Different consultants work from different formulas. Most experts agree that it is nearly impossible for a consultant to earn at their previous salary level during the first year or two of consulting. In fact, some of the biggest pitfalls in consulting work, Borchardt says, result from charging too little or underestimating the time that will be spent on a project. Like everyone else, however, consultants learn from their mistakes. Credit was easy to get while I was in a corporate job, but not so easy after the break.
Bankers demand nice long financial track records when they commit money.
For determining fees, Dolbear recommends looking at what other consultants charge. Specialty and reputation can be big factors in fee determination. One former consultant says the key to financial success is a marketing strategy that rewards the consultants' perspective of maximum pay for minimal hours on the job. As an independent consultant in the petrochemical industry for nine years, Gunardson says he found his niche in such areas as plant troubleshooting. In Israel, Gunardson says, he once landed a consulting project for his expertise with asphalt.