Acceptance of Circumstances, Consulting, Enjoying What You Do, integrated marketing, lead generation, Making Connections and Introductions, marketing consultant, staying current

What I’ve Learned From 5 Years of Running a Consulting Firm

comfortzone

Ninety percent of my blog posts cover marketing topics and trends, particularly digital ones. This, of course, makes sense as I want to be a resource for “all things marketing” for my existing and prospective clients, as well as demonstrate my expertise, and remind folks, in need of marketing help, that I’m here to assist them with both marketing strategy development, and hands-on, day-to-day execution of marketing tactics. That said, for a while now, I’ve been wanting to share with friends, colleagues, and particularly those considering starting a consultancy of any nature, the great, the good, the bad, and the ugly of being a consultant.

I know already I’ll be commenting on or editing this post as pros and cons of consulting come to mind that I neglected to include!

Let’s start with the GREAT!

  • New People, Partners, Connections: You meet so many interesting, knowledgeable, passionate and creative individuals — whether they be fellow small business owners/entrepreneurs/consultants or employees of small, medium, or large for-profit and non-profit client organizations. And, on certain client work, you get to partner and collaborate with fellow consultants who are experts in their particular field.
  • New Industries, Products and Services: You learn about so many different industries, and unique products and services, and you get skilled at getting up-to-speed quickly on various industries. You know the types of questions to ask and the information you want and need to hunt down.
  • Diverse Service and Solution Provision: No two clients’ challenges and opportunities are the same, so with each engagement, you are required to step back and think about which of the solutions and services you offer would most benefit a client and have the most immediate impact on whatever pain point they are struggling with. In my case, because of my line of work, this means I have the opportunity to oversee or assist with a large, diverse set of marketing activities and analytics.
  • Money and Time Savings: If you’re a consultant who works out of a home office — like me — or a local, shared work space, you save time and $$ commuting to an office. You also can spend far less money on work clothes and lunches.
  • Pajamas and Sweat Pants: I don’t do it very often, but yes, you can work in your pajamas and sweats and even attend phone meetings wearing the aforementioned. Before I hit my home office and computer, I prefer to get dressed for the day in something a little less comfortable than sweats or pajamas, so I don’t feel too relaxed and feel more professional and in “work mode.”
  • Flexible Schedule: For someone like me, where past cancer treatment left me with some chronic health issues, it’s nice to have the flexibility to take care of my health and work at a slower pace, if and when required, and to be able to go to doctors’ appointments when I need to. I can also take a longer break to meet up with a friend or colleague for lunch or coffee, knowing that I can make up the lost work time at night or on the weekend.
  • No Difficult Office Politics or Managers: I don’t think the former really needs explaining…keep in mind, though, you can end up with difficult clients, or clients with difficult office politics.

Now, the GOOD!

  • You Are the Boss of You — I’ve always been driven and self-disciplined, so I treat every week day as a work day and rarely run personal errands and/or do personal chores during that time,  but for some being their own boss and not having someone tell them how to use their time or what their deliverables should be, doesn’t suit them. That’s why I listed this as “good” vs. “great”, even though I personally love being my own boss.
  • Nobody Rains (or Snows) on Your Parade — Literally and figuratively. If you don’t have face-to-face or in-person meetings scheduled, you can stay warm and dry on cold or wet days, and you don’t have to deal with negative co-workers dragging you down.

And, the BAD!

  • You Have to Look Good in Hats — You’ll be wearing a variety of them — CEO/President, junior- or entry-level staff person, bookkeeper, business development/sales manager, and marketing person, to name a few.
  • Friends & Family Think You Don’t Work — Friends, family, colleagues, etc. will think they can call or visit you anytime on a workday or you’ll drop everything to meet up with them because “you aren’t working” – hah!
  • Support May be Lacking — No matter how long your consultancy has been up and running, you’ll still frequently get asked by contacts, including friends and family, when you plan to return to a “corporate” job. Your circle may struggle with the fact that running a successful consultancy isn’t a temporary or short-term choice, it’s an active, long-term decision you made.

Boo hoo for the UGLY!

  • Client Work Gets Pulled — Promised work doesn’t come to fruition or projects for which you’ve officially been engaged or you’ve even started get put-on-hold or shut-down completely for a variety of reasons, such as:
    • your contact at your client’s office leaves
    • your contact’s manager or manager’s manager isn’t on board with proceeding with a project even if your contact is/was
    • your client has budget cuts
    • your client has new senior leadership or your contact at your client has a new manager
    • your client’s priorities shift — something unanticipated happens at their firm, in their industry, etc. that makes your work for them less of a priority
    • your client gets bought out by or merges with another firm

One of the most painful and expensive, but also beneficial lessons I’ve learned in the past five years of consulting is never leave “capacity” for a particular client unless you have documented approval of engagement for the work in-question.

  • The 50/50 Rule — At most, you will only be able to spend 50% of your work time, actually completing “paid” work for clients, this includes attending client meetings or participating in client phone calls. The remaining 50% of your time will be allocated something along these lines, unless, of course, you out-source some of this work:
    • Creating and issuing invoices, tracking expenses in an accounting system, such as QuickBooks — 2.5%
    • Posting to social media — 7.5%
    • Staying educated in your particular area of expertise through reading, webinars, and other trainings — 7.5%
    • Responding to RFPs/Creating Proposals – 10%
    • Phone or In-person meetings with prospective clients — 10%
    • Following up with individuals and organizations in your sales pipeline — 5%
    • Reaching out to individuals via LinkedIn, e-mail, etc. for the first time to see if they are open to a meeting — 5%
    • Attending short phone calls or responding to e-mails for which you can’t charge a client, since you don’t want to be viewed as “nickel & dime-ing” them. It’s just expected that a consultant will provide some “pro bono” hours – 2.5%

In sum, if you’re going to run a consultancy, you have to accept that about 50% of the work you do, will be “unpaid” work, i.e., work for which you won’t be able to bill someone.

  • If You Don’t Work, You Don’t Get Paid — enough said, and as I described above, even when you do work, much of it is work you can’t bill for.
  • No Employee/Employer Perks and Benefits (Both Tangible and Intangible) — when you are self-employed, you don’t have access to the following perks and benefits of a “corporate” employer:
    • true “paid”/”employee” benefits like health, dental, and life insurance, 401K contributions and matching, paid vacation time and time-off, short-term disability
    • office parties and celebrations
    • friendships and socialization that an office provides
    • support of and ability to brainstorm with co-workers, plus the ability to delegate work if you’re a manager
    • coverage of training and travel expenses
    • in-house training opportunities
    • and more!
  • You Work 60+ Hours, So You Don’t Have to Work 40 — So, I revamped this phrase that I snagged from Shark Tank, “entrepreneurs work 90 hours, so they don’t have to work 40”. But, basically, when you own and run your own business, it’s very unusual to have a week where you only work 35 or 40. Even if you’re not actively doing client work, you’re constantly checking your work e-mail at night and on the weekends, and quite honestly, often you you do have to work nights and/or weekends to stay on top of your accounting, proposals you need to create and send, blog posts like this one that you want to write, and client work that needs to be completed. And, yes, most consultants I know are thinking about their business 24/7 — while they are lying in bed at night, taking a shower, going for a walk, etc. It’s hard to turn your consultant brain off, particularly the part that knows that you need to constantly be creating new leads for your business.

One factor that both a corporate job and consulting have in common — workloads fluctuates. There will be times when you have far too much work, and times, when you have too little.

Despite some of the more difficult consequences and challenges of being a consultant, there is so much upside, and I wouldn’t change my work situation right now. I so enjoy where I’m at in my career — serving as an advisor and extra-hand to both clients and fellow consultants and marketing agencies — and I enjoy the challenges that come along with it. They’ve pushed and continue to push me to step outside my comfort zone and develop or enhance skills like sales and public speaking. I so look forward to what lies ahead for me in the next five years as a consultant!

A special shout-out to my niece, Angelique Snow, who alerted me to the expression in the image at the top of this post — one that is particularly fitting to my situation and that of other consultants — and to Angelique, who lives her life fully by stepping outside her comfort zone.

 

 

 

 

2 thoughts on “What I’ve Learned From 5 Years of Running a Consulting Firm

  1. I said I’d come back as I thought of relevant things. Particularly if you are working with start-up or young companies or even older ones who have lost their edge, you can be left hanging as a consultant — either they can’t pay you for work you’ve completed (or can’t pay you on a timely basis) or they can’t use you for promised future work. It is what it is and you have to be prepared that, as a consultant, this likely will happen to you more than once during the time you run your consultancy.

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