To those who work for themselves...

[GoDawgs]

More specifically I'm looking for the technical consultants. I just was hoping to get a dialog going about what it took to start things up and how things are going and what you would do differently or what you did that you are happy you did. I'm an Access, VBA, Web Developer (employee) just thinking about the next step and where I want to go from here...and my thoughts always seem to come back to working for myself.

I'll have more specific questions as we go and as I see that there are people to talk to about this...but like I said, I just wanted to get something started. If anyone is actually a consultant in the same area as I am that would be great, but any info or advice you could pass on would be greatly appreciated.

Thanks to whoever responds.

Kevin

 

[theoxyde]

In my case, I am in the middle of starting up my own firm. The biggest obstacle isn't starting your business, it's finding clientele.

In today's economy, it isn't that easy to find people who will be willing to change who they are currently contracting with to go with you unless you offer distinct advantages over the competition. With a low overhead (i.e., if you only require a laptop and a coffee shop to design product) you can greatly undercut the competition. But that sword cuts two ways.

If you are drastically undercutting the competition it can be negative in two ways: 1) You may sell yourself short and lose money on that client once you *do* have overhead. 2) The client may see that drastically lower cost as a sign of lower quality.

The best way to enter the market, IMHO, is to differentiate yourself with the competition. If there is one particular area you are good at and have a great deal of experience in, milk it for all it is worth. Stick with what you know until you have the opportunity to branch out. Web Developers and VBA developers are a dime-a-dozen, even here in the low-tech state of Arkansas. You have to have a specialty to increase value.

IMO, trying to be everything to everybody (i.e., a one-(wo)man IT staff) keeps you busy, but not really making headway. Desiging the next killer app, however, can set you up for a successful career. Just don't delude yourself into thinking that you are going to get rich off designing a few apps.

Another issue is quality. Like generic developers and network admins, mediocre software can be found anywhere at any time. Make quality a top priority. You will not be lacking business if people think of you in the same light as they think of Cadillac, Bose, and Godiva.

 

[miblo]

Good thread for discussion.

Being a Swede I have my own business on the side and an employment to 'pay the bills'. The Nordic market has been tough to many - both self-employed and corporations. I want to go 100% self-employed, but don't have the guts. Yet. Hence the employment. I have worked with IT since '88. First as a PC-technician, then networking, on to unix, and now 'technical security'.

I think there are many keys to success. But one that prevails, is good connections and to know the right people. If you don't know the people in your trade, you'll have a hard time. Much of the business I generate (as employed and self-employed), is based on previous contacts. I find it extremely difficult to find new contracts with a previously unknown client.

In my case, contacts are key. And I find many friends have the same experience.

~Mike

 

[dwarfthrower]

From the looks of it I don't think it can be said enough, and I don't think it matters where in the world you are (AU for me) - Clientele, prospective clientele, contacts - are the most important thing to any business. If you venture out without knowing many people you'll find more doors closed in your face than you'll care to count.

I have to agree with the other two posters as well, you need to differentiate yourself from the thousand and one other body-shops around. I've found that the best way to do this is to build a product that has appeal across various disciplines. Build it well, then use it as a wedge to start opening some doors. If you try and set up a meeting "just to explain what my company can do for you" you'll get the cold shoulder. But if you set up that meeting to "Show you how you can gain a competetive advantage using XYZ product." then you run the chance of at least piquing their interest and getting the opportunity to get in front of the people who will hopefully pay your bills. Then even if they don't buy your product, you've at least made a new contact.

 

[GoDawgs]

Thanks guys, that's a great start, definitely the type of information I wanted to hear about (and I'm sure I'm not alone).

I have a couple products that I've sold on the side to small Veterinary clinics (my aunt wanted something while I was in school, I built it for her and it started to get passed around with just the bare minimum...then I built something a little more in depth and sold that to the same people) with just basic features and have gotten great responses (and great word of mouth). It's a small market money-wise, but there are plenty of customers and not limited to my immediate area...a start at least.

I appreciate the advice/information. I've always had customer contacts as the biggest thing missing for me right now...it's growing, but I definitely need to work on that. Quality is very important to me as well...especially since I don't need to be driving all over town fixing bugs I missed in creation.

Like I said guys, thanks...and hopefully this discussion will grow a bit.

Kevin

 

[miblo]

Being I techie, I do find customer contacts somewhat cumbersome. Not that I am reluctant, it's just that I don't seem to find the time and focus on solving the current problem, rather than giving a former client a "what's up" call. And maybe taking them to lunch.

But, it's really quite simple. And not as hard as one could think. Enough calls, and someone will eventually say "I have a project starting....".

Consider this 'mind-experiment': If you have the knowledge, but never tell anyone about it - how many will call you and ask for your assistance when they need it? Not one. So, the more you call and stay in touch, the greater the chance of someone wanting your services. In essence you need to market yourself and make a name in the trade. And that can be achieved in several ways, either by yourself, or buying someones service or hiring an agency. At least if your a consultant looking for a contract.

Easier said than done, though...

 

[LoaferMan]

Interesting Discussion

I had a consulting business for over four years in the late 90's. I stepped into a contract the day after someone had an emotional breakdown and quit. Later I did work for some former employers. Later still, I picked a company I wanted to do consulting for and just kept "attacking the fortress" until I gained entry. Know who needs what you have, then get it to them.

Also, for someone supporting a family, you will want to have insurance lined up and a steady paycheck. Both of those came from an employee leasing company that I hooked up with. I got a paycheck and an invoice every week. My wife was happy with the benefits and the paycheck. All I had to do was earn enough to cover the invoice plus a little more for profit and tax.

If you are self employed, you can just about figure that your take home pay will be 50% of your billing rate. If you bring in $100,000 a year, you will take home $50,000 a year.

It is very scary, but very exciting.

Also, if you don't want to sell your skills, then get in touch with sales reps who travel from town to town offering services. Your service can be one the sales rep handles. He or she makes the sales calls and collects a commission from you when work is obtained.

Find people who pay you within a week. After a month, it is almost too late to get the money. The cash flow will kill your business.

Happy Entrepreneuring

LoaferMan - There is no practice life. This is it. (Billy Crockett)

 

[theoxyde]

LoaferMan:
Find people who pay you within a week. After a month, it is almost too late to get the money. The cash flow will kill your business.

I couldn't agree more. I learned this the hard way on my first project. After finishing the project to my client's specifications and implementing it, they decided to add a few more features they hadn't thought of before using the app, and wouldn't pay unless I made the changes (at no extra charge). I didn't have the money to take them to court, so I had to make the modifications.

Of course, I made certain to add one particular feature... an activation code. After the second build was implemented, I let them know it would quit working in ten days unless I received payment in full, including the changes (and I controlled the installation media up until that point, so returning to the fully operational build wasn't an option). This is now a standard feature in all my projects (along with a non-refundable deposit).

Be sure to keep a tight leash on your projects until you receive payment or else people will screw you for as much as you are worth, which in our case is quite a bit

 

[GlenJohnson]

Extemely instersting post. I've gone full-circle. Started out self-employed in a sales enviorment, decided I needed insurance and 401k, got a job that was down sized after 12 years, and started my consulting company on the side. I agree completely, keep a job to pay the bills until you KNOW you can handle it on your own. Also agree, contacts are the hardest thing to find. I've found that going out, pressing the flesh as it were to companies that I knew would need my type of help, and giving people I have known for a long time a discount so they would realize I really DO know my stuff so they would spread the word helps. Being self-employed is one of the most rewarding and scariest things you can do. I can vouche for this from both sides of the fence. Good luck to all!

Glen A. Johnson
Johnson Computer Consulting

http://www.johnsoncomputers.us

"The best fire does not flare up the soonest."
George Eliot (1819-1880); Englist novelist.

Want to get great answers to your Tek-Tips questions? Have a look at FAQ219-2884

 

[miblo]

This is very interesting - we all seem to have similiar views and experience.

So the next thing that comes to mind; is there any way we together can benefit from each others experience, apart from 'been there, done that too'?

If nothing else, I'm sure a 'coaching forum' or 'mentorship forum' would be interesting. Since most of us seemingly are or have an interest in being self-employed, but need assistance in promoting ourselves (my assumption) it would be great if we could start something jointly. I'm sure there are others with the same thoughts, and surely there are associations for folks like us. Maybe someone has pointers or ideas?

Regards,

~Mike

 

[theoxyde]

A coaching forum, or maybe even an entreprenuer's forum would be a great idea. Networking techniques (people, not computers), Incorporation, Tax issues, etc. would be valuable information.

 

[GlenJohnson]

entreprenuer's forum = excellent idea. Local chamber of commerce wants me to join, but they are nothing more than a party group here.

Glen A. Johnson
Johnson Computer Consulting

http://www.johnsoncomputers.us

"The best fire does not flare up the soonest."
George Eliot (1819-1880); Englist novelist.

Want to get great answers to your Tek-Tips questions? Have a look at FAQ219-2884

 

[jimoo]

These are great tips concerning clients, but check out the "Owning my Own Business" Tread in this forum too. It offers other advice related to running a business that is helpful.


Jim Osieczonek
Delta Business Group, LLC

http://www.deltabg.com