Practical Tips for Self-Employed Consultants and Solopreneurs
Advice and Insight
Financial stability is one of the top concerns when considering self-employment. Cash flow will be erratic, and it takes time (sometimes years) before you feel confident about making a living as a solopreneur. Becoming a millionaire while self-employed can seem unlikely, yet I did it without really trying. Here are my five steps to becoming a millionaire as a solopreneur.
Read MoreManagement guru Peter Drucker once said “you can't manage what you can't measure.” I prefer to say, “Anything that’s measured can be improved.” By tracking (measuring) how you spend your time, you can increase your effectiveness, your income, and even your quality of life.
Time is one resource that’s truly irreplaceable...once it’s gone, it’s gone for good. Read more for tips on why you should track your time, what time to track, and how to make it happen.
Read MoreIf you were a hotel chain, would you be a Motel 6, Courtyard by Marriott, or a Ritz-Carlton?
If you refer to yourself as a freelancer or consultant, what does that imply?
The terms you use to describe yourself will impact how potential clients perceive you, how they pay you, and even how much they're willing to pay.
Read MoreAs a self-employed professional do you need a website? Is it worth the time and money if you get most of your business from referrals or by subcontracting?
The short answer is, yes. Here’s why:
Read MoreThe best time to raise your billing rate is on the cusp of something new — a new year, new project, new client. With the new year just around the corner, now is an excellent time to inform your clients. This article offers explains how to raise your rate, as well as some sample language …
Read MoreAs a an independent consultant you probably set your own rates. The more professional you are, the more likely you’ll be able to charge more for your expertise and services. Having a logo for your business will help you look like “the real deal” so why not get one? It’s not a huge financial investment. In some cases you can even get one for free.
Read MoreYour prospect pipeline dries up because you get busy and you stop talking to prospects and partners who can hire you or refer you to others.
You need to make sure you put time on your calendar every week for outreach. (Mimiran makes this really easy, but whatever system you are using, make sure there is time blocked off in your calendar.) With a CRM…
As independent consultants, we’ve all probably worked remotely to some extent but as the COVID-19 pandemic continues, it appears that working virtually will be part of the “new normal.” Companies are figuring out their “work from anywhere” and/or hybrid models as the pandemic drags on and the “great resignation” threatens to lure employees away.
To complicate things further for consultants, clients may misperceive “checking in” as a waste of time and/or something they don’t want to pay for. Or worse, they may still have the mindset that if they can’t see the consultant doing the work, they might think they’re overpaying…
Read MoreMost independent consultants have some FUD (fear, uncertainty, or doubt) when it comes to finding work. Even if you’ve been self-employed for years, dry spells between projects can still happen, and if you’re just starting out it’s especially difficult to find your own work. It can take several months to set up your business, establish your reputation, and build your network in order to find and bill your own clients directly. Subcontracting to a well-established consulting firm or through an agency or online platform can be an attractive option. This article and the corresponding quick reference guide summarize the pros and cons and offer practical tips for expanding your reach…
Read MoreIf you’re self-employed, or thinking about it, or you know someone who is self-employed, THIS IS IMPORTANT! We need to take action now to protect our right to be hired and paid on a business-to-business basis as independent contractors.
On March 8, 2021 the U.S. House of Representatives passed the PRO Act that includes the “ABC Test” that’s part of the controversial California law AB-5. The ABC Test is a huge problem for us as independent consultants because part B states that an independent contractor must perform work that is outside the usual course of business of the hiring entity. This means that as an independent consultant, you can't subcontract to another consulting firm, nor can you hire subcontractors to help you with your own consulting work. Instead, you would have to be hired (or hire others) as a temporary employee on a W-2 tax basis, not on a 1099 tax basis. This is a big deal for us as self-employed professionals because how you are paid affects how much tax you owe…
Read MoreIf you're thinking about "making the leap" to independent consulting or being a solopreneur, these then factors to consider will help you think through the pros and cons. #IndependentConsulting #Solopreneurship #Selfemployment
Read MoreThe easiest time to raise your rate is on the cusp of something new — a new year, a new project, a new client. With the new year just a few weeks away, now may be the perfect time. This article offers ideas of how to do this, as well as some sample language to use when notifying your clients.
Read MoreHiring a consultant can be a difficult decision for a client, especially when they’re going to be spending tens of thousands of dollars. They need to be sure that the person they’re hiring is competent, credible, trustworthy, and most importantly, effective.
Use short stories or mini case studies to build your credibility before you’ve even had a conversation with a prospective client.
Read MoreAs independent consultants, we’ve all worked remotely to some extent but now we are working virtually 100%. And likely, this isn’t temporary. Many companies are already saying they won’t require every employee to return to the workplace this calendar year. Some are considering shifting permanently to “work from anywhere”.
To complicate things further, many of our clients are learning how to work virtually for the first time and they may misperceive “checking in” as a waste of time and/or something they don’t want to pay for. Or worse, they may still have the mindset that if they can’t see the consultant doing the work, they might think they’re overpaying.
Given that consulting is relationship based, it’s imperative that we build credibility and trust quickly…
Read MoreThis month the PICA community has been focusing on sharpening our consulting skills so we’re reprising one of our founder’s most popular LinkedIn articles. First published January 2015, it’s just as relevant today as it was then. We’ve also expanded the original list of qualities from 19 to an even 20, and updated a few other things based the LinkedIn comments. Here’s to a your success!
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Let’s face it, not all consultants are created equal. Some can seemingly do anything with grace, style, and ease while others struggle to make anything happen. Over the last 20 years I’ve interacted with probably a thousand management consultants, from local independent practitioners to global “big four” advisors. Some are rock stars and some never will be, regardless of their education or what consulting firm they work for.
In a nutshell, a consulting rock star is someone who loves helping clients succeed, does whatever it takes to do so, keeps their word, effectively manages expectations, and produces A-quality work. They make the right things happen. They are smart, professional yet personable, excellent listeners with self-confidence, and…
Read MoreThe #1 FUD (fear, uncertainty, doubt) among independent consultants involves business development. And now, with everyone stuck at home because of the COVID-19 shelter-in-place orders, business development and the networking that fuels it seem impossible. But that’s not the case!
Clients buy consulting services from people they know and trust. So use this time to strengthen your relationships with clients, prospects, and colleagues who may be able to refer you to other prospective clients. Here are three things you easily can do from home.
Read MoreWe’re in an unprecedented situation because of the COVID-19 coronavirus, and the economic fallout has been drastic for many business sectors. For us as consultants, the effects are likely to be more gradual but our income will likely be affected.
This article explains your options for cash-flow relief, whether you need it immediately or in the near future, and how to get it. I have summarized how the new Coronavirus Aid, Relief, and Economic Security (CARES) Act applies to self-employed management consultants, whether you’re a single-person entity (sole proprietor, LLC or S-Corp) or if you’re a small business with employees or subcontractors. However, lawyers and accountants are still reviewing this 880-page law so it will be some time before we know all the specifics. Moreover, how it applies to you will depend on your specific situation. Nonetheless, this summary should help you decide whether to consider pursuing any of these options.
There are several ways to get some cash-flow relief to help you pay your bills in the near term as a result of the $2 trillion CARES Act…
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Recent and pending legislation around the country threatens our livelihoods as self-employed professionals. Here’s how to fight back! #RepealAB5 #NoProACT #ProAct #AB5
Read MoreOne of the benefits of being self-employed is paying less tax than you would if you were paid like an employee on a W-2 tax basis. If you’re smart, you’re getting paid on 1099 tax basis, deducting your business expenses, and contributing to your own retirement plan to lower your tax bill. (This two-minute video explains how this works.)
But California’s new law, AB5, is making it harder to qualify as an independent contractor and get paid on a 1099 tax basis. Even if you don’t work in California but do business with a national corporation, you’ll likely have to follow these new rules because …
Read MoreAs independent consultants running our own businesses, good marketing is critical. No one is going to hire an unpolished freelancer to help solve their business problem, especially if they’re going to spend tens of thousands of dollars. Clearly, a professional image is vital. A prospective client must see you as credible from the very first impression. We know this, yet most of us are cursed with the dreaded grey square on our LinkedIn profiles – the one that appears next to your current job listing.
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This is where we post our latest content on how to be your best as a self-employed consultant. Nearly all articles are written by PICA’s Chief Advocate, Liz Steblay, based on her 25 years in consulting.
Looking for something specific? We’ll help you find it!
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