In over a decade of independent consulting, I’ve seen my share of fellow professionals either succeed or fail at “going out on their own”. I’ve also learned what it takes to make a go of this by the sheer act of doing this work.
In this post, I want to share with you a quick check list of factors that will foster success and will help you figure out if an independent consulting practice is for you.
1. You have a marketable skill set.
The list of marketable skills is long and varied. Are you good at some aspect of HR, IT, Marketing, Sales, Finance, Accounting, Manufacturing, Engineering, Supply Chain, Business Management, Non-profit Management, Business Development, M&A, strategic planning, community relations, or other skill for which organizations pay for additional help or thought leadership?
Are your skills in this area current? Are your skills in this area transferable to other organizations? Do you have any training or certifications that provide a level of proof to others that your skills are quantified and tested?
2. You are a self-starter.
Are you self-disciplined enough to focus without the structure of a regular job? Can you set and achieve your own goals without the accountability of a boss? Can you stay focused in spite of distractions?
The beauty of independent consulting is the freedom you have, but with freedom comes responsibility. To do the work. To show up every day and to do your best. To stick with the business at hand, not because someone is watching, but because you know it is the right thing to do.
3. You can build and nurture business relationships.
Consulting requires deep technical skills but demands good interpersonal and communication skills. From getting the work to doing the work, a consultant is always in the business of working with others to get that work done.
While it may appear you are working alone, in reality you are working with a host of others in a totally voluntary way. Others must choose to work with you. They must trust your skill and ability. As do the many others in the organization whom you work with in some capacity: teaching, guiding, recommending, evaluating or implementing.
The ability to establish strong relationships based on trust, mutual regard and a common focus on a good outcome is critical. Consulting is as much about relationship as it is about technical prowess.
4. You can manage multiple demands.
When working for others you’ve experienced juggling the demands of work vs. the rest of your life. When working for yourself, you have added a third dynamic- managing your client demands in addition to managing your business demands and managing all the other things in your life. The classic dilemma for you as an entrepreneur is when to work “in” the business (paid client work) and when to work “on” the business (business development & back office tasks).
Add to that multiple clients, all with different and shifting timelines, perhaps in very different geographies – and you can see why having abilities in managing multiple and at times, competing demands is critical.
5. You are OK with ambiguity and uncertainty.
In my work straddling both large corporations and entrepreneurs, I think this is perhaps the biggest differentiator. Entrepreneurs may not like the uncertainty, but they acknowledge its reality and don’t allow their fears of the unknown to hold them back. They trust their abilities to manage whatever manifests itself. And even more than that, they have an underlying belief that they can shape their own future and are willing to do the work to plow through the ambiguity, do the hard work and trust that, in whatever form it takes, all will be well.
6. You are tenacious and can take rejection in stride.
I can recall an early mentor telling me that every no gets you closer to a yes. That may be so, but the “no’s” still sting, and can be discouraging and disheartening.
Successful consultants know that there are going to be “no’s”. But none the less they will submit proposals, continue to network, continue to seek, continue to put themselves out there.
Over time you learn that there are many reasons for the “no” – be it budget, politics, or just that someone else was a better fit.
And so, to be successful you pick yourself up, take note of what you’ve learned, and try again. And again. And again.
7. The thought of running a small business excites, rather than terrifies you.
In addition to plying your trade, you will be marketing and developing business, accounting for your money, being your own IT tech support, and writing copy for your marketing materials. These are just a few of the things that it will take to run your mini enterprise.
It may be that you get some help with all this back office business work (or not), but none the less, you are still heavily involved. You have become the CEO of you.
For some, that sounds like great fun. Others think it sounds horrible. If you are a “stick to my knitting” and let others manage the business type, having an independent consulting business may not be for you.
8. You enjoy variety.
See number 7 for the source of some of the variety. Add to that a variety of clients, a variety of geographies, and without doubt, a variety of problems and challenges with each client.
Trust me – there will be lots of variety in your life. No day will be the same. No client project will unfold in exact precision. What one client adores bombs with the next. The market goes into downturn. There is a surge in demand for what you do. Or, there is a hot new methodology or tool in your field.
All those things can and will happen. For folks like me who love to master something and then the next thing and then the next thing – it’s great fun. Others who prefer stability, steadiness and routine will not find all this very entertaining at all.
9. You can challenge and concede.
This is a funny one – so bear with me. On one hand, clients pay you for your expertise and “know how”. They are relying on you to provide something that they either are lacking or want to create. They desire strong professional guidance and a heavy dose of some professional tough love, candid feedback and straight talk.
On the other hand, this is their business, department or division. What they do with your recommendations, expertise and good work is totally up to them. That is the nature of consulting. You are the advisor, not the decision maker.
As such, there is a talent that really gifted consultants have. They know when to be tough and when to be soft. When to advocate and when to adjust. When to insist on a certain method and when to find another way to achieve the objective.
Successful consultants live is a funny place – with absolute focus on the client and achieving their objectives and total and complete detachment from what unfolds. They show up, do their best and know at the end of the day, they can influence but cannot mandate.
10. You are financially stable enough to weather months with no income.
Face it – it will take you some period of time to find the work. It will take more time to do the work. And then, it will take some more time to get paid for doing the work. In the best of times, this is measured in months. In the worst of cases, it may be longer.
Typically you’ll invoice after you do the work, and unlike your paycheck, companies will pay out later. Sometimes in 30 days. Often in 60.
The other reality is that work and billable hours are much more erratic than your regular paycheck. You’ll have good months. You’ll have dry months. The need for a stash of cash to get you through the lean months in obvious. As is the need to be able to manage money in fluctuating cycles – from lean to plentiful.
A severance package gave me 6 months of buffer to get started. Others will begin by taking vacation or time off work to get started. Others will build an emergency fund or will cut expenses dramatically to do this. Some have a spouse or partner that can cover expenses in the interim. No matter the path, the reality is that starting a business takes cash, and running a business requires the ability to manage cash flow. Period.
Learn more about starting your own independent consulting practice.
If you were able to check most of the boxes, a great next step is to check out Kris Taylor’s book, Owning It: Take Control of Your Life, Work, and Career. Where Kris shares candid insights on how she leveraged her professional expertise into a consulting business.
If you’d like to learn more, consider investing in our Launch Series where you’ll get instant access to LEAP lessons, downloads, and tools.
