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Got the Consulting Itch? Madison | April 6, 2019 The Ins and Outs of being a Contractor for a Living

Who is this guy? John Eisbrener @johnedba john@dbatlas.com Not a MVP or MCM DBA for over 10 years MSSQL, Oracle, Greenplum, Postgres Owner/Principal Consultant of a boutique consulting firm, DB Atlas, for over 2 years http://www.dbatlas.com Spent 3 years with a Manages Services Consulting firm, Pythian, based out of Canada

Agenda Why become a consultant How to get into consulting Working for a consulting firm Working as an owner of a consulting firm Words of Advice

Why become a Consultant? Potential Reasons Better per-hour pay Enjoy working with new technologies Get bored quickly in the same role Enjoy making your own decisions The actual reason will be different for everyone These are all double-edged swords

Should you become a Consultant? Are you organized? Are you detail oriented? Do you have a marketable, in demand skill? Can you take on increased risk? Are you comfortable selling?

How to become a Consultant Consult for Free Contribute to community projects Consult on the Side Micro-consulting/Freelance Consult Full-Time Work for a consulting firm Work as a consultant for yourself

Working for a Consulting Firm Primary differences compared to a normal IT job You are a revenue producer New terminology New responsibilities Similarities to a normal IT job Retirement/401(k) PTO/Benefits Salaried

New Terminology Billable Targets The Bench Service Level Agreements Escalation Procedures Run Book Consultant vs Contractor vs Managed Services

New Responsibilities Certifications Blogging Technical Forums Speaking Engagements Time Reporting Travel Expectations

Being an Owner/Partner of your own Consulting firm Inclusive of the new Terminology and Responsibility of working for a Consulting Firm Additional Responsibilities Government Employees The Company Clients

Responsibilities to the Government Creation of a business entity No Business Entity LLP – Limited Liability Partnership LLC – Limited Liability Company Tax Requirements Sole Proprietorship S-Corp C-Corp State specific requirements Varies from State to State IL & WI requires an Annual Report

Responsibilities to Employees Payroll Frequency and Delivery Salary vs. Hourly Taxes Estimated Quarterly Taxes (both State and Federal) 1099-MISC Schedule-C Retirement IRA 401(k)

Responsibilities to the Company Accounting Expenses Invoicing Credit/Loans Insurance General Liability Workers Compensation Errors and Omissions Umbrella Policy Specialty Lines Disability

Company Responsibilities (continued) Marketing Blogging Website SEO Dun & Bradstreet DUNS Number HR/Legal Hire new employees or subcontractors Contract Reviews Dispute Resolution Litigation Sales Cold Calls Subcontracting Professional Networking

Responsibilities to Clients Appropriate Time Tracking Provide Detailed Invoices Track within a client system Billing Arrangement Billing Rate Per X Duration (e.g. hour, half-hour, quarter-hour, etc.) Project Based Retainer Contracts Master Services Contract Business Associate Agreement Professional Services Agreement Statement of Work

Words of Advice Getting Started Professionals to Hire Financial Advice Insurance Advice Contract Advice

Getting Started Consulting Firm Things to consider Minimal Risk Authentic day-to-day experience You will become comfortable with your skillset Things to consider Terms of your Non Compete Billable targets Bench time responsibilities Time Reporting

Professionals to hire Accountant Financial Advisor Lawyer or Law Firm Tells you how much money you have to spend Financial Advisor Tells you how to spend the money you have Lawyer or Law Firm Insurance Agent Designer SEO Contractor

Financial Advice Financial Advisor Accountant IRA Single 401(k) Some financial transactions must happen prior to the end of Q3 Accountant Find someone you can call if you have tax questions Invest in some Accounting Software Open a separate, business checking account to be solely used by your business

Insurance Advice General Liability Policy Business Owners Policy Workers Compensation Insurance Generally have to declare all states you will perform work in Errors and Omissions (E&O) Covers you if you are taken to court Umbrella Policy Covers you in addition to primary policies Long Term Disability Policy Often requires an “established” income Specialty Policies

Contract Advice Master Services Agreement/Business Associate Agreement Often times offered by the client Take Special Care with these sections Non Compete Intellectual Property Rights Liability/Insurance Clauses Statement of Work Description of Work Billing Rate Payment Terms

Final Advice Don’t be afraid to ask questions Don’t be afraid to say “No” When finding Professionals (Financial/Law/Etc.), find someone you can talk to when you have a problem. Treat them as if they are your employees.

Questions?