Reflections of an Independent Consultant
December 2012 was much like any other, with its typical share of events large and small. The world did not end as an incorrect interpretation of Mayan texts suggested it would. The tragedy at Sandy Hook stunned a nation already numbed to gun violence. Jazz icon Dave Brubeck passed away. On a less momentous but more personal scale, the month also marked my transition from “Company Man” to “Indy Man” as I left behind the comfort of corporate life and stepped on to the often lonely road of independent consulting. I cannot lay claim to any special wisdom gained from this experience; however, these years have been edifying in many ways. It has opened my eyes to what I truly enjoy doing, what I don’t, and what I am willing to give up in order to maintain a favorable balance of the two. I hope that my reflections will be interesting to those who are considering the plunge or resonate with those who have travelled a similar path to mine.
Your business is the boss of you, but you get to define your business, so that’s OK
Flexibility
An oft-cited benefit of “being your own boss” is the freedom to choose your hours. However, as a one-person team, your hours are also chosen for you by the number of things you are responsible for. Don’t get me wrong – my daughters were 8 and 12 respectively when I started out and chauffeuring them from one activity to the next took up a non-trivial amount of time. I was grateful I could schlep them around without having to ask anyone’s permission to do so. However, that only meant that my work was moved to later in the day. Tasks still needed to be completed on time. In consulting—whether corporate or independent—deadlines are usually non-negotiable, and the boundaries between personal and professional hours are often blurred. The big difference is the lack of junior staff who could do the grunt work, adding to the number of things that have to be completed in a finite amount of time. Throw into the mix organizational tasks such as sending (and chasing down) invoices, managing the books, building and maintaining a project dashboard and (shudder) marketing, and some days can seem unending. Despite all of that, and this is the crux, almost all of it is subservient to the core work you chose to do! This to me is what being your own boss represents, the
Freedom to define your sandbox
My sandbox, as it were, is designing and implementing the statistical analysis component of complex quantitative research projects. I love the consulting aspects of the job – working collaboratively with clients to discuss and develop solutions to address project objectives – but even more so, I love the actual work. That is, I am a marketing science analyst at heart, and being Independent allows me to focus almost exclusively on that piece without the typical distractions present in a consulting agency. I don’t spend time developing “products”, supporting account staff on sales calls, attending planning meetings, managing a team and so on. Yes, all those things contributed to my growth as a professional and I am grateful for that. More satisfying to me, however, is the growth in my core skills that happened over these last ten years. I believe this is due to two reasons: first, I simply do more projects and a wider range of them in a typical year. Second, In the absence of a team, I have to solve every single problem on my own and that is a powerful way to learn and grow. I know I am a far better analyst and consultant now than when I started out. There is nothing quite so satisfying as making a living doing something you are good at and enjoy – THIS to me is the biggest benefit of being an independent consultant.
All clients big and small (are important)
This seems an obvious point but the most important piece of advice I could give a prospective independent consultant is to treat every single client like they are your most important one, regardless of whether they give you one project a year or ten. In order to have a successful independent consultancy, you need both width and depth in your client base – i.e., a large enough client-base to ensure a sustainable level of business over the course of a year as well as a few large clients who provide a reliably high volume of work. The dynamics of the market research industry are such that any given year’s revenues will be a linear combination (sorry, couldn’t resist 😊) of the two components – sometimes a larger proportion from a bunch of one-off studies from many clients and sometimes the bulk from a few large clients. At the end of the day, every single project is equally important in building up to that annual number. Besides, no one is irreplaceable – making a client feel like they are less important is the quickest way to ensure that they will dump you the second they find an alternative. Personally speaking, I just find it easier to be nice, and following the rules we were all taught in kindergarten is just how I like to do business. Occasionally you will run into a client who views you as an adversary rather than a partner – I cannot say that I have handled such clients with as much grace as I should have. At the end of the day, it is hard to work with people who don’t play by the rules and one of the perks of “being your own boss” is that you can choose to avoid doing business with them.
Speak softly and speak often
The journey of an independent consultant can be professionally isolating, especially when compared to the collaborative environment of traditional workplaces. While modern technology offers tools for virtual collaboration, the absence of spontaneous brainstorming and team camaraderie is keenly felt. Maintaining regular, thoughtful communication with clients and peers becomes essential—not only for business success but also for personal fulfillment. By speaking often and with care, independent consultants can foster meaningful connections, mitigate loneliness, and ensure their expertise remains valued and visible in a changing professional landscape.
Some Organizational Tips When Starting Out
Form an LLC. I used Legal Zoom, but I am sure there are online tools to help you do the same for less cost
Apply for an EIC number associated with the business LLC from the IRS
Open a business checking account – even though a sole proprietor LLC’s income is treated just like individual income from a tax perspective, keeping business receipts and expenses separate from personal banking is just good financial hygiene
Apply for a business credit card for the same reason
Subscribe to accounting software, ideally cloud-based so it can be accessed remotely by accounting professionals. I use QuickBooks Online, and it has worked flawlessly, and all accountants are familiar with it
Hire a good, reliable accountant or accounting firm. Among the many decisions you get to make as an independent consultant is how far to stray from your core competency - mine was to stay very close! QuickBooks is simple, and I find it easy enough to send invoices and record receipts; however, I am not comfortable with the more technical aspects of bookkeeping. Paying my accounting firm a nominal amount to do it monthly ensures that everything is in order when estimating quarterly and annual tax payments and removes a great weight off my shoulders. In addition to bookkeeping, the firm handles the calculations of quarterly tax payments as well as the filing of yearly tax returns. Yes, paying a professional to file your taxes is more expensive than doing it on your own, but well worth it, in my opinion, given the complexity of the tax code and the constant revisions to it
Consider obtaining professional liability insurance (errors & omissions), general liability insurance, and, if applicable, health insurance. This protects you and your business from unforeseen risks
Develop a simple website or online portfolio. Consider joining professional associations, attending industry events, and leveraging LinkedIn for networking and visibility.
Regularly back up your business data and client work. Use secure cloud storage and ensure compliance with data privacy regulations relevant to your field. OneDrive works well for me.
Set up a retirement savings plan (e.g., SEP IRA, Solo 401(k)) since you won’t have access to employer-sponsored plans.
Allocate time and budget for professional development—online courses, certifications, or conferences—to stay current in your field.