Independent Consulting - good market in this economy?

[Anonymous]

Hi, I may be changing jobs soon, and am considering working as an independent consultant. I'm thinking that with the tough economy, it may be good to be a consultant, since some clients perhaps aren't ready to hire an employee but would pay for a finite project. What's your impression, a good market for independent consulting work or not?

[Anonymous]

That's what I do -- and my income cratered in 2008. It's only picked up this past year, and that's because I've been working like a dog to reconnect with old contacts.

If you leave work with a contract, then I say go for it. If not, then prepare to live without income for a long time.

On the plus side -- everything you do is tax deductible.

[Anonymous]

Independent is hard work. You could easily consult for a company though.

[Anonymous]

I do it but have multiple projects at a time, not a full time contract with one company. I do business consulting rather than contract staffing though, which might be a different thing than what you are thinking about. The market's not bad but you have to be able to live with the uncertainty. Plus I have to pay for private health insurance and self emplyment taxes and all that, which does add up.

[Anonymous]

I agree with PP re: health insurance, taxes, etc. If you have a spouse who can carry you on their insurance and has a steady income, it's less risky. DH has been independent for 3 years now and has tripled his salary from when he worked for a company. BUT, he was able to take a lot of their clients (the company shut down) so he had a safe nest egg to start with. I carry the benefits through my job.

What kind of consulting do you want to do?

[Anonymous]

If you are a CPA with specific, needed skills you can do very well.

[Anonymous]

On a related note, is this a good time to touch base with old contacts to let them know you're available for more assignments, or would you wait until Jan or even Feb?