10 Steps to Becoming a Solo Technology Consultant
Avoid some of the pitfalls that software engineers and other tech professionals can fall into when they try to work for themselves.
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How to Successfully Transition into Solo Tech Consulting
When you’re considering becoming a solo tech consultant, it’s crucial to establish clear agreements with your clients from the start. Here’s how you’ll work together, how you’ll get paid, how you’ll measure success, and how you’ll report status—getting these in place before starting a project is essential to avoid trouble down the line. It might seem overwhelming at first, but it’s an important step that can make or break your consulting journey.
Considering a Transition to Solo Tech Consulting?
If you’ve been working in tech for a while and are growing tired of corporate policies, the employee handbook, and all the political nonsense, now might be the perfect time to consider working for yourself. The idea of going solo can be daunting, but one of the easiest ways to make this transition is to become a solo tech consultant. I made this leap about seven years ago, and while I wouldn’t recommend it for those just starting their careers – it’s a viable path for those with specific skills that are in demand.
In this guide, I’ll walk you through ten practical steps to take you from having no idea where to start, to completing your first project and securing referrals for future work. These steps are applicable whether you’re in the U.S., Spain, India, the UK, or elsewhere. Whether you’re a programmer, product manager, DevOps engineer, engineering manager, or agile coach, these steps will help you launch your solo consulting business.
And if you find yourself needing more support along the way, I offer a coaching package called Solopreneur Jumpstart, where I help people through this exact process. If this sounds like what you need, there’s a link in the description where you can learn more.
10 Steps to Becoming a Solo Tech Consultant
1. Design Your Services
The first step is to define the services you will offer. This is known as service design. Consider all the tasks you currently perform in your job and how you could package them into a clear menu of services for potential clients. Avoid the mistake of offering too broad a range of skills; instead, focus on one or two strong areas where you can deliver the most value. Whether it’s software architecture, DevOps consulting, or product management, having a clearly defined service offering is essential.
2. Identify Your Ideal Client
Next, you need to discover who your ideal client is. This involves research—whether through the internet, trade shows, or industry articles—to identify the people most likely to need your services. Understand their demographics, psychographics, and where they congregate online. Are they risk-averse or risk-takers? Knowing this will help you tailor your marketing and outreach efforts effectively.
3. Price Your Services
Pricing is a critical aspect of your business. You need to determine how your clients prefer to pay—whether it’s per project, per hour, or on a retainer basis—and balance that with how you prefer to be compensated. Remember, your pricing may evolve over time as you refine your services and understand your market better.
4. Build Awareness
To attract clients, you need to build awareness of your services. While having a website is important, content marketing is a powerful tool for solo consultants. Creating YouTube videos, podcasts, or blog posts can help you demonstrate your expertise and reach potential clients without having to constantly hunt for them.
5. Incorporate Your Business
Incorporating your business is essential to protect your personal assets. In the U.S., forming an LLC (Limited Liability Corporation) is a common choice. This step also involves setting up a business bank account and possibly obtaining business insurance to cover any liabilities.
6. Acquire Clients
Once your business is set up, it’s time to acquire clients. This involves learning how to talk to potential clients, overcome objections, and close deals. Don’t be discouraged by initial rejections—view them as part of the learning process.
7. Negotiate and Sign Contracts
Before starting any work, you need to negotiate and sign contracts with your clients. A Master Services Agreement (MSA) sets the legal framework for your relationship, while a Statement of Work (SOW) outlines the specifics of each project. These documents protect both you and your client and ensure that everyone is on the same page.
8. Manage the Engagement
Managing the engagement involves more than just doing the work; it includes maintaining clear communication, tracking your time, and handling any changes in the project scope. Regular updates and meetings with your client help ensure that the project stays on track and that any issues are promptly addressed.
9. Keep Good Financial Records
Good financial management is crucial for a solo consultant. Keep detailed records of all income and expenses, set aside money for taxes, and ensure that you invoice your clients promptly. This will make tax time easier and help you avoid any surprises.
10. Finish Strong and Get References
The final step is to complete your projects with excellence and secure references. Delivering strong results will leave a lasting impression on your clients, making them more likely to refer you to others. Building a list of satisfied clients will enhance your reputation and make it easier to attract new business.
Conclusion
Transitioning to solo tech consulting can be a rewarding move, but it requires careful planning and execution. By following these ten steps, you’ll be well on your way to building a successful consulting practice. If you’ve already started down this path and are facing challenges, or if you’re just considering it and need some guidance, consider joining my community on Patreon or YouTube.
Are you ready to take the first step towards working for yourself? What’s holding you back?
About the THRIVING TECHNOLOGIST show
On YouTube and all major podcast networks, Jayme shares teamwork and leadership strategies, guidelines for healthy company culture, and stories about real projects so you can have a sustainable career in the software industry.
Jayme Edwards
A family man and veteran of nearly 40 software projects, Jayme experienced many wins and losses over his career as an architect and consultant.
Now he's coaching software developers, managers, and business owners to overcome challenges in the IT industry - so they keep growing.