Alicia McKay
People are leaving traditional employment in droves. Here are three reasons to go consulting - and how to get it right.
Redundancies are everywhere
If you've caught the news, you might be waking up to the false security of employment and thinking about going consulting.
If you aren't, it might be time to start paying attention. If you're in tech, you might want to be across the 800 jobs gone at Xero, and 170 at Sky. If you're in education, you'll be watching the hundreds of layoffs at The University of Otago and Victoria University of Wellington, on top of the 200 to 1000 jobs expected to be lost with the Te Pukenga merger.
If you're in the public or infrastructure sector, you'll want to be wise to the 150-person job loss at Auckland Transport and the Auckland Council slash and burn that’s already axed 500 ‘nice to have’ jobs and has another 200 cuts in the pipeline.
If you're not in New Zealand, you've probably noticed redundancies at your place too - Australia has been hit hard by the 'tech wreck', with thousands of jobs disappearing. Globally, Amazon’s 27,000+ person layoffs are just a fraction of the 168,000 jobs already lost in tech alone, with Google and Meta slashing 12,000 and 10,000 jobs, respectively.
For years, people have put up with the constraints of corporate bullshit in exchange for the security of steady employment. If the security is gone… what’s next
This is the perfect time to seek more freedom
Traditional employment has always come at a personal cost: limited flexibility, a lack of fulfilment, and a ceiling on financial rewards. That cost is no longer a good deal in a world where even the most skilled and loyal staff find themselves jobless.
This is the perfect time to seek more freedom, fulfilment, and financial rewards in your professional life and the increased security of having multiple income streams.
If you think you might be ready to go consulting, here are three good reasons to get serious about it.
1. Flexibility
Break free from the limitations of traditional employment and choose where, when, and how you work.
2. Fulfilment
Say goodbye to compromising your values and do more of what you love.
3. Financial rewards
Don't settle for fixed salaries or limited earning potential – take control of your income.
People are leaving traditional employment in droves. Here are three reasons to go consulting - and how to get it right.
Redundancies are everywhere
If you've caught the news, you might be waking up to the false security of employment and thinking about going consulting.
If you aren't, it might be time to start paying attention. If you're in tech, you might want to be across the 800 jobs gone at Xero, and 170 at Sky. If you're in education, you'll be watching the hundreds of layoffs at The University of Otago and Victoria University of Wellington, on top of the 200 to 1000 jobs expected to be lost with the Te Pukenga merger.
If you're in the public or infrastructure sector, you'll want to be wise to the 150-person job loss at Auckland Transport and the Auckland Council slash and burn that’s already axed 500 ‘nice to have’ jobs and has another 200 cuts in the pipeline.
If you're not in New Zealand, you've probably noticed redundancies at your place too - Australia has been hit hard by the 'tech wreck', with thousands of jobs disappearing. Globally, Amazon’s 27,000+ person layoffs are just a fraction of the 168,000 jobs already lost in tech alone, with Google and Meta slashing 12,000 and 10,000 jobs, respectively.
For years, people have put up with the constraints of corporate bullshit in exchange for the security of steady employment. If the security is gone… what’s next
This is the perfect time to seek more freedom
Traditional employment has always come at a personal cost: limited flexibility, a lack of fulfilment, and a ceiling on financial rewards. That cost is no longer a good deal in a world where even the most skilled and loyal staff find themselves jobless.
This is the perfect time to seek more freedom, fulfilment, and financial rewards in your professional life and the increased security of having multiple income streams.
If you think you might be ready to go consulting, here are three good reasons to get serious about it.
1. Flexibility
Break free from the limitations of traditional employment and choose where, when, and how you work.
2. Fulfilment
Say goodbye to compromising your values and do more of what you love.
3. Financial rewards
Don't settle for fixed salaries or limited earning potential – take control of your income.
Three killer benefits of self-employment: flexibility, fulfilment and financial rewards
Consulting gives you three key things a regular job can't. Let's explore each one in detail.
1. Flexibility: Embrace freedom, autonomy and independence
In a survey conducted by Upwork and Freelancers Union, 59% of freelancers stated the ability to work whenever and wherever they choose is a significant factor in their decision to freelance.
That's because self-employment offers unparalleled flexibility. No more of this "we want to see people back in the office" business. Self-employed professionals shape their work-life according to their terms. You can decide where, when, how, and for how long you work.
When you become self-employed, you embark on a journey of unlimited professional development and growth potential. Every decision you make directly impacts your business and your success.
You hold absolute responsibility for making things happen - which is both utterly terrifying and incredibly empowering!
How to create flexibility as a self-employed professional consultant
Design your business for flexibility from the outset. I see many people do this poorly. New to the game and nervous about attracting clients, they wind up overcommitting and compromising their independence, resulting in burnout.
Some early scene-setting can prevent this from happening. Smart SEPs build their businesses around their ideal life. That's why the first curriculum module in Consultants of Choice is "Plan Your New Life". When you know what kind of life you want, you can set boundaries and build a business that makes it possible.
Ask yourself these questions as you shape your business:
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What aspirations do you have for your life that go beyond work?
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What work/life balance do you need to achieve these aspirations?
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What kind of people do you most enjoy working with?
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How, where and when do you prefer to work?
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What boundaries will you establish around your time, energy, and life?
When you know your priorities and set clear limits, you can have all the flexibility you need.
2. Fulfilment: Make a difference and live your values
It makes sense that self-employed professionals report higher job satisfaction and well-being levels than those in traditional employment.
Traditional employment requires constant compromise, and many professionals make yucky trade-offs that go against their values or limit their impact. Corporate constraints, bureaucracy, and delays can hinder even the most dedicated people from doing work that matters.
Self-employment offers a different pathway to impact. You can choose to do work you care about that makes a difference in a way that upholds your most important personal, professional and social values.
How to maximise fulfilment as a self-employed professional consultant
Even with the best intentions, self-employed professionals can work with clients or on projects that don't resonate with their values.
They haven't thought about their values and how they show up in others, or they haven't done the pre-work to define who they don't want to work with... so they find out the hard way.
During the early days of building your consulting business, consider the following:
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What are your most important values?
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How do you define success for yourself?
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What types of work are you unwilling to engage in?
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What criteria will you use to select clients and projects?
Define your values, clarify your vision, and set criteria for the type of work you pursue so you can experience the fulfilment you've been missing in your 9-5.
3. Financial rewards: Unlock unlimited earning potential
In a regular job, you hit a hard ceiling on earning potential - but not with self-employment. As a self-employed professional, you can create service offerings and products with lucrative fees.
Over three-quarters of independent workers earn the same or more income than when they were traditionally employed. And if you’re switched on, you can generate passive revenue from your intellectual property as your business succeeds, too.
However, many self-employed professionals struggle with cash flow. They don't know how to price correctly, are scared to charge too much, and underestimate the value they bring to their clients. Some new consultants are so grateful to get any work they feel pressure to undercharge.
It doesn't need to be like that. Your values and your value are not mutually exclusive.
How to master your finances as a self-employed professional consultant
The first and most important thing is to know your numbers.
Once you understand what it takes to run your target lifestyle, you can set pricing that reflects your value.
Consider these factors when you calculate your price:
Know the value of your work to your clients
Consider how much time, money, or energy your services will save your clients. Consider the long-term value of your expertise to their business. Understanding your impact on your clients' success will help you establish a fair pricing structure.
Consider the total number of chargeable vs non-chargeable hours you work
Recognise that not all your time is chargeable. Administrative tasks, marketing efforts, and other non-billable activities consume your working hours. Adjust your pricing to account for this, ensuring you capture your target hourly or daily rate.
Take competitor rates into account.
Research what others in your industry charge for similar services. Consider their additional staff or overhead costs and factor that into your pricing. You might be surprised by what people are charging!
Caution: while it's essential to remain competitive, don't undervalue yourself. You bring unique skills and expertise; clients will pay for that value!
By taking a strategic and thoughtful approach to pricing, you position yourself for financial success and ensure your business is personally and financially rewarding.
What are you waiting for? Are you ready to begin your journey to self-employed consulting?
Self-employment can transform your professional - and personal - life. With the flexibility to shape your work according to your priorities, the opportunity to align your values and experience true fulfilment, and unlimited financial rewards... traditional employment has some serious competition.
It's not all roses. Doing this well takes careful planning, strategic decisions, and much trial and error. But the rewards far outweigh the challenges.
You can unlock a world of opportunities if you design your business with flexibility and fulfilment, commit to mastering your finances, and stay true to your values.
If you want a useful framework for getting that right and a community of intelligent, savvy, self-employed professionals to do that with... check out Consultants of Choice.