Part Two: Technical Self-Employment For All

MoNickels writes "I've posted part two of the article series encouraging the unemployed to take up freelance technical support, including advice on knowing if this work is right for you, marketing yourself, learning on the job, handling and educating clients, managing the business, the temperament required, and the negative aspects of the work." See part one if you missed it.

Comments

Only one question..

[kmak]

What do you do about health insurance?

Re:Only one question..

[tbase]

Ummm, I don't know, maybe pay for it, like you do when you're working for someone else? Just because 100% of it isn't coming out of your check, doesn't mean you aren't paying for all of it. It's all part of the expense of employing you, along with unemployment insurance, worker's compensation, etc. That's why freelancer's generally charge a much higher rate per hour - they have to pay that stuff themselves, instead of having someone else do it for them.

Re:Only one question..

[Anonymous Coward]

Make sure you at least get major medical coverage.

Get in a car accident, fall off a ladder, etc need a little surgery and spend 5 or 6 days in a hospital bed and you'll have medical bills of over 100,000 dollars EASY.

if you are under the age of 35, you can get major medical in most states for 200-300 bucks a month. VERY small price to pay.

Re:Only one question..

[PCM2]

Ummm, I don't know, maybe pay for it, like you do when you're working for someone else?

Yes, yes, spoken very authoritatively and with the requisite amount of condescension for a Slashdot poster.

Fact is, however, insurance is a much better deal when you get it through an organization than if you get it as an individual. That's because health insurance is a numbers game. If they can sign up an entire company, it's a pretty safe bet that not everyone in that company is going to be hospitalized at once. If it's just you they're signing up -- who knows what your problem is?

So it isn't just a matter of whether you're employer is paying for it or if you're paying for it yourself. As an individual, you're typically going to pay a higher monthly rate and still get a higher deductible or fewer benefits. Coverage for your children or spouse is going to be still more.

So maybe the question shouldn't have been, "what do you do for insurance," but "how do you get good, quality, comprehensive healthcare in the United States as a self-employed person"?

Re:Only one question..

[bigman2003]

You are absolutely, positively nuts.

That has to be the worst advice you can give to anyone in the U.S.

Playing the odds like that might be okay if you are single, young, and don't have any responsibilities. But, what if we are playing the numbers like that, and get hurt in the first year. Tons of money goes out the window, and you will probably end up bankrupt.

What if you have a problem with lingering effects? Maybe you need to take medication, or continuing treatments? Shit outta luck.

I was a person who ran a lot, worked out at the gym, etc- I was in very good shape, and excellent health. Eventually, I developed a back problem that required two surgeries, and dozens (upon dozens) of trips to the doctors office for treatment. This entire situation would have probably cost me well over $100,000. And I was 'healthy'!

Do you know how much an MRI costs? A myleogram? CT Scan? One set of those would wipe out a years worth of your savings- easy. Surgeries, hospital stays, doctor visits, medication, physical therapy, etc. etc. This is big bucks.

Of course, you could be an indigent (which is exactly the way they would classify you WITHOUT INSURANCE) and be treated at the County hospital. But, just take a look at their staff/doctors/clientele, and you will pray for something- anything - better to come along.

Just my opinion, based on my experience.

Re:Only one question..

[pongo000]

Form a legal corporation (or LLC, or LLP, or whatever) with two or three other individuals. Then you're eligible to negotiate group rates. You don't even have to like the people you're organizing with; just find some like-minded individuals who need insurance but don't want to be bilked by individual policy rates (if you can even get an individual policy -- good luck).

Re:Only one question..

[tbase]

Yes, yes, spoken very authoritatively and with the requisite amount of condescension for a Slashdot poster.

Right back atcha :-)

Excellent points, especially for the clueless whom I'll reply to directly in a moment...

You clearly state the other side of the coin - I was addressing the comment from the standpoint that many people think that the $30 a paycheck that gets deducted is what their insurance is actually costing them. Not even close. First of all, it's pre-tax, so it's even less. Second, most employers pay a good chunk as a benefit.

Obviously a group plan will be cheaper per person, assuming that the groups mean health demographic is roughly the same as the individual's. But when you compare making say $15 or $30 an hour as an employee to say charging $60 to $120 as a freelancer, you should be able to afford good, quality comprehensive healthcare. It's simply a cost of doing business like anything else. And like many things, it's more expensive for a small business than a large one.

The same goes for comparing rates of a business with 30 employees to a business with 300. Are you going to turn down a better job with a smaller company because the health insurance is more expensive? The problem is that the 'one man operation' only has himself to consider, so he often considers health insurance as optional, or too expensive to afford.

Re:Only one question..

[edverb]

You could look into a resellers consortium like the ASCII Group and avail yourself of group discounts on health insurance, and other useful services for small independent service vendors.

There are plenty of ways to get discounted health insurance. If you're in this field, another suggestion is to consider joining the local chamber of commerce. Not only can the local CoC's offer discounts among it's members, but they also serve as a valuable source of potential clients (albeit at a slightly discounted rate, of course).

Another useful tip is trading your service for various needs. For example, I found an amazing accountant who trades his services (both my corp and personal tax filings) in exchange for service calls once or twice a month when something needs to connected, built, or otherwise attended to. He's so thrilled with the arrangement and my help that he's a constant source of referrals and testimonials in my sales literature. He pays my cost on hardware, and the service (which saves me considerable money-- the guy's a financial genius of the highest integrity, the best combination of attributes in a small business accountant) is a wash. Fred's sage wisdom & business acumen comes at no additional charge, another huge plus. One thing these articles don't mention is how hard it can be to "work in a vaccuum", left entirely to your own devices. It's nice to have someone to bounce ideas off, and provide an alternative take on business decisions (hiring, marketing, etc).

By the way, excellent article. It's apparent that Grant Barrett has the wisdom of the experience. People looking into independent computer service as a way of making a living would do well to take his advice, especially the parts about sharing the knowledge freely with "competitors" and providing free phone support where it suffices.

Re:Only one question..

[tbase]

Sorry, but when you compared the "$30" you pay to the $300 it would cost your girlfriend, I couldn't help but think you didn't have a clue. I think "any moron" would have read that as a direct comparison, and as such it is flawed. What your employer contributes is part of your compensation package, and you obviously know that. I see your point, and I can respond to it without the need to insult you.

Your original reply told me to look at the difference in cost before I started spewing. Now you say you know what the cost is, but if that's the case, why can't you see my point. What difference does it make if your employer pays it, or work for yourself and pay it?

Like I said, just as insurance is part of the cost of having an employee, it's also part of the cost of working for yourself. If you can't afford it, you can't afford to work for yourself - you need to save more. So yes, if you don't have adequate savings, it can be a huge obsticle.

Choosing to start a business without adequate startup capital to fund your insurance is a choice. That's how most small businesses start. Most small businesses also start without even the simplest of business plans. And the vast majority of small businesses will fail - That's a fact. And they will fail because of choices. Sure, most will fail for lack of planning or funding, but really, they'll fail because someone's choice to jump in without proper planning or funding.

As far as the worker's comp, vacation, etc.- having run my own business for over 6 years before incorporating and moving on to more fulfilling pastimes, I am fully aware of what is required of a self-employed person, an employer and a corporation. I my statement was that most people have jobs so someone else can take care of those things - in other words provide all the things that come with employment, which includes the security of worker's compensation and unemployment insurance, and the relaxation of a vacation.

It's all about choices. I even knew of an employee (not mine, thank goodness) that thought he couldn't afford his share of the health insurance premiums (the $30 in your case, working at a small company, more like $80 in his case). Although he "couldn't afford" the coverage, he somehow managed to smoke over a pack of cigarettes a day. Now he wouldn't have even had to quit smoking to afford insurance - just cut down. Choices. That's what makes this country great - choices. Some good, some bad, some illegal. But you make them for yourself, usually.

When I first started my business, I worked 10pm to 2am at a newspaper so I could afford what I felt I needed for my business, and still be available during business hours. (You can't imagine how hard it was to get that job with my "kindergarten experience").

But hey, what's to worry about? If you're uninsured and get sick or hurt, you can always go to the emergency room, and declare bankrupcy if it gets too expensive. Let the healthcare system absorb the cost, it's not like they're going to loose any money. They'll just keep upping everyone's premiums. So no big deal, right?

Seriously, read the article, check out the SBA, go to the library - there's a ton of free info out there to get started right. My first business went like most others - I jumped in and went at it, with no business plan or savings. It even lasted a couple years- but with a plan, some savings, and some free help from the volunteers (mostly retired business owners or corporate officers), it probably would have done as well as my second one.

And your girlfriend - my God, being a self-employed single woman is way better than being a guy - there's all sorts of help out there. She should check out the ABWA. And if she's a minority or a single mom, there's organizations practically begging to give her a small business loan so she can start off right, with a salary and health insurance. You just need a business plan, and the SBA or ABWA will help with that.

If you can barely pay the bills as it is, and you think that's a good position to be in to start a business, you've been watching too many infomercials.

Great Checklist

[dlosey]

The personality checklist fits the bill of both a technician and an entrepenuer very well.

I'd also say it is a pretty decent description of the typical slashdot reader, IMHO

Re:Great Checklist

[edverb]

In conclusion, small businesses are ghetto. They're frequently late with payments, as well.

Not so, if you don't offer payments. I get paid upon completion of the job. (I'm not the author, but it's obvious he's insightful about being an ISV via his experience) If a small business can't agree in advance to pay upon completion, then I don't take the job. It's a simple matter of managing your receivables by not allowing them to accumulate.

I realize that critizisms like "how parochial his worldview is" sound impressive, they just happen to be wrong. The bit about ignoring the print magazines is spot on, you'll find exposure to 50x more useful (and interesting) concepts reading Slashdot than you ever will reading "Top 10 Mobile Devices for 2003!" in one of the many periodicals offered beside the checkout in Staples.

I imagine you're a tech too, and have experience of your own, but to encapulate that whole article into some "worldview" box of your creation is ridiculous. This article consists of practical advice, not a manifesto.

Lastly, can you think of a more never-ending source of revenue than repairing Winblows boxen when they crash (as they occassionally do ;-)...at $75-$120 an hour?!? Sure I use GNU/Linux myself personally (and I recommend it as often as possible to my Windows clientele), but I'm not above whipping a Windows machine into shape when I'm getting $75 an hour to do it. Heck, it's fun. Some of my clients are already getting used to Mozilla and OpenOffice.

Is that really what we set out to do?

[teutonic_leech]

I didn't study non-stop for the last 11 years just to join the ranks of technical support. The whole reason for me to get into technology and eventually into IT was to 'build cool sh...t' - not to listen to some technophobe bitching about why her/his system got corrupted after opening some suspicous email attachment. Seriously, is that all we'll be relegated to do? Hey, I rather start laying bricks then - at least I have something productive to look as the fruits of my work. Just my two cents, I bet many will disagree - but I'm not wired that way...

Re:Is that really what we set out to do?

[smitty45]

are you assuming that the people reading the article have been trained for years only to work in a less-skilled position ?

or do you think it's possible that some people reading the article are fresh out of college history majors who like computers and would make excellent money doing technical support ?

some people like (and make LOTS of money) doing technical support.

Re:Is that really what we set out to do?

[artemis67]

Everyone has different goals for their careers, though. Your goal is to build cool stuff; mine is to eventually build my own business. If I could walk out today and duplicate my current income by freelancing, I would absolutely do it.

But I take issue with the article's author that there is enough freelance tech support for everyone. A lot of programmers are going to naturally fall back on that as their jobs move overseas, and it will quickly become saturated.

Beware of anyone promising a "one size fits all" fix for this downturn...

Re:Is that really what we set out to do?

[paitre]

I'm with artemis on this one.

I want nothing more than to be running my own business, reporting to noone except for my clients and my self.

A lot of programmers are going to naturally fall back on that as their jobs move overseas, and it will quickly become saturated.

This is assuming that the average programmer is -able- to do technical support work. I've worked with guys (and gals) who, outside of their IDE, knew -nothing- about the software on their systems and how to fix it. -These- are the programmers that are losing their jobs more often than the truly skilled people. That's not to say skilled people aren't losing their jobs too, because there are.

Re:This is an easy one

[smitty45]

"2. Never admit that you don't know something - act like you know everything that has to do with computing" Terrible idea. Every dweeb out there has enough ego to support pretending that they know everything. I keep my clients by being able to admit I don't know, then find out. They appreciate the honesty, instead of the pseudo-consultants that talk up a storm.

Re:This is an easy one

[Zooka]

2. Never admit that you don't know something - act like you know everything that has to do with computing

2a. Never get caught in a lie. Admitting you don't know something might be a negative, but it's better than proving yourself to be deceitful.

Re:This is an easy one

[prator]

They appreciate the honesty, instead of the pseudo-consultants that talk up a storm.

I agree. I think that it is horrible advice to tell someone to act like they know everything. Everyone that I've ever known that interviews prospective employees always says to be honest about your knowledge.

-prator

Re:This is an easy one

[mkelley]

'3. Charge fair, but on the high end. If you charge too cheap, the PHBs think that you aren't skilled "

I charge about 50% less, simply because I don't have the overhead of my competitors. Most, if not all, of my clients dropped their previous service when they realized that they got better quality, cheaper, than others who were out to gouge.

Re:This is an easy one

[MrLint]

Even if your clients dont know anything its certainly clear when someone is flailing. Knowing when you don't know something is wisdom. Knowing how to find what you don't know.. thats smarts. If your customers trust you because of your previous work telling them you will find out or you have to research is ok. People don't like being lied to.

Re:This is an easy one

[Zooka]

"I keep my clients by being able to admit I don't know, then find out. They appreciate the honesty, instead of the pseudo-consultants that talk up a storm."

Exactly. If you don't have the answers to simple questions, then you you're just doomed. But no reasonable person expects you to have all the answers to all the difficult problems. "Hmm, I don't have the answer to that one now, but I'll have it for you by this afternoon." - has always worked well for me. It shows you not only to be honest, but smart, confident, and able to work outside of a set boundry.

Re:This is an easy one

[Shant3030]

2. Never admit that you don't know something - act like you know everything that has to do with computing.

Interviewers can smell bullshit from a mile away.

My life work.

[DigiShaman]

Basically, this article hit the nail on the head. Unfortunatly, there are way to many geeks out there with a holier-then-thou (think EGO)attitude that really pisses clients off (they are not customers, you want to keep there business). Not only that, but those type of geeks are anti-social. If you really want to been in the on-site end user support industry, you must have the nack for salesmanship and the love of technology. This is job you must LOVE to do. If your in it for the quick buck, then your just going to be another looser all future prospects for the rest of us entrepreneurs .

Just what I want....

[gatkinso]

...an unemployed (God knows the real reason why), person off the street working on my network... while he is learning his job via OJT.

Wonderful.

Re:Glamour

[Jason Earl]

Glamour my @$$. There is nothing remotely glamorous about doing tech support for small businesses. It's all about showing up, getting things to work, and getting the heck out. He runs a one person consulting business. At the end of the day his stuff either works, or he doesn't get paid. Yes, talking to people is a requisite part of being in business for yourself, but that doesn't mean that he doesn't have to actually fix his clients problems.

$50 to $100 may sound "glamorous" to someone who has never been in business for themselves, but the fact of the matter it is that this fee is so low that larger consulting firms can't even pretend to compete. Those prices simply don't leave any room for overhead. Once you take into consideration that you only get paid for "billable" hours, and the fact that you get to do all the bookkeeping, billing, tax work, etc. it isn't nearly the deal that it appears to be. Being a plumber or an electrician is probably more lucrative.

It's definitely doable, and there really is plenty of work. However, it's hard work, without paid vacations (or respite of any kind :).

non-for-profit companies as starters.

[KKBaSS]

Snag a local non-profit & help them, get them going with all the latest
slickest stuff from novell and what opensource has to offer as a show of what you can do.
http://www.giftsinkind.org/ has a great Novell product donation policy, &
http://www.techsoup.org/ has some other good stuff too (i want that 24port
cisco switch, can i be a nonprofit too? :))

Also check out www.computerclub.org/nonprofit.htm, that has some good links
on it also, & had good luck with members of www.cristina.org too like reboot
from Atlanta.

Plunk a couple of these very satisfied not-for-profit companies up as testimonials to your work & you may very well be off & running with your own consulting biz. Just dont forget about the nonprofits once you actually have paying clients.

Re:This is an easy one

[geekoid]

if that were true, I wouldn't be sitting next to a guy with '5 years' of .net experience.

Re:Glamour

[Reziac]

I think the original "glamorous" comment was being sarcastic -- for a while in the '80s and '90s there was this social-climber thing of being self-employed (as if this automagically created a self-made millionaire), and it had nothing to do with the tech or consulting fields. Tho come to think of it, I wonder if it may have contributed to the dot-bomb mentality that followed.

Anyway -- working for yourself doesn't mean you have to do all the billing, tax records, etc. too. If you don't want to do it, farm it out to an accountant. There are plenty of SOHO businesses out there that specialize in such support for other SOHO businesses.

An independent plumber or electrician is *exactly* the SAME sort of business as a computer consultant, except that they deal with pipes and wires, not bits and IC chips. Remember, a plumber or electrician has to self-promote, since he doesn't work for someone else for a guaranteed wage. And he has to deal with bookkeeping stuff too, either himself, or farmed out to yet another (likely one-person) business.

As to overhead -- that's a tradeoff: If you don't have a storefront, obviously you don't have to include that overhead in your hourly rate. OTOH, the lack of a walk-in storefront reduces your visibility (and to some, your credibility) to the general public, and you'll need to make up the difference with other forms of self-promotion (business cards, yellow pages ads, etc.)

Vacations, days off, and sick days are of course unpaid, and getting them at all depends on whether you're making enough to afford 'em, and whether your business allows that much time away from clients. Set days and hours you're available if you can, but be prepared to be on call 24/7 until you're established enough that you can be "closed" after normal business hours.

(And yes, I've been self-employed for over 30 years.)

Re:This is NOT a troll, but

[HeyLaughingBoy]

I can see that the typical slashdotter has more interest in making a possibly snide/cute/humorous/clever remark about Grant's lessons in the IT business than putting it to use. How sad.

But not surprising. I'm sometimes amazed by the level of venom unleashed against non-technical people here. There are quite a few /.ers who use their technical skills to "validate" their supposed superiority. An article that focuses on the human, rather than the technical, aspects of being in business for oneself gives them a lot of ammunition.
I for one love these types of articles. It's interesting to see a different perspective and observe how people turn knowledge of technology into money. Then again, I subscribe to misc.entrepreneurs.moderated :-)

I started doing this 3 years ago....

[Anonymous Coward]

About 3 years ago people stopped asking me
questions about their computers that I didn't really
know the answer to offhand.... So I started charging.

I live in a small town.... Consequently I am unable to charge what I could in the next big city.
Fortunately I don't mind charging less to avoid having
to work in the city (shudder)

Repair work for Home users:

Everyone under 65 years old. $60/hr with a One hour minimum.
Everyone over 65 years old. $40/hr with a One hour minimum

Tutorial rates:

Everyone under 65 $20/hr
Over 65 $10/hr

Thinking on it.. I should probably charge more for tutorial... yet I don't do enough for it to become a hassle yet.

As for businesses... I only do a few and they are on a per-visit basis as of yet.
I generally don't charge them the minimum, just tally and add up at the end of the month.

I do excellent work..... have for years....
I don't lie or sell them things they don't need.
I try to talk them out of stuff they want (but don't need) and get them the stuff they need for the best rates.

When everyone is smiling.. you know the job is done :)