[LINK] private question for off list - consulting

[Andy Farkas]

On 06/12/13 09:36, Rachel Polanskis wrote:
> Hi Linkers,
> I have finally accepted a redundancy from my job at <some uni> and my last
> day is just on the new year.

Congratulations (?) - it'll be worth it :)

> I have put together a little business plan, getting an ABN and putting together
> a little website we will host on our NBN FTTH connection, hopefully making
> a small business out of it.
>
> What I am planning is to go into IT consulting, for various projects,
> big and small.  I am studying a diploma in Project Management, so hopefully
> that will go well with (what I believe are) my extensive technical skills.
>
> I plan to work out of my home office, programming iOS apps and so on,
> when I don't have other things on to hopefully keep going that way as well.

A similar thing happened to me almost 2 years ago.  I had been working
for the man for most of my life (30+ years) relying on a constant and
consistent wage each fortnight (or sometimes monthly) to put food on
the table.  Then the IT support company (aptly named 
itsupportcompany.com.au)
that I was working for went under due to bad management.

It was decision time - go with another IT support company, or start my
own. Over the 6 years I was working for them, I had built up quite a
rapport with my clients, and seeing how they weren't going to be its
clients anymore, I talked with them and asked if it would be ok to
continue supporting them under my own company name. They gladly
accepted the proposition and I continue to support most of them
today. I guess I was quite lucky in this regard as I had guaranteed
work and did not have to actively seek clients.

I haven't looked back since.

> But I am at odds a bit at what to charge.  I foresee doing anything from
> small jobs/projects like getting a doctor's VPN working and getting him
> off Win XP onto something better, or tweaking someone's Linux stack
> or setting up a backup system for a small company, etc etc.

These kinds of jobs are always there. Its the variety that makes
it interesting.

> Or I could work for a SME to put together a security plan or design
> a directory, or email service.

Hardly ever comes up.  SME's don't plan for security :)

> Or do forensics on a hacked system. etc etc. In general, anything IT related
> that does not involve fixing clapped out PC's full of dust bunnies or similar!
>
> I have a lot of skills across UNIX/Mac in all sorts of areas, from
> Enterprise to small business...
>
> But how do we charge for this?  I don't foresee giving a small corner
> shop a corporate charge to fix their web security cams for example, but
> should I be engaged for 3 months to build an Identity Manager,
> or some other kind of system for a corporate, I would have to supply some
> kind of rate.

In my case the clients were used to paying the charged rate and
so I just kept it the same.  The beauty of this is that *all* the money
now goes into my pocket and not into the 30/30/30/10 split that
companies generally tend to use.

> I started with a figure of about $70ph but I have been told this is not
> enough, that I need to increase it, but I also do not want to price
> myself out. If anyone who already does this, that doesn't mind sharing
> to some degree some ideas to help a consulting newbie out, please
> reply off Link!

Yes, $70 is too low.  I'll reply off-list.

> I am taking a great leap of faith in quitting my job, but I need to do this
> for myself as much as anything.  There is never a good time to start a business
> especially in this climate of ideologically driven austerity and the
> defeat of commonsense over the NBN but I am going to give it a go.  I have
> been offered many jobs as a line sysadmin, but I think I am beyond that now,
> I think I have the experience to pick and choose my jobs and try to earn
> a little more.
>
> Any advice, please!
>
>
> rachel
>

Working from home is awsome.  A lot of work can be done remotely.
I have several clients 200+kms away. I have one client that is 2 states
away! (QLD -> VIC).  I do envy your FTTP, I'm stuck on ADSL1 (1500/256)
and it can be quite frustrating sometimes.  Bundaberg was completely
wiped from the NBN maps whereas before we were in the 'construction
commenced' stage!  Grrrr.  <fttp vs fttn rant suppressed>

I will say I do feel a bit guilty charging little old ladies the same 
rate as
my SME clients, but I let them know before hand how much it will cost
and they are willing to pay.  And call me back when something else
goes wrong :)

It also helps to become a reseller of both hardware and software. I
don't put any markup on items I resell - you make the money installing
and supporting afterwards.

In conclusion, you will a lot better off, a lot more relaxed, and a lot
more happier going your own way.

HTH,

-andyf