to all who read this,
i didn't catch the name of the staff member who replied to this particular subscriber's question, but i just wanted to thank you personally for taking the time to offer up such valuable advice and the link as well. many of us developers are going to be facing similar struggles...personally speaking, i'm trying to get a freelance development opportunity off the ground as we speak, so i found the Q&A to be very helpful.
thanks again...
jason
p.s. - i'm new to builder.com, but i just wanted to thanks you guys for putting together the most informative and educational site i've found thus far. keep up the good work.
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So my opinion of this article is that it summarized what to look for in a company that I am considering working for as an employee. So, this does not specifically address whether I should go perm or indpendent. The link to the irs site was useful,but what about:
*liability as an indepedent
*how feasible is it to find work as an independent
*how much money should I have saved first
*Is a fancy web site and business cards useful
*how do I get business
*how do I determine a fair rate
*what about the fact that some large companies will not work with you unless you go through an approved head hunter, which take a somtimes ridiculous cut off the top of your hourly rate.
These are the questions I face becuase I am looking into thisexact topic for myself right now.
Just my "two cents"
*liability as an indepedent
*how feasible is it to find work as an independent
*how much money should I have saved first
*Is a fancy web site and business cards useful
*how do I get business
*how do I determine a fair rate
*what about the fact that some large companies will not work with you unless you go through an approved head hunter, which take a somtimes ridiculous cut off the top of your hourly rate.
These are the questions I face becuase I am looking into thisexact topic for myself right now.
Just my "two cents"
Strike out on your own in IT
http://builder.com.com/article.jhtml?id=u00320020325lur01.htm
http://builder.com.com/article.jhtml?id=u00320020325lur01.htm
As someone who has recently gone through this decision process, and am now in the position to offer jobs to people in just this situation, let me offer a few thoughts.
I found the editor?s response to be extremely one-sided. It focused on you grilling the prospective employer and holding his feet close to the fire. I suggest you stand close to the same fire and ask yourself some hard questions.
First of all, look hard at your own situation. Some people are in a tough spot. They may be themain breadwinner for their household, and must plan carefully to provide for health insurance and retirement. Others have it easier. Perhaps their spouse has a great job and provides all the security, for now and into the future. For these, some good reasons for consulting are lifestyle, self image, flexibility, something to do, inability to work full time and still have time to take care of the other necessities in their life.
So consider:
-- On your own, do you have good health benefitsor, put another way, does the employer offer better health benefits than you have now? A good health plan is worth an extra $5,000/adult ?added? to your salary. If you have kids, add a few more thousand per year for each child.
-- Are you contributing the maximum amount annually to a 401K AND to a Roth or Traditional IRA? You should be. If not, your self-employment business model is probably broken.
-- Are you learning the new skills necessary for tomorrow?s technologies? Many consultantsare ?hot? for a few years with what they know now, but, and especially in this environment, they age quickly.
(continued down below)
I found the editor?s response to be extremely one-sided. It focused on you grilling the prospective employer and holding his feet close to the fire. I suggest you stand close to the same fire and ask yourself some hard questions.
First of all, look hard at your own situation. Some people are in a tough spot. They may be themain breadwinner for their household, and must plan carefully to provide for health insurance and retirement. Others have it easier. Perhaps their spouse has a great job and provides all the security, for now and into the future. For these, some good reasons for consulting are lifestyle, self image, flexibility, something to do, inability to work full time and still have time to take care of the other necessities in their life.
So consider:
-- On your own, do you have good health benefitsor, put another way, does the employer offer better health benefits than you have now? A good health plan is worth an extra $5,000/adult ?added? to your salary. If you have kids, add a few more thousand per year for each child.
-- Are you contributing the maximum amount annually to a 401K AND to a Roth or Traditional IRA? You should be. If not, your self-employment business model is probably broken.
-- Are you learning the new skills necessary for tomorrow?s technologies? Many consultantsare ?hot? for a few years with what they know now, but, and especially in this environment, they age quickly.
(continued down below)
(continued from above)
-- Speaking of age, if you are less than 40 then you have plenty of time to work for this company and then, at some future date, strike out on your own with more experience under your belt. If you are over 40, and you aren?t addressing the above issues, then, once again, you probably have a failed business model as an independent.
-- Are you really the savvy entrepreneur who is building a robust company on your own? Maybe you are, but the market is tough right now. If you are that kind of person, then perhaps your best opportunity is to join a company and grow within it. Nobody says you have to die when you join a company. I know I look for people with lots of honest self-confidence, as opposed to arrogance andego, and who can take control of a situation.
Anyhow, good luck. Hope I haven?t offended anyone. I just see too many ?consultants? who are more like the walking dead. It is fun to slam working for companies and to brag about being independent. For a few, it is true.
And then there is reality.
For myself, I have over 35 years of experience in computers and IT. I built two companies (bootstrapped) during the 1990?s and sold the last one in November 2000, and made a nice bundle although it wasn?t the ?home run? we all want. I took some time off, did some consulting, decided it would be too hard to move that boulder again, and found myself a nice little company that needs my skills. I?m making less money now than I did since the mid-1980?s, but I am having lots of fun and I?m creating lots of opportunities for myself and my company. Notice I said ?my company?. I don?t own any stock in it. Yet. It is just my mindset.
You can do it too.
Whatever you do, Good Luck!
-- Speaking of age, if you are less than 40 then you have plenty of time to work for this company and then, at some future date, strike out on your own with more experience under your belt. If you are over 40, and you aren?t addressing the above issues, then, once again, you probably have a failed business model as an independent.
-- Are you really the savvy entrepreneur who is building a robust company on your own? Maybe you are, but the market is tough right now. If you are that kind of person, then perhaps your best opportunity is to join a company and grow within it. Nobody says you have to die when you join a company. I know I look for people with lots of honest self-confidence, as opposed to arrogance andego, and who can take control of a situation.
Anyhow, good luck. Hope I haven?t offended anyone. I just see too many ?consultants? who are more like the walking dead. It is fun to slam working for companies and to brag about being independent. For a few, it is true.
And then there is reality.
For myself, I have over 35 years of experience in computers and IT. I built two companies (bootstrapped) during the 1990?s and sold the last one in November 2000, and made a nice bundle although it wasn?t the ?home run? we all want. I took some time off, did some consulting, decided it would be too hard to move that boulder again, and found myself a nice little company that needs my skills. I?m making less money now than I did since the mid-1980?s, but I am having lots of fun and I?m creating lots of opportunities for myself and my company. Notice I said ?my company?. I don?t own any stock in it. Yet. It is just my mindset.
You can do it too.
Whatever you do, Good Luck!
95% of people all over the world are either dead or dead broke at the age of 65. How did they get there? They did it by getting a JOB. The other 5% who are truly wealthy did it by going into business FOR THEMSELVES, and not for some company.
But how about Job Security? What security? Companies close down, massive lay-offs occur day to day. JOB SECURITY is an illusion. The smarter thing to do is to work for yourself.
Of course, it's not as easy at it sounds. But in the long run, the road less travelled is the better path.
And finally, before you make that choice, I encourage you to read, Robert Kiyosaki's "Rich Dad, Poor Dad"... and get your eyes opened.
But how about Job Security? What security? Companies close down, massive lay-offs occur day to day. JOB SECURITY is an illusion. The smarter thing to do is to work for yourself.
Of course, it's not as easy at it sounds. But in the long run, the road less travelled is the better path.
And finally, before you make that choice, I encourage you to read, Robert Kiyosaki's "Rich Dad, Poor Dad"... and get your eyes opened.
I don't find this reply particularly helpful. It's mere speculation and doesn't really contribute or answer the topic of the discussion. Believe me, there are plenty of people who are worse off because they gave up a great job opportunity to go into business for themselves. Of course, the converse is true, and many people are better off. I highly doubt your statistic of 95% however.
Personally, I'd rather have a quality life and have to be working at 65 than to never do anything but workfor my own business (or worse, somebody elses business) and then be able to retire when I'm 65. Why should I wait to enjoy life? That's why I quit working for Electronic Arts; 14-20 hours a day 6-7 days a week may only last a month or two at a time, but that is way too much.
Personally, I'd rather have a quality life and have to be working at 65 than to never do anything but workfor my own business (or worse, somebody elses business) and then be able to retire when I'm 65. Why should I wait to enjoy life? That's why I quit working for Electronic Arts; 14-20 hours a day 6-7 days a week may only last a month or two at a time, but that is way too much.
I had always been afraid of striking out as a consultant due to the lack of job security. However, after surviving FIVE rounds of layoffs in the last 18 months, I have had to re-evaluate what job security means to me. If I may be out of a job at the end of any given quarter (just like a consultant), I might as well be paid for the risk (just like a consultant)! It also helps that I have been in the market for a few years and have built a reputation with lots of people who are spread across the city (thanks to layoffs).
Now, if I can just get my wife to go back to work full-time so she can carry the benefits... Wish me luck!
Now, if I can just get my wife to go back to work full-time so she can carry the benefits... Wish me luck!
Ideally, everybody wants to be an independant consultant, have "no boss" and control his/her own destiny. I would have to agree with some other opinion I read here. There is no such thing as JOB SECURITY. However, it is sometimes more feasible to receive an "insecure" paycheck every week. I believe It really depends on your personal situation at the time you make the decision.
If you have already built your customer relations as an independant and have enough work coming in to sustain yourself and your operations, then FORGET ABOUT going as an employee for someone. The reason is very simple: It takes YEARS and lots of resources and hard work to get to a point where you have enough clients to maintain a steady income. Give it up, and you may never get up there again.
Needless to say, if you want to continue doing business on your own, the fact of the matter is YOU CANNOT RELY ON WEB DESIGN ALONE. Believe me, I tried
, and not that I say it myself, but I have designed over 25 websites, and worked for some good companies in the NYC metro area. As a consultant, you must expand your services to other areas, like Networking for example. Find another freelancer who does Networking, and give him the jobs, you collect a small fee. Find a good open source (modifiable) software (there are lots out there), and start selling it. You provide support and do modifications to the software on demand. Things like this will help your business stay afloat. It gets tougher every day, and now specially with our economy stumbling, but dont give up, if you are able to hang on to your business for a little while, it is worth the fight. If you feel you can no longer sustain it on your own, then find a job, build up some money, and try againin a few years, he he. Good Luck!
If you have already built your customer relations as an independant and have enough work coming in to sustain yourself and your operations, then FORGET ABOUT going as an employee for someone. The reason is very simple: It takes YEARS and lots of resources and hard work to get to a point where you have enough clients to maintain a steady income. Give it up, and you may never get up there again.
Needless to say, if you want to continue doing business on your own, the fact of the matter is YOU CANNOT RELY ON WEB DESIGN ALONE. Believe me, I tried
, and not that I say it myself, but I have designed over 25 websites, and worked for some good companies in the NYC metro area. As a consultant, you must expand your services to other areas, like Networking for example. Find another freelancer who does Networking, and give him the jobs, you collect a small fee. Find a good open source (modifiable) software (there are lots out there), and start selling it. You provide support and do modifications to the software on demand. Things like this will help your business stay afloat. It gets tougher every day, and now specially with our economy stumbling, but dont give up, if you are able to hang on to your business for a little while, it is worth the fight. If you feel you can no longer sustain it on your own, then find a job, build up some money, and try againin a few years, he he. Good Luck! 
During a Tech recession, you can't beat a regular paycheck! Just don't agree to anything that would limit your ability to continue in this line of work in your local area if your relationship goes South. Since you were already talking to others on his behalf, you are limiting who you can ethically do business with on your own anyway. Unless the pay is less than 20% of your hourly rate, grab the paycheck for a year or two.
There is no such thing as 'job security' anymore -- at least not in the private sector. The only people I know who work 7.5 hour days and have all the benefits work for the Government or are locked into some kind of union.
My vote is to treat employment as a mercenary would. Go with the flow, work full-time for as long as it works for you, build your own business after hours (if you HAVE spare hours), and try to stay afloat.
Businesses are folding right and left -- keep yourself and your skills sharp and you may just make it through! Become complacent and fall behind the technology curve and...
My vote is to treat employment as a mercenary would. Go with the flow, work full-time for as long as it works for you, build your own business after hours (if you HAVE spare hours), and try to stay afloat.
Businesses are folding right and left -- keep yourself and your skills sharp and you may just make it through!
Become complacent and fall behind the technology curve and... 
It's not always "all or none". See if you can go "half-way" to employment: ask for a 6- or 12-month contract for a fixed fee per month for 40 hrs of work per week. If you work more than that, it's up to you. You know how much each check will be.
You get to see how a full-time gig works for this boss, and you get as much "job security" as you probably would as an employee, anyway.
What you give up are the benefits (insurance, 401k, etc.), if there are any for a small firm, but often the flexibility is worth it.
I had this relationship, renegotiated yearly based on their (and my) needs, with the same company for 14 years. They have since reorganized and I now do projects for them on an hourly basis.
Get creative.
You get to see how a full-time gig works for this boss, and you get as much "job security" as you probably would as an employee, anyway.
What you give up are the benefits (insurance, 401k, etc.), if there are any for a small firm, but often the flexibility is worth it.
I had this relationship, renegotiated yearly based on their (and my) needs, with the same company for 14 years. They have since reorganized and I now do projects for them on an hourly basis.
Get creative.
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