demand for professional services on a consulting basis is more resilient
in a downturn environment than job security or stability.
As you say, things still need to get done, and this way they can be done
while paying a consultant less than would be necessary to pay for a
full-time employee to handle the task - both in terms of money and
opportunity cost. Consultants/contractors do not require benefits, and
do not have to be trained or kept continuously busy/paid beyond the
requirements of the project, or otherwise organisationally accommodated.
Despite the much higher project or hourly rates, this makes
consultants eminently more affordable and a wiser economic decision in
many situations.
I would, however, throw in a cautionary note whose general effect is
that freelance consulting as a full-time professional endeavour is
governed by the same laws of economics and marketplace realities as any
other business endeavour. So, I think my concern is with universalising
this path or suggesting that it is for everyone or even for most people.
Being on your own as a contractor isn't going to bring automatic
money, prosperity, or even survival any more than anything else is
automatic.
As a successful freelancer, I am confident you already know this very
intimately. But I think it's important that people thinking about doing
it understand this.
Most of what can be said about the sustainability of this approach can
be summed up as: "There's a difference between a [successful] business
model and 'doing work for money.'"
People in the latter category generally end up feeling like they have
the worst of all worlds - no security, working twice (or more) as much
for half (or less) the money, and 8 different bosses (clients). If you
end up in this situation, the "emancipatory" feelings of "escaping" the
"slavery of the 21st century" (the 9 to 5) can evaporate faster than you
can say "I'd be making more on the unemployment dole."
Steve Totaro wrote:
> Andy, read the book "Who Moved my Cheese".
>
> China is or has put an economic stimulus package to the tune of ~$550
> billion. If done correctly, that may help the market, but I figure that
> government officials and top businessmen will pocket the cash.
>
> Anyways, I found that having a "Job" is not for me. I used to think the
> way you did and perhaps if it were the old days where people in the US
> had job security, a great retirement package, and all the benefits, I
> may think differently, but probably not.
>
> Andy, you need to be a "Freelancer". Freelancer/Consultants usually do
> well in economic downturns because while full time people are being laid
> off or fired, things still need to get done. As a Consultant, you
> charge a much higher price per hour or per task than you would as a
> "Full Time Employee".
>
> The company that contracts you for a project makes out very well usually
> and so do you if you can stay busy.
>
> Anyways, I hope you had enough income to save a bit when you had a "Job"
> so you could save a bit.
>
> It is time to re--invent "Andy" as an expert in his niche. Learn to
> sell, you will need to sell yourself, your services, and be able to sit
> down with anyone at a company and change your sales pitch depending on
> who your audience is. If it is a techie, then technical sales pitch,
> CEO get to increased productivity/doing more with less, Accountant
> obviously wants to hear about return on investment.
>
> They are virtually the same pitches, but slightly different, due to the
> focus of the audience. An accountant does not want to hear about techie
> stuff (usually).
>
> Bottom line, tighten your belt, spend less, cut costs, find a niche,
> figure the most cost effective way to get work, and work on selling
> yourself and services.
>
> Andy, what you really need to do is stop worrying, not only will it
> shorten your life, make you miserable as well as others close to you, it
> will prevent you from seeing and seizing opportunity.
>
> If I was picking a contractor, and had two people come in to sell their
> offerings, I will most certainly choose the person that didn't seem very
> worried. Whoever presents and interacts personally well with me will
> get the contract (or even job) providing all things being equal except
> attitude and presentation.
--
Alex Balashov
Evariste Systems
Web : http://www.evaristesys.com/
Tel : (+1) (678) 954-0670
Direct : (+1) (678) 954-0671
Mobile : (+1) (706) 338-8599
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