggest downfall. It’s a great motivator to go that extra mile, every time. Which leads me to the last truth…
#5 We’re committed to you, but we’re always dating.
It’s not that we’re planning to cheat on you by running off with the competition, but we don’t have blinders on either. And don’t forget we have other clients. Like any open relationship, we still go to networking events, meet with other work suitors, and scan the job ads. We know that you could leave your company or get laid off. Budgets get cut. Or a new person comes in with their own cronies. We have to protect our investment in you. Remember that variety is a reason consultants do what we do. We don’t just love working for ourselves; we love working with lots of you.
One last truth: We are nothing without you. Clients are the lifeblood of our business and we learn a lot from these relationships, even if we don’t tell you that. We become smarter, grow as a work partner, hold up a mirror to our strengths and weaknesses, become better problem solvers, and even help evolve our businesses.
So thank you for letting me do what I love—but my payment terms are still net 30.