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2. Thanks to our SILVER Sponsors

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

4. 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
Spent 3 years with a Manages Services Consulting firm, Pythian, based out of Canada

5. 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

6. 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

7. 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?

8. 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

9. 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

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

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

12. 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

13. 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

14. 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)

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

16. 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

17. 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

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

19. 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

20. 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

21. 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

22. 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

23. 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

24. 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.

25. Questions?