Reasons I Became a Consultant

April 12, 2024 by Chris Downs in Why Consult?

By: Dr. Chris Downs

In “Solo Consulting: Insider Tips for Success!”, I review the top six reasons why I believe people open solo consulting practices:

1. I want to escape the Traditional Workplace

2. I want to be In Charge

3. I’m ready to do this

4. I’m Special, Uniquely Qualified

5. Others Tell me to Be A Consultant

6. I See No Other Choice

If you’d like more on any of these, please check out previous blogs or get a copy of the book.

Sometimes new consultants start their own business for only one of these reasons. Others can point to more than one. In this blog, I want to share with you why I became a consultant. My hope is that my journey might offer insights or suggestions that will help you.

In 2006, I was near one of the peaks of my adult career. I managed some wonderful staff and regularly interacted with high-quality outside consultants. My superiors told my team and I that the work we did made a difference in the lives of the people the foundation served. That was extremely important to me. We were in the business of lifting youth from disadvantaged circumstances to social, educational and personal success. I was paid more than I had been in any other job, had phenomenal benefits, and my retirement portfolio was robust.

Then in 2007, while I continued to follow my earlier trajectory of success, the foundation started to take slow, but incremental shifts away from the primary area of my work. Instead of focusing on older youth in substitute care, the foundation turned its attention to other issues.

To be fair, those other issues were extremely important too, but much of my professional career had focused on helping older, disadvantaged youth achieve success. While I realized that the foundation was realigning its focus, I ignored it, rationalizing that this was a short-term shift in their directions. I kept on doing what had always brought myself and the foundation significant success.

In early 2008, my failure to recognize the foundation’s shift resulted in our suddenly parting ways. I kicked myself for not paying attention to the changes in my employer’s primary focus.

Those were very hard times for me. I read and reread Spencer Johnson’s “Who Moved My Cheese?” to try to make sense of what had just happened to me.

The reality wasn’t that much different from so many other professionals who find themselves in an organization that has changed direction and no longer needs us.

Let’s reflect back on the 6 primary reasons why professionals jump into solo consulting.

· I was relatively satisfied with my reporting relationships at the foundation and certainly was not in a place where I couldn’t take the work environment anymore. I enjoyed the atmosphere, the travel assignments, and the people I worked with.

· I had a large degree of authority within the division. I did bump heads with leaders from time to time, but I couldn’t point to my boss as a primary reason to start my own business.

· While I was widely-known and regarded as an expert in my field, I’d never considered offering that expertise as part of a consulting practice.

· I was only one of many experts in my field. In other words, I did not believe that I was so special that my only option was consulting.

· After leaving the foundation, many national colleagues told me I’d be excellent, and likely successful, as a full-time consultant. Those opinions were valuable when I considered opening a consulting practice.

· I did, in fact, feel like I had limited options. I was a mid-career professional, making an excellent income, and did not think the pursuit of a new position somewhere else would be at all satisfying.

I guess my primary reasons to become an independent consultant boiled down to seeing limited career options. The fact that valued colleagues across the nation also thought I’d succeed as a solo consultant bolstered my courage to do so.

If you are already a consulting professional, what were your primary reasons to do so?

If you’d like to read more about the reasons professionals enter solo consulting, I invite you to purchase a copy of “Solo Consulting: Insider Tips for Success!” available here.

Notice: This blog wholly reflects the views and suggestions of Dr. Chris Downs. Readers’ use of his views or suggestions are wholly the responsibility of the reader as reflected by their actions, reactions thoughts, statements, and behaviors. Dr. Downs accepts no responsibility for readers’ use of his words. Further, this blog contains no intentional or structured therapeutic intent nor is the content designed to harm or improve the psychological state of the reader. Readers are responsible for their own reactions to and/or use of any and all suggestions or advice.

Consulting Because You See No Other Choice

April 08, 2024 by Chris Downs in Why Consult?

By: Dr. Chris Downs

(c) 2008 Dr. Chris Downs, All Rights Reserved. Staircase into an apartment, Buenos Aires, Argentina

This is the last in a series of blogs focused on why people open consulting practices.

#6 – Consulting Because You See No Other Choice

Many individuals open consulting businesses because they believe they have run out of options. There are many reasons why talented, smart adults reach this conclusion. Here are some of those reasons:

Age

Historically, older adults in the workplace struggle when competing for jobs with younger adults.

“Time after time I applied to every job opening I could find. I had several interviews, but never got an offer. Ten years ago, when I was 48, I think I would have beaten the competition for those types of jobs. Now, it just seems like employers don’t want somebody my age. What else can I do but use the knowledge and skills I have as a consultant?”

— E. J., Seattle

Perceived over-qualification

Your talents and abilities may have helped you accumulate an impressive dossier of achievements. But some prospective employers may fear that you’ll cost too much or might be lured away by competitors.

“I had job prospects telling me I was ‘overqualified’ for their jobs available. I told them to take advantage of me, but they still wouldn’t hire me. I decided to offer my ‘overqualifications’ to clients as a consultant. So far, it’s worked out well.”

— D. F., Reno

Disability

A variety of disabilities may limit a person’s success in some workplace environments making the choice of consulting more attractive.

“I was in a bad car accident two years ago, leaving me without the use of my legs. My employer asked me to take a severance package because I couldn’t do my old job and there really wasn’t anything else I could do there. I took it and now I work from home as a consultant in the same industry. I know I can make this work.”

— L. L., Memphis

Life Limitation

The twists and turns of life sometimes make consulting an obvious choice, especially when one finds it necessary to work from home.

“I’m 51 and my 73-year-old Mom is so riddled with arthritis, she struggles to dress and feed herself anymore. We agreed that it was best for her to live in my home, and I’d care for her. I quit my regular job, figured out what I was good at, set up my home office, and opened my consulting business. So far so good.”

— O. M., Detroit

Gender, Race, Gender Identify, or Sexual Orientation

Discrimination based on gender, race, gender identity and sexual orientation has a long and ugly history. Some highly-qualified individuals decide to put their knowledge and talents into a solo consulting career.

“I’ve struggled to find a job in my field. I think it’s because I’m black and a lesbian. After two years of frustration in trying to land my ‘dream job,’ I realized I’d become an expert on hiring discrimination. I opened a diversity consulting business aimed at Human Resource Departments at various size companies. Now, I deliver in-person and virtual trainings on hiring discrimination to more clients than I can handle.” ”

— S. T., New York City

Bleak outlook

Sometimes a person grows despondent trying to locate employment or so disillusioned with their present job that life starts to have less meaning. Some turn to an independent consulting practice as a result.

“I wavered between deep sadness and extreme anger in that last job. But it wasn’t any different than others I knew of in my city. I came close to giving up completely and resigning myself to a life of poverty. Then a friend suggested I get some counseling. In therapy, I got stronger and realized that I might be happier as a consultant in my field. It’s a struggle, but I make a living now and don’t sink as fast into depression or anger.”

— F. Z., Los Angeles

In this last example, it’s important to emphasize that this woman’s friend suggested counseling for what looked like clinical depression. That’s essential anytime we experience sustained sadness or extreme anger. After getting help, she was able to open a successful consulting business. While she made her share of blunders, her company was viable the last time I checked.

Do you know of other reasons why someone concludes they are out of options and must turn to consulting as a last resort? In “Solo Consulting: Insider Tips for Success”, I provide a great deal more on reasons why people go into consulting. You can learn more here.

Consulting Because Others Tell You To

April 05, 2024 by Chris Downs in Why Consult?

By Dr. Chris Downs

This is the fifth in a series of blogs on reasons people open consulting practices.

#5 – Consulting Because Others Tell You To

If you are already a consultant, I imagine at least a few trusted people have told you you’re good at it. It’s nice to have others tell us they believe in us and our future success.

That said, I think opening a consulting practice based on others’ confidence in us is the worst possible reason to open a practice. Let me explain.

If others say, “you’re perfect for this!” does this mean you are actually perfect for this? Perhaps. But sometimes others’ observations are based on incomplete or sketchy observations.

Sometimes others offer these opinions to flatter us. While it’s nice to be flattered, flattery alone is no reason to open a consulting practice.

If your counselor points to your aptitude test score and concludes, “This shows you’d be a great consultant!” I’d urge you to pause before opening a business.

If your spouse or friends push you to become a consultant, reflect a long time before doing so. They have a perception of you, likely a personal one. That perception may be insightful. But personal perceptions are not equivalent to objective business expertise or preparation to market to a niche marketplace.

The perspectives of professionals in your field are another matter. If consultants already working in the field tell you that you’d make a great consultant in that field, pay attention. They are already familiar with the marketplace and potential clientele. They know what it takes to operate a consultancy. Their advice and encouragement is usually worth something.

Same for potential clients. Pay attention if you have company leaders telling you that they’d love to work with you, “if only you were an independent consultant, and we could hire you.”

Consultants should open their practices with as much self-confidence as possible. Not confidence based on the adoration, speculation, or encouragement of loved ones, college professors, or career counselors.

Self-confidence is when you have reviewed what you have to offer, to whom, how and when. Only then is it reasonable to build a company.

Are you thinking of opening a consulting practice? Have you already opened one? Did you do so, at least in part, because others told you that you were cut out for it? If so, how have things gone for you?

“Solo Consulting: Insider Tips for Success!” closely examines how and why people get into consulting. If you want to know more, click here.

Consulting Because You're Ready for This

March 29, 2024 by Chris Downs in Why Consult?

By: Dr. Chris Downs

This is the third in a series of blogs on the reasons why most people open consultancies.

#3 – Consulting Because You’re Ready for This

When I worked for a large Seattle-based foundation, I recall coming to work one day and finding out that a co-worker I knew well had suddenly left the company. I called her at home that evening, not to intrude, but to make sure she was all right. I recall that conversation well. It went something like this.

Me: “I was surprised you left so suddenly. Are you okay?”

Her: “I’m fine. But I guess you wonder why I left…”

Me: “Yes, but I don’t want to pry.”

Her: “Ever since my last performance review, despite the fact that I know a lot, have a lot of experience in our field, I’m well-liked, and have a good reputation, I have little opportunity to use it at the foundation. When [her boss’ name] said he’d ‘try’ to find more interesting projects for me, I saw right through it. Nothing was going to change, at least not for me.”

Me: “Wow. But so true, they really don’t use the talent you have.”

Her: “Plus, I have hundreds of agency contacts. Many of them could use the assessment, intervention, project support, and training skills I have.”

Me: “So, in business for yourself?”

Her: “Yes, as a consultant.”

Me: “That’s awesome. I wish you all the luck in the world!”

My co-worker left that foundation about 4 years before I did. She had a vision of her own success and was, in fact, extremely successful.

People who open consulting businesses because they believe they are prepared to do so usually also believe that:

· They have the knowledge, experience, and contacts they will need

· Their services are competitive with others currently in the marketplace

· They have enough financial resources to make a consulting business viable

· They know enough about business functions, such as bookkeeping and tax preparation, that they can manage those themselves or have identified trusted vendors for those functions

· They have adequate space, usually in their homes, to operate a business

· They have a safety net of family and friends

· They have one or more mentors to call on when needed

If you are planning to open a consulting business, are you motivated to do so because you are convinced you are prepared to do so? What three things can you identify that lead you to that conclusion?

“Solo Consulting: Insider Tips for Success!” goes into considerable depth on being prepared to open and operate a consultancy from day one. Want to know more? Click here.

Consulting to be In Charge

March 25, 2024 by Chris Downs in Why Consult?

By Dr. Chris Downs

This is the second in a series of blogs on the reasons why most people open consultancies.

#2 – Consulting to be In Charge

Many consultants open their business because they want to call the shots. They want to be the primary, even sole reason why their business succeeds or fails.

There are many advantages of being “the boss” when you’re a consultant! When I opened my own company in 2008, I had to make decisions about everything from when my workday began and ended, to whether or not to order more office supplies, to which prospects I’d contact each day.

Honestly, when I opened my practice, I was a bit overwhelmed with the sheer number of decisions I had to make on a daily basis. It felt like a mixture of exhilaration and panic. I was absolutely free to make every single decision about my company and how I ran it, but realized I was also 100% responsible for every misstep, failure, and poor decision along the way.

In conversations with other consultants over the years, I’ve heard them say many encouraging things about being responsible for themselves and their company:

· “I love that I’m finally in charge.”

· “I find running my company exhilarating.”

· “I now have the flexibility I never had back at that 9-5 job.”

· “At long last I have a shot at the income I’ve always dreamed about.”

· “Working for myself from home is a dream come true.”

· “I love my new commute: from my kitchen table to my office in the spare bedroom.”

· “I’m the only one to approve my own vacation requests.”

I’ve also heard consultants express downsides of being one’s own boss:

· “I had no idea I lacked the discipline I needed when I first opened the company.”

· “I’ve never worked harder in my life. Much of my time is spent figuring out each day’s priorities.”

· “At first, I loved not being back at my old job, but within 6 months I was really lonely and isolated.”

· “Before I started this I thought the only thing I’d have to do is market, then get and do jobs. Uh…nope. There’s bookkeeping, web design and maintenance, invoicing, cranky clients, you name it.”

· “What on earth did I get myself into? There was no one to turn to…except me. You need a strong ego and a ton of experience to make this work. Not sure I’ll make it.”

· “I almost closed shop after 3 months. I hadn’t made a single sale. But I stuck with it. The biggest factor in my turnaround was creating and adhering to a strict work schedule. After that, things got better.”

If you opened your consulting practice primarily to be in charge as the boss, how is that working out for you? Do you have helpful advice for others who are just getting into consulting?

Is wanting to be your own boss a sufficient reason to open a consulting business? Why or why not?

I go into much more detail on becoming one’s own boss in “Solo Consulting: Insider Tips for Success!” which you can purchase here.

Consulting to Escape the Traditional Workplace

March 22, 2024 by Chris Downs in Background

By: Dr. Chris Downs

People open consulting practices for many reasons. While some of those reasons are sound, others are not.

I believe that it’s important to know why you want to, or already did, open a consulting practice. Why? Because there may be factors in those reasons that support or detract from your consulting success.

This is the first in a series of blogs on the reasons why most people open consultancies.

#1 - Consulting to Escape the Traditional Workplace

Many people spend years in workplaces they grow to hate. When asked why they no longer want to work there, they usually point to these 4 issues:

1. The Boss. If you stay at one workplace long enough, it’s likely that your boss will change at some point. Perhaps your good boss got “kicked upstairs” and was replaced with a lousy new one. Lousy or not, new bosses tend to change routines, issue greater (energy, productivity, hours, or workflow) demands of employees, and use different evaluation criteria. Then, there’s the bad boss. If you’ve ever had a really bad boss, no matter how you define that, you understand what a toll it takes on employees. New solo consultants who point to bad bosses as a primary reason they started consulting tend to like the idea of reporting to themselves as their own boss.

2. The Environment. Some workplaces are toxic. They are filled with gossip, backbiting, petty grievances, harassment, and/or interpersonal drama. Perhaps the workload, or the work itself, is excessive, uninteresting, or too repetitive. Sometimes the workplace feels cool or even cold. Most employees fly out the door at quitting time, not necessarily because they dislike the work, but because the working conditions are miserable. In some instances, the work environment may be just fine, but the job is located so far from home, the commute isn’t worth it. Consultants who work for themselves often remark on how nice it is to work from home in an environment they’ve created for themselves.

3. Lack of Advancement. Some employees find that while they make an adequate income, they get few, if any raises or promotions. Sometimes the lack of advancement seems rooted in racism, sexism or other discriminatory practices. I know many professionals of color and women who’ve left workplaces to become very successful independent consultants because they knew they would rarely, if ever receive the same recognition as others in the traditional workplace.

4. Lack of Job Satisfaction. Let’s face it, most of us do not want to do the same job we did when we entered the workforce. We want progressively more interesting and important challenges that help us grow professionally. When job satisfaction fails to grow for a sustained period of time, employees think about leaving and opening a consultancy. I’ve known many consultants who pointed to job satisfaction as their #1 reason for going into a solo consulting.

If you are considering consulting or are a consultant now, do any of these reasons about the traditional workplace resonate for you? At what point was your dissatisfaction so great that you finally made a significant career change?

In “Solo Consulting: Insider Tips for Success!” I go into depth on the many reasons why people go into consulting practices in the first place and how those reasons can support or hinder one’s consulting business. You’ll find the book here.

An Overview of Why People Open Consulting Practices

March 14, 2024 by Chris Downs

By: Dr. Chris Downs

My “consulting epiphany” came early in 2008. I’d served as a Senior Director at a large Seattle-based foundation for over 13 years. I’d accomplished a great deal and liked my work. But I’d ignored multiple signs of change at the company and found that the work I loved to do was no longer needed. I suddenly didn’t fit the company.

As I thought about what I’d do next, two mice (Sniff, Scurry) and two little people (Hem, Haw) came to mind. These are characters from Spencer Johnson’s 1998 classic “Who Moved My Cheese?” (widely available at many libraries and from your favorite bookseller). Each of these four characters faced adversity, preparedness, abundance and scarcity in different ways. If you’ve never read “Who Moved My Cheese?” I urge you to read it. I discovered that my cheese had “moved” as I separated from the foundation in 2008.

I took stock. I had a great deal of experience in my field. I had an excellent reputation. I knew I could go to another foundation, return to academic life, or carve a niche back in corporate life. But, for the first time, I considered becoming a solo consultant . After so many years of managing consultants, could I do it myself?

My mentor, the late Ronald G. Scott who was a master consultant for decades, told me that, in his judgment, I had what it took to be a successful consultant. He suggested that before I opened a consulting practice, I sketch out my reasons for doing so. He said he’d done that when he launched his own consulting business years before. Further, he said he regularly revisited those reasons to make sure he remained clear about why he was consulting. I recall him saying:

“I ask myself, is the work I’m doing now something (1) I enjoy most days, (2) I look forward to doing, and (3) that improves my clients’ productivity and successes? If I can answer ‘yes’ to all three, I figure I’ll keep consulting until I ponder these again down the road.”

— Ronald G. Scott

So, as I prepared to open my own consulting business, I took an inventory of why I wanted to do so. Here are the exact reasons I recorded in my journal in 2008:

· “I want to continue to do work I love.”

· “I want my work to make valuable contributions to my clients.”

· “I reached an income ceiling at the foundation.”

· “I think I’d be my own good boss.”

· “I believe I have the background, credentials, and skills many clients would find appealing.”

· “As a mid-career professional, I’m concerned about companies hiring me, especially given my last salary and my age.”

Over the years, as I’ve done my quarterly and annual self-reviews, I follow Ron Scott’s advice to review my reasons for remaining in business. Do I still enjoy my work? Do I look forward to the next consulting engagement? Am I improving my clients’ lives and successes?

By the way, I provide sample quarterly and annual self-evaluations documents in Solo Consulting: Insider Tips for Success! If you’d like to have these, and adapt them for your own use, please check out the book at Amazon.

If you are considering opening a consulting practice, what are your primary reasons for doing so?

If you’ve been consulting a while, even a short while, do you enjoy most days, look forward to your work, and believe you enhance your clients’ outcomes, successes, or directions? What were the primary reasons why you opened your company in the first place? Are those reasons still valid now?

Why This Book, Why Now?

March 14, 2024 by Chris Downs in Background

By: Dr. Chris Downs

I write in my private journal almost every day. Over the years, I’ve amassed many journals, each varying in size, shape, and binding. In these books, I’ve recorded hundreds of lessons I’ve learned about life, relationships, my work, and my consulting.

Some of the lessons I jotted down on solo consulting seemed obvious, at least to me. For instance, it seems like good common sense to build and maintain a 6-month cash reserve at all times. I’ve since learned that sometimes “common sense” isn’t all that common among consultants.

Other lessons I learned came suddenly, with little warning. One whopper of a lesson involved having a $7M contract snatched from my hands by a state’s governor only 15 minutes before the contract was to take effect! I learned so much from that painful experience! It’s described in the Introduction to “Solo Consulting: Insider Tips for Success!”

Several of my colleagues know that I jot down “lessons” as I learn them. I’ve always done this for my own edification, not for others. My parents taught me that if one remembers the mistakes and lessons of the past, one is less likely to repeat mistakes later on. One of my closest colleagues asked me if I’d ever consider assembling these lessons into a book to share with others. Honestly, I hadn’t until he suggested it.

As I pulled together the lessons from my journals, I noticed that they fell into specific topics such as issues with clients, setting fees, recognizing and dealing with competitors and honest self-evaluation.

I knew there were numerous “how to” books on consulting that covered business formation, bookkeeping, marketing strategies, and so on. There are very good books available on those topics. I felt no need to mimic them or add to already crowded library shelves.

What I did not find, however, was a book offering insider tips and suggestions based on observations and real consultant experiences.

Ultimately, I wrote this book for 4 reasons.

1. There seems to be a need for an “insiders” view of individual consulting to supplement the many “how to” books already written and available.

2. My consulting colleagues told me that a compendium of lessons would be valuable for new consultants as well as those struggling with specific issues, such as difficult clients or invoice payment delays.

3. The numbers of people opening solo consulting practices are exploding. In 2019, there were an estimated 57 million freelancers (i.e., solo businesspeople, mostly consultants) in the US. That represented over 35% of the country’s workforce (source: Freelancing in America survey data from Upwork and Freelancers Union, 2019). More recent trends suggest that the actual numbers of independent consultants, and proportion of the country’s workforce have increased significantly since the pandemic. There are many of us making a living on our own these days!

4. Solo consulting can be very difficult, even for seasoned business professionals. There are a long list of reasons why consultancies fail. I am worried that many new solo consultants don’t have the insights they need to avoid the biggest potholes. The US Bureau of Labor Standards (2022) indicated that 20% of new companies fail in the first two years, over 50% of new companies do not survive past 6 years and only 25% of companies are still around 15 years after opening.

My hope is that readers will find insights they wouldn’t get elsewhere and use them to create and operate amazing consulting practices! If you’re ready to explore the insider tips and lessons I’ve pulled together in “Solo Consulting: Insider Tips for Success!” please go directly to this link on Amazon where the book is available.

About the Author, Dr. Chris Downs

March 14, 2024 by Chris Downs in Background

By Dr. Chris Downs

Hello and welcome to my blog series focused on how to own and operate a successful solo consulting practice. This first blog is a bit about me, your author.

I’m originally from the South Bend, Indiana area. I got my Bachelor of Arts degree in Psychology and Sociology from Indiana University - South Bend then a Ph.D. in Developmental Psychology from The University of Texas at Austin.

I was an Assistant, then Associate and finally to Full Professor of Psychology with tenure at two major universities.

I grew disenchanted with academia and searched for something new. It didn’t take long for the Pacific Northwest to capture my heart. From the moment I arrived in Seattle in early 1992, I knew I’d found “home.” Within only a couple of weeks in the city, I landed a corporate position.

In late 1994, after a couple years in corporate work, I was interviewed for a Director position at one of the nation’s largest not-for-profit foundations, based in Seattle. I worked there in progressively higher positions for a little over 13 years.

When the foundation took new directions that did not coincide with the kind of work I enjoyed, I left and opened my own solo consulting business. That was in mid-2008.

Pause for a moment. Think back to the financial turmoil in our country back in 2008. That was hardly the year to open a new business! But I did anyway. The fact that my new company thrived told me I was in the right place, doing the right thing, at the right time.

Over my professional career, I’ve had many opportunities to locate, screen, interview, contract with, negotiate with, and fire many consultants. Some of these were professionals I hired as adjunct instructors. Others brought niche expertise to a project I was working on, or filled gaps on one of my teams when someone took a leave of absence. I estimate that over the years, I hired and/or managed well over 500 consultants.

During my own consulting practice, I worked with state and county governments, corporations, not-for-profits, and educational institutions. Many of my clients have been moderate-size, with 100 – 500 employees. A few of my clients were very large, state and national entities. Some of my most enjoyable work, however, was with small clients with limited staff, tight budgets and sky-high goals.

I’ve enjoyed working with most of my clients. But as you’ll read in “Solo Consulting: Insider Tips for Success!”, some of my clients have been stinkers. Fortunately, most weren’t.

Today, I continue to love the Pacific Northwest. My spouse and I live near Seattle’s downtown and thrive on the city’s vibrant sports and arts/music scene, enjoy many dear friends, and frequently take vacations to Hawai’i, Europe, and a variety of destinations in the US.

If you’d like to learn more about the lessons I share in “Solo Consulting: Insider Tips for Success!” please go directly to this link on Amazon where the book is available.