Ask HN: What is your experience in tech consulting?

229 点作者 ggwp99超过 2 年前

I just started my consulting firm moving from a lead tech role at startups, and I wanted to see other's experience in the forum regarding initially starting the firm, networking etc... I started with 2 pro bono clients that in return will write a testimonial. I have got also potential paid clients in negotiation, I am focusing on writing and entering podcasting but I am not sure how. Would also love to hop on some calls if anyone is down anytime.

26 条评论

cik超过 2 年前

Just a few random thoughts from ~10+ years of doing this. These are not ordered, as I've been out of this for the past few years.- Contracts, contracts, contracts- Immediately stop all work when any customer doesn't pay an amount owed. There's a natural inclination to keep going, but this is a firm of pathetic cost fallacy.- Work with an escrow provider and eat the fees. You'll generally have a 10% non-collectable rate, until you work with an escrow provider. This can be lowered to 1-3%, meaning you stay far ahead. More importantly you reduce the time spent in administration, and running after customers.- Downpayments / upfronts are key. Any customer that is unwilling to engage in this practice, is a customer likely to not pay.- Maintain ownership of your code, if you can. True, consulting code has little value - usually. But sometimes, you can legally, reuse the same blocks, or segments across multiple projects. Your rate of return increases dramatically here.- Your name is your bond. When people learn they can trust you, even in just a handshake (remember: contracts!) they happily recommend you to your friends- Digitize it all. Do everything in your power, pay for every web service that makes sense, to reduce your overhead. I was incredibly happy to pay for receipt scanning (shoeboxes), book keeping / invoicing, and accounting (xero). Most people view this as an expensively monthly cost - which it is at the beginning. It will also, eventually cost less than an hour of your consulting time. Scale.- Never price at the top of the market. It's better to be 100% busy at 80% of the fee structure, than it is to be 50% busy, at 125% of the base rate.

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tptacek超过 2 年前

Random bullets.* You need to be making 150-200% of your FTE rate to come out ahead in a year* Bill daily, not hourly (you can bill weekly, or quarterly, too.)* Raise your rates.* Count on signing your clients master agreement, not yours* You can win by getting every contract reviewed, or by just signing them blindly* Specialize* Incorporate; it's easy and cheap* Keep your SOWs vague* Don’t waste time on your website design (but do write)* Do go nuts with your proposal design; pay someone to help you* Target 80% utilization; past that, hire or jack your rates up* Don’t work with clients you’d want a down payment from* Don’t hire a salesperson* Your availability on a calendar is worth money; so is your implied consent to be terminated on no notice; make sure you’re charging for it* Get an accountant ASAP* Do favors; karma works better than ads* Don’t do conferences/conventions* You can subcontract at first — most new consultants do — but get out of that quickly.These are just things I think I learned over 15 years of doing this work; only some of them --- like never billing hourly --- are things I'd go to the mattresses over, but I think they're all generally correct.

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keithwarren超过 2 年前

20+ years since I started my firm, we are very successful and I love our team and our work.Few points…Word of mouth is best advertising.Prove yourself trustworthy and honorable, there are still assholes who will try to take advantage of you but on balance, this will pay off over time.Don’t work for free. If companies want you to work because it will look good for referrals or something- run.Don’t work for equity or revenue shares without some cash as part of the deal. Cash is skin in the game, it makes everyone act differently.Treat your team better than you wish you were treated - they are your most important relationships.Be willing to fire clients.Fancy contracts are a waste of time, if you ever get to the point after work has begun that you are talking about wording in a contract - you already lost.Lastly…learn to delegate, I spent way too much time doing too much of the work myself- sharing the load is a superpower.OP or anyone else thinking of doing this, feel free to reach out for a longer chat on the topic.

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solresol超过 2 年前

Niches = riches.You want a super-tight thing that you do (e.g. "I fix performance issues for large NodeJS code bases", or better still "I write tooling to measure performance hotspots in NodeJS code bases".)Despite this sounding like cutting off potential customers, it doesn't work that way. Customers will reach out to you with some generic work that they want done "because I know you know NodeJS" even when you say you specialise in something.A good first book to read: "Book yourself Solid" by Michael Port.

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tomhoward超过 2 年前

Have a read of this classic post by patio11:<a href="https://training.kalzumeus.com/newsletters/archive/consulting_1" rel="nofollow">https://training.kalzumeus.com/newsletters/archive/consultin...</a>I can testify as to the troubles that flow from doing work for discounts or gratis; I'm currently four years into a client relationship where I started out by helping them out of a desperate situation with a cut-price block of work, then they've continued to build their business on the basis that I (or other consultants) can keep providing ongoing work at comparable cut-price rates. Any time we try and explain that they need to increase their budgets if they want to keep funding further enhancements work, they protest that they're a non-profit with very limited budgets - they just can't accept that it costs big dollars to do this kind of work on an ongoing basis. It's just super-hard to adjust the expectation once the client has locked in an idea of what the work is "worth".

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bergie超过 2 年前

I ran a consultancy for 15 years before selling it. Was at times fun, and certainly educational, but would I do it again? Unlikely.Anyway, couple of things that worked for us:* Try to get retainer contracts: we would offer one when we had delivered a project. This is great for you as it makes income more predictable. And it is great for the client as they know they have certain capacity from you, and don't have to go to their boss with a new budget request for every small thing they want changed* Don't let a client grow too large: we had a big client that wanted to buy all capacity we had to offer, and wanted us to hire more for them. We never let them become more than 50% of revenue, so we were able to survive when they went away one day (the "burning platform memo"). Keeping them at 30% would've been even better, but it is hard to say no to money* Don't try to be fancy: you're not one of the big consultancies, so don't emulate then. If clients wanted that stuff, they'd deal with those companies, not you. Our sales conversion rates improved radically when we switched from tailored suits to jeans and conference t-shirts

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osullip超过 2 年前

I run a consulting firm.Get one client. Do an amazing job. Use that to tell other clients what you do.Be specific. Most people outside tech have no idea how it works. Tell them what they will get.Increased sales, reduced costs, better productivity. Whatever it is you do, forget about the tech and talk about the benefits.Get your elevator pitch right. Mine is "I help businesses fix their procedures". People then say "You know, I could introduce you to my friend...."Business first, tech last.

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stuckkeys超过 2 年前

Do not do free work for "testimonials" rather do it for a discount. I do not give sh-t who it is, I am not devoting my time for free to anyone. Your sidekick should be ChatGPT or any AI assistance you can get your hands on (if you are starting solo) It will help you tremendously. Do not be scared to reach out to organization. Buy some add space on google and target regions. You are going to kill it. I believe in you (random internet stranger). Good luck.

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karaterobot超过 2 年前

Deciding how to structure your contracts is important. Time and materials is nice, but if you're making the same thing over and over, a fixed bid with accommodations for additional changes is okay. Networking is important, so keeping clients happy is important, but also telling bad clients to go pound sand is a critical skill, as they'll ruin you if you let them.My company made most of its money by referrals from one client to another, and it was important to have someone who is good at maintaining relationships with not only current clients, but old clients, and prospective clients. If that's not you, find someone who will do it for you. They should be good at it, and ought to be second nature to them: it's not a one-time thing, it's an ongoing part of that business model. I meanm you might get lucky and have one client for years and years, but you should plan on having to constantly be hustling for new clients, since that's the most common scenario.I did consulting for 13 years. The upside is you get to work on a lot of different stuff, and become really good at a variety of technologies, as well as the general skill of becoming good at picking up new skills. You also get to look at a stupid product or application and think to yourself, "it's your money, pal," because you don't have to pretend you're saving the world at some dumb startup, you're a mercenary who parachutes in and then escapes on a hang glider just as the startup is about to explode. On the other hand, you don't get to focus on one thing and get really good at it, or focus on one market and learn every angle of it, or focus on one product and iterate on it until it's good.

reuven超过 2 年前

I've been consulting since 1995. I started with a lot of different things (Web projects, Unix system administration, tech consulting), and now do 100% Python training.I am incredibly happy with my work. I get to do what I want, earn a good living, have almost zero meetings, and am constantly learning new things.But I made many, many mistakes along the way, leading to years of so-so income, limited sleep, and limited time with family.My biggest mistake was trying to do too many different things. By focusing on one type of problem, you'll gain expertise (useful when helping clients). But you'll also gain a reputation for solving those sorts of problems, and clients will start to find you.You still need to learn how to market yourself. You need to learn how to ask for money (which I found hard). You need to get a sense for who will stiff you (and some clients will!).Indeed, a big problem with many consultants is that they forget they're running a business. When you're an employee, you can ignore all of the business stuff; you get a paycheck, and someone takes care of all of the little and big things, from invoicing to taxes to contracts to angry clients. When it's just you, you get to do all of that.You can take a look at the podcast I do, the Business of Freelancing: <a href="https://businessoffreelancing.com/" rel="nofollow">https://businessoffreelancing.com/</a> (We'll hopefully start to record a third season in the coming weeks.)Beyond that, I strongly recommend Philip Morgan's "Positioning Manual," which can help you figure out just what niche you want to enter.Best of luck! And remember: If consulting doesn't work out, you're not a failure. It's not the best match for some personalities, markets, places, and times. But if you can make it work, then power to you, and I wish you the satisfaction and success that I've had.

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anonreeeeplor超过 2 年前

It was very hit and miss for me. I think you really need to have a primary gig or hobby or side project which exposes you to constant opportunities.My job now drives a lot of secondary value encounters which allows me to “spin off” different ideas with other people.I did consulting with a client or two but usually it’s not sustainable on a monthly basis.I view Consulting as a really incredible way to learn simple business skills, how to ask for money and structure engagements.My personal feeling is that exposure to consulting is ultra valuable even on a hobby basis and it is very valuable skills to have, though may not be sustainable.My feeling after trying to make it work for a couple years is you are making a bet with your time. You are better off spotting a high potential project that is just getting started; inserting yourself by just being helpful and then growing it and ultimately turning it into ROI.A really great high value paid position might take 3-6 months to develop. I think I’m better at spotting and developing these.The idea that you will just walk in getting top dollar is unlikely. You have to spot the right place to be, position yourself into it by being helpful and likable and then enlarge the opportunity by growing it.For me Consulting still requires a very entrepreneurial sense of timing and also the ability to get into position and develop something new with a high potential client.

red-iron-pine超过 2 年前

Loved the travel and accumulating flightand hotel points and randomly getting bumped to first class when flying out to see family, etc.Compensation was generally good.Work was challenging and engaging. If nothing else it got me exposed to a lot of enterprise environments and business owners.Don't miss the feast-or-famine workflow, constant shifting of priorities and needs, the artificial "give a shit" about the flavor of the month clients, and the constant up-or-out hustle environment.

csomar超过 2 年前

I'd give contrarian advice here. Some people suggest to "charge more" but this hardly works if you are just starting.What worked for me is to keep jumping from client to client until you find a good one that makes up for the "bad" ones; with the bad ones not necessarily bad (as don't pay, sky-high expectations, bad communication, etc.. never take those) but rather clients that will have 2-4 months of work only.The reality is, your consulting business will go two ways: Either you'll grow to x/xx employees; or it'll be just you. The difference is huge, and your responsibilities as well as your day to day job will be different. For the former, you are a manager and a seller. For the former, you are a software developer that need to have a small sales pipeline and keep in touch with an accountant.I'd not advice on the former, but for the latter, just reach random people here or elsewhere. Somewhere along the people you reach, you'll find work for short periods, or small gigs. One of them will turn into a year long arrangement. It might seem risky that you are relying on a single client, so price accordingly for the down time. But address this with the mentality that your next gig will come from somewhere else. For me, when I was looking, it was a maximum of 1-2 months that I'd land the next gig. Usually shorter. Been at this since 2010, so maybe adjust for the current "down" market.For the big fish clients (aka: Corporate Gigs) that some people here suggest hooking with, I'd suggest not to put much effort into that. The reason for that is simple: It's more about navigating politics, hierarchy, organizational complexity and bureaucracy. It can be lucrative but it can also drain you in the short time, these are also gigs that gets established with politics rather than skill. They can be draining until you get paid, and if you are short in cash (or need a fast money pipeline) this can turn stressful. I'd advice to push this for a later date.It's also important to say that the first type of clients will rarely convert to the second type of clients. My experience is that the two categories don't overlap. So if you are about 2, (especially if you are looking to grow) and want clients that will be happy to pay for your airtravel+hotel+wine&dine meal, by all measures start looking for 2.

ensemblehq超过 2 年前

It’s been several years since I began but it’s been an amazing experience given I’ve always wanted to do something entrepreneurial. I feel a lot happier knowing that I can help clients advise them on technology and bring solutions to their problems. Happy to have a chat anytime.

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achenatx超过 2 年前

been running my company for 23 years now and have friends that also have.1) staying general works, but niching down works even better. My most successful friends found an up and coming technology partner and rode that wave.2) most of my business year to year is grown in existing customers. Very little comes from new customers (90/10).3) marketing/selling becomes much easier if you have a technology partner that is exploding like a rocket (e.g. chat gpt consulting?). Otherwise marketing/selling is mainly about producing content that drives leads. Presenting at conferences is probably one of the best ways we have driven business. But no one method drove enough business.4) there is an inflection point around 4-7 people and at 30-40 people. at 4-7 you need to manage but the people arent quite generating enough money for you to not work on projects. It can be very hard to get past this point. At 30-40 you now need a layer of management and you have to develop them.I really like the following sources that apply to consulting 1) so you want to be a consultant (whitepaper) 2) naked consulting 3) managing a professional services firmAlso really like 5 dysfunctions of a team. It isnt specifically geared towards consulting, but it is important as you get employees.

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mongol超过 2 年前

I am honestly not sure if I am consulting in the sense many describe here. But I work in my own business, and have since 10 years worked in big corporations as contractor. This type of assignment is impossible to get without going through the middle men that the big corp wants to source their non-employees through. So my experience is different from those that find their customers directly and negotiate directly with them. But at least around here, I think it is very hard to impossible to get a contractor assignment to a bigger company or organization without going this path. They prefer to source their consultants through "framework agreements" (not sure if it is the right English word), which no single-person-business can be a party of themselves as they are too small.Still, I have been pretty happy working this way. I may have been lucky in that the customer have appreciated the work I have done and I have had responsibilities outside of pure tech, such as acting as team manager for a technical team for example.

franze超过 2 年前

Once upon a time I gave a talk to a room full of dev freelancers on how to get started as a freelancers. I wrote a short summary here <a href="https://www.fullstackoptimization.com/a/positioning-for-freelancers" rel="nofollow">https://www.fullstackoptimization.com/a/positioning-for-free...</a> maybe you find it useful.

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sherdil2022超过 2 年前

I don't have a 'successful' experience - but hoping my experience can resonate with some and I can get some hints on how to achieve 'success'.I have tried more than a few times and different kinds (if we can say it that) - helping with hiring, training for interviews as well as being a dev (technical architecture, design and implementation). Nothing stuck. I ultimately had to take up a full-time gig to pay the bills - but I still don't want to give up on this dream of mine - being my own boss (sort of - since I know customer is always the boss!).I would like to know how you got your start and how you got your first customer, then the next and so on. I am not necessarily looking to build a tech empire, hire dozens of others, but rather eek out a decent living by doing what I do best - design and build large-scale systems.

kypro超过 2 年前

May I ask what is meant by "tech consulting"? This is different to IT contract work I assume? Is consulting more about offering knowledge and guidance? What are the skills consultants need?Say a company wants to increase their organic search traffic, I'm guessing that's where a consultant can come in, do some research, provide recommendations, then build out a solution?And I guess to follow up on this, I've worked as an IT contractor for several years now, but I'm not clear how someone would get into consulting. I'm not even sure I've seen individual consultants before at companies. I've worked with Accenture consultants who have worked on projects with me, but I've never seen an individual do similar work. How would one get into this - is it purely networking, or do recruiters place consultants?Sorry if these are stupid questions. I guess I've never really understood what people meant by consulting and it seems people can use the term to mean quite a range of things.

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lelanthran超过 2 年前

I have long considered this, but of course, the big question is "How do you land your first testimonial-worthy client?".I'm not particularly inclined to do pro bono work in exchange for raising my profile (unless that work is of such a high profile that it would drive large numbers of CEOs to my door! This is very unlikely for the gigs I have seen).

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frafart超过 2 年前

Hey I'm in a similar situation as you. I transitioned out of a dev job recently and I'm putting more energy into my business. I have experience in podcasts, at least from a technical point of view. Reach out if you want to connect active.book8254@fastmail.com

matthewcford超过 2 年前

Dont grow past 1 person, unless you love sales, the end game is your just in sales.

bradwood超过 2 年前

What type of tech consulting? Strategy/ Architecture? Delivery management? Implementation? Each of these have their own profiles/approaches.For the former, I'd bill fixed price, fixed outcome - half up front, half on delivery. This is the highest margin work buts it's bitty.For the rest, a flavour of t&m depending on duration of the engagement.Testimonials are great, but get some case studies together also and make sure your pitch deck is tight.There is a lot more I could say, ask in the comments if you wanna talk - happy to oblige.Source: I did tech consulting and advisory for investment banks and hedge funds for 20 years.

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germinalphrase超过 2 年前

I recently took a position at a small, very young tech consultancy. Our compensation and billing practices are reasonable, but somewhat ad hoc.Can anyone offer advice or resources: 1. Common compensation structures (salary/bonus/profit sharing/etc splits) 2. Appropriate time billing practices, i.e. billing to the minute vs billing blocks of time

mriet超过 2 年前

One minor comment: different markets/regions are _different_.For example, whether or not customers pay on time can depend a lot on the region (and decade!). Not to mention that there's also a big difference between small and large companies, as well as different industries (manufacturing vs restaurants vs banks, etc.)

hendry超过 2 年前

Selling your time doesn't scale

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