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Quit My Job For Consulting: Two Months Later

157 点作者 stevenklein超过 12 年前

26 条评论

btilly超过 12 年前
Another item to consider is what a fair rate is.<p>Let's suppose that a full-time developer is paid $120K/year. (There are developers who get more, a lot who get less, but this gives us a nice round number to work with.)<p>When you add up benefits, taxes, office space, etc, the average employee costs 2x their salary. So that developer probably costs $240K/year.<p>You tend to work about 50 weeks per year, so that's about $4,800/week.<p>You work 5 days/week so that's $960/week.<p>After you get rid of lunch, discussing the weather, HN, etc, you're probably only putting in 6 hours of actual work per day, so that's $160/hour.<p>Therefore an employee who makes $120k/year is likely costing the employer $160/hour. As a contractor you have to bear those costs that employees do not. Plus you have to bear costs such as not getting paid for the time it takes to find more work.<p>Most people who contract do not charge enough. Perhaps after running through these sample numbers, you'll do the calculation for yourself and ask for a more realistic rate for what it costs for <i>you</i> to be a contractor.
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k-mcgrady超过 12 年前
&#62;&#62; "Book Clients Playing With House Money"<p>This is good advice. I've found that this and working with solo people paying out-of-pocket works fine (providing you get some assurance of payment - I usually get 50% up front). The worst clients I've experienced tend to be people who run a business with 5-10 employees but still have enough time to work with you directly. I work with these types of businesses least but in 3 years of freelance work I've had 3 screw me over.<p>Here's why I think it happens.<p>People 'playing with house money' will pay whatever it takes to get the job done because they are removed from the money - it isn't theirs.<p>Solo people who want work done (usually a website or app idea) want a completed product after paying you half up front. They don't want to bail because they want something to show for their money. They probably can't afford to lose the 50% and get someone else.<p>The small businesses I mentioned can afford to lose the 50% they pay up front (unlike the solo people). So if what you are doing doesn't meet their exact (constantly evolving) standards they are happy to kill the project. I've found these people constantly make changes to what they want and add extra features (which of course, they say 'just add to the bill'). I try my best to avoid these clients now.
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tptacek超过 12 年前
If you have one, work at your local public library instead of a coffee shop. Even though they're usually nice about it, coffee shops don't really want you there, unless they're not doing a lot of business; they're driven by turnover. Your library, on the other hand, needs you there; your usage of the library justifies their budget. I found our Oak Park library to be a better work space than the coffee shop anyways.
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tokenizer超过 12 年前
Some advice: Get some clients before you do this. I tried to go contractor after my last job and didn't make any money as I spent most of my first month getting a client, and the second month finalizing the details and working on the project. Two months for $2500 isn't much if it's your only client.<p>The trouble I encountered was working as a web dev at a marketing agency before. They were strict about working for "potential clients", which meant anybody with money...<p>My advice: Get at least 5 projects lined up for the foreseeable future (next 3 or 4 months) and also save up about six months of money for bills and your normal expenditures minus savings.<p>This will help you invest in a business for at least, 8 to 12 months, working with 5 or 6 projects and tiding your other 6 months with savings will be the worst case scenario. Best case you find more clients and don't even get to touching that money.
zenocon超过 12 年前
Going on 7 years as an independent now doing only corp-to-corp contracts. Full-stack dev. is a necessity. I enjoy it b/c I tend to get bored, so I move project to project and pick up new tech, learn it, build it, and then move on to something different.<p>I worked from home for the longest time, and it can be a lonely endeavor. The best mix I've found is home 75% and 25% on site. You get to interact with real humans once in a while, but go back to no distractions.<p>Friendly tip: If you have small children, forget it. Get an office space.<p>Also: Get a good accountant -- pay yourself a reasonable wage and take the rest in distributions at the end of the year in a tax-deferred retirement account. I aim to retire at 55; so far, I am on target.
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bprater超过 12 年前
One of my suggestions: sub-contract with one or more web development "house". I've been consulting for 15 years -- and it is one of my favorite ways to work. They do all the work of collecting requirements, billing the client, etc. -- and I get a checklist of items that I sit down and work against, often with a distributed team. Do good work and these places will keep you busy, especially when they are overloaded with work for their in-house teams.
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tjtrapp超过 12 年前
Nice post! I've been thinking about this a lot and glad you wrote about it. I appreciate you sharing your experiences.<p>I completely agree with breaking up your time into blocks. I try to keep my schedule to 4 hours in the morning of heads down coding (9a - 1p), 4 hours in the afternoon of heads down coding (130p - 530p) and 3 or so again at night (8-11/12).<p>The other time is for me to do tasks which are relevant to coding but not actually coding, significant other time, or whatever I need to get done so I can think straight during those coding sessions.<p>I don't answer email while coding, or give in to other distractions. The reason being that I have scheduled time for that and its coming up soon. Anyways, back 2 work ;)
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psweber超过 12 年前
I've found that if you charge a day rate and deliver the things you promise, clients will never worry about time. You still need to have the discipline to get things done, but it takes the pressure off making sure you are billable for a certain number of hours.
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luke_s超过 12 年前
I'm interested in doing something similar myself. If the HN hivemind could help out, I have a few questions:<p>1 - How important is it to have some sort of public profile (eg, High ranking StackOverflow account, Github account, well trafficked blog) or public portfolio? I've done lots of good work as an employee but almost all of it is on internal corporate networks.<p>2 - Where do you find the all important first few customers? Should I be going to every local users group I can find and handing out business cards? Or hitting up sites like <a href="http://www.guru.com/" rel="nofollow">http://www.guru.com/</a> ? What worked for people?<p>3 - What size jobs are feasible? I would like to start this on a part time basis while still working my day job. Is it possible to find jobs small enough to keep me working 1 or 2 days a week?
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lectrick超过 12 年前
This is all in fact why I went back to working at (smallish) companies after trying solo gigs out. Other bennies:<p>1) Coworkers to chat tech with/enjoyable rapport/shared nerd-citement<p>2) Far clearer separation between workspace and playspace, which is really just a catalyst to get your brain in the right place (similar to one popular argument for wearing suits), but whatever works<p>3) Better bennies (U.S. healthcare scheme, I hate you, even if I also like not paying 50% of my income to tax)<p>4) People available to fill your gaps in knowledge or weaknesses<p>5) The fun of mentoring/helping others<p>6) More likely to travel for work now and then, which is kind of fun<p>7) Being at home day-in and day-out got me depressed. In my region on earth we have changing weather and it is not always feasible to get outside.<p>In short, people work for companies for a reason and that reason is not always "i live paycheck to paycheck and have no other option"
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ojiikun超过 12 年前
The series of posts is great stuff so far. I've long been curious about freelancing, both in considering it for myself during certain phases of my career and in wanting to hire independent folks in the near future.<p>I've so many questions I'd love to ask an experienced freelancer:<p>- Who actually writes the contracts, you or the buyer?<p>- What does a sample contract look like?<p>- Do you use a résumé or something more like a sell sheet when approaching buyers?<p>- In what city are you working?<p>- Big biz vs. startups?<p>- What is your on-site vs. remote work ratio?
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keithnoizu超过 12 年前
Good stuff Steve. My last day at microsoft is october 19th and i'll being doing similar. Splitting my time between my existing projects that currently bring in some revenue, working part time as the software architect for greatnonprofits.org and spending the rest of the time consulting.
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gte910h超过 12 年前
8 billable hours a day? Jesus, that's lawyer hours.<p>Try for 5.5-6.5.
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wglb超过 12 年前
As Thomas and Patrick frequently say, and I wholeheartedly support, do your work in increments of weeks, not hours. Things will go much better.
hackerpolicy超过 12 年前
You'll only have trouble with unbillable hours if you, well, bill by the hour.
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quickpost超过 12 年前
Good advice. How have you been identifying and marketing yourself to the clients paying with "House Money"?
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senko超过 12 年前
<i>Getting out of the house and going to a coffee shop helps make sure you don't get distracted by things around the house.</i><p>Not only this, but separating your work environment from your living environment can help you (a) focus more while working, and (b) not think about work when not (from my own anecdotal evidence). After a few years working from my bedroom, I decided to rent an office a short walk away from my home. It reduced 12 hour work days with 5-6 hours of actual work to ~8 hour work days with ~7 hours of actual work done.<p>YMMV - local Starbucks, coworking space, or a separate room in a house could work equally well, but IMHO, having a dedicated work space definitely helps.<p>(EDIT: corrected typo, "20" -&#62; "12" hour work days).
wasd超过 12 年前
I can feel a lot of the same sentiment about working at home. I think its psychologically important to separate your work and personal life. Maybe consider creating room which you only go to work or joining shared office. it really works for me.
benzor超过 12 年前
As someone who works from home a lot, his advice about working in blocks of time is the most useful to me, as I've started exactly the same thing to keep productivity up. Being able to take breaks and tackle some life chores during the day is an awesome perk of working from home, but you can easily get carried away and miss out on doing any actual paying work.
gcp123超过 12 年前
I've just left a company to do the same-ish thing in marketing strategy. These are some helpful learnings, thank you!
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orangethirty超过 12 年前
Good stuff. Also, HN is a great source of clients, but you have to be willing to advertise yourself correctly. Many freelancers here write me-too ads that fail to get them noticed. I do attention grabbing ads and them alone have made my practice grow about 500%.
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31reasons超过 12 年前
I have not started consulting yet, but I have a question. In software development we often have to learn new APIs and learn some tools. Can we charge hours for jobs that require some learning or is learning considered personal time ?
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binarysolo超过 12 年前
As a fellow consultant with a (somewhat) similar structure, I wonder if you have a boilerplate consulting contract you use? I kinda wanted to get a reality check and what templates others have.
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guelo超过 12 年前
BTW, if anyone is looking for 1-2 months of HTML/CSS/JS work hit me up, my email is in the profile. Thanks.
__dontom__超过 12 年前
whats the CMS of this page called? thanks!
dsolomon超过 12 年前
This place really needs a downvote feature to quickly call BS on the ficticious salary information that occasionally pops up.