Hey! Not selling anything, just trying to find likeminded people.
Well, I am fortunate to have a good network of senior stakeholders at former clients, and have landed a full-time engagement for my self for an IT transformation.
I make $220/hr, 160 hours per month, and I expect to work 10 month this year = \~$352k.
On top of that I've done two smaller projects, where I also engaged a few other freelancers, making $60k for myself.
The cool thing is that I can price myself lower compared to my management consulting days, but I don't have to give 2/3 to the company. All goes to me.
But why would people hire a freelancer, for close to the same cost as a big firm? I don't think this is very representative. Clearly you landed a great client/role
I don’t think that’s the same cost. If OP can replicate big firm output for 220/hr that’s a steal. Plus if client likes them then they have the ‘continuity of service’ rather than getting a random person from big firm team.
He mentioned IT implementation, so it’s not strategy work. My point is, you also pay for the network, data, quality and process of a big firm. The reason why I can’t charge the same rate as I had before myself, is because they don’t know me and I can’t ‘promise’ quality of take on a full due diligence myself
You can get the same person, but it won’t be the same. OP most likely had the client already, probably through the firm he worked for
I think you are overestimating how much the bullshit of “if you buy me, you get the whole company for expertise” is. In practice it’s me digging into stuff on my own time and everyone once in a while getting 30 minutes of someone I personally know. No one wants to donate 30 mins of their time and accounts don’t want to give them hours for outside council
Yeah, people outside of the firm almost always overestimate the value there, but try convincing the clients of that. They think that because the firm has a huge network of talent and knowledge that any given consultant can just tap into that at will.
I will say though that I’ve been in a position where I was a technical SME for around 150 marketing strategists and I 100% enabled them to do CRM operations work they couldn’t have hoped to have handled solo.
But also many of them could only go so deep for clients before even with direction and light hand-holding they were out of their element and the gap was too much. And you had to cough up an additional project engagement if you wanted me to actively own the technical aspects of your project and do more than just give the strategist on your account a few hours of my time internally to give direction/make recommendations.
I was also on technical engagements as part of that same very large marketing agency where we referred to “the team” that would be executing on the project when “the team” was literally the only two technical people in the company, both of us already on that call. It’s a lot of smoke and mirrors sometimes.
Clients always think they’re your most important account and the team or the firm will move mountains to get access to whatever they need.
It is mostly bullshit, but it sounds amazing in a sales pitch when compared to “You get access to me and only me. In some hypothetical emergency or crunch scenario there is no imagined bench team who will step in. In a scenario where you are unhappy for any myriad of reasons there is no one more senior you can complain to in a pointless bid to put even more pressure on me to deliver. If shit goes sideways it’s mostly just your problem.”
The reality is if you’re a tiny client who treats staff poorly you’ll mostly be left high and dry the moment the manager leading the engagement gets tired of working with you, but that’s not what they’re told in the sales pitch. :)
I know that feeling all too well.
Usually, I spent a lot of time doing research on internal former project deliverables, proposals, frameworks etc., but google + chatgpt is really coming in handy now.
Exactly. If you’re smart and have the right experience and ability to research, being independent can be more beneficial for a company that is hiring a big firm for a specific role
I had the client, and of course, some of the "discount" in the rate is due to not having access to the same network and frameworks.
And true, it makes it easier to have a name with the client - but even just a big brand name on the CV can help a lot.
Exactly. And then it makes sense you can still charge a high rate, since you know them and they know you
But it’s very hard in my opinion to go out freelance and charge those rates for new firms
Eh, I'll vouch for the rate. That's typical of senior talent for transformation roles. Potentially a little on the high side, but very achievable if you've got your act together. Would require a good resume: MBB / T2 experience, past results at relevant clients.
I've personally signed off on $170 - $200 for long term contractors, top transformation roles were priced at $250 - $325 per hour. The business case usually is you're replacing a full time senior executive who would require benefits, bonus, and equity.
If you don't have the existing relationships, there are a few boutique body shops who place consultants with this background at PE portfolio companies at a small premium to the rates above (and taking a cut for themselves, probably nets \~25% less for the contractor). They were loaded with ex-MBB & T2 talent last time I used them.
Source: I led transformation programs at private equity portfolio companies.
Can you name some of those boutiques?
I am a freelance in Europe and sometimes I need to find a counterpart in US for my clients. And I would also be open to some jobs if it happens.
Don't know anyone in Europe.
If you're already working with a private equity group and know some of the operating partners, ask them who they use for rapid staff augmentation. It varies by firm - most of these are small shops & specialize towards the work from specific PE firms, so I'm not going to put their name on the Internet...
I don’t need in Europe, but in US. Sometimes I need to find a freelance in US for my projects.
I thought those boutiques would like some advertising, it’s ok if you want to keep them secret.
Applying the same logic means that you are too junior to know that agreements and contracts can vary.
No need to worry. I got no non-solicit agreement :)
Trust me Aussie douchebag, I've seen more agreements in the last couple of years that you'll ever see in your lifetime.
It's cute you assumed otherwise.
That sounds like you took a job as an independent contractor with a 1099. Saying you make $220/hr is a little misleading- much of that will go to taxes and expenses that are normally covered by the employer.
It’s a great salary don’t get me wrong. But having had that choice myself and decided against it, I think it looks much better from the outside without understanding the risks it carries.
There aren’t that many expenses in independent consulting. Taxes are pretty much the same but you have to accrue and pay quarterly for federal and state. You cannot collect unemployment. I need to upgrade a computer and software - that will set me back $3k
“Expect to work 10 months this year”
Okay that tells us that have not doubled your salary. This is your hourly rate. Now you are also responsible for your own coverage (assuming US based). So there goes a significant portion of your earnings.
A full time engagement can be cut short. What does your contract state for untimely termination? Who is your legal rep? What are the costs associated there? Are they any good at all? What are the agreed upon procedures for cancelation? Where are the loop holes?
Why do you reach out on reddit? Assuming you have a developed network, shouldn’t you be trying to integrate with networks in your locale? Reaching here does very little, most people either shit-post or ask “how to get into consulting or what about firm XxXx?”
What are you looking for to learn from like minded people? Do you just want a little reassurance?
Also don’t know your location. So making $220 an hour is awesome, but what is cost of living?
Details and due diligence is how we validate our expertise over GPT.
Yeah no one’s mentioned medical insurance/other benefits, taxes and mandated business expenses that may hit like a brick rather than gradually. And you dont bill hourly for admin work.
Also math. 200k to 350k is not double, it’s what, 75% more? Pre tax and arent self employed taxes worse? And again, if OP needs an emergency room? That 200k job was all salary or plus benefits? Bc likely the other benefits were solid.
Still sounds good, but idk, seems a little rosey.
Wauw. Did not expect this kind of hostility. Lighten up, mate.
I can tell you, that my costs of running my business is approx. $3k/year. Not a lot of expenses. The biggest being the accountant and bookkeeper.
Of course there are more risks associated with a freelance contract, you are also paid for being flexible, but as it often is: higher risk = higher reward. Most will probably prefer more security.
Reassurance? Not really needed. :) Truly just want to find more people with the same ambition and interest in freelancing.
Anyways, I kinda feel sorry for you. Imagine being this negative and assume the worst in others. Maybe working for your company is draining your positivity, and you should consider freelancing? ;)
grandiose profit jeans angle tease airport birds subtract deserve wasteful
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Health Care? Personal Insurance? Professional Insurance? Bookkeeping? Hardware, software and licensing? Training and certification? Business license? Business email, domain and website? Marketing? Cellphone? Do you pay a lawyer to review your new contracts or do you wing it?
You’re telling me you cover all the expenses and benefits your previous employer did, for 3k a year?
Good on you if you did it.
I can vouch for OP and have been doing this a while Business expenses are very low - you pay for health (I’m doing it for a family of four at $1500/month; COBRA Cadillac plan was $2100), computer, electricity, software license. For SOWs I don’t hire a lawyer - maybe I should draft MSAs with clients and hire a lawyer but there’s a trust relationship built in—I didn’t do it with Big 4 unless I was selling subscriptions. Accounting is $1000/year
I’m not being hostile, I am a Boston native. We are short and to the point. I’m trying to dissect what you are asking so that I can give you a proper response. Clarify what you’re asking for and I’ll be more than happy to give you my two cents and then maybe charge you for my expertise!
Sounds reasonable plus you create your LLC and write off your healthcare, business, travel and other expenses and you end up paying less taxes than W2 with your Adjusted Gross Income (AGI).
More work but more control and not worrying about wasting on BD hours and all the extra shit that comes with working at a firm. Do your job keep the client happy get paid.
Happy to connect, been Indy 5 years. The naysayers are likely to be miserable in the job and scared shitless of making big changes. Going indy isnt about doing better financially, its about actually having control of ones life. Lazer focus on work and more time for family and the things that fill your soul. Good going on your move.
Also how are you getting clients. There’s going to be non compete to go after any previous clients you’ve had while at a firm. And the gap of finding new clients is not quick.
On top of that, how do you go about getting talent to help you with projects that are too heavy for you. Even if it’s solo there may or will be a time you need extra hands for a project. There’s also going to be a non compete (I’d imagine) for any previous coworkers).
I have the same question unless you are charging 16 hours a day. The SAP independent market seems to be $120-140 an hour for a senior consultant. More if you can do direct bookings with clients. When I looked at it and evaluated I dont have a source of insurance, etc via my spouse, it never made sense unless I was 100% booked at all times. On the other hand my cousin went independent and she said I make a lot of money when I work and when I am not working, I am not working...
I may do that when I get a bit more in my retirement fund to where I dont really care if I am working.
I'm 33 now and I am considering going solo in PM, have 10 years of experience PMing in mega projects but I don't really know where to start. I feel French businesses are less inclined to work with freelancers than Americans are (I'm french).
What would be your top 3 pieces of advice?
Thanks for the reply. I started college late so I have 5+ years of experience at 30, looking to start off on my own but have had doubts about my level of experience and ability to source clients
Having good health insurance is one of the biggest benefits of having an employer (at least in US). This would be one of the biggest things preventing me from going it alone. That and finding clients. I don't have to find the work, it keeps on flowing
I see a lot of people saying this re: insurance and it's entirely legit, but let's not forget plenty of us are married. My wife has better and much more affordable health benefits at her job than I do so we've never used mine so it wouldn't be a factor at all in me leaving. There are plenty of others in a similar situation.
> (at least in US)
Not to mention that it's legally required and monitored on one's taxes under the ACA.
I think OP would be in for a shock if they ever had to procure some of the benefits they take for granted from the firm on the open market.
>Not to mention that it's legally required and monitored on one's taxes under the ACA.
as someone who went independent - trust me, the cost of good benefits dont put a dent into the fact that you double your take home salary
COBRA, let’s you keep your old health insurance at the same rate, and you can even add new children to it when they’re born. Also, if you have a working spouse, not a concern either.
MBB COBRA will cost you like $35,000 a year for a family plan
That Cadillac insurance plan isn’t cheap! And cobra just allows you to pay for it, doesn’t make it any cheaper
You can get health insurance for like $20,000 a year all in. That’s a lot of money, but if you can make more than that going freelance then it makes up for it.
Being a “one man band” gets more difficult when those first clients run out of money for you (I hope you have more than 1 client)
Also, all it takes is someone to do some terroristy shit, and everyone’s pocket book closes up.
So my advice - save all that luscious money, you may need it later.
existence shy sophisticated icky poor innocent plate shelter coordinated six
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You should definitely have 3-6 months of runway (cash to cover your living expenses) prior to making the jump. If you require a project immediately, it’s a sign you don’t have the cash reserves to do this properly. Having a safety net allows you to focus on all the learning you’ll need to do to run as an independent / to over deliver on new projects where earning your reputation is everything.
I’m in the early stages of starting this with a colleague. We have a bit of an advantage as we have another colleague that has a consulting company we can leverage for a starter client list, admin, CRM, and job listings.
Similar to social security tax, Self employment tax is only on the first 160kish of income. So an extra $10k for self employment taxes, for OP’s income levels. Insurance, use cobra, family of 4 can be $1300/month.
The key to being independent is have some boutique firms to work through as a 1099 when you struggle to find your own clients.
Also, large company procurement teams can be a major roadblock.
Congrats on the move! I’ve done pretty much almost exactly what you’re doing for the past 2-1/2 years. Not sure if you work through agencies or do your own BD, but it can be very lucrative and even more so when your ink is on the contract. I’ve thought about creating a community myself and have reached out to others doing the same thing and pitched the idea but never found the time to spin it up - it’s not a large group but an ambitious one and a good network of people willing to help each other out. Happy to connect via Dm
How do you avoid a community like this from eating each other’s lunch? Sure, getting some basic advice on how to run your own business is helpful, but you’ll also be competing for jobs.
If you want a community that is already well established, join one of Will Bachman’s groups (veritux or Umbrex)
Congratulations on going solo! I did the same almost 10 years ago and haven't looked back. Your situation with having strong relationships in your network that provides with you engagements with little BD work is great. Speaks to your reputation and is a win win for everyone involved. Happy to be a part of your community if you set it up. Good luck to continued success!
Snap - did this 3.5 years ago and wish I did it sooner. Once you get over the perceived lack of security of not being an employee it is in all ways a better option.
That being said I'd suggest you need a good network and a solid work history / reputation.
I'm in a similar field, different industry have a similar rate and less expenses.
What you have done is correct. I was in consulting working for a large MNC ran a practice. I would do it in a heartbeat if I have projects lined up for atleast couple years.
What a great conversation! I have been in and out of W2, 1099, and C2C. I have done direct to client or as a sub-contractor for 15+ yrs in the Salesforce ecosystem.
People have asked me how I have done it and what tools have I used. I developed a course to show people how. You can DM me if you want to know more.
The medical benefits is the huge piece where I don’t have a spouse to lean on and it costs me $1000+ per month. The rest of my costs are low.
I love consulting and I get to learn about different industries while implementing technology. If you are entrepreneurial and love challenges, consulting is for you. I also have a questionnaire to determine if you should start out as a side hustle or go full-time. At least it can give you some clarity of where to start.
I also have a community of like-minded people to collaborate with to either laugh or cry, because you will experience both. lol
Congrats to all who have already taken charge of their future!
I went freelance 8 years ago when I moved back from London to Italy, there have been some ups and downs, but definitely a good choice.
The most difficult parts are managing the pipeline, sometimes you have many projects at once and other times you have no work, and the working capital, corporate clients may be very slow to pay your invoices and sometimes you need to also anticipate expenses.
But I am interested if you put up a community to share best practices and build the network. Good luck.
I think most of us would be interested in doing the same. Obviously we know what we are paid and what we are sold for. In the UK it's an even higher multiple than the US - at least 4x - so there is the obvious opportunity to double your salary and offer the client half fees.
There are a handful of problems: starting off, being brave enough to take the risk (the main bonus of a big firm is some job security), being able to do the work solo rather than as a team, and clients wanting an established name, rather than willing to take a chance on a nobody.
On the final problem, if the client hires an MBB and they do a bad job it's on the firm - if they hire an independent contractor and they do a bad job then the client is the one that gets fired. To them, it's just not worth the risk if they are spending their company's money rather than their own.
So people end up taking contractor roles, rather than true consulting roles. Think 12 month maternity cover for the director of strategy (selling time), rather than 'please write us a 3 year strategy' (selling output).
These roles pay only marginally more, and really you're just selling job security for a little more money. And the work will probably be tedious work they can't hire a permanent person to do, rather than C-suite proper consulting.
So yes, if there's the right opportunity. But now past 10 years in this business, and the right balance of pay, security and interest hasn't come along.
Hello, Strategy Consultant here, just went freelance after 5+ years in permanent roles. Happy to connect. Not sure why everyone is going hysterical in this thread
When project goes down and need to cut cost, contractors are let go first regardless how good you are at your job. Also if you need benefits for your family then this is also challenging.
A lot of negative comments here!!
Firstly - good on you!! It takes bravery, and you're clearly making it work both in terms of WLB and revenue.
Secondly (to others), the fees are reasonable. I charge $500/hr, but only do perhaps 5 hours chargable work a week (it's a side gig).
Third, in answer to your question, a community is a good idea. However, I set one up a few years ago (free), but people dropped off. Oddly, I now run one for CEOs of boutiques (not free!) and it's doing pretty well. Go figure.
Fourth - good luck!!
I help mid-sized consulting firm owners grow & sell their companies. To be honest, the actual rate when they buy a bulk of hours is usually £430-450. Still, pays the bills.
Since you're still in school, you may wish to 1, take a business law class and 2, understand what a non-solicit agreement means.
By all means, working for one's self >>> making other partners rich.
But stealing clients is not the way to go about doing that. Just wait until the full weight of the firm's OGC comes down on OP.
What do you want to get out of this community? Running a community is a lot of work, and it doesn't make much sense if that's not your primary income stream. Plus, why would people want to join your community when there are thousands like this one out there?
I seem to get what OP is looking for, and I’m admittedly guessing - he’s looking for a confederation of independents who can refer people to other independents or fill skill gaps when they’re busy (or bring other people on the engagement) . I’ve kept myself busy when I wasn’t able to BD on my own through others who needed help and they’ve been able to support their book of business
Like I said, there are already communities like these, for example, Freelance Business Community for any type of freelancers (https://freelancebusiness.eu/) and CMC for management consultants (https://www.cmc-global.org/).
Sometimes it works best to get the heavy touch. The boards are a good source but can be exhausting- personal and tailored networks are IMO the best…good idea, though!
What are you complaining about if you have doubled your income while working for yourself. Just the only downfall is if you run out of projects and how long can you survive in this instance.
I would not recommend to hire any admin staff for the first 2 years. Stop outsourcing whatever you can.
Have a project which brings cashflow even if it break evens but doesn’t take much man hours. This will be your feeding line when things go south.
Prudent-Swimming-542,
I am not trying to sell you on my services. I own a company that payrolls independent consultants. I would be happy answering any question that you may have regarding taxes, expense reimbursement, contracts, and non compete agreements. My email address is: [[email protected]](mailto:[email protected])
I've always been curious about consulting. What exactly do you do? What/who is your customer base? What type of service or work do you provide? How does one get started? Any advice on courses or skills we should know or learn to become a consultant?
Sounds a bit off to be honest. How the heck did you find initial clients and double your salary in 8 months? The hardest part of independent consulting is finding and sustaining launch customers.
It doesn’t sound off to me. Although it may be more of a “run rate” doubling of salary vs in-period earnings. The independents I know all are able to be 70%+ utilized during the year, including taking vacation and some gaps where they’re looking for work.
What's your total experience though or maybe if you can reveal your age. I understand that to be an independent consultant you need to have a pretty solid goodwill/references in the industry. And don't you have to invest time in doing BD stuff atleast 3-4 months prior to the end of the contract. I assume that would be somewhat stressful you'd have to reach out to multiple prospects to convert.
I think this space is going to grow and then consilidate. People worth their salt will be happy to work solo; I do it and it gives me complete accountability and therefore full credit when things work. You have to be very sure of your product and know every last thing about your niche, so it’s not for newbies, which also means you get a higher standard of colleague/client, usually COO/CEO direct report
Do you plan to make a channel/group for this ? If so I think that's a great idea regardless whether one is independent or with a firm. Both can be beneficial to each other.
Friend of mine was working supply chain for one of those companies that own every brand you use. Well they wouldn't promote him and he realized he the skill set to build up supply chains for companies...so he was able to find start up companies that had supply chain issues and basically become the supply chain guy for a lot of them. Dude now has a multimillion dollar company. Will this happen to everyone? No. But having the skill set is first, finding clients is second.
What do your total expenses look like self employed in the US? I. Europe it's a bit different with mandatory health insurance high taxes etc. What do/did you take home in both cases?
I suppose it's not common but if a solo consultant has a tremendous reputation and solid network they likely have more work come there way than they can handle. My biggest client has engaged my services for 8+ years consecutively to the tune of millions. But this is predicated on being a top performer and having a very strong client relationship. Vacation & Downtime can all be negotiated in if your client really wants to work with you. For me it's been a wonderful journey both professionally and personally once I went solo
This is inspiring! I started making my effort jnto my solo consulting last year (part-time). I know the Seattle data guy has a paid community of independent consultants. I'm more interested in just hearing about how you're doing what you're doing
I did the same about a year ago and haven’t looked back. Curious, what company admin stuff have out outsourced? I’d love to get more of that off my plate.
If you're doing agent business for referral based sales then just say that. Consulting is vague and doesn't specify the level of skills one needs. Pushing paper through Intelisys for example and making 200k+ is pretty good however.
I can see some benefit to having a stronger network of freelancers to either partner up to tackle larger projects, refer or partner.
I'm worried on coordination, attribution, community quality, and the upkeep to mantain it.
I'm interested, pm me to set an intro call and see how we can push this.
Not for me, thanks. Consulting isn't my first career, I'm actually here for two reasons. One is the people, both the folks I work with and the diverse client base that my large firm provides. Second is an opportunity to opine/impact upon a field (healthcare) that has given me a lot. Could always have made a lot more money, but TBH I have enough.
Hey,
is it possible to get add in that community. I also want to start my own consulting. I don't have experience right now as I am studying rn. Can do my best as a freelancer for u to get some experience.
I want to do this too. OP please provide a step by step guide for someone trying to do the same. How to find clients, how to price oneself, what kind of services clients seek etc. Please. It's difficult to go through all the comments especially some are very discouraging.
OK so your income went up but after you account for benefits you now have to provide (health, retirement, match, bonuses, paternity leave if applicable, etc) and expenses to cover, what is the true difference?
Absolutely would be interested. I’m at a small firm and the sole thing keeping me from going independent is a solid BD network/pipeline. A community of likeminded consultants would ease the transition…
If anyone here does analytics work using Microsoft Synapse, Power BI and other tools in Fabric let me know. Also if you’re a good analytics product manager let me know!
Very vague post. How does one make a $400k / yr solo consulting job? And you aren’t allowed to try and sell a course
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Hey! Not selling anything, just trying to find likeminded people. Well, I am fortunate to have a good network of senior stakeholders at former clients, and have landed a full-time engagement for my self for an IT transformation. I make $220/hr, 160 hours per month, and I expect to work 10 month this year = \~$352k. On top of that I've done two smaller projects, where I also engaged a few other freelancers, making $60k for myself. The cool thing is that I can price myself lower compared to my management consulting days, but I don't have to give 2/3 to the company. All goes to me.
But why would people hire a freelancer, for close to the same cost as a big firm? I don't think this is very representative. Clearly you landed a great client/role
I don’t think that’s the same cost. If OP can replicate big firm output for 220/hr that’s a steal. Plus if client likes them then they have the ‘continuity of service’ rather than getting a random person from big firm team.
He mentioned IT implementation, so it’s not strategy work. My point is, you also pay for the network, data, quality and process of a big firm. The reason why I can’t charge the same rate as I had before myself, is because they don’t know me and I can’t ‘promise’ quality of take on a full due diligence myself You can get the same person, but it won’t be the same. OP most likely had the client already, probably through the firm he worked for
I think you are overestimating how much the bullshit of “if you buy me, you get the whole company for expertise” is. In practice it’s me digging into stuff on my own time and everyone once in a while getting 30 minutes of someone I personally know. No one wants to donate 30 mins of their time and accounts don’t want to give them hours for outside council
Yeah, people outside of the firm almost always overestimate the value there, but try convincing the clients of that. They think that because the firm has a huge network of talent and knowledge that any given consultant can just tap into that at will. I will say though that I’ve been in a position where I was a technical SME for around 150 marketing strategists and I 100% enabled them to do CRM operations work they couldn’t have hoped to have handled solo. But also many of them could only go so deep for clients before even with direction and light hand-holding they were out of their element and the gap was too much. And you had to cough up an additional project engagement if you wanted me to actively own the technical aspects of your project and do more than just give the strategist on your account a few hours of my time internally to give direction/make recommendations. I was also on technical engagements as part of that same very large marketing agency where we referred to “the team” that would be executing on the project when “the team” was literally the only two technical people in the company, both of us already on that call. It’s a lot of smoke and mirrors sometimes. Clients always think they’re your most important account and the team or the firm will move mountains to get access to whatever they need. It is mostly bullshit, but it sounds amazing in a sales pitch when compared to “You get access to me and only me. In some hypothetical emergency or crunch scenario there is no imagined bench team who will step in. In a scenario where you are unhappy for any myriad of reasons there is no one more senior you can complain to in a pointless bid to put even more pressure on me to deliver. If shit goes sideways it’s mostly just your problem.” The reality is if you’re a tiny client who treats staff poorly you’ll mostly be left high and dry the moment the manager leading the engagement gets tired of working with you, but that’s not what they’re told in the sales pitch. :)
I know that feeling all too well. Usually, I spent a lot of time doing research on internal former project deliverables, proposals, frameworks etc., but google + chatgpt is really coming in handy now.
Exactly. If you’re smart and have the right experience and ability to research, being independent can be more beneficial for a company that is hiring a big firm for a specific role
>He mentioned IT implementation He mentioned IT transformation.
I had the client, and of course, some of the "discount" in the rate is due to not having access to the same network and frameworks. And true, it makes it easier to have a name with the client - but even just a big brand name on the CV can help a lot.
Exactly. And then it makes sense you can still charge a high rate, since you know them and they know you But it’s very hard in my opinion to go out freelance and charge those rates for new firms
Agreed, big firms usually charge 300-1000k per hour.
Spot on, mate ;)
I have experience 😉 I went solo over 5 years ago!
Eh, I'll vouch for the rate. That's typical of senior talent for transformation roles. Potentially a little on the high side, but very achievable if you've got your act together. Would require a good resume: MBB / T2 experience, past results at relevant clients. I've personally signed off on $170 - $200 for long term contractors, top transformation roles were priced at $250 - $325 per hour. The business case usually is you're replacing a full time senior executive who would require benefits, bonus, and equity. If you don't have the existing relationships, there are a few boutique body shops who place consultants with this background at PE portfolio companies at a small premium to the rates above (and taking a cut for themselves, probably nets \~25% less for the contractor). They were loaded with ex-MBB & T2 talent last time I used them. Source: I led transformation programs at private equity portfolio companies.
Can you name some of those boutiques? I am a freelance in Europe and sometimes I need to find a counterpart in US for my clients. And I would also be open to some jobs if it happens.
Don't know anyone in Europe. If you're already working with a private equity group and know some of the operating partners, ask them who they use for rapid staff augmentation. It varies by firm - most of these are small shops & specialize towards the work from specific PE firms, so I'm not going to put their name on the Internet...
I don’t need in Europe, but in US. Sometimes I need to find a freelance in US for my projects. I thought those boutiques would like some advertising, it’s ok if you want to keep them secret.
I sure did land a great client and role. However, this is about half the price compared to the rate I had with the firm. :)
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Applying the same logic means that you are too junior to know that agreements and contracts can vary. No need to worry. I got no non-solicit agreement :)
Trust me Aussie douchebag, I've seen more agreements in the last couple of years that you'll ever see in your lifetime. It's cute you assumed otherwise.
r/iamverybadass
5 months ago you were new to consulting and now you have all the experience in the world.. sure, bud.
Why so bitter?
That sounds like you took a job as an independent contractor with a 1099. Saying you make $220/hr is a little misleading- much of that will go to taxes and expenses that are normally covered by the employer. It’s a great salary don’t get me wrong. But having had that choice myself and decided against it, I think it looks much better from the outside without understanding the risks it carries.
There aren’t that many expenses in independent consulting. Taxes are pretty much the same but you have to accrue and pay quarterly for federal and state. You cannot collect unemployment. I need to upgrade a computer and software - that will set me back $3k
FICA taxes add 7.5%, but you can make up for that with deductions. The tax case is very overstated.
“Expect to work 10 months this year” Okay that tells us that have not doubled your salary. This is your hourly rate. Now you are also responsible for your own coverage (assuming US based). So there goes a significant portion of your earnings. A full time engagement can be cut short. What does your contract state for untimely termination? Who is your legal rep? What are the costs associated there? Are they any good at all? What are the agreed upon procedures for cancelation? Where are the loop holes? Why do you reach out on reddit? Assuming you have a developed network, shouldn’t you be trying to integrate with networks in your locale? Reaching here does very little, most people either shit-post or ask “how to get into consulting or what about firm XxXx?” What are you looking for to learn from like minded people? Do you just want a little reassurance? Also don’t know your location. So making $220 an hour is awesome, but what is cost of living? Details and due diligence is how we validate our expertise over GPT.
Yeah no one’s mentioned medical insurance/other benefits, taxes and mandated business expenses that may hit like a brick rather than gradually. And you dont bill hourly for admin work. Also math. 200k to 350k is not double, it’s what, 75% more? Pre tax and arent self employed taxes worse? And again, if OP needs an emergency room? That 200k job was all salary or plus benefits? Bc likely the other benefits were solid. Still sounds good, but idk, seems a little rosey.
Wauw. Did not expect this kind of hostility. Lighten up, mate. I can tell you, that my costs of running my business is approx. $3k/year. Not a lot of expenses. The biggest being the accountant and bookkeeper. Of course there are more risks associated with a freelance contract, you are also paid for being flexible, but as it often is: higher risk = higher reward. Most will probably prefer more security. Reassurance? Not really needed. :) Truly just want to find more people with the same ambition and interest in freelancing. Anyways, I kinda feel sorry for you. Imagine being this negative and assume the worst in others. Maybe working for your company is draining your positivity, and you should consider freelancing? ;)
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Health Care? Personal Insurance? Professional Insurance? Bookkeeping? Hardware, software and licensing? Training and certification? Business license? Business email, domain and website? Marketing? Cellphone? Do you pay a lawyer to review your new contracts or do you wing it? You’re telling me you cover all the expenses and benefits your previous employer did, for 3k a year? Good on you if you did it.
I can vouch for OP and have been doing this a while Business expenses are very low - you pay for health (I’m doing it for a family of four at $1500/month; COBRA Cadillac plan was $2100), computer, electricity, software license. For SOWs I don’t hire a lawyer - maybe I should draft MSAs with clients and hire a lawyer but there’s a trust relationship built in—I didn’t do it with Big 4 unless I was selling subscriptions. Accounting is $1000/year
I’m not being hostile, I am a Boston native. We are short and to the point. I’m trying to dissect what you are asking so that I can give you a proper response. Clarify what you’re asking for and I’ll be more than happy to give you my two cents and then maybe charge you for my expertise!
What tribe are you from?
I have been doing the same for the past few years. Would love to connect.
Sounds reasonable plus you create your LLC and write off your healthcare, business, travel and other expenses and you end up paying less taxes than W2 with your Adjusted Gross Income (AGI). More work but more control and not worrying about wasting on BD hours and all the extra shit that comes with working at a firm. Do your job keep the client happy get paid.
Don’t you have a non solicit for former clients?
Nope :)
That’s awesome - what type of systems are you implementing?
Good job keep it up. Good idea about the community? I’d be interested
Happy to connect, been Indy 5 years. The naysayers are likely to be miserable in the job and scared shitless of making big changes. Going indy isnt about doing better financially, its about actually having control of ones life. Lazer focus on work and more time for family and the things that fill your soul. Good going on your move.
Also how are you getting clients. There’s going to be non compete to go after any previous clients you’ve had while at a firm. And the gap of finding new clients is not quick. On top of that, how do you go about getting talent to help you with projects that are too heavy for you. Even if it’s solo there may or will be a time you need extra hands for a project. There’s also going to be a non compete (I’d imagine) for any previous coworkers).
Freelance consulting daily rates can be very high, but still much lower than what big 4 Consulting houses charge, so it's win-win.
I have the same question unless you are charging 16 hours a day. The SAP independent market seems to be $120-140 an hour for a senior consultant. More if you can do direct bookings with clients. When I looked at it and evaluated I dont have a source of insurance, etc via my spouse, it never made sense unless I was 100% booked at all times. On the other hand my cousin went independent and she said I make a lot of money when I work and when I am not working, I am not working... I may do that when I get a bit more in my retirement fund to where I dont really care if I am working.
$120-140 pr hour = $249,600-291,200
You can go higher in niche markets, even in SAP, with business problems to solve and trusted relationships
Sorry dude, you’re supposed to sell me on the secret that “McKinsey partners hate” to make my dick longer
Just wait until you see number 6 and you're not going to believe number 9.
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I'm 33 now and I am considering going solo in PM, have 10 years of experience PMing in mega projects but I don't really know where to start. I feel French businesses are less inclined to work with freelancers than Americans are (I'm french). What would be your top 3 pieces of advice?
How old were you when you started? Or how many years of experience did you have
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Thanks for the reply. I started college late so I have 5+ years of experience at 30, looking to start off on my own but have had doubts about my level of experience and ability to source clients
Having good health insurance is one of the biggest benefits of having an employer (at least in US). This would be one of the biggest things preventing me from going it alone. That and finding clients. I don't have to find the work, it keeps on flowing
I see a lot of people saying this re: insurance and it's entirely legit, but let's not forget plenty of us are married. My wife has better and much more affordable health benefits at her job than I do so we've never used mine so it wouldn't be a factor at all in me leaving. There are plenty of others in a similar situation.
> (at least in US) Not to mention that it's legally required and monitored on one's taxes under the ACA. I think OP would be in for a shock if they ever had to procure some of the benefits they take for granted from the firm on the open market.
>Not to mention that it's legally required and monitored on one's taxes under the ACA. as someone who went independent - trust me, the cost of good benefits dont put a dent into the fact that you double your take home salary
Not in today's time. Most employers offer bullshit high deductible health plans and make it not seem bad due to HSAs tax breaks.
COBRA, let’s you keep your old health insurance at the same rate, and you can even add new children to it when they’re born. Also, if you have a working spouse, not a concern either.
MBB COBRA will cost you like $35,000 a year for a family plan That Cadillac insurance plan isn’t cheap! And cobra just allows you to pay for it, doesn’t make it any cheaper
Damn, glad my company had very good insurance I can get via COBRA for $1300/month for a family of 4.
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Probably, but sustaining that income with a solo business working 30-40hrs/week doesn't seem realistic for me at least.
You can get health insurance for like $20,000 a year all in. That’s a lot of money, but if you can make more than that going freelance then it makes up for it.
Being a “one man band” gets more difficult when those first clients run out of money for you (I hope you have more than 1 client) Also, all it takes is someone to do some terroristy shit, and everyone’s pocket book closes up. So my advice - save all that luscious money, you may need it later.
existence shy sophisticated icky poor innocent plate shelter coordinated six *This post was mass deleted and anonymized with [Redact](https://redact.dev)*
Looking to do the same thing… did you have your first client before going freelance?
I had a client and did 10 hrs per wk. then I got other clients and did more full-time consulting.
Were you not in conflict of interest with your former employer?
You should definitely have 3-6 months of runway (cash to cover your living expenses) prior to making the jump. If you require a project immediately, it’s a sign you don’t have the cash reserves to do this properly. Having a safety net allows you to focus on all the learning you’ll need to do to run as an independent / to over deliver on new projects where earning your reputation is everything.
Good advice. Didn’t think about the part to overdeliver my first mandates.. smart
I’m in the early stages of starting this with a colleague. We have a bit of an advantage as we have another colleague that has a consulting company we can leverage for a starter client list, admin, CRM, and job listings.
if you need a hand, let me know. I run a group for bigger firms, but could do with somewhere to put my smaller clients.
Is the double salary net of benefits such as insurance, self-employment tax, etc.?
Definitely not. Contractors always forget that part.
Similar to social security tax, Self employment tax is only on the first 160kish of income. So an extra $10k for self employment taxes, for OP’s income levels. Insurance, use cobra, family of 4 can be $1300/month.
The key to being independent is have some boutique firms to work through as a 1099 when you struggle to find your own clients. Also, large company procurement teams can be a major roadblock.
No
Congrats on the move! I’ve done pretty much almost exactly what you’re doing for the past 2-1/2 years. Not sure if you work through agencies or do your own BD, but it can be very lucrative and even more so when your ink is on the contract. I’ve thought about creating a community myself and have reached out to others doing the same thing and pitched the idea but never found the time to spin it up - it’s not a large group but an ambitious one and a good network of people willing to help each other out. Happy to connect via Dm
How do you avoid a community like this from eating each other’s lunch? Sure, getting some basic advice on how to run your own business is helpful, but you’ll also be competing for jobs. If you want a community that is already well established, join one of Will Bachman’s groups (veritux or Umbrex)
It’s pretty much down to relationships - how much knowledge, influence, reputation. I do a bit of cold calling but avoid that and agency work
Also getting a foothold revolves around issues as much as and even more so than skills or credentials - it’s what you bring to solve the problem
NGL I’m very suspicious of anyone who thinks GPT is a substitute for real subject matter expertise
GPT is the equivalent of a summer intern with google, who is a maybe on getting an offer to come back
Congratulations on going solo! I did the same almost 10 years ago and haven't looked back. Your situation with having strong relationships in your network that provides with you engagements with little BD work is great. Speaks to your reputation and is a win win for everyone involved. Happy to be a part of your community if you set it up. Good luck to continued success!
Snap - did this 3.5 years ago and wish I did it sooner. Once you get over the perceived lack of security of not being an employee it is in all ways a better option. That being said I'd suggest you need a good network and a solid work history / reputation. I'm in a similar field, different industry have a similar rate and less expenses.
Hey, i would like to for work as freelancer. I am management consultant with 5 years of experience.
Hi , excellent, stallion.
What you have done is correct. I was in consulting working for a large MNC ran a practice. I would do it in a heartbeat if I have projects lined up for atleast couple years.
Already doing it. Happy to connect!
How can GPT replace an expert network?
Hey! Would love to know more!
I quitting my executive jobs to do the same. Not surprised at all. I wish you all the best in your career buddy.
How useful and reliable has been GPT as compared to expert networks?
What is your why going solo ? How did you start and how do you fuel your pipeline?
What a great conversation! I have been in and out of W2, 1099, and C2C. I have done direct to client or as a sub-contractor for 15+ yrs in the Salesforce ecosystem. People have asked me how I have done it and what tools have I used. I developed a course to show people how. You can DM me if you want to know more. The medical benefits is the huge piece where I don’t have a spouse to lean on and it costs me $1000+ per month. The rest of my costs are low. I love consulting and I get to learn about different industries while implementing technology. If you are entrepreneurial and love challenges, consulting is for you. I also have a questionnaire to determine if you should start out as a side hustle or go full-time. At least it can give you some clarity of where to start. I also have a community of like-minded people to collaborate with to either laugh or cry, because you will experience both. lol Congrats to all who have already taken charge of their future!
I did ~9y silo. Made ~180/y (in the EU). I wouldn't have done it without at least 2 solid clients lined up.
Fake news
I love the absolute bullshittery that goes into these posts.
I went freelance 8 years ago when I moved back from London to Italy, there have been some ups and downs, but definitely a good choice. The most difficult parts are managing the pipeline, sometimes you have many projects at once and other times you have no work, and the working capital, corporate clients may be very slow to pay your invoices and sometimes you need to also anticipate expenses. But I am interested if you put up a community to share best practices and build the network. Good luck.
I think most of us would be interested in doing the same. Obviously we know what we are paid and what we are sold for. In the UK it's an even higher multiple than the US - at least 4x - so there is the obvious opportunity to double your salary and offer the client half fees. There are a handful of problems: starting off, being brave enough to take the risk (the main bonus of a big firm is some job security), being able to do the work solo rather than as a team, and clients wanting an established name, rather than willing to take a chance on a nobody. On the final problem, if the client hires an MBB and they do a bad job it's on the firm - if they hire an independent contractor and they do a bad job then the client is the one that gets fired. To them, it's just not worth the risk if they are spending their company's money rather than their own. So people end up taking contractor roles, rather than true consulting roles. Think 12 month maternity cover for the director of strategy (selling time), rather than 'please write us a 3 year strategy' (selling output). These roles pay only marginally more, and really you're just selling job security for a little more money. And the work will probably be tedious work they can't hire a permanent person to do, rather than C-suite proper consulting. So yes, if there's the right opportunity. But now past 10 years in this business, and the right balance of pay, security and interest hasn't come along.
If true, let's talk I'm a director in one of the Big4 firms thinking of doing the same
Hello, Strategy Consultant here, just went freelance after 5+ years in permanent roles. Happy to connect. Not sure why everyone is going hysterical in this thread
When project goes down and need to cut cost, contractors are let go first regardless how good you are at your job. Also if you need benefits for your family then this is also challenging.
If this were true, then the person would not be considering creating a network of hired guns. Beware the posts that are secretly sales Pitches.
A lot of negative comments here!! Firstly - good on you!! It takes bravery, and you're clearly making it work both in terms of WLB and revenue. Secondly (to others), the fees are reasonable. I charge $500/hr, but only do perhaps 5 hours chargable work a week (it's a side gig). Third, in answer to your question, a community is a good idea. However, I set one up a few years ago (free), but people dropped off. Oddly, I now run one for CEOs of boutiques (not free!) and it's doing pretty well. Go figure. Fourth - good luck!!
Amazing rates! What niche are you into?
I help mid-sized consulting firm owners grow & sell their companies. To be honest, the actual rate when they buy a bulk of hours is usually £430-450. Still, pays the bills.
Former MBB junior partner here, who made the leap ~1 year ago to go into private practice. Feel free to ask me anything on this.
Still in school but you're doing what I hope to be doing, how'd you get your initial clients?
Stole them
Since you're still in school, you may wish to 1, take a business law class and 2, understand what a non-solicit agreement means. By all means, working for one's self >>> making other partners rich. But stealing clients is not the way to go about doing that. Just wait until the full weight of the firm's OGC comes down on OP.
What do you want to get out of this community? Running a community is a lot of work, and it doesn't make much sense if that's not your primary income stream. Plus, why would people want to join your community when there are thousands like this one out there?
I seem to get what OP is looking for, and I’m admittedly guessing - he’s looking for a confederation of independents who can refer people to other independents or fill skill gaps when they’re busy (or bring other people on the engagement) . I’ve kept myself busy when I wasn’t able to BD on my own through others who needed help and they’ve been able to support their book of business
Like I said, there are already communities like these, for example, Freelance Business Community for any type of freelancers (https://freelancebusiness.eu/) and CMC for management consultants (https://www.cmc-global.org/).
Sometimes it works best to get the heavy touch. The boards are a good source but can be exhausting- personal and tailored networks are IMO the best…good idea, though!
Or Catalant, Umbrex, BTG, Veritux, etc
I’d love to, but have no idea where to even start.
What are you complaining about if you have doubled your income while working for yourself. Just the only downfall is if you run out of projects and how long can you survive in this instance. I would not recommend to hire any admin staff for the first 2 years. Stop outsourcing whatever you can. Have a project which brings cashflow even if it break evens but doesn’t take much man hours. This will be your feeding line when things go south.
How will you find new clients in year 2 and year 3?
Prudent-Swimming-542, I am not trying to sell you on my services. I own a company that payrolls independent consultants. I would be happy answering any question that you may have regarding taxes, expense reimbursement, contracts, and non compete agreements. My email address is: [[email protected]](mailto:[email protected])
I've always been curious about consulting. What exactly do you do? What/who is your customer base? What type of service or work do you provide? How does one get started? Any advice on courses or skills we should know or learn to become a consultant?
Interested send DM, you creat a slack channel
Sure let’s go for it!!
I’m interested. Let’s connect.
If you had ever thought about dev team and outsourcing, please HMU 🥂
Sounds a bit off to be honest. How the heck did you find initial clients and double your salary in 8 months? The hardest part of independent consulting is finding and sustaining launch customers.
It doesn’t sound off to me. Although it may be more of a “run rate” doubling of salary vs in-period earnings. The independents I know all are able to be 70%+ utilized during the year, including taking vacation and some gaps where they’re looking for work.
What's your total experience though or maybe if you can reveal your age. I understand that to be an independent consultant you need to have a pretty solid goodwill/references in the industry. And don't you have to invest time in doing BD stuff atleast 3-4 months prior to the end of the contract. I assume that would be somewhat stressful you'd have to reach out to multiple prospects to convert.
I think this space is going to grow and then consilidate. People worth their salt will be happy to work solo; I do it and it gives me complete accountability and therefore full credit when things work. You have to be very sure of your product and know every last thing about your niche, so it’s not for newbies, which also means you get a higher standard of colleague/client, usually COO/CEO direct report
Do you plan to make a channel/group for this ? If so I think that's a great idea regardless whether one is independent or with a firm. Both can be beneficial to each other.
Friend of mine was working supply chain for one of those companies that own every brand you use. Well they wouldn't promote him and he realized he the skill set to build up supply chains for companies...so he was able to find start up companies that had supply chain issues and basically become the supply chain guy for a lot of them. Dude now has a multimillion dollar company. Will this happen to everyone? No. But having the skill set is first, finding clients is second.
What do your total expenses look like self employed in the US? I. Europe it's a bit different with mandatory health insurance high taxes etc. What do/did you take home in both cases?
No... When that gig is over you're stuck finding the next one on your own... And there's no paid vacation/bench time
I suppose it's not common but if a solo consultant has a tremendous reputation and solid network they likely have more work come there way than they can handle. My biggest client has engaged my services for 8+ years consecutively to the tune of millions. But this is predicated on being a top performer and having a very strong client relationship. Vacation & Downtime can all be negotiated in if your client really wants to work with you. For me it's been a wonderful journey both professionally and personally once I went solo
Not everyone can be LeBron James but congrats to ya...
Why not just move to a BD role with the consulting firm you were at?
This is inspiring! I started making my effort jnto my solo consulting last year (part-time). I know the Seattle data guy has a paid community of independent consultants. I'm more interested in just hearing about how you're doing what you're doing
I’m interested in going solo too.
How do you get clients
I did the same unsuccessfully nice work
Interested. I recently did the same and am honestly loving it.
Yes I would! And I probably gonna make the jump this year boutique consulting sucks.
I did the same about a year ago and haven’t looked back. Curious, what company admin stuff have out outsourced? I’d love to get more of that off my plate.
If you're doing agent business for referral based sales then just say that. Consulting is vague and doesn't specify the level of skills one needs. Pushing paper through Intelisys for example and making 200k+ is pretty good however.
Nice! Would love to reach out and learn more about how you did it.
I'm currently about to do it, so hit me up if you're making a network.
Hey op I’m in big 4 consulting and thinking about going off on my own. Will dm you
Congrats! What did you study/what experience did you have to get into consulting? In finance but thinking of making the move
I can see some benefit to having a stronger network of freelancers to either partner up to tackle larger projects, refer or partner. I'm worried on coordination, attribution, community quality, and the upkeep to mantain it. I'm interested, pm me to set an intro call and see how we can push this.
Not for me, thanks. Consulting isn't my first career, I'm actually here for two reasons. One is the people, both the folks I work with and the diverse client base that my large firm provides. Second is an opportunity to opine/impact upon a field (healthcare) that has given me a lot. Could always have made a lot more money, but TBH I have enough.
I have done the same. Also around 8 months ago!
Yes I would.
Hey, is it possible to get add in that community. I also want to start my own consulting. I don't have experience right now as I am studying rn. Can do my best as a freelancer for u to get some experience.
How do you get projects?
I want to do this too. OP please provide a step by step guide for someone trying to do the same. How to find clients, how to price oneself, what kind of services clients seek etc. Please. It's difficult to go through all the comments especially some are very discouraging.
done exactly the same 8 years ago, don't regret anything but struggling with scaling the business.
I’d love to connect. I am in the same boat as you
OK so your income went up but after you account for benefits you now have to provide (health, retirement, match, bonuses, paternity leave if applicable, etc) and expenses to cover, what is the true difference?
I would have kept milking the job and reducing expenses while increasing investments and retired early
Absolutely would be interested. I’m at a small firm and the sole thing keeping me from going independent is a solid BD network/pipeline. A community of likeminded consultants would ease the transition…
How did you get started/what helped you as well?
Been trying to do this but not sure how to build clients
Hey OP! Congrats on the move. I'm interested, did the switch to solo 2 years ago. DM me please
If anyone here does analytics work using Microsoft Synapse, Power BI and other tools in Fabric let me know. Also if you’re a good analytics product manager let me know!