Is the market still good for consultants? Thinking about becoming a consultant

[DDaenen1]

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.

[RCBeyette]

Originally Posted by DDaenen1

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. Kidding, guys! I could feel that glare eminating from Randy.

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?

[tomvehoski]

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

[wrodnigg]

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 €.

[Govind]

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

[DannyK]

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

[Randy]

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.

[bpritts]

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