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aval
Honorable But Hopeless Addict
USA
3273 Posts
Status: offline |
 Posted - 03/29/2012 : 7:10:10 PM
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First, I'm not a consultant by profession. But as some of you probably know, having read at least some of my almost 3000 posts, that I enjoy working with Active Directory and especially Exchange for the last couple years.
I've made more and more professional connections over the last two years and have expressed my interest in using my skills outside (but not necessarily in place) of my current position (which seems rather stable and maybe not something to toss out the window so lightly).
What was bound to happen finally happened. A professional contact referred me to someone else who asked what services I offer concerning Exchange. This is a relatively small not-for-profit organization that is looking to upgrade from E2K7 (presumably to E2K10, unless they opt for a less probable solution like Zimbra or Groupwise - I've *just* received an email, very few details at this point).
First, it looks like they want help planning the upgrade. What do we need to do? In what order?
I understand that some consultants well... simply provide consulting (!) and do not necessarily perform the migration (although they could), let alone managing the messaging system afterwards.
I have a pretty decent idea how to plan such a migration, especially for a small organization that does not span three continents with Exchange servers in 20 differents sites.
But how do I interact with the client?
This is how I see it.
I will ask the client a number of questions. I can base these questions on samples in "Exchange Server 2010 Best Practices" or other sources.
BTW, if any of you would have something like this that you'd be willing to share, in part or in whole, that would be very generous of you. You know, how you determine if the onsite or cloud option would be the best. I know some of this (are you subject to laws that would disallow storing data outside the country?, etc.) but do not have a formal questionnaire.
Once I have the answers to the questions, I can propose a solution.
But now we get to the part where I must admit I don't have a clue:
What do I charge for this type of work?
Let's say I produce a 10 page document, an overview of the process and their people take it from there. What do you charge for that?
What if it's a 100 page document that's practically a step by step, start to finish procedure?
Do you charge by page (kind of doubt that)? By the hours it required to research the different aspects of the plan and then type it up?
And how much?
This is a not-for profit so I do not plan to make a fortune. Assuming we do end up working together (that may not even happen), I would like to make something from this, besides a good reference and something beyond my first (and only "real") Exchange deployment from 3 years ago in my current workplace.
I did google for "Exchange consultant rates" and found this:
http://www.itjobswatch.co.uk/contracts/uk/exchange%20consultant.do
This is in pounds but it looks like just under 40 for the hour and 300 for the day? Does that sound right?
That's very roughly $65/$475 US (or Canadian, since we're almost at parity) or 48/360 euros.
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Jazzy
Administrator
Netherlands
1929 Posts
Status: offline |
Posted - 03/30/2012 : 03:00:55 AM
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As with any of your (list of) questions, there is a lot to discuss here.  First step should be to think about what your goals are. Doe you want to have fun and learn something? Are you planning to shift to a new role and want it to replace your current job? Want to start a serious business? Parttime job?
Next step is the formal part. When you decide to charge a customer you are gathering income, find out what your status is regards taxes and other regulations. What this means for you exactly, I don't know but I'm sure these guys can tell you: http://www.irs.gov/ Bear in mind, depending of the outcome you might need to reconsider what you're gonna do.
Regarding rates. The rates you charge have to be consistent with what you can offer. If you bring a lot of experience and good value, you can charge higher. If you need the experience and think you can add value, charge lower. And then there's the competition, when more qualified of experienced people charge 50 then there's no sense in charging 70 o fcourse, you'll be out of business. Maybe the other US people here on the forum can give you some more information on exact figures becasue they're vary a lot. In a rural area the demand is lower than in the business area of a mayor city, this affects the rates you can use. Also your rates will very depending on your role in the project or type of customer. For example, for a interesting job I'm willing to lower my rates to 75% of my standard rate because I need the experience, the exposure or the network.
So, at that point you know your rate. My advice would be to stick with an hourly rate, unless your role is to translate the documentation from Canada English to US English, then you can charge by the word. (:)) Nest step would be to talk with your prospect and ask them questions, find out where they stand now, where they would like to end up and what their expectations are. Now you can tell what value you can add, for example that your able to lead the project and also can execute the migration. Find out if they expect you to write every step down or they just want you to do the job and document the most important steps. With this information you can go home and write down the steps it would involve and how many time you think you need.
Now the important part is to be very clear about what you are offering and how much it's gonna cost. Are you just offering your help and estimating how much time/money it will cost, or are you commiting to build a complete working solution for a fixed price. And does that include developing 15 custom transport rules, deliver end user training and customize the webinterface too? You catch my drift.
I do have to say one thing more, please don't get me wrong. When you know on forehand that you need help from the community, ask yourself if your ready for the job. Are you able to perform and deliver for what customer expects you to and is paying for? Do you want to use the free time of other community members to help you to earn money? Don't get me wrong, I strongly believe in the value of communities. But I hate to see questions staring with: "Customer hired me to do so and so but I don't know where to start..." I'm not saying that you would do that, certainly not from what I've seen from you in the last couple of years. I know for sure that you're able to gather information and learn very fast. But when your planning to works as an consultant, communities should be one of the minor sources of infromation, not your mayor one.
And last but not least, just go for it. You'll learn tons, even more when you'd fail. Trust me, been there done that. :) |
Jetze Mellema
Exchange specialist
Former MVP (2005-2012)
My blog: http://jetzemellema.blogspot.com (Dutch)
My company: http://www.imara-ict.nl/ |
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aval
Honorable But Hopeless Addict
USA
3273 Posts
Status: offline |
Posted - 03/30/2012 : 06:41:29 AM
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quote:
First step should be to think about what your goals are. Doe you want to have fun and learn something? Are you planning to shift to a new role and want it to replace your current job? Want to start a serious business? Parttime job?
I want to have fun, learn something new, use my Exchange knowledge in different contexts, gain experience. At this point, I would see myself working on a project or two in the course of the year in addition to my current position.
It would be for smaller organizations, like the one in question, whose demands would be relatively staightforward, not require the expertise of large consulting firm which they could probably not afford.
Shift to new role? No, not entirely, not full time.
Replace current job. No.
Start business. No
Given my current position, and my intention to stay there, at least for now, I would create plans or documentation for the client, on my evenings or week-end, possibly with occasional visits onsite (fortunately in this case, it would be nearby).
quote:
Next step is the formal part. When you decide to charge a customer you are gathering income, find out what your status is regards taxes and other regulations. What this means for you exactly, I don't know but I'm sure these guys can tell you: http://www.irs.gov/ Bear in mind, depending of the outcome you might need to reconsider what you're gonna do.
Yes, US people could help out here more. Unless there would be a compelling reason to do so, I would not create a business (company). This is not something I would be doing on a full time basis - only from time to time - because of my primary job and essentially through "personal" contacts.
This type of opportunity may only come up once or twice a year.
I think if I make over $500 (?) on my own, the IRS may consider I have my own business. I asked this question at tax prep time. IIRC, the figure was rather low. Can anyone confirm? |
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mitachu
Honorable But Hopeless Addict
United Kingdom
1947 Posts
Status: offline |
Posted - 03/30/2012 : 08:20:07 AM
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Come on, it's a not-for-profit organisation. Donate your time and expertise :)
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Tim |
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Jazzy
Administrator
Netherlands
1929 Posts
Status: offline |
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JSCLMEDAVE
Administrator
USA
6116 Posts
Status: online |
Posted - 03/30/2012 : 09:17:32 AM
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David along with the above advice. What about liability insurance? Take into mind as well that IF something - anything - happens after you leave, you will probably be the first to get a call and in "some" cases will have to prove it was not your doing.
James and Curt work for themselves, they should know more about the liability insurance and rates etc. |
Tim-
“This too shall pass" |
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aval
Honorable But Hopeless Addict
USA
3273 Posts
Status: offline |
Posted - 03/30/2012 : 10:50:14 AM
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Ah! Yes, that is something to consider. If I worked for a company I suppose they would take care of that.
If I would need insurance, that might negate whatever I could gain financially from the project. Especially if I were to work for a small or symbolic amount. I might even end up working for a loss - if we set aside the experience gained.
I would find it interesting that the software manufacturer cannot be held liable for anything (ever hear about someone getting sued for buggy software?), but a consultant could.
How does that work? I'd be interested in knowing more about that. |
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aval
Honorable But Hopeless Addict
USA
3273 Posts
Status: offline |
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Endaar
Old Timer
USA
567 Posts
Status: offline |
Posted - 03/30/2012 : 10:57:15 AM
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I don't believe the dollar amount determines if you 'have your own business,' but if it exceeds $600 (I think; might have been raised to around $1000), the client will need to issue a 1099, which means you definitely have to report it on your taxes.
As for rate...I'm in K-12, so in theory we're a non-profit. We hired a company to migrate us from Exchange 2003 to 2007 a few years ago. All hardware and software was spec'd and purchased by me so they did not have to worry about that.
The proposal and design meetings did not cost us anything, and it was not until after I had a design I was satisfied with that we actually contracted with them. We solicited proposals from a few companies, by the way.
IIRC, the project ran around $5000. That included the new Exchange install, testing, migrating mailboxes, decommissioning the old server, installing and testing a backup solution, light adminstrator training, a short user-guide for OWA, and documentation of their work. A total of 5-6 days I think.
Personally, I done some sidework over the years and never found it to be worth the time. Even a small Exchange migration is going to be a few days work, and $500 just doesn't seem like enough compensation for it. Especially when you consider the very legitimate issue of liability insurance, and the fact that they will inevitabaly be calling you with every possible tech problem for the forseeable future...
If you were looking to get started in consulting, that's a different story because the reference and experience would be worth taking a significantly discounted rate. But by your own words you're looking to 'make something from this' (nothing wrong with that, at all), so you ultimately need to decide what your time is worth (to you) and if the client is not willing to pay it, then you don't take the job.
James
EDIT: Confused W2 with 1099. Sorry about that. |
Edited by - Endaar on 03/30/2012 11:07:35 AM |
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JSCLMEDAVE
Administrator
USA
6116 Posts
Status: online |
Posted - 03/30/2012 : 11:05:27 AM
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Dave when I was working 1099 I went through a personal friend that already had a small consulting business set up. So I basically went through him to work with the client. He covered the liability insurance and sent me a W2 at the end of the year.
Keep in mind IF you go 1099 to save at least 45% from your fee for taxes, since they take out 0 when working 1099. This will affect what you are asking as well since you are covering all of the taxes. So say under W2 you would take $40 an hour, your take home is actually (don't quote me on this I just summarizing) $32 an hour since PART of Social Sec and all the rest of the junk is paid by your employer.
With 1099 YOU PAY ALL THE TAXES..! So,,, W2 - $40 an hour 1099 - $80 an hour. Or close to it.
Keep in mind IF you go 1099 to save at least 45% from your fee for taxes. I cannot stress that enough. You will forget then when tax time roles around you will have a BIG surprise. <g> |
Tim-
“This too shall pass" |
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aval
Honorable But Hopeless Addict
USA
3273 Posts
Status: offline |
Posted - 03/30/2012 : 11:35:20 AM
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This is a very good discussion.
When I asked my friend if he knew of anyone that might need help with IT, I was not necessarily thinking of consulting on an individual basis. In one case, there was a company that needed someone to help out and I would have worked for and through the company. But this was for Sharepoint and I don't know enough about it to be offering even basic advice. So this could have been managing an existing Exchange infrastructure on a week-end shift or all kinds of possible situations.
I don't want to get in an overly detailed discussion about taxes, but do I have the option to say I want to work in the context of the W2 or the 1099?
As it is a not-for-profit, and depending on the extent of the work, it almost sounds like I might be better off, for this one time, to either work for a very substantially discounted rate, or even donate my services, for some sort of clause exempting me of any liability - if there is such a thing.
I would imagine that "big-time" consulting, like migrating a Fortune 500 company from E2K3 to E2K10 would involve a huge amount of bureaucracy.
I did not foresee that consulting on an almost personal basis would involve notions of liability.
Hmmm....
Would it be safer to simply present a plan with a disclaimer, something like (very roughly): "This is a proposal based on current best practices in the industry (blah, blah) and you are free to implement it or not and I assume no responsibility for what might happen when you implement it."
Of course, declining all responsibility from the start is probably the best way to be rejected from the start.
I answered the person this morning by email and after re-reading the message am glad to see that I did not commit myself. I did offer myself a sort of opt-out clause, stating that I would or would not be able to help depending on the complexity of the migration.
If it's a migration in it's most simple form... maybe. If there's BES involved, for example, yes, I have managed that but not in the course of a migration, so if it looks too complex, the honest (and safe) option would be to bow out. |
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Jazzy
Administrator
Netherlands
1929 Posts
Status: offline |
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JSCLMEDAVE
Administrator
USA
6116 Posts
Status: online |
Posted - 03/30/2012 : 11:38:35 AM
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| "I don't want to get in an overly detailed discussion about taxes, but do I have the option to say I want to work in the context of the W2 or the 1099?" -- Yes you do. I want to say $600(or $500 ) is the magic number for having to pay taxes. $590 your ok. |
Tim-
“This too shall pass" |
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Endaar
Old Timer
USA
567 Posts
Status: offline |
Posted - 03/30/2012 : 11:39:50 AM
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| Pretty sure the money is technically taxable either way. Just that under the $600 mark, the client does not need to issue a 1099 and therefore the IRS doesn't 'know' about the income. |
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JSCLMEDAVE
Administrator
USA
6116 Posts
Status: online |
Posted - 03/30/2012 : 11:41:13 AM
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quote:
Originally posted by Endaar
Pretty sure the money is technically taxable either way. Just that under the $600 mark, the client does not need to issue a 1099 and therefore the IRS doesn't 'know' about the income.
Right! It's really up to you to report it or not under $600. |
Tim-
“This too shall pass" |
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aval
Honorable But Hopeless Addict
USA
3273 Posts
Status: offline |
Posted - 03/30/2012 : 11:49:52 AM
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quote:
By the way, is it common for you guys to ask a lower rate for non-profit organizations?
I don't know about the consultants here, but not-for-profits have all kinds of advantages in the US, tax-exempt status being one - at least in some cases. Where I currently work (K-12 school), we have to present proof of such as status to vendors but in return, can obtain major reductions in price. I think we got W2K8 R2 Standard licenses for roughly $100. Same thing for AV licenses. |
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Jazzy
Administrator
Netherlands
1929 Posts
Status: offline |
Posted - 03/30/2012 : 12:08:21 PM
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Interesting. I work quite a lot in education and they get licenses for almost free indeed. But for consultancy they pay a regular rates, the same goes for healtcare, cultural and charity organizations.
Regarding liability, it's just like high availability. You hope it never happens but design for the worst. Imagine you make a small mistake and the company looses a big order. Then there's a chance they gonna sue you and claim the lost money. There is a chance the judge orders you to pay them what they claim and you can sell your home. You probably don't want that risk.
At the moment I have some customers who demand I have insurance, even though I limited my liability to a max in my conditions. They want to be able, when disaster happens, to claim the damage somewhere.
quote:
If it's a migration in it's most simple form... maybe. If there's BES involved, for example, yes, I have managed that but not in the course of a migration, so if it looks too complex, the honest (and safe) option would be to bow out.
On the other hand, you have Google and can spend an hour to find out how BES handles the mailboxes moved to a new server. Tell customer you have not done that particular job before but have all the skills to gather the information you need to perform the job. How do you think consultants stay competitive in the business, you have to, no need to accept a challenge now and then. I mean, knowledge and experience is valuable but the right skills to gather knowledge is key. |
Jetze Mellema
Exchange specialist
Former MVP (2005-2012)
My blog: http://jetzemellema.blogspot.com (Dutch)
My company: http://www.imara-ict.nl/ |
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aval
Honorable But Hopeless Addict
USA
3273 Posts
Status: offline |
Posted - 03/30/2012 : 12:39:01 PM
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quote:
[...] even though I limited my liability to a max in my conditions.
How do you do that?
General concepts, principles here, because what is legally valid in the Netherlands may not be in the US, for the details.
How do you limit your responsibility... without appearing irresponsible?
You can't tell the client that "if I screw up bad, well, that's your problem". Nobody would ever consider hiring such a consultant.
On the other hand, there's factors beyond your control. They may not have redundancy (maybe they're running their Exchange server on a RAID 0 array...) and one disk, one disk mind you, fails in the middle of the migration.
I'd be interested in learning more about limiting your liability without looking like you cannot accept responsibility. |
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Jazzy
Administrator
Netherlands
1929 Posts
Status: offline |
Posted - 03/30/2012 : 2:14:40 PM
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In my conditions I say that I cannot be held liable for more than the total sum of the project. The point here is, I can write anything I want in my conditions but in the end a judge will decide if I'm to blame and can order me to pay a compensation anyway.
In the end it comes down to trust. It's people doing bussiness with people, not bussiness. When customer trusts you, the small print gets less important and customer will not think you're irresponsible at all. |
Jetze Mellema
Exchange specialist
Former MVP (2005-2012)
My blog: http://jetzemellema.blogspot.com (Dutch)
My company: http://www.imara-ict.nl/ |
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aval
Honorable But Hopeless Addict
USA
3273 Posts
Status: offline |
Posted - 03/30/2012 : 2:47:22 PM
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I have some more information.
Exchange environment is smaller - significantly smaller - than the one I manage now: 125+ users versus less than 20.
Nothing fancy - no large files, attachments apparently.
That's what I've learned from the initial discussion.
Trick is they want in house (already mentioned hosted solution with them - against) and virtualized with two file servers and *maybe* MS Dynamics CRM.
Curt?
Anyway...
Virtualization platform: undecided.
I would have to stick with the Exchange part (if I end up doing anything) because I would have NO idea how to virtualize CRM. Nor is my relatively limited experience with VMware ESXi enough to make me anything of an expert (assuming they even go with VMware).
One way to limit liability, I suppose, is not tinkering with technology about which you are completely ignorant.
This would all be virtualized on one server since at less than 20 users, it's hard to justify the cost of a second server for DAG.
So, as far as Exchange goes, it looks like it MIGHT be something I could handle. True, I do not have all the details, since I have not yet submitted a questionnaire or gone on site.
------
Otherwise, for the liability part, I'd be interested in what tht would cost (US $).
I've seen figures for $300/year but if that would apply to what I'd be doing, or if there's better pricing out there.
Then there's the contract... I've seen some samples on line.
Anyone think it would be possible to ask for a low rate with a non-liability clause in return?
Here's one way to look at it. Even without this opportunity, I would be spending hours working with AD, Exchange and now some PKI, and not making a penny. Even at $10 or $20 an hour, I would be doing better.
On the other hand, I do believe, especially if the Exchange environment proves to be as simple as it appears, that I may very well be up to this and that I do have real expertise to offer, expertise that's worth something.
They do expect to pay me (something), since they are asking about my rates. |
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Jazzy
Administrator
Netherlands
1929 Posts
Status: offline |
Posted - 03/30/2012 : 3:29:29 PM
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David, try to get your mind around this. Your talking about CRM, Exchange, taxes, VMware, liability and rates in a single post! Try if you can break it all up into two or three questions.
First question should be, have I enough information to decide if I want to work as an independant consultant? The answer is obviously: no. Taxes, liability and rates are only a couple of the aspects you need to think about. Why don't you make an appointment at your local chamber of commerce next week? They probably offer free advice to people considering to start a business or going independant.
For reverence, I toook 6 months to prepare for my current business. Could've done it in less time if I just wanted to work independent but I chose to start a real bussiness. I know people who take as short as a few weeks to get everything in order but you really need to think about stuff. One of the other questions you need to ask yourself is if your really gonna do this in the evenings and weekends. How about face to face meetings, are you going to ask them to come in on a saturday? What if Outlook isn't working and they have a problem at 9 AM? Does your current employee even allow you to have another job?
Regarding the rest of your post. You have several options. First option is to stay in the comfort zone and tell them you can do only Exchange and nothing else. Another option is to partner with a more experienced consultant and have him take care of the stuff that's new for you. Chance is they ask someone who can do the other things and migrate Exchange too. What would you do if you where in their shoes? Or take a risk and be prepared to learn something about VMware and CRM.
If you ask me, I would let go the current opportunity and take some time to prepare. I don't think you feel confident enough at the moment. |
Jetze Mellema
Exchange specialist
Former MVP (2005-2012)
My blog: http://jetzemellema.blogspot.com (Dutch)
My company: http://www.imara-ict.nl/ |
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Jazzy
Administrator
Netherlands
1929 Posts
Status: offline |
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aval
Honorable But Hopeless Addict
USA
3273 Posts
Status: offline |
Posted - 03/30/2012 : 3:45:10 PM
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quote:
First option is to stay in the comfort zone and tell them you can do only Exchange and nothing else.
That is precisely what I meant here:
quote:
I would have to stick with the Exchange part (if I end up doing anything) because I would have NO idea how to virtualize CRM. Nor is my relatively limited experience with VMware ESXi enough to make me anything of an expert (assuming they even go with VMware).
quote:
One of the other questions you need to ask yourself is if your really gonna do this in the evenings and weekends. How about face to face meetings, are you going to ask them to come in on a saturday?
I stated from the outset that I have a full time position and that if my presence was needed, it would only be at those times. FWIW, their IT guy says that is exactly what would work with him. Physical presence is not even required at this point - just planning.
I will explain that I could only assist with the Exchange part. Yes, they may prefer to work with someone who could manage all those aspects and that would be that. |
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aval
Honorable But Hopeless Addict
USA
3273 Posts
Status: offline |
Posted - 03/30/2012 : 3:49:01 PM
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quote:
And if I'm being too direct, I apologize.
No need to apologize.
I did not perceive what you had to say as being agressive or belittling.
I'd rather have someone tell it to me as it is. That's not always flattering for the ego but at least things are clear. |
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aval
Honorable But Hopeless Addict
USA
3273 Posts
Status: offline |
Posted - 03/30/2012 : 3:55:22 PM
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When the mutual acquaintance referred me to the IT guy from the organization in question, I think the intention was just for me to help out.
My objective is not to become a professional consultant - but it looks like even if you just intend to give a hand, elements like taxes (if you're paid anything) and liability complicate the situation quite quickly. |
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cj_berlin
Honorable But Hopeless Addict
Germany
3964 Posts
Status: offline |
Posted - 03/31/2012 : 09:59:49 AM
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quote:
Originally posted by Jazzy
The point here is, I can write anything I want in my conditions but in the end a judge will decide if I'm to blame and can order me to pay a compensation anyway.
Right. Besides, the customer will probably have rules and conditions of their own, and as likely as not, one of these conditions will be stating that any business with them is carried out strictly under *their* conditions... |
Evgenij Smirnov
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JamesNT
Moderator
USA
3150 Posts
Status: offline |
Posted - 03/31/2012 : 11:19:32 AM
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aval,
Before I get started, two things:
1. I will probably be the voice of doom and gloom. That is not my intention, I'm just relaying my experiences.
2. I have not read through all the replies thus far.
I must recommend that you steer clear of non-profits. I have worked for a few over the years and, with the exception of one, they are all the same.
* Most non-profits have no money at all. Because of this, they half-ass everything. You have no reasonable expectation of the project turning out correctly and by best practices. If you quote a $4000 server, they will demand you purchase the $2000 one.
* Most non-profits have no money because there are too many hands in the cookie jar - most of them robbing from it. Non-profits are not lean-and-mean like regular companies. You'll see staff with gloriated titles walking around all day and you'll have no idea what they do all day. Yet, again, you are expected to do everything on the cheap.
* Oh, and even though you do everything on the cheap, they EXPECT it to run like a brand new BMW.
* Prepare to be used. Remember, they have no money, but they need your services. You'll get calls for everything from here on out. As long as they can squeeze a yes out of you, make you feel obligated, etc., your ass belongs to them.
I apologize for all the harshness, I truly do. But this is how I've been treated by non-profits. All I can do is report my experiences. Others will, of course, disagree with me. Pesos will be among the first because he works with non-profits all day. Somehow, he doesn't have these problems. Go figure.
JamesNT |
James Summerlin
www.jamessummerlin.com |
Edited by - JamesNT on 03/31/2012 11:20:31 AM |
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aval
Honorable But Hopeless Addict
USA
3273 Posts
Status: offline |
Posted - 03/31/2012 : 8:23:40 PM
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Concerning Evgenij's comment about their "rules and conditions", who writes up the contract then?
Because, and although this was initially meant to be something rather informal, it would be preferable to define at least some of the conditions in a written document.
There's no lack of samples online, so I can look at those if need be.
BTW, this is NOT happening "tomorrow" and probably no sooner than a month from now (I was told 30-60 days).
In particular, that will give me plenty of time to discuss liability with the insurance rep I'll be speaking with Monday. |
Edited by - aval on 03/31/2012 8:24:32 PM |
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Curt
Moderator
USA
6649 Posts
Status: offline |
Posted - 04/02/2012 : 07:06:42 AM
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Well, State Farm has business policies for less then 300 a year.
You can start an LLC for lesss then 400.
I worked as a consultant for a very long time while I kept my full time job.
It was very good, to get out there and do stuff outside of my 40 hour gig.
Its no big deal to start up an LLC or sole propriotorship.
The write up of a project plan should be by the hour with a Price cap so they can know what to expect. Don't give away too much.
I give away some things but not everything.
So consider yourself valuble.
Non profits are all different. I did work to help a place to train blind workers. I am So GLAD I did it. Some people do not even have eyes to fix, so they need something.
But I did not do it all for nothing.
They paid "something". You will find out quick that you have to make a living. I have over 40 years of volunteer work behind me, and I can say I have been rewarded beyond my efforts.
But for a business, you have to charge.
quote:
Originally posted by JSCLMEDAVE
David along with the above advice. What about liability insurance? Take into mind as well that IF something - anything - happens after you leave, you will probably be the first to get a call and in "some" cases will have to prove it was not your doing.
James and Curt work for themselves, they should know more about the liability insurance and rates etc.
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Curt Spanburgh
Microsoft Certified Business Solution Specialist.
Dynamics CRM MVP
Contributing Editor, Windows IT Pro
He that is walking with wise persons will become wise, but he that is having dealings with the stupid ones will fare badly.
Proverbs 13:20
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aval
Honorable But Hopeless Addict
USA
3273 Posts
Status: offline |
Posted - 04/02/2012 : 11:07:25 AM
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quote:
Well, State Farm has business policies for less then 300 a year.
I must be on the right track. That's exactly the company I contacted!
At this point though, I am not planning to start a business.
I'm looking into the IRS side of it too. Unless I'm mistaken, independent contractors (which would probably be my status), have to pay estimated tax quarterly?
Otherwise, for rates, and since this is a not-for-profit, I said I would charge a maximum of $50/hr. We can negotiate from that point. If they say OK, fine. If not, and if I have to come down, I should at least get something out of it - besides the experience of course.
Since I have not committed myself at this point, verbally or in writing, I can still decline if I feel the conditions are just not right.
Thanks for the input Curt. As someone who knows the US system, your input is invaluable.
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Jazzy
Administrator
Netherlands
1929 Posts
Status: offline |
Posted - 04/02/2012 : 11:15:28 AM
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Just wondering, what are typical rates for general IT consultancy in the US? In The Netherlands the rates are:
- 30-40 euro: Helpdesk professional
- 50-60 euro: junior engineer/consultant
- 60-80 euro: medior/senior consultant
- 100-150 euro: top consultants/specialist/niche player
Of course the rates are depending on the length of the project and many other variables, but from what I see around me this is more or less what's being paid. |
Jetze Mellema
Exchange specialist
Former MVP (2005-2012)
My blog: http://jetzemellema.blogspot.com (Dutch)
My company: http://www.imara-ict.nl/ |
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What to charge for consulting? What to do?
