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

Eh, whatever you do...

[ambisinistral]

Don't print your business card in Elfin. Showing up to your first meeting with a potential client dressed as a Klingon is a bad idea too.

Re:Eh, whatever you do...

[Esion Modnar]

Showing up to your first meeting with a potential client dressed as a Klingon is a bad idea too.

Of course. Everybody knows that dressing up as a Romulan is a much better idea.

Re:Eh, whatever you do...

[WTFmonkey]

Nope. He's a businessman. Go with a Ferengi.

Re:Eh, whatever you do...

[endoboy]

you might also want to avoid mentioning that you think that "Star Trek is Literature"

Only one question..

[kmak]

What do you do about health insurance?

Re:Only one question..

[pogle]

3 words: Don't get sick...

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..

[confused one]

You charge enough to cover your expenses. Including insurance (not just life, business insurance covering liability, insurance on your equipment, etc.)

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]

I had Blue Cross catastrophic insurance.

My wife (now ex) needed to have her appendix taken out. Cost me about $7,000 out of pocket. They don't pay for silly things like bandages, IV's, food, etc. They pay for the doctor, and the surgery.

Two years later, she had to have her gallbladder taken out (they shoulda just taken her brain out at the same time) that one cost me another 8-9 thousand. (Emergency room coverage is really, really bad)

Catastrophic insurance is pretty crappy, and after having these two episodes, I think that Blue Cross is one of the crappiest.

People may complain, and hate HMO's, but when your biggest priority is covering your ass (financially) they can't be beat. Those two surgeries combined would have cost me $10 with Kaiser.

Re:Only one question..

[arnie_apesacrappin]

Being a consultant, I carry my own insurance. I know it seems like a pain, but it is quite easy. I used ehealthinsurance to find a policy that fit my needs.

One thing to ask yourself is, "how much do I get sick?" If you're single and rarely visit a doctor, a very simple policy could be good for you.

The company that employs me as a consultant offers health insurance. For me being single, it would cost $65 a week, for a minimum expenditure of $3380/year. The policy I have costs $130 every three months, for a minimum expenditure of $520/year.

But, the coverage isn't that great. The policy covers zero percent of the first $2000, then eighty percent of the next $8000 and everything after that each calendar year. So if I became really ill, I'm looking to pay $2000 (1st $2000) + $1600 (20% of 2K to 10K) + $520 (yearly premium) for a grand total of $4120.

I've been working for this company for about a year and a half. I've been to the doctor once, with the visit + meds costing about $250. Add that to six premiums, and my total output comes to about $1030. If I had paid for my "employer provided" health care, I would have already spent over $5000 plus any co-payments.

Now there is the fact that the "employer provided" healthcare is paid for by pre-tax dollars and I'm paying after taxes, but the difference unless I become quite ill still doesn't matter.

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..

[tbase]

Actually, I'd be willing to wager that I've got a few years on you, my naive young Slashdotter.

I'm sorry if my wording was overly complicated. Maybe you should ask your employer what percentage your $30 actually pays. Then ask your employer how much it would cost to add your girlfriend to your policy, if you were to get married.

Allow me to spew a bit more... your employer is paying the majority of your insurance premium, and that is part of the total cost of having your mass grace the presence of their facility. You will likely find that they will not pay the majority of your theorhetical spouse's premiums, so don't expect to add her to your policy for an additional $30 a month, should you ever get married.

Now pay close attention, because this is the point you missed last time, and probably the point that got me modded up - You make more money per hour freelancing because you have to cover these types of expenses that your employer is paying now. Now the problem is getting to the point where you're billing almost as many hours as a full-time job - that's why you save, plan, save some more, and then plan some more. And then save some more. Most people have jobs instead of working for themselves because they like being taken care of, and having someone else worry about things like insurance. And unemployment tax. And Social Security. And worker's compensation. And vacation time. And sick leave. And FMLA leave. And maternity leave. And training. And wrongful discharge. And liability. Well, you get the idea. Or maybe not.

Re:Only one question..

[kfstark]

If you are leaving an existing job, look at a COBRA plan to extend your existing insurance for 18 months. You will pay slightly more than the group rate, but it will guarantee you coverage. Do NOT let your coverage lapse!!!

The following is my personal experience and should not be taken as complete truth since I am still working through the process. Since my father-in-law is an accountant, I have been getting good advice to guide me through this process.

Until recently, I was able to keep insurance for my family through my wife's insurance. Since my wife no longer works we are looking for insurance for the four of us.

Surprise! my son's bout with pneumonia (sp?) more than 1 year ago has caused all sorts of problems with acquiring individual insurance. Not only will they not cover my 4 year old son, they want to increase the rates on the rest of us by 50%. This amounts to quite a sum of money.

We stopped the process of trying to get insurance online and contacted an agent. We still couldn't get reasonable insurance and no company wanted to cover my son. However, we have been informed that we cannot be refused insurance if we sign up as a group. This will also keep our rates lower than the quotes we had been getting.

How do you qualify as a group?

You need to have two people involved in your company. I formed a single member Limited Liability Company (LLC) in California about two years ago. I have since added my wife as a member of the LLC and we suddenly qualify as a group and can apply for group medical insurance. We are doing this now, so I don't have estimates on costs. However, I would like to mention some other steps I have taken because of this.

Normally, an LLC does not require you to be a W-2 employee of the LLC since the money passes through the LLC to you as an individual. This means that you don't have to file a corporate tax return or employer tax statements. I did not want the burden of managing all of the paperwork that comes with hiring employees and printing paychecks. Surprisingly, the payroll companies (ADP in this case) are very cheap and handle the paperwork for you. I will pay a total of $50/month for all of my payroll and tax reporting requirements.

Why would I spend $50/month on this?

When you have employees, you can set up an employee medical reimbursement plan on a pre-tax basis. Without an employee medical reimbursement plans, you can only deduct medical expenses in excess of 7% of your income (I think this number is changing). With a medical reimbursement plan, you can deduct 100% of your employees medical expenses (vision, dental, prescriptions, copays). However, you need to have employees for this. Since my wife is already doing the books and my billing, I hired her and gave her a salary (less than my salary of course).

What does all of this mean?

It means that you should consult an accountant. There are a number of ways to reduce your tax burden and get better insurance. Some of the things that seem expensive and a pain in the ass might not be. Learning the ins and outs of business practice can be time consuming and may not seem that important when deadlines loom. This is why you pay an accountant and follow their advice. If you are earning $100k/year and wasting $10k on insurance,taxes or other business expenses, you can afford to take some time to fix your expense structure or pay someone to fix it for you.

Good Luck,

--Keith

Re:Only one question..

[nitehorse]

...Then ask your employer how much it would cost to add your girlfriend to your policy, if you were to get married.

Heheheheheh.

Girlfriend? Wrong site, man. :)

Re:Only one question..

[heck]

Fact is, however, insurance is a much better deal when you get it through an organization than if you get it as an individual.

Actually, I get lower rates as an individual than I do if I work for a corporation because I am a healthy male in his 30's. The corporate rate includes a cost for all of the more costly coworkers. I've set up insurance for myself as an individual and set up insurance while working for a corporation.

That said, insurance is a better deal as a corporate entity because:

corporations can deduct the costs from their taxes (you can too if you set things up correctly)

corporations get better coverage depending on the state. In the state I now live in, individual coverage for my family does not cover maternity, although life saving surgery such as C-sections are covered. Beyond that, everything is covered and my coverage is equivalent to what I would get working for most corporations. Better way to say this is "if you are a female of child-bearing age you will get screwed with higher premiums and stranger restrictions." My wife's portion of the premium is 3 times mine; my kids are 80% of mine. When I was in California there was little difference between what was covered (there the state specifies that maternity is covered for all policies); and because Blue Cross knew my age and health history they could offer me a lower rate in comparison to the equivalent coverage I had when I was working for a corporation.

you are screwed if you have existing conditions (corporations have existing conditions factored into their premiums; hence their higher costs in comparison to me)

Dental insurance, however, sucks. There is no decent individual plan in any of the states I've lived in. It's cheaper to pay it out of pocket.

Re:Only one question..

[PeteEMT]

Some states regulate this with Pre-existiing condition type laws, citing limits on excluding conditions and/or jacking your rates up because you are sick.
These vary state by state, but if I remember right, most of the rate-limiting laws used the "Community Average" for figuring out the rate.

Of course they can still flat out deny coverage.

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..

[ortholattice]

As a self-employed and reasonably healthy person, I get catastrphic-only insurance.

I used to think this, and in theory this is how it should be. The problem is that insurance companies have negotiated DEEP discounts with the doctors under their plans, and as an individual you can't do that. In other words, you will get raked through the coals (until your deductible is met).

I just went to my file cabinet and looked up the actual insurance company's bills (that normally are not sent to me, but were as part of a response to a payment issue I had). These are from the past year, in Massachusetts.

Physical exam - $256.00
Blue Shield payment - $104.53
Blue Shield "adjustment" - $136.47
My co-pay - $15.00

In other words, you would have had to pay $256, but the insurance co. only had to pay $104.53. From the doctor's point of view, still not a bad income for 15 minutes of actual work (plus scrawling a signature on a routine letter the secretary typed up about the blood test).

The blood test associated with the exam was billed at $474.00. The Blue Shield payment was $114.62, the "adjustment" was $359.38, and my co-pay was $0. So in addition, with your catastrophic insurance you would have paid $474, whereas the insurance co. paid $114.62.

Now, perhaps you still come out ahead - stuff like this quickly adds up to your $1500 deductible. I don't know how much my company pays for my insurance.

Re:Only one question..

[Reziac]

There are group health insurance policies available for the self-employed. One trade outfit, called something obvious like "Association of Self-Employed Persons" (can't remember exactly) has a $100/yr membership fee, and as a member you can get Blue Cross coverage for the lowest available group rate.

It's the same outfit that runs TV ads occasionally, and yes, they are legit.

Re:Only one question..

[Golias]

But since I have that "catastrophic-only" insurance from a medical insurance company who negotiates the same way places like Blue Cross/Blue Shield does, I get those insurance-company adjustments, even for the money I pay (because that money is considered a "deductible"), so the end result for me is win-win. I have only the coverage I want, and I don't pay single-buyer prices for what I pay for.

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.

This is an easy one

[mao che minh]

My brief collection of "must knows" after a year of consulting:

1. Dress neat, above all else. Work out too. If you are good looking, PHBs don't care whether you know anything or not, especially the female ones

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

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

4. Never linger. If Accounting is having problems with a database client, get in, find out what's wrong, and leave immediately until you fix the problem. Don't stop to chat with the pretty secretary and try to gauge her age. Just assume that she's 17 and get the hell out of there

5. It doesn't hurt to keep you mouth shut unless there is something that you absolutely, postively have to say. Chances are, they won't understand what you're talking about anyways, you'll confuse them, which makes them annoyed. Just shut up and nod yes and no

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

[mao che minh]

I just landed a gig at a law firm (a rather large one) to install a bunch of imaging systems and "fix" their mail server. They decided not to use their usual guy because "he didn't always know everything that we needed, and would have to go look it up (sic)".

It depends on the client. Some don't mind. Some view incomplete mastery of a trade as laziness and/or ignorance.

Afterall, they all know that they could always find someone else.

Re:This is an easy one

[Zork the Almighty]

1999-2000 : Thwarted Evil Diabolical Plan

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.

Re:This is an easy one

[Shant3030]

Well since you are dealing with lawyers, you have to bullshit, because that's the only thing they know.

If you tell them that the flux capacitor on the intranode serial bus is broken, they'll just shake their head and pretend they know more about that subject than you.

Re:This is an easy one

[Anonymous Coward]

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

Until two months ago, I would have violently disagreed with this.

But recently, we interviewed this guy for a full-time position in our company. He had been a consultant for some time, and he had taken your point number 2 to heart. To say that he was cocky is an understatement.

He got a few of my technical questions wrong. This wouldn't have been that bad to me, but he was so cock-sure and arrogant, at least until I pointed out in no uncertain terms that he was wrong.

When we were deciding whether to hire him, I pointed out this flaw, and went at length about how I thought this was unacceptable. However, the other people on the team were impressed with him, and said of this, "He has been a consultant -- he has to act that way."

They ended up hiring him, much to my amazement.

Re:This is an easy one

[ErikZ]

Why shouldn't you linger?

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.

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:Is that really what we set out to do?

[Anonymous Coward]

Maybe you don't understand what tech support may entail?

I worked for myself for about 8 years doing freelance computer work (more or less "tech support"). It's amazing how knowing what the computer is capable can expand the scope of solutions. My "tech support" over 8 years involved installing and setting up networks for many small businesses, writing and debugging scripts to automate catalog updates from the mainframe that held pricing info to the PC that held the catalog layout, custom programming in Borland C++, some (but very little) custom microprocessor hardware design which I thought would be the biggest seller and a whole lot of other things. All in all, some of it was building very cool shit; certainly a helluva lot more rewarding than laying brick. Some of it was grunt work to pay the bills.

BTW, I should also mention that I got out and took a "real job" because I got tired of the feast or famine nature of the business; I was either flush and frantically busy with too much to do OR broke and bored because there was nuthin' to do!

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

[iSwitched]

The corollary to this is that I have known many exceptional programmers, possibly even brilliant ones. The types whose algorithms flowed unflawed from their fingertips, and whose knowledge of the systems and software involved were deeper than mine ever will be, but who could never possess the interpersonal skills and level of patience required to support an unsophisticated client base.

This career path is decidedly not for everyone.

charge money?

[thorgil]

You mean I can charge people for the work i do?!

Re:I make lots of money freelancing

[leviramsey]

Sir: I have patented that business model. I shall be suing you forthwith.

Re:If you are unemployed...

[John Jorsett]

Really? Maybe you just can't prove you are good at what you do. I've been in that situation: No job, no job history, and no job prospects because you have no job history.

I once knew somebody in that position. He went to a company and offered to work free. They took him up on the offer, and after 3 months, he said, 'hire me or I'm going,' so they hired him. Not the easiest way to break in, but it showed real initiative.

Glamour

[nycsubway]

This reminds me of the glamorous lifestyle that so many people 'enjoyed' in the late 1990s. It sounds as though he is simply piecing together most of his life in a way that respresents success. I wouldn't see it that way. It seems he knows how to talk to people, not engineer things. The way this person writes tells me that he doesn't know much more about computers than his 'clients'. He is simply a person who enjoys talking with people, and is relatively intelligent so he can learn the things his clients dont bother to read about.

I dont think this person describes most of the people who regularly read slashdot, the scientists, engineers and people who like to solve problems and learn technical things. He is more describing the ideal world than something that can actually be attained. And, this is something that very few people can actually do to make a living.

Re:Glamour

[MoNickels]

The way this person writes tells me that he doesn't know much more about computers than his 'clients'.

I don't have to point it out to you that I am indeed technically qualified, but I will. How do you think I've run the tech for entire 65-person offices? My good looks? Do you want references, or what?

If it sounds like I'm writing about people who don't know what they're doing, that's because I'm talking about the beginning stages, where I was about ten years ago. I know plenty now.

Re:Glamour

[arf_barf]

I was tempted to moderate you down but rather respond to your post:

I guess you might be correct by classifying most /. As '...scientists, engineers and people who like to solve problems...' But one thing you have to understand that it doesn't matter how technically good you are unless you know how to SELL yourself. This applies to almost all fields: graphic design, web design, programming etc.

I see it every day. Sometimes I wonder if some of these people have autistic tendencies ;-)

Anyhow, here is good tutorial on how to get started selling yourself: Freelance Workshops. This guy is a graphic artist, but most concepts can be adapted to any field.

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 :).

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.)

It sucks...

[Ironpoint]

Damn, tech support sucks.

Tech support sucks because people don't want you touching their Porn Station 9000, aka company laptop. Thats sound like a good idea from a sanitary standpoint. Note to users: I will not sit on your lap to work on your computer. MOVE.

Employee: You guys gonna help me?

Nick Burns: Show me what you're doing..

Employee: Well, I'm trying to save it.. so I downloaded it..

Nick Burns: Uh-huh.

Employee: ..and then I pushed..

Nick Burns: Yeah.

Employee: ..this button, and I..

Nick Burns: Uh-huh. Yeah. MOVE! God, do you run the Internet on this thing? It looks like it's got a 28.8, or something! [ techies laugh ]

Jingle: "'Cause he's Nick Burns, your Company Computer Guy!"

Old lady...

[superpulpsicle]

I helped this old lady on some freelance work way back with Corel wordperfect. Was that a mistake. Here are some questions I got...

-Why didn't Corel wordperfect come with a pen?
-Where do I buy ink if the typewriter runs out of ink?
-If I press delete does that delete everything?
-I heard it comes with a dictionary. Can I upgrade to an encyclopedia set?
-Does this program open on sundays and saturdays?

Ok, but how much do I charge?

[scorp1us]

I've done side work for years. Never made much at it. My parents told me to never talk about money, and so I feel uncomforable at billing time doing something I enjoy.

I really need to know how much to bill grandma.

$30/hr for a not related grandma?
$45/hr for others?
$90/hr for PHBs?

Of course it'll vary depending on the work and the client, bit some pricing structure would be of great help to me!

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 .

Re:Timely article since our jobs are being shipped

[Captain Pedantic]

Why do you think it is UNAMERICAN getting someone to do a substandard job for less money?

Only one question..Strength in numbers.

[Anonymous Coward]

There are insurance plans that cater to the small business.. You may even go in with other small businesses and buy a group plan, getting a better deal. Remember there's strength in numbers. That's one of the reasons you see multiple doctors working under one roof. Kind of like marriage. :)

The same idea applies to many other aspects of one's business. Office supplies for example. Use your imagination.

one more: buy Windows software

[mblase]

From the article: It's better if you have your own laptop to take with you.

I'd go this one better: make sure it has the latest version of Windows on it, if not the last two or three on distinct partitions.

I'm not a freelancer, but I recently gave freelance web development a go while I was, ah, "between jobs." My one big client came back badmouthing the work I did two months after the project was completed, mainly because I telecommuted the entire project from home using my Mac OS X desktop. This slowed down the project initially, because they wanted to give me Windows remote access software (and weren't bright enough to get VNC working through their firewall) and have me work out major problems in person instead of on the phone.

A physical presence is everything to a client, followed closely by your willingness to conform to their needs instead of imposing your own. Your clients probably use Windows heavily. When working with them, you should too.

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.

I live in a SOCIALIST country...

[Malc]

... you insensitive clod!

Seriously though, I am so glad I no longer have to worry about health coverage. I moved to Canada a few years ago, and it was like a weight lifted off my shoulders. I'm happy to pay for it via my taxes. I think we get good value for money. I don't have to worry about not being given the best insurance deal because I'm an individual and not a huge corporation looking to cover thousands of people. I also know I won't see any of the doctors bills if I get hurt reminding me that I'm ultimately responsible even though my insurer has also received a copy. I don't have to worry about my or my family's health should I unexpectedly lose my job/contract.

Self-employment guidelines...

[bytesmythe]

A few of these caught my eye...

-- I almost always solve my own computer problems on my own, or as the result of my own research.

Sure. Google is an amazing resource.

-- My friends, coworkers and family often turn to me for help with their computers and peripherals.

... and I am in no hurry to exacerbate the situation by subjecting myself to it intentionally.

-- My own computer probably would work very well if I didn't keep installing alpha, beta, development and trial software on it all the time.

I love fdisk.

-- I can usually quickly find what I'm looking for on the Internet.

Oh god... no comment.

-- I read constantly, and just about everything.

Right now it's Slashdot.

-- I rarely have a problem explaining myself.

Well, you see, officer...

-- I am somewhat sociable, but I can work for long periods on my own, too.

Sociable? ME?? Hahahaha!

-- Although I hate the term "self-starter," that's what I am.

No, I'm not! Procrastination is the root of all goofing off.

-- I believe all computer peripherals and devices are hot-swappable unless someone else is around.

What, is this Schrodinger's Computer? Once, I closed my eyes and with no one else watching, I jammed an old PCI Voodoo card into the AGP slot with the machine still running. The damn thing worked until I opened my eyes and its wave function collapsed...

-- I only keep my AOL account so I can more easily get my email from any web browser anywhere.

What geek would pay money to AOL when it's cheaper to just sign up with a host that provides webmail?

-- I get a lot of spam, but I block or filter most of it, so it's not an issue for me anymore.

I don't give out my email address to everyone and their grandmother, so spam isn't a big problem to begin with.

-- Unix is like a lover to me: I don't understand it very well, and it makes me angry sometimes, but I am still in love with it.

This one is just too sad. Sure, unix has some kinky command names, but nothing like actually engaging in their real-life namesakes.

-- I have some computer books on the shelf, but I only use them as references, not as literature.

This should be just the opposite, I think. I bet a lot of computer geeks read computer literature, not just "manuals".

-- I see nothing wrong with strapping a wireless PDA with GPS to the dog so that we can log his roaming patterns through the neighborhood.

The gadgetry (and possibly the dog) would get stolen in my neighborhood!

So, do I qualify to be an entrepreneur?

Re:Self-employment guidelines...

[MobileC]

"-- Unix is like a lover to me: I don't understand it very well, and it makes me angry sometimes, but I am still in love with it.

This one is just too sad. Sure, unix has some kinky command names, but nothing like actually engaging in their real-life namesakes."

Mutt?

Obligatory Simpsons Quote

[Nova Express]

Kang: Technical Self-Employment for all!

Crowd: BOOOO!

Kang: Technical Self-Employment for none!

Crowd: BOOOO!

Kang: Alright then, Technical Self-Employment For some, tiny American flags for all!

Crowd: YAAAAAAAAA!

He's going about it the wrong way

[pongo000]

I work from 50 to 70 hours a week.

This isn't anything to brag about, nor is it something to write articles about.

Nobody becomes financially self-sufficient by trading their time for a monetary equivalent. Who wants to work 50-70 hours workweeks? The proper way to do it is to spend a little money up front starting your own corporation, then hire someone else to do the work for you, such as the author of this article. Use the time you save by hiring someone else to do stuff meaningful to you. After all, no one wants "Worked 70-hour workweeks" on their tombstone when they die.

Re:He's going about it the wrong way

[MoNickels]

Well, I'm not bragging about working 50 to 70 hours a week. I'm just pointing out that those are the hours it takes.

Realize, of course, that about a third of that time is spent in transit (which I count as working, since I am clearly not playing) or at home writing proposals, writing reports, putting together and sending bills, answering non-emergency email, making notes for my own use, reading the tech sites and discussion forums, and keeping my updaters/patches/service packs up to date.

Which is what I should be doing now...

Re:If you are unemployed...

[asr_man]

He's in good company. That's how John D. Rockefeller got started. Well almost -- he did get paid at the end of the 3 months but he had no clue what his pay, if any, would be.

Re:Professionalism

[NotClever]

The way I read it he was just using 'Monkey Boy' as a placeholder for your real name. A bit of humor in a write up like that isn't a bad thing.

sounds like a flirt to me...

[syukton]

The client I mentioned earlier who is very sweet but not very bright was one of those clients who refused to learn, and a client I had to let go. She's very young, too, in her early twenties. I believe she was perfectly capable of learning what she needed to know, with a little bit of effort, but she constantly called on the same issues. And I constantly had to recite the same solutions over and over. She refused to be educated (see below for more about client- and self-education). She's one of those people who are used to relying too much on others, and are happy with being told there are no stupid questions.

Hmm. Sweet young lady calling every day about the same stupid issues. hmmmm. I'd like to venture a guess here that maybe she's turned on by your intellect and wanted to screw you eight ways from tuesday. Now that, my friend, is the kind of client you pass on to another reasonably intelligent tech, unless you're willing to take it yourself. ;)

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.

Corny title, awful cover...

[pmorrison]

but 'From Serf to Surfer: Becoming a Network Consultant' by Matthew Strebe gives the same sort of advice on the same topic in great depth. Highly recommended if you want more information. Also recommended 'The Secrets of Consulting' by Gerald Weinberg, great for understanding pricing and the value of your time among many other things.

I was self-employeed for 1.5 years after the internet consultancy I worked for folded... I made as much money and had more free time (some of it spent biting my nails about when the next gig would start). In my experience the advice in the articles and these books is pretty solid.

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 :-)