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Ask HN: What is your experience in tech consulting?

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Re: Ask HN: What is your experience in tech consulting?

#81

Post by hestefisk »

danieljacksonno wrote: post #69
homeslike wrote: post #49

Earlier quoted context omitted.

couple of questions to that: > * You can win by getting every contract reviewed, or by just signing them blindly could you elaborate on that? not sure i understand > * Keep your SOWs vague that can help you or hurt you, right? i'm working at a big consulting firm and our motto is to write the SOWs as explicitly as possible to prevent scope creep. > * Don’t do conferences/conventions why? isn't that a perfect way to s…

For SOWs, I find that it helps to keep them very explicit about the larger goals and the "why" of the project, but vague on details, and then enter into an agreement where the customer pays you to keep scope at a level where the larger goal and "why" can be accomplished within budget, not into an agreement where the customer controls the scope and you just balloon the budget if they increase it.

I tend to keep my SOWs vague so allow for reprioritization of work and protect myself. I also never write SOWs on basis of outcomes, but as an activity. Ie here is what I will do, but if you decide to not take my advise, don’t blame me if the desired outcomes aren’t delivered. This makes a big difference when chasing up invoices.

Re: Ask HN: What is your experience in tech consulting?

#82

Post by hestefisk »

8note wrote: post #28
tptacek wrote: post #20

Random bullets. * You need to be making 150-200% of your FTE rate to come out ahead in a year * Bill daily, not hourly (you can bill weekly, or quarterly, too.) * Raise your rates. * Count on signing your clients master agreement, not yours * You can win by getting every contract reviewed, or by just signing them blindly * Specialize * Incorporate; it's easy and cheap * Keep your SOWs vague * Don’t waste time on your…

What's an SOW?

Your scope / statement of work. What you are on the hook to deliver.

Re: Ask HN: What is your experience in tech consulting?

#83

Post by reuven »

cik wrote: post #16

Just a few random thoughts from ~10+ years of doing this. These are not ordered, as I've been out of this for the past few years. - Contracts, contracts, contracts - Immediately stop all work when any customer doesn't pay an amount owed. There's a natural inclination to keep going, but this is a firm of pathetic cost fallacy. - Work with an escrow provider and eat the fees. You'll generally have a 10% non-collectable…

I totally agree with some of this, starting with the "your name is your bond." People hire you because they can trust you. Your reputation is your most important asset, more than your knowledge. If you're a reliable, honest, easy-to-worth with person, then clients will forgive your lack of knowledge. But if you're a brilliant jerk, then no one will hire you.

And yes, stop work if a client fails to pay. It's so tempting to say, "Well, they're nice, and if I just do xyz for them, they'll pay." No, you've found a deadbeat client. Join the club.

But there are other parts of this with which I'll disagree.

Chief among them: Contracts are important, but I see them as a formality more than anything else. If I have to sue a client, then it's all over anyway; the time and legal fees won't be worth chasing. I work with people with whom I get along and (generally) have mutual trust.

Also: I've consistently charged at the top of the market for the last few years. Some clients don't want to pay top dollar for Python training, but others do -- and the ones who do are the easiest to work with, who understand that they're spending a lot, but also getting a huge ROI.

Re: Ask HN: What is your experience in tech consulting?

#84

Post by tasuki »

cik wrote: post #16

Just a few random thoughts from ~10+ years of doing this. These are not ordered, as I've been out of this for the past few years. - Contracts, contracts, contracts - Immediately stop all work when any customer doesn't pay an amount owed. There's a natural inclination to keep going, but this is a firm of pathetic cost fallacy. - Work with an escrow provider and eat the fees. You'll generally have a 10% non-collectable…

> Never price at the top of the market. It's better to be 100% busy at 80% of the fee structure, than it is to be 50% busy, at 125% of the base rate.

No way. I'd rather be 50% busy at 125% of the base rate.

Re: Ask HN: What is your experience in tech consulting?

#86

Post by ArtWomb »

JamesBarney wrote: post #47
tptacek wrote: post #19

Earlier quoted context omitted.

I would push back on a lot of this. These seem like strategies to avoid getting ripped off by shitty clients, and I'm sure they work, but they're also a strategy to avoid closing business with great clients. Try to focus on the kinds of customers you won't ask for down-payments and up-fronts --- the kinds of customers who will routinely delay a full quarter or two on payables, and you'll put up with it, because they'…

100% agree, if you're 100% utilized than you're working for your business not on your business. I have three other pieces of advice. One you need to decide whether you want to run a consultancy or be a consultant. The first means scaling by hiring more people the second means scaling by increasing your rate. You can make more money doing the first but your job will eventually be 100% account management and sales. The…

Wands choose the wizards. And to some degree, your niche chooses you. The tech stack I built for video games: gcloud, chromeos, android vulkan, admob. Is essentially a "native mobile ads" platform.

It was only when clients requested I serve ads that I realized what I had built!

Now it unlocks free cash flow potential. And I'm working on my own private buyers list, inventory management, real time bidding exchange & auction tech ;)

Re: Ask HN: What is your experience in tech consulting?

#87

Post by fhd2 »

tptacek wrote: post #20

Random bullets. * You need to be making 150-200% of your FTE rate to come out ahead in a year * Bill daily, not hourly (you can bill weekly, or quarterly, too.) * Raise your rates. * Count on signing your clients master agreement, not yours * You can win by getting every contract reviewed, or by just signing them blindly * Specialize * Incorporate; it's easy and cheap * Keep your SOWs vague * Don’t waste time on your…

How would you suggest someone new to consulting handles sales? I've talked to consultants that get all of their leads from old conference talks they did, but you advise against it.

In my book, there is a finite number of options:

1. Go through your network - lots of writing / talking in case someone knows someone who's looking right now.

2. Become famous - conferences, blogging etc.

3. Cold call potential clients.

4. Work with recruiters and dedicated boards for this.

For an established consultant, I can imagine they get a lot of business through referrals, but for someone just starting out, I don't think so. What worked for you in the early days? Did I miss a strategy that works?

Re: Ask HN: What is your experience in tech consulting?

#88

Post by adamhp »

reuven wrote: post #78

I've been consulting since 1995. I started with a lot of different things (Web projects, Unix system administration, tech consulting), and now do 100% Python training. I am incredibly happy with my work. I get to do what I want, earn a good living, have almost zero meetings, and am constantly learning new things. But I made many, many mistakes along the way, leading to years of so-so income, limited sleep, and limite…

What does Python training involve? Workshops to large groups of people? Just an overview of the language or deeper dive? How long are the sessions? I've never even considered training or education as an option but I really do enjoy it.

Re: Ask HN: What is your experience in tech consulting?

#89

Post by morog »

michaelt wrote: post #70
tptacek wrote: post #19

Earlier quoted context omitted.

I would push back on a lot of this. These seem like strategies to avoid getting ripped off by shitty clients, and I'm sure they work, but they're also a strategy to avoid closing business with great clients. Try to focus on the kinds of customers you won't ask for down-payments and up-fronts --- the kinds of customers who will routinely delay a full quarter or two on payables, and you'll put up with it, because they'…

> Try to focus on the kinds of customers you won't ask for down-payments and up-fronts --- the kinds of customers who will routinely delay a full quarter or two on payables, and you'll put up with it, because they're paying for several people's salaries, Must be nice to have so much money in the bank that not only can you pay 6 months of several people's salaries, but you can also tolerate the risk of the client not…

Same for gov contracts. You might only get paid right at the end of the project + whatever their payment period is, but with an order number in your hand you know they will pay. Good luck getting a downpayment from big corp accounting depts if you're small fry.

Re: Ask HN: What is your experience in tech consulting?

#90

Post by reuven »

adamhp wrote: post #88
reuven wrote: post #78

I've been consulting since 1995. I started with a lot of different things (Web projects, Unix system administration, tech consulting), and now do 100% Python training. I am incredibly happy with my work. I get to do what I want, earn a good living, have almost zero meetings, and am constantly learning new things. But I made many, many mistakes along the way, leading to years of so-so income, limited sleep, and limite…

What does Python training involve? Workshops to large groups of people? Just an overview of the language or deeper dive? How long are the sessions? I've never even considered training or education as an option but I really do enjoy it.

Moving into training was the best decision I ever made for my consulting career. Better pay, better scheduling, and no bug reports!

About 3/4 of my work is going onsite to companies, and teaching 10-20 people Python. I currently offer a bunch of courses, from "Python for non-programmers" to advanced Python workshops. These range in length from 90 minutes (what I call "microcourses") to 4-day sessions.

The other 1/4 (which I'm working to grow) is an array of online courses, with much overlapping content from my corporate training.

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