Wednesday, January 29, 2014
Advice on Becoming A Consultant
I've been asked about what is involved transitioning to consulting. There are many aspects from which one could answer, but the single most important one is financial: have cash in the bank. If you're going to consult, you're going to have down time. And the only way to cope with down time on a regular basis is to compensate for it by having several months of living expenses put away, so you can ride it out.
From my experience, there is an almost straight-line correlation between cash-reserves and length of time spent as a consultant. Also, an inverse straight-line correlation between debt and length of time spent as a consultant.
So, especially for someone further-on in his career, you really need to consider whether you have the financial reserves to be able to tolerate a shift into this mode of working.