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Serial Entrepreneur and Go BIG
Founder Wil Schroter's Blog!
Why You Probably Won't Survive as an Independent Consultant
Author: Wil Schroter
Tuesday, July 24, 2007

Don't take the title of this blog post wrong.  I hope you survive as an Independent Consultant... I really do.  Yet before you jump ship for the bountiful glory that is independent consulting, allow me to tell you the story of Zed - a person much like you that failed to realize the true evil that lurks behind the facade of independent consulting.

Meet our Hero: Zed

Meet our hero, Zed.  Long ago, Zed was working as a star programmer for a consulting company getting paid $30 per hour while billing out $150 per hour to their client (probably more).  Zed used his superior analytical skills to learn that his company is being paid $120 per hour more than Zed is being paid.  Thats just ludicrous!

So Zed did what any entrepreneurial minded superhero would do - he quit his job and went to work for the client as an Independent Consultant. This move now got him paid $60 per hour.  The client paid out less, Zed's made twice as much, and that evil consulting company had been banished into oblivion.  

Everything is now right in the world.  Zed is now living the life as an Independent Consultant - the dream job that's easy to start and nearly impossible to sustain.

But Zed's bliss would not last forever.  Little did Zed know, that a new menace was about to rear it's ugly head - An evil force known as "Nu Bidnsss." 

Our Villain: Nu Bidnsss

Within his first year of consulting, Zed was protected (financially) from ever having to deal with Nu Bidnsss.  He was heavily sheltered in the warmth of a paying client to whom he could enjoy a prosperous life. 

Yet like every consulting engagement, the client too eventually fell out of love with Zed.  Zed's incredible programming abilities eventually gave the client a product they were proud of, and soon Zed would not be needed any longer.

One day, as Zed left a client "wrap up" meeting, he felt a cold chill across the back of his neck.  He tensed, turned around quickly and saw the most fearsome creature he had ever laid eyes upon - Nu Bidnsss.

Nu Bidnsss Sucks

Without a lofty paying contract firmly in his hands, Zed did not know how to attack Nu Bidnsss.   Beating this evil beast required abilities he had never learned, like salesmanship, networking, and the Shaolin art of the "Ass Kiss." 

Zed realized at that moment, that his training was all wrong.  Until now he had made a great living by being a star programmer.  His skills had made him heavily recruited out of college, highly sought-after in his consulting company, and well-paid from clients.  Certainly with these skills he would never have to come face-to-face with Nu Bidnsss.  Yet here he was, staring it down.

The Fall of Zed

Try as he might, Zed could not stop the force of Nu Bidnsss.  It quickly swallowed up his savings, his second mortgage, and all of his credit cards.  As Zed struggled wildly to defeat the beast, he realized that it was not his ability to work for clients that would save his life, it was his ability to get new clients, that would be his lifeblood.

Alas, Zed has no frigging clue how to get new clients. 

And so Zed was defeated by Nu Bidnsss.  Drained of any of his financial resources, emotional excitement and his seemingly endless list of smart-ass remarks, he was taken by Nu Bidnsss and forced to work in the salt mine cubicles of hell - Big Corporate.

- The End -

Epilogue

This story is as sad as it is consistently true. 

Surviving as an independent consultant isn't about actually consulting (it's a given that you can do that.)  It's about finding new business.

As it happens, most people suck at finding new business.  Once the Pixie Dust of the first client engagement wears off, the painful reality of having to beg for business becomes very obvious.

If you truly want to build a business as a consultant, focus on the business of selling yourself, not specifically on delivery.  If you're not good enough to get yourself in the door on your own merits, your life as an Independent Consultant is going to be short-lived at best.  Like our boy Zed.




Trackbacks to this story
Favorite Posts for July 23-27 - Monday When is change a good thing?- Interesting post from Ed Roach at Brand Corral. If you’re like me, you get restless and you like to tinker with things that you’re very familiar with-a practice that drives my wife and our homeownerR...
From: The Transfer | 7/27/2007 at 3:09 PM

Comments About this story
The programmer type person often looks at the salesperson in the company with envy.  Thinking in their mind how easy of a job that must be "partying" with potential customers.  If they ever do get the opportunity to sell, it usually changes their opinion of good salespeople. 
Posted by: Travis B. 7/24/2007 at 11:05 AM

Your story is true.  Every "non-salesperson" should spend some time in business development.  Without that reality, failure is almost always a certainty.
Posted by: Eric Pennington 7/24/2007 at 12:06 PM

Great post.  It's truly sad that techies dont have a lot of respect for sales people and vice versa.  But each can't exist without the other....but non-salesfolks don't find that out until they need to do sales - and then they find out it's hard.

On that note, I'm helping to bridge this gap by making it easier for technical folks (or anyone else for that matter) to deal with customer acquisition with my startup ProspectMarkets.  It will be infinitely easier that cold-calling your way to the top!

-Chandra Bajpai
 http://www.prospectmarkets.com
Posted by: ChandraB 7/24/2007 at 5:58 PM

Maybe Zed should have taken a few more decent programmers with him and the best salesperson he could find...

The problem with that would be that Zed and the other programmers would have had to come to terms with paying the business-generating salesperson probably more than they would earn - something the kids with their 'mad programming skills' probably wouldn't be able to get over!
Posted by: Alex 7/25/2007 at 8:05 AM

As a consultant for the last 20 years developing SAS based projects, I think one of the biggest mistakes new consultants make is not doing any "inside" sales. For example, if you are doing consulting work for the Marketing Group, you need to make an effort to introduce yourself to people in Operational Risk, Credit Risk and in the IT department. It pays to hand out your business card to people you meet while at the client site.

One other thing that pays dividends is to follow-up with the client AFTER the engagement is over and ask how the project went and how the software is performing. It gives you the opportunity to find out if there's additional opportunities with that group and at the same time, ask about other departments who might need your talents. It's all about networking!

Phil Rack
www.minequest.com
Posted by: Phil Rack 7/25/2007 at 9:37 AM

Sounds like you guys have seen some of the very same issues.

Consulting isn't about consulting at all - it's about business development.  If you can't develop more business, providing value as a consultant is worthless.  You won't be around long enough to provide any value at all!
Posted by: Wil S. 7/25/2007 at 9:47 AM

This is a good plug for consulting houses. People complain about a consulting house taking x% of the rate but what you get is sales and marketing. A pretty good arrangement as long as you can maintain your baseline rate.
Posted by: Alan Churchill 7/25/2007 at 10:48 AM

Alan - I used to run a very large consulting company and can agree that while the numbers sound great, they're not quite as exciting as you'd think.

What people tend to forget in large consulting houses is how much money it costs when people are NOT working.  If everyone is 100% billable all the time, great.  But that rarely happens.
Posted by: Wil S. 7/25/2007 at 10:53 AM

You know Wil... I really do love your style.   I've been an entrepreneur for almost 20 years, and there is so much truth to what you write about.

Most new entrepreneurs would think that your stories may be to negative.  Entrepreneurship is not easy, and you really go through the school of hard knocks before things come together.

And... even when they do come together, the serial entrepreneur gets board and has to try some new things again.  Then... the next series of hard knocks comes into play.

Eventually, you learn to only play part of your chips in the following rounds.

But then again... you never know what's around the corner.  :-)


Posted by: Rita W. 7/25/2007 at 3:16 PM

Wil, I love reading your post but I think this is the type of post in par with quotes like "you need a winning team" to build a company.

I am not sure where you get your statistics for a "typical" Independent Consultant but Zed seems to represent to the type of person that is not able to learn and change as the game does.

I think a lot of people fear the Independent Consultant or rail against him/her because they have failed at that task and therefore assume because they could not do it, no one else can either.

Business is tough, and if Zed did not know that before he quit, and if Zed was not smart enough to change with the game, then it's Zed's fault.

"Insist on yourself; never imitate."
 - Emerson, Self-Reliance
Posted by: Scott Preston 7/31/2007 at 12:09 PM

Wil, I love reading your post but I think this is the type of post in par with quotes like "you need a winning team" to build a company.

I am not sure where you get your statistics for a "typical" Independent Consultant but Zed seems to represent to the type of person that is not able to learn and change as the game does.

I think a lot of people fear the Independent Consultant or rail against him/her because they have failed at that task and therefore assume because they could not do it, no one else can either.

Business is tough, and if Zed did not know that before he quit, and if Zed was not smart enough to change with the game, then it's Zed's fault.

"Insist on yourself; never imitate."
 - Emerson, Self-Reliance
Posted by: Scott Preston 7/31/2007 at 12:10 PM

Hehe.  And then comes along someone who is both the tech, AND the salesperson.

Yes, first and foremost I am the tech, but I volunteer to help out in the investing department as well. 

I will be the first one to tell you that this is no easy task, and that's just having two work assignments.

Then there is the matter of skill involved with actually "pitching".  This is a practice makes perfect issue, and NO ONE is very good at it the very first time they pitch, no one.

So ya, not easy, but I have learned great things about the business world, but I love my life with the corporate entity, because striking out into the semi-unknown on my own is just something I am not prepared to do at this point in time.



Posted by: na n. 8/1/2007 at 2:40 PM

The real deal with "independent consultant" is that they usually don't exponentially expand their customer base through networking, strategic marketing alliances and asking for business from satisfied customers or those who can get you new customers.  Its better to tell the world that you're in business versus a few friends and family.

I made the mistake of not thinking (scratch that) acting like a national firm until recently and even though I am in the service industry its just as important to brand yourself and market yourself like a product with consistency so everyone knows what you can do, what you are about and what you can deliver on a consistent basis.

Word of advice: Join networks outside your state, and cities to really give your business a boost get to conferences everywhere except your hometown. Business is not next door, get your ass out and find it because it won't find you.

Posted by: Greg W. 8/10/2007 at 10:37 PM

Hello Wil,

I think your title should have read >"Why You Probably Won't Survive as an Entrepreneur" or Do not pretend you're something you're not"!

Heck...I could self title myself as a Olympic Marathon runner, but I would probably get trampled 50 yards from the start!

Being an Independent Consultant is no different from any other business, and should be managed accordingly.

My opinion: We are what we are no matter what we call ourselves, and Zed was not an independent consultant with only one client. He had changed jobs, but remained an employee.

Tony

www.nopieinthesky.net

Posted by: D. Anthony B. 9/8/2007 at 8:02 AM



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