What do you do when it no longer works?
Received an email a while back from a fellow engineer whose consulting firm is struggling. The question was what to do now?
First, a little background. To protect privacy, I’ll be purposefully vague.
He started a consulting firm some years ago, but it recently began to slide. Rather than give up, he kept putting money into the business – but with a negative impact on his finances and retirement. Cash flow is now a key concern.
So the question posed to me was not about starting a consulting practice, but rather – What do you do when it no longer works?
That is a tough one. Here is my sanitized reply:
Wish I could say I had never heard your story before. Sadly, I have. The good news is things usually get better, but not without some pain.
Here are three examples:
- Former neighbors (in their 50s) who owned two small restaurants for many years. When the business slump hit in 2008, they refinanced their house to keep things going. In the process, they lost the businesses and almost lost the house. But they are now recovering, as they went back into the corporate world. The good news is that they found jobs where they could use their valuable skills and knowledge.
- My older son (in his 40s) who was ousted from his position (after an acquisition.) Small thanks for helping grow a small company by 10X and handling the complex financial details of the transaction. So he took his proceeds and hung out his shingle as a business consultant, but within a year it was obvious it wasn’t working fast enough to provide an adequate income. The good news was that one of his clients (a start-up) hired him.
- Me (in my 30s). Fired one day from a start-up I helped launch, I hung out my shingle. That only lasted a couple of months until I realized it wasn’t going to work – for now anyway. So I went to “Plan B” and found another corporate engineering job. Of course, that was easier then as I was much younger.
Two common thread on all three cases were:
- Recognizing the business was not making it (at least fast enough to provide sustenance)
- Changing direction (while still gaining valuable experience and knowledge.)
My first thought is to see if any firms have an interest in hiring, even on a part-time or sub-contract basis. These firms might be other consulting firms, past/present clients, or even vendors serving his technical community.
Your knowledge, contacts and experience are valuable. This would let you focus on the technical side of the business and not worry about the sales/marketing/management side of the business.
A second thought is to check with technical contracting firms. Some are small, and some are large (like Manpower.) I know several engineering colleagues who have gone this route.
One caveat – do NOT pay anybody ANY money up front. The legitimate firms make their money when they place engineers with their clients. Many also offer group insurance and related benefits.
In both cases, the business still exists – just in a different form. Incidentally, nothing wrong with changing directions. Sometimes it is better to stop the bleeding, and start the recovery.
As a fellow boomer, these approaches are likely more successful than seeking a full time position. Many companies want to hire the younger people full-time, but are willing to take on us old-timers part-time. Of course, if you find a suitable full-time position, go for it!
My sincere best wishes, and feel free to write again if you have additional questions or comments.
If you are in this situation, don’t despair — it took me two tries to make it as a consultant, and four tries for the training part of our business. And there have been several ups and downs along the way.
Finally, there are no guarantees for success in any business, consulting or otherwise. Change is inevitable, and the key is to be flexible.
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