Protect Your Right to Be an Independent Consultant!
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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
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Advice and Insight
What To Do If Your Client Doesn't Pay
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It was bound to happen. After 15 years and hundreds of contracts, I finally had a client that didn’t pay, and didn’t pay, and didn’t pay. For six months there was one lame update after another. “We’re working on it,” or “We’ve switched to a new process.”
Yesterday, my bank finally received the wire transfer. Here’s my story, what I learned along the way, and steps you can take if you find yourself in the same situation.
Read MoreWhy Friends Don't Let Friends W-2
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As an independent consultant, does it matter how I get paid?”
Absolutely! In the U.S., being paid on a 1099 tax basis as a business instead of on a W-2 tax basis like a temp worker makes a huge difference to your profitability for two key reasons:
- You pay less tax.
- You save more for retirement.
Here’s how I figured this out.
Several years ago, as an independent consultant I did my taxes two ways using TurboTax® software. The first used my legitimate tax return that showed I was paid on a 1099 basis. In other words, I had received 1099 tax statements from my clients for that tax year; I did not have any W-2 tax statements. On this tax return, I took standard business deductions (for example, for my home office, supplies, and mileage), and I factored in my retirement contribution to my SEP IRA (Simplified Employee Pension).
Read MorePart 3: Optimize Your LinkedIn Profile with Skills, Endorsements & Accomplishments
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This is the third and final part in a series of articles. You can download the entire series as a reference guide here.
Most independent consultants have no budget for marketing or advertising, yet they all wish they had a bigger client list. Having a well-crafted LinkedIn profile is free and one of the first things potential clients will look at when they hear about you. Make the most of it!
The first article in this series about how to optimize LinkedIn profiles explains how to create an excellent first impression with a photo, background image, and a succinct “tag line” to summarize your brand and expertise. The second article provides tips for how to market yourself as an independent consultant using the Summary and Background sections. This article summarizes the importance of LinkedIn’s Skills and Endorsements, and Recommendations sections, which are misunderstood and underutilized. It also includes practical tips for how to beef up these sections, as well as the Accomplishments section.
Read MorePart 2: Telling Your Story to Optimize Your LinkedIn Profile
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This is the second in a series of three articles. You can download the entire series as a reference guide here.
With over 133 million users in the U.S. and another 334 million around the world, LinkedIn has become an indispensable tool and reference. If someone is interested in hiring you as a management consultant, it’s a good bet that they’re going to look at your LinkedIn profile, even if you have your own website. It’s critical you put your best self forward.
The first article in this series explained how to have a “top-notch top box” on your profile. If this top section is your storefront window, the mid-section is your main-floor merchandise. This article presents tips for how to market yourself as a professional self-employed consultant using LinkedIn’s Summary and Background sections. (Hint: it’s not by rehashing your résumé.)
Read MoreFor Independent Consultants, Business Development = Relationship Development
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The biggest stressor for self-employed management consultants is business development: how to cultivate meaningful regular work. It’s vexing for a variety of reasons. First, consultants are good at helping clients solve problems but usually aren’t trained in sales or marketing. Second, when knee-deep in projects and facing deadlines, consultants are hard-pressed to find time to publish thought-leadership articles or create, launch, and manage marketing campaigns.
To meet the challenge I recommend changing your frame of reference. Instead of thinking of how companies or consulting firms typically handle business development, use an approach more like how we work as individuals and soloprenuers. Take for example real estate agents, who are experts at keeping their names fresh in people’s minds:
- At least once a week I get a postcard listing recent home sales in my neighborhood.
- Once a week I get an email with an interactive map showing which homes in the city closed escrow and at what price.
- Once a month I get a memo pad with the realtor’s name, photo, and area of expertise.
- Once a quarter I get a postcard of upcoming social and sporting events in the city.
