Only being part of this community for a couple of weeks, i have seen that this forum bulks of expertise. Now here is a topic that has been on my mind for a long time. I have been considering becoming a consultant for a significant period fo time but never took the step due to development in my personal life; e.g. marriage, house building, 12 weeks old baby.

anyways, considering the fact that i have approx. 15 years of 1st Tier automotive experience all supplying to the major OEM including Ford, GM, VW, Porsche, having been quality manager in a german company in which i worked for 10 years, and since 4 years occupied in an american Fortune500 company in the respective positions of Sr. Supplier Quality Engineer and Supplier Quality Development Manager - Europe, the question pops up again. Is the market still good for consutants?

Please share with me your views this question and if yes, why and no, why not? All input is much appreciated.

Is the market still good for consutants?

If you were in the US, I'd guess that most people here would say the market is horrible...only because they're consultants in the US and are trying to protect their piece of the market. :D Kidding, guys! I could feel that glare eminating from Randy. :truce:

Your experience does sound extensive, DDaenen1, but let me ask you the following (having also been one to contemplate going out on my own):


Why do you wish to be a Consultant?
Do you have the ability to push yourself? If you're working from home, sometimes it's not so easy getting up in the morning, if the "office" is just down the hall.
What would you consult in? Do you have a focus in mind? Quality? Environment? ISO? TS? Six Sigma? 5S?
Do you have a business plan? Where do you expect to be in 3 / 5 / 10 years?
But most important of all...do you have catchy name thought up yet? :D

I agree that the US market (at least Detroit area) is down for consulting. I worked for a large accounting/consulting firm until last September when my billable time dropped to about 20 hours a month.

It was next to impossible to sell ISO/QS/TS/14K jobs any more. My biggest problem was bill rate. Independents were quoting as low as $50/hour. My rate was set at $125 by the firm.

I also met with some indepenents / small consulting companies over the months I was off. One maxed out at billing $50/hr for process engineering type work. Others were looking to have contractors handy "in case" they got work. Did not look promising.

Tom

The European Market is recovering rather slow.

Projects can be found, but I think it's quite hard for a "newbie" (in consulting) to open up the market.

On the one hand you have to show competence (reference projects with well-known customers) on the other hand you won't get "large" projects when you do not have more than a fisful people.

Just my 0.02 €.

Consultancy job could provide the challenge of handling variety of jobs, but hours are too long.Looking at the data provided by the DDaenen1, he has a new born baby. He will require more time to his family for couple of years.

Iam not sure if he wants to start his own consultancy or join one.

I would rather suggest him to work for a consultancy firm (rather reputed) for 3~5 years to understand the consultancy business, which is very competitive. There are liability issues that need to be understood before starting a consultancy (particularly if it involve work realted professional Engineering).

Having acquired the knowledge and experience as a consultant, them it would be a wise decision to start one on his own.

This is just my 0.02 CDN$
Regards,
Govind.

After

The hardest part of being a consultant is getting work.

If you are able to market yourself and are not afraid of rejection, then it can prove to be rewarding.

I would suggest that you speak to companies, consultants and registrars in your area to get an idea of the market.

Do not quit your job unless you have very firm contracts.

Sometimes it is a matter of timing and with a new and growing family I would not risk the income my family depends upon.

I have been a consultant for 10 years and last year was my best year ever because of the deadline for ISO 9000. Most of my friends in the business are suffering this year because there are very few new mandates.

In order to reduce the risk of having no work, I work as a subcontract auditor for 3 registrars, and have specialised in medical devices and aerospace where there is a demand for new services.

Good luck

Danny

Don't take it too hard, but what do you actually have to offer?

What cross functional expertise do you posses that you can market?

How are you going to market yourself? You're going to promote yourself as a commodity, so why should I choose you over Brand X?

Do you have experience in anything other than the auto industry, or are you like one of those Hollywood dollies that has an over-inflated chest...it's the whole show so to speak?

Can you go 5 months without generating a dime? Are you willing to?

These are some of the questions you need to reflect upon when deciding to take the plunge. Don't let me dissuade you, but don't jump into the deep end with the pool full of starving sharks either.

Having been in consulting since 1988 (hard for me to believe sometimes)
let me echo many of the well stated. but tough, questions raised already.

Let me add one observation: Normal business/marketing thinking is great
if you are a $100MM firm or $1 B firm. However, when you are either solo
or very small (the firm I am with has 5 people), you are really in a "micro
market" where the normal laws of large numbers that apply to bigger
companies just don't work well. This is not a negative or a positive, just
a reality.

So as a very small consultant, you tend to be either in state I (idle) or
state B (busy) and very rarely in between. This can occur despite the
state of the general economy - it has much more to do with your specific
client base.

I will also confirm some of the suggestions raised -- don't go on your own
without some firm deal to support at least 33% - 50% of your time from a
good client, or adequate cash to live for 6 months to a year of no income.

My start wasn't quite as tough as Randy reports. During my first 5 months,
I earned $24 for a day of jury duty!

Having said all that, the most important questions are -- are the benefits of
the flexibility, challenge, and variety important enough to you to overcome
all these hurdles?

Best of luck in your thinking.

Brad
:bonk:

Oh man Brad...I thought I had a hard start...well maybe not a start, but a stretch after the start. I did do better than $24 though :lol:

Oh man Brad...I thought I had a hard start...well maybe not a start, but a stretch after the start. I did do better than $24 though :lol:Well, I can always get a free drink with some bar magic if no one is willing to buy my consulting expertise.

One other "side" thought. You've got a 12-week old baby (congrats!!!!!). Should you make the move to consulting and become "in demand" are you willing to give up watching he/she grow up?

Bill

Well, alot of insight and points of view given. Although the European market will be different from the US market, i have to say that alot of items were mentioned which i hadn't taken in consideration. I think it won't be for the next year afterall. I do value my family above everything.

Thanks all for the feedback. It has been very valuable.

DDaenen1

I think you have received enough opinions of experts. I agree with all of them. Nothing to add. Just a brief thought. You are so young to start to be a consultant .I am 58, 30 years of experience in Industry, 24 of them in automotive field. I have been in consultancy the last 6 years, taking advantage of all the gained experience. My business is 90 % Mexico (where I live) the rest is US and Central America. The sales have been very unstable. Months with very good income, others only to survive. No matter that I have been lucky because in 6 years I only had 2 months with no income. But I know another independants have had less success.
My conclusion could be.. Your resume is impressive for your age. If I were you I would;
- continue gathering experience and contacts for the next 10 years (and of course a fixed/safe income),
- starting a bank account for "consultant project"
- giving love and attention to the family
- concentrating info about candidate markets for the project
- once you decide the target, reinforce your skills, specilly your power to convince others that you can HELP them to be better. They have to invest with you instead of spend (waste) their money filling your wallet. But first of all you have to be convinced, you have to deeply believe that you have the ability to help others, otherwise you could cheat yourself and others. You could start to earn money, but that unsatisfied customer will blame you with another 10 probable customers.

I hope the above will also help.

Qualiman

Most that I have talked to (lots of experience) have not had much trouble finding work but have trouble getting paid!

DDaenen1

I think you have received enough opinions of experts. I agree with all of them. Nothing to add. Just a brief thought. You are so young to start to be a consultant .I am 58, 30 years of experience in Industry, 24 of them in automotive field. I have been in consultancy the last 6 years, taking advantage of all the gained experience. My business is 90 % Mexico (where I live) the rest is US and Central America. The sales have been very unstable. Months with very good income, others only to survive. No matter that I have been lucky because in 6 years I only had 2 months with no income. But I know another independants have had less success.
My conclusion could be.. Your resume is impressive for your age. If I were you I would;
- continue gathering experience and contacts for the next 10 years (and of course a fixed/safe income),
- starting a bank account for "consultant project"
- giving love and attention to the family
- concentrating info about candidate markets for the project
- once you decide the target, reinforce your skills, specilly your power to convince others that you can HELP them to be better. They have to invest with you instead of spend (waste) their money filling your wallet. But first of all you have to be convinced, you have to deeply believe that you have the ability to help others, otherwise you could cheat yourself and others. You could start to earn money, but that unsatisfied customer will blame you with another 10 probable customers.

I hope the above will also help.

QualimanQualiman makes excellent points.
If you want to ultimately be an independent consultant:

Start now to build up a reserve treasury for when you take the big step - it doesn't matter how old you are - sometimes gray hair can be a great marketing tool for clients looking for experience.
Start now to build up the credentials and contacts that will serve you well in consulting (consulting is as much "schmoozing" as actual knowledge of the consulting topic - clients want to feel comfortable with the consultant)
Think clearly about whether you are physiologically and psychologically compatible with being a road warrior - long periods away from home, dealing with new people and situations almost every week.
Consulting successfully is all about successfully marketing you and your skill - can/will you do this yourself or do you need to work for a bigger outfit that will take care of this aspect for a chunk of the fees you earn? (think of talent and managing agents who together take up to 25% of a performer's earnings. Booking agents for public speakers routinely take 20 to 30% off the top for booking speakers like Zig Ziglar.)
Which brings us to gpainter's comment - getting the money after you earn it. (This is a major stumbling block for independent practicioners. It is a constant balancing act in marketing and practicality in setting prices and collecting advance fees from clients to ameliorate the effect of deadbeats who withhold full or partial payment after the service has been rendered.)
:topic: Setting and collecting fees is a good topic for another thread.

Setting and collecting fees is a good topic for another thread.

Let's Go!! I've been strung out for 13 weeks before. . . not pleasant!

I think it depends on the industry you work in. Right now FDA industries are doing well with the new QSIT and Risk Management initiatives. As a statistician I find business is slow as it is a low priority.

Steven Walfish