How to become your own boss
When you’re daydreaming lazily in the midst of a mundane day in the office, the idea of working for yourself can seem impossibly attractive. And many experts report demand for HR and L&D consultants has never been higher, with day rates picking up nicely after a few years in the doldrums. But before you make the leap, here are a few key points to consider…
Get your timing right
When you go it alone, timing can be as important as the how and the why. “Try to get a breadth of experience,” says Lucy Turner, who set up Turner HR in 2008. “Too early and you could find yourself in hot water. You need to understand the implications of decisions you make with your clients. Consider whether you can draw on difficult situations you’ve handled in the past or decisions you’ve had to make independently.”
Timing may also determine whether you choose to market yourself as a generalist or carve out a niche. Perhaps you’ve had roles where you managed a restructure successfully – specialising in an area such as this may make it easier to identify and win clients at first, but could slow you down if you want to expand.
Have a financial buffer
Those who’ve made the move recommend having around six months’ salary set aside before you strike out on your own. “It means you don’t have to take on work you don’t want, and gives you time to build up your network,” says Claire Bishop, head of career development at the CIPD. Take baby steps – can you work part-time for your existing employer or pursue an interim contract to shore up some finance?
Write your business plan
When Isabella Brusati started her change management consultancy, she set out her business proposition formally. “I looked at the services I would provide, how I would differentiate myself, what my added value would be,” she says. While there was plenty of demand for change management, she was able to sell her international experience and background in employment law as a differentiator.
Think too about what you will charge, how many days a month you will work based on that rate, and how much you’d like to generate in terms of revenue.
Market yourself
You may be confident in your HR abilities and experience, but business development can prove difficult. Turner says some of the best advice she received was to “sell first, do the HR bit second”. She used networking events with local businesses and sought work with other professionals such as accountants and lawyers.
Social media makes it easier to source clients. Many consultants publish blogs, contribute to publications or take on public speaking engagements to build their network of potential clients.
Consider associates
It can be isolating working on your own, so it’s worth finding out if there are other consultants with similar or complementary skills. It may mean you have less control over how much you charge, but it gives you the leverage to reach out to more clients. Sarah Lane, who runs consultancy Coaching Lane, now spends around half her time as an associate: “I knew if it was just me on my own I would be too lonely.”
Get some support
Finding a mentor can really help with the transition to self-employment. Lane engaged a coach to help her through the changeover period and to act as a sounding board when it came to difficult decisions. Bishop advises finding someone who’s “already taken the leap”.
Don’t neglect your personal development, either. Without the career structure an employer provides, this may feel like an unnecessary expense, but it has its payoffs. “I ring-fence money for personal development, whether that’s a magazine subscription or membership of a relevant association,” says Brusati.
Look to the future
It’s possible to tick along nicely by simply moving from assignment to assignment, but work may come in peaks and troughs. Stepping back and building a pipeline can help you set time aside for holidays and, ultimately, may mean you decide to take on additional staff.
Kate Russell now spends around two days a week on business development for her company, Russell HR Consulting, employing associates and support staff for client work. “I made the decision to expand and recruit rather than keep going it alone,” she says. “But don’t tolerate poor quality from people who work for you or with you. If just one person doesn’t reflect your values, all those years of hard work will go down the tubes.”