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Ask HN: What mistakes did you make when starting as a consultant/freelancer?

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Re: Ask HN: What mistakes did you make when starting as a consultant/freelancer?

#41

Post by gk1 »

bitcoinmoney wrote: post #38
gk1 wrote: post #34

Earlier quoted context omitted.

For me: - I get to work on something new every few months. New company, new people, new challenges, etc. This keeps things interesting. - I get to do what I think is best for the client, rather than taking orders from someone. - Pays much better than salaried positions (for me, at least). - I get to define my own job. If next year I decide to switch from marketing consulting to, say, operations consulting or sales co…

Can you share what you consult on?

I'm an engineer-turned-marketing-consultant for enterprise software startups. I help them attract and convert more enterprise customers in a repeatable way.

Re: Ask HN: What mistakes did you make when starting as a consultant/freelancer?

#42

Post by 0x5345414e »

andrewstuart wrote: post #33

What's the appeal of being an independent consultant? Why would you do this versus any other business or job? Genuinely curious what the appeal is.

For me it's first and foremost freedom to do what I want. I work on what I want, take time off when I want, set my schedule how I want.

Also variety. Lots of different projects for businesses in different industries. It's definitely not boring.

Re: Ask HN: What mistakes did you make when starting as a consultant/freelancer?

#45

Post by im_down_w_otp »

bitcoinmoney wrote: post #35
im_down_w_otp wrote: post #5

Setting my rates too low. Here's what I figured out those many years ago. Clients who are cheap are also really into wasting your time and trying to micromanage the project. Clients who will pay a lot more also give you latitude to do your job (after all they're paying you to be the expert). Keep jacking up your rates with each new client until you hit a ceiling. Whatever you're charging now, without even knowing wha…

Just curious what do you consult on for 350/hr? Is this basic CRUD stuff? Wordpress template etc?

$35/hr was writing post-processors for CNC machines. Went up to $75/hr for interactive media work (Flash/Flex). Went up to $150/hr for business systems integration (Netsuite, Salesforce, etc.) Eventually got that up to $300/hr. The astute observer will notice that the rate was inversely proportional to the actual difficulty of the work. This was mostly 10-15 years ago.

$350/hr+ was distributed database related consulting, and then started going North from there for increasingly niche and specialized consulting services. Though only on very rare occasion these days. The highest rate I've ever been able to negotiate was $1,000/hr. But, it was also for a very short engagement (~10 hours) for some especially weird knowledge I have about replacing critical mainframe infrastructure with commodity systems.

Point being, you might be surprised how much you can charge for the right services to the right customers who have a clear sense of need and appropriately value a solution.

Re: Ask HN: What mistakes did you make when starting as a consultant/freelancer?

#46

Post by sigmaprimus »

mattferderer wrote: post #3

Hire a good tax person immediately. Maybe hire 2. A significant amount of your income earned is gained through having someone walk you through handling taxes & health insurance. I'm not suggesting cheating on taxes. There are common practices such as knowing how to best incorporate your business for your situation. How to best pay yourself (dividends vs income) & how to handle your personal & company expenses. This c…

This is very true, a good accountant is worth every penny. If you follow a good accountants advise you will almost always succeed, the tricky part is following said advice. A good accountant will help you delvop a business plan, theres alot of merit to the saying "Plan the work, then work the plan"

Re: Ask HN: What mistakes did you make when starting as a consultant/freelancer?

#49

Post by sigmaprimus »

wwweston wrote: post #8
mattferderer wrote: post #3

Hire a good tax person immediately. Maybe hire 2. A significant amount of your income earned is gained through having someone walk you through handling taxes & health insurance. I'm not suggesting cheating on taxes. There are common practices such as knowing how to best incorporate your business for your situation. How to best pay yourself (dividends vs income) & how to handle your personal & company expenses. This c…

What are some ways to (a) tell a good tax person from a bad one and (b) look for a tax person in such a way that increases your odds of finding a good one?

As a professional I always have my credentials and certifications framed and hung on my office wall for everyone to see. The same goes for awards and associations meberships.

So when it comes to hiring someone where I don't get a personal reference I always look for this, I also start with professional association member lists and or their referal services.

Most good accountants will provide you with a free consultation at their office or at the very least over the phone, just don't get hung up on fancy clothes and expensive furniture as that can all be just a facade.

The best accountant I ever had wore jeans and plaid shirts, drove a twenty year old car and his desk was always stacked with papers but he knew his stuff and was a huge part of my success, unfortunately he retired but again as a good accountant he referred me to another account before he retired.

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