Next Steps In Your Career
Sometimes, even the most accomplished and seasoned IT professionals find themselves feeling blue and unsatisfied in their careers. They hit the wall, and they don’t know what to do next… Should they look for a new more exciting job or completely change their life and venture into consulting? Here is some food for thought on this topic!
The Corporate Climb: The Comfort of Stability (But With Strings Attached)
Let’s start with corporate life. Working as a full-time employee has a lot going for it. First off, there’s stability. You know what to expect—regular paychecks, health benefits, maybe even a cushy 401(k) match. There’s a clear structure, too. You get performance reviews, there’s a hierarchy, and you can see that path from junior developer to senior engineer to possibly CTO one day.
Sounds good, right? Sure. But corporate life isn’t all catered lunches and ping pong tables.
Pluses of Corporate Life
1.Predictable Paycheck
You know exactly how much money is hitting your bank account every two weeks. That financial security is comforting.
2.Benefits Package
Health insurance, retirement plans, paid vacation, sick leave—it’s a cozy little safety net.
3.Structured Growth
Many corporations have clear career paths with titles, promotions, and bonuses. You can track your growth step by step.
4.Teamwork and Collaboration
You’re part of a larger system. There are company resources, colleagues, and teams to help you out when the workload is heavy.
Minuses of Corporate Life
- Limited Flexibility
Corporate jobs usually come with strict hours and a defined schedule. Sure, some companies offer flexibility, but there’s always a clock to punch.
- Office Politics
Getting ahead can sometimes depend more on who you know than what you know. Ugh.
- Red Tape
Innovation moves slower in corporate environments. Want to introduce a new tool? Prepare for weeks of meetings and approvals.
- Salary Cap
The corporate ladder has a ceiling, and you can hit it. Even with raises, your income growth might slow over time unless you keep climbing to management.
Now let’s compare this to consulting!
Consulting: The Freedom, Flexibility, and Potential You’re Looking For
Ah, consulting. It’s like the Wild West of the IT world—full of freedom, adventure, and, yes, a bit of risk. But for those who like to blaze their own trail, it’s an incredible way to grow your career, your skills, and your bank account.
Pluses of Consulting
- Choose your clients and partners
You may already have your first client; your former boss may be calling you to help with their new business initiative! Or you may partner with a staffing or a consulting firm and pick up assignments from them. Often partnering up with other firms doesn’t only offer you new opportunities, but relieves you from back-office work, like invoicing and collecting. Some will pay you as frequently as a full-time employee and worry about getting paid for your hours later. Surely, they will take their cut, but it may be worth it! In either case, you are always behind the wheel, you dictate your requirements and choose the most advantageous arrangements.
- Variety and Growth
One of the best things about consulting is the variety. Unlike corporate jobs where you might get stuck working on the same project for months (or years), consultants bounce between different industries, problems, and technologies. You’ll always be learning and staying ahead of the curve.
- Higher Earning Potential
Let’s talk money. Consultants can often charge significantly more than what they’d make as a full-time employee. This is possible because often their pay comes from a different budget. Specifically larger companies look at their full-time headcount as fixed cost, and their annual compensation is capped at the required salary ranges. Where consultants are viewed as flexible business expenses and those dollars can be attached to projects and initiatives and therefore aren’t scrutinized and controlled by specific rules! Cha-ching!
- Flexible Schedule
We all know that full-time employees must follow company policy when in comes to time and attendance. Often the best and most trusted employees are required to be onsite along with their less productive and reliable colleagues just because employers must treat everyone equally, BUT if you are a consultant, you are likely to be given as much freedom as you earn with her behavior and work ethic
Minuses of Consulting
- Income Instability
There’s no sugarcoating this one. Consulting can mean some months are booming, and others are quieter than a forgotten Slack message. But with smart financial planning, you can ride the waves and thrive.
- No Benefits
Health insurance? Vacation pay? Forget about it. You’ll need to manage your own benefits and taxes. But the upside is, with the extra income, you can usually afford to buy your own health insurance and still come out ahead.
- You’re Your Own Boss
Sounds like a perk, right? But being your own boss also means being your own accountant, marketer, salesperson, and project manager.
Starting Your Own LLC or Inc. Is a Breeze
A lot of people get scared off consulting because they think, “Ugh, starting my own business? That sounds complicated.” Newsflash: it’s easier than you think.
Setting up an LLC (Limited Liability Company) or Inc. (Corporation) is simple and fast. There are tons of online services that will walk you through the steps, and you can have your business officially set up in less time than it takes to binge a Netflix show. Seriously, it’s that easy.
Illinois Secretary of State Business Services
Guide to Organizing Domestic LLC
Guide for Organizing Domestic Corporation
Of course, if you reside outside of Illinois, you will need to look up your Secretary of State Business Services. However, technically you may choose to incorporate your business elsewhere based on your business’s individual circumstances. And once you’re set up? It’s like a golden key that opens the door to all sorts of perks.
Tax Benefits and Write-Offs: Welcome to the Business Owner Club
When you’re a consultant and business owner, you have access to a buffet of tax benefits. Things you used to pay for with post-tax dollars? Now they’re business expenses. Here’s the deal:
Home Office Deduction: Working from home? That square footage is now a tax write-off.
Equipment & Software: Need a new laptop or specialized software? Write it off.
Travel & Meals: Meeting clients for lunch? Business trip to a conference? Write it off.
Self-Employment Retirement Plans: You can set up a solo 401(k) or a SEP IRA and potentially stash away more for retirement than you could in a corporate job.
Health Insurance: As a self-employed person, you can deduct your health insurance premiums from your taxes.
These tax benefits can make a big difference, allowing you to keep more of your hard-earned money.
At the end of the day, consulting isn’t for everyone, but for IT pros looking to be the captain of their own ship, it’s a fantastic option. Whether you’re ready to dive in full-time or start by partnering with a staffing or consulting firm, consulting gives you the freedom to grow your career on your terms.
Those who are politically savvy may quickly climb the corporate ladder while enjoying the stability and benefits of that path!
Only you know what’s right for you.
