1. Contract with a Consulting Marketplace like Clora
Provides the opportunity for you to learn the consulting ropes by focusing on your client’s project vs. spending time on networking and administrative requirements.
Clora is responsible for client identification and screening; defining project scope and advising you on best practices for your profile and while working on projects.
They also provide administrative oversight and templates for:
Contracts and Scope of Work (SOW)
Time and Expense Tracking; Invoicing and Payment (e.g. Bill.com)
Tax Documents (e.g., 1099 NEC)
2. How to Name & Set up Your Business
Consider naming your business. You can create your own business name or use your full or last name.
Decide between a sole proprietorship vs. LLC (limited liability company), which provides personal liability protection but includes costs to apply and maintain (these fees are state dependent).
Apply at the IRS for a business Employee Identification Number (EIN), a unique nine-digit number that identifies your business for tax purposes.
Leverage your accountant or tax preparer to advise on tax implications (i.e. federal and state quarterly tax payments, self-employment taxes). No taxes are taken out of payments from Clora.
3. Health & Business Liability Insurance
While Clora, and many employers, do not provide health insurance to consultants (which is not unusual), that doesn’t mean you can’t be protected. Below are a few recommendations to consider:
If possible, leverage insurance through your Spouse, Civil Union or Domestic Partner
Check HealthCare.gov to determine eligibility through the Affordable Care Act and select insurance coverage
Contact a health insurance firm/agent who can help individuals and small business owners navigate and obtain health insurance options. Clora, your financial institution, or colleagues may have recommendations!
Business Liability Insurance (employer dependent)
Some firms provide this coverage and others require that the independent consultant obtain it. The cost can run up to $2000/year. We recommend you leverage your current personal insurance network.
Note, some clients/companies will not require this, while others may accept a personal liability policy.
4. Time and Money
These are best practices to keep in mind when setting your rate and staying organized when you start consulting. Clora has the My Timesheet Portal that will help you track and submit your consulting hours, travel hours and expenses per month for each project, and you can download those records for your files. Most consultants have software they work with and use for other clients outside of Clora, so it’s a good idea to keep everything in a system that works best for you!
Determine your hourly rate range. Your rate will and should vary based on project scope or role, as well as breadth and depth of expertise.
All umbrella consulting firms have a markup to account for business development and administrative costs. However, with Clora, you keep 100% of the hourly rate you charge. Any fees will be paid by the employer.
Have you worked with consultants in full time roles? Consider what they were paid!
Search pay ranges for your consulting area of expertise. You can also leverage your network and consult with Clora on the market rates they’re seeing.
Setup folders and files to track and maintain time trackers, pay records and expenses.
Clients may pay for work-related expenses such as travel, software, etc. Be sure to keep and file all receipts!
Track your own “cost of doing business.” This includes office space (square footage used for work), utilities, wifi, cell phone etc. Document monthly! Consult an accountant or tax preparer for additional suggestions or requirements.
5. Update your Resume & Clora Profile
As you consult you will undoubtedly grow your skills and expertise, making you more marketable! Be sure to update all client-facing content so potential employers always get a full picture of what you can offer.
Emphasize and document actions, solutions, results, and savings when applicable
Add new therapeutic areas, product technologies, diseases and indications, tools, and accomplishments to your Clora profile so they can be sure to keep inviting you to the right projects
Ask colleagues (and former clients) to provide recommendations on LinkedIn or to be available as a reference for potential new clients. This will also further develop your consulting network.
6. Interview Like “BC” (Before Consulting)
Clora will provide you with information about the company and who you will be speaking with prior to your interview. Feel free to do additional research on the company, products/services, and staff.
Leverage any mutual connections for insights (and build on your network!)
Prepare talking points and questions.
Ensure clear understanding of client expectations and deliverables.
Prepare for the preferred meeting software (i.e., Zoom, Google, Microsoft teams). Confirm you can go on and off mute as needed, check for shade vs. too much light, and minimize and organize your background.
Lastly, dress appropriately for the job!
7. Do Not Overbook
Leave time for current clients who may need some additional time/support or a former client that “could really use your help.”
Your hours will fluctuate based on client needs, especially the more you integrate into a team or the longer you work with one particular client.
8. Prioritize Value Over Hours
Adding value ALWAYS results in more hours, projects, and clients!
Focus on adding value to your client, team members, and projects. For any time you spend, what will be the output or learning that will directly result in a needed deliverable or solution for your client?
Pay particular attention to meetings, 1/1s and check-ins. If you are not going to contribute or your attendance won’t directly result in a client contribution, do not attend or schedule. (But do make sure to let your hiring manager know if that is the case.)
Provide pragmatic, client-targeted solutions. Understand their vision, objectives, requirements, systems, and capabilities. Consulting is not cut and paste!