Pivot to Consulting?
Some thoughts on becoming a consultant
[A version of this blog is posted here.]
This is for anyone thinking about consulting — whether by choice or necessity.
My buddy Wayan Vota has quickly built a substack community of some 11,000 people in a matter of weeks. He’s a very positive person, but the reason for his success is sad. Suddenly, a large group of people are thinking about a career pivot due to massive firings and budget cuts in the international development and humanitarian, and human rights sector. Globally, 100,000 or more jobs have disappeared in a matter of weeks. And those who still have jobs are worried about their future.
He asked me to offer some advice to folks who are considering a jump into consulting. I’m no expert, but I’ve been doing this for a couple years. If you’ve read me, you will know that I have some mixed feelings about consulting. It works well for some people, but it’s not the obvious answer for many.
Pros, cons, and getting started
Here’s a bit of advice on consulting:
- As an independent consultant, a “free-lance” as they say, your professional network and your personal networks are your best asset to get started. These are the people who know you and have worked with you, and who can help you find consulting work. They might be able to hire you. In my experience, they are the best way to find paid consulting, especially as you establish yourself and get to know the lay-of-the-land. So use them. Email and call people you know. Ask them what they’re doing. Ask if they need any help. Make sure they know you’re available. Ask if they know of other opportunities. Stay in touch.
- If you’re new to consulting, you will probably spend some time working on your resume and thinking about what you offer. You’ll probably try to shine up your LinkedIn. You might make up a “pitch-book” or create a website. That’s good. But another way to look at the question is from the viewpoint of a budget-holder, or a manager, or a project implementer who might hire you. For them, think about what problems they have and how you can be the solution. What task or challenge can you take off their desk? Could you write a donor report, manage a procurement process, design an M&E framework, or jump in for a staffer on leave? You are the solution to a problem that someone has. What problem do you solve?
- Be realistic about the pros and cons. Pros include flexible schedule, diversity of work, less office politics and bureaucracy. But the cons are also worth considering. In particular, be aware that there are limits on how high you can go as an independent consultant. You can make a decent living, and many people do. But there’s a ceiling. Clients have rate caps, and there are only so many hours in a day, days in a year. The market was a bit crowded even before Trump. It’s going to get worse now. Anecdotally, I have heard that consulting fees are dropping already.
Consulting vs. job-hunting
Consulting typically has a level of insecurity: you never know how long the work will keep coming or when the next contract will come. Clients can change their minds or lose their budgets. The whole thing is a bit tenuous and that’s a problem if you’re supporting a family or need security for income and schedule. And don’t forget that you’re paying your own health insurance and doing your own book-keeping taxes, etc.
So consulting might be a good option, but you might really rather have a job. In that case, don’t stop looking for a job. You might pick up some consulting work to carry you through, but don’t lose sight of your real goal: a job. Don’t over-invest in consulting to the point that it distracts you from that goal.
On the other hand, there’s a grey area between job-searching and consulting. They aren’t always in competition. It’s not uncommon for consultants to eventually go in-house when they’ve proven their value to employers. And it’s also true that people generate consulting work by applying for jobs. You might not land the job, but you demonstrate some value to the employer and they hire you on as a consultant. This is a thing that happens!
There are many dark clouds in our sector, with implosion of USAID and funding cuts across the sector. It looks ominous for job seekers. But it might be slightly different for consultants. Hiring a consultant is a cheaper alternative and requires less paperwork and budget than making a full-time hire. And there are a lot of staffing dislocations happening, so many gaps and unmet needs within the systems. There could be a surging demand for competence and experience, but short-term capacity, to help solve problems and keep ships afloat. It’s hard to predict.
A few items of interest.
- Here is a spreadsheet that can help you think through rates. This doesn’t tell you what the market is offering, but can help you conceptualize what rates translate to equivalent employed salary. It helps account for a number of factors, which you can tweak it to fit your circumstances (how much vacation do you want? retirement contributions?)1
- A blog I wrote with some advice on networking that everyone ignores. Why?
- Feel free to DM me with questions or for more practical advice on things like negotiating contracts
ENDS//
1 NOTE: I didn’t create this — someone sent it to me and I can’t remember who. Apologies, I’d like to credit them.
