I see many people conflating contracting with consulting.
Contracting is when you undertake to perform a certain unit of work for either a fixed price or at an hourly/daily rate. Your deliverables are completed tasks - on budget and schedule.
Consulting is when you are a recognised expert in some field, analyze the client's situation/problem, design and document a solution and/or make recommendations. Your deliverables are reports and presentations.
You need to plan for spending 20% to 50% of your time and energy, networking, prospecting, preparing proposals, negotiating and chasing payments. Due to that overhead, you need to charge at least 2x-3x your salary rate. It is prudent to retain an accountant for the financial issues, a lawyer for contractual issues and take out insurances as required in your specific jurisdiction.
If you don't mind all the non-paying activities and the fluctuations in revenue, then consulting can be a lucrative means to a comfortable lifestyle.
Contracting is when you undertake to perform a certain unit of work for either a fixed price or at an hourly/daily rate. Your deliverables are completed tasks - on budget and schedule.
Consulting is when you are a recognised expert in some field, analyze the client's situation/problem, design and document a solution and/or make recommendations. Your deliverables are reports and presentations.
You need to plan for spending 20% to 50% of your time and energy, networking, prospecting, preparing proposals, negotiating and chasing payments. Due to that overhead, you need to charge at least 2x-3x your salary rate. It is prudent to retain an accountant for the financial issues, a lawyer for contractual issues and take out insurances as required in your specific jurisdiction.
If you don't mind all the non-paying activities and the fluctuations in revenue, then consulting can be a lucrative means to a comfortable lifestyle.