As the prospect of downsizing and layoffs looms, while unemployment rates continue to rise, the thought of getting the axe at work can be intimidating. Instead of worrying about getting hired elsewhere, why not consider starting a consulting business?
Advantages of being a consultant
Pursue your passion
Many people take on jobs primarily to meet their daily needs and don’t always enjoy what they do for a living. Starting a consulting business gives you the opportunity to do what you love while earning from it. For example, if you love designing web pages or writing about topics close to your heart, you can offer web development and/or content services to clients. Loving what you do will make your business feel a lot less like work.
Minimal capitalization
In this kind of business, it’s easy to start small with just a few basic tools like a computer, internet connection, calling cards and a list of contacts. In most jurisdictions, if you work from home, you can claim a portion of your utilities expense and lease (if your home is rented) as a tax deductible business expense.
Flexibility
Whether as a one-man team or a small consultancy group, now is your chance to mold your business the way you always dreamed it to be by determining the hours, location and practices of work. If you’re like some professionals, you may even be able to structure your day so that you can maintain a “portfolio” career, which is a mixture of part-time, consulting and free lancing jobs for better income options.
Good income streams
Being employed limits your monthly income to your salary regardless of how many projects or clients you serve. Sure, you may get a bonus once or twice a year and maybe a token raise if you’re lucky, but you don’t control the amount you’ll be getting and when. Depending on your fee arrangement, you can get paid by results or monthly in advance. And you’ll have as many sources of income as there are clients.
Starting a consulting business is not as scary as it seems although setting it up and getting your first few clients can be an exciting experience. Some wonder if the market is saturated already but current statistics show otherwise as there are millions of small and medium enterprises that are registered worldwide with new ones being established everyday. If you can tap even a small percentage of that, you’ll have enough projects and business to keep you busy.