Start Your Own Home Business After 50. Robert W. Bly
a premium fee. If you are cheap and good, you probably have more customers than you can handle.
If you are all three—cheap, good, fast—you are under constant pressure and probably not making that much money.
Which are you—good, fast, or cheap?
IS THIS FOR ME?
By the time you reach your 50s, you have learned quite a few things through hard work, by chance, and through trial and error. And, while the journey has been mostly splendid, you now stand at a crossroads, either by choice or by circumstance, about your next career move. Ideally, you would like to expend your energy on something worthwhile and lucrative. However, what you do not want—and cannot afford—to do is to spend the next decade trying to figure out what that something is and how to do it. So, the first step is to determine if the consulting profession is a good fit for you.
The standard Webster’s dictionary definition of a consultant is “one who gives professional advice or services; expert.” In practical terms, if you are in the business of consulting, then you are in the business of sharing what you know with others—whether individuals or corporate entities—for the purposes of assisting and facilitating the achievement of some personal or business goal or objective.
You should carefully weigh some basic elements of being a consultant before hanging your shingle on the door. These elements apply regardless of the type of consulting service you decide to offer. This is a very important step, because a careful and honest assessment of the pros and cons of starting a consulting business could have a direct impact on your ultimate success and personal satisfaction.
ENTREPRENEURIAL SPIRIT
An independent consultant is an entrepreneur, and being an entrepreneur involves risks, long hours, independence, self-determination, and, in some cases, isolation. Virtually all successful entrepreneurs possess at least some of the same characteristics. According to an article in SAP Connection, Terri Lonier, author of Working Solo, says that successful solo entrepreneurs are self-starters, outgoing, life-long learners, and optimistic. An article in Volume 8 of the newsletter Creative Business (www.CreativeBusiness.com) describes solo and small-firm practitioners as people who:
•Enjoy working at home alone
•Are somewhat motivated by money
•Are not that interested in business details
•Do not want to supervise others
Yet another characteristic of entrepreneurs is that they are self-starters who are fully capable of doing work without being told to do it, supervised, or otherwise having their hand held.
Is this you? Do you have the entrepreneurial spirit? Can you sustain it?
If you have spent the bulk of your career in a corporate or corporate-like environment, transitioning to entrepreneurship can be frightening, even if you currently have no other options. For many of us, working for and reporting to someone else is the natural order of things, and we have no desire to be burdened with the administrative minutia and networking that comes along with running your own shop.
Moreover, in the corporate environment, whether you have some, little, or no work to do, you will still get paid your salary and receive your benefits. This is not the case for the self-employed. A “sick day” can ruin your bottom line. When you are an entrepreneur, if you do not work, you do not get paid.
Even if you never take a sick day in your life, economic downturns can have an adverse effect on your consulting business. When companies are forced to cut costs, the “consultant” is usually the first to go. Growth in some consulting specialties, such as executive search consulting, is directly tied to the health of the industries in which they operate. If the industry in which you have expertise fades, so do your consulting opportunities.
On the other hand, depending upon the service that you offer, a recession may be the ticket to success for your consulting business, as companies consider means to simultaneously cut costs and remain competitive by relying on consultants to handle some of their work. Consultants tend to cost a company less than a full-time employee, and if the company needs to develop a survival strategy during trying economic times, it often will seek the advice of consultants on the best way to do so.
NEED FOR SOCIALIZING
Being a consultant can be a solitary existence. Although you will be working and making decisions for yourself, which is a prime benefit of entrepreneurship, you will also, most likely, be by yourself most of the time. If you are an introvert, with no special desire to be near or around other people, you will love this part of being a consultant. If you are an extrovert, however, this may be difficult.
Some of your best friends may be former workplace colleagues, but do not expect to make such friendships as a consultant. Consulting gigs rarely last forever, and, as such, you will not often have the opportunity to cultivate and nurture meaningful relationships or connections with your colleagues. As esoteric as this may sound, it is actually the largest complaint among long-time consultants. According to an article in the New York Daily News, when asked what they miss most about the corporate world, 68 percent of entrepreneurs interviewed cited office socializing.
SELF-DETERMINATION AND FINANCIAL PROSPERITY
The most compelling upside to being an independent consultant is that you will be able to do work you actually like and enjoy doing most of the time. Imagine that: getting up every morning to perform tasks and jobs that stimulate and excite you. This factor alone can generate a successful consulting endeavor.
Sales trainer Paul Karasik observes, “What motivates people is doing what they love.” Furthermore, in an issue of Words from Woody, David Wood quotes Michael Korda as saying, “Your chances of success are directly proportional to the degree of pleasure you derive from what you do.”
A related and equally compelling benefit of being an independent consultant is the ability to control your own destiny on matters ranging from job assignments to taking care of personal matters, such as caring for children or elderly parents, without the threat of negative performance reviews. Self-determination is a keen motivator, and, for many, it is well worth the risk of starting an entrepreneurial endeavor.
Yet another positive and extremely relevant aspect of being an independent consultant is money. Consulting presents an opportunity to make more money than you probably did as a traditional employee. Many consultants have reported earning two or three times as much money consulting than they did working as a corporate employee. Just remember, this prosperity is strongly influenced by market conditions and your willingness to work hard to promote yourself.
DEMAND AND COMPETITION
You can have confidence in the fact that the market demand for consultants is diverse and ever present. Clients are always searching for the “secret” formula for starting and maintaining a successful and profitable business, and they hope consultants can provide them with that recipe.
For this reason, no matter the industry, start-up and established companies will seek out consultants to provide guidance on drafting business plans and budgets; developing strategy, logistics, security, and information technology (IT); and to keep them updated on municipal, state, and federal laws that may impact the bottom line.
There are, however, two important caveats. So be aware!
First, because there is a demand, the competition can be fierce. Everybody wants a piece of the consulting pie. Moreover, consulting is not a complex concept. In fact, anyone who has specialized knowledge, the ability to communicate clearly, and a willingness to work hard can call themselves a consultant.