Working Semi–Independently
Job Shops
Job shops, sometimes called contract houses, provide labor on a temporary basis to various client companies.
How They Work
Generally they will provide a contract with you to perform services for a specific client for a length of time.
Advantages
They do the marketing for you, finding clients for your services. They also pay you on a regular basis, regardless of how regularly the client pays them. Another nice feature is that many shops now offer benefits to the contractor such as:
- Health, medical & dental at reduced or limited cost
- Some holidays
- Vacation time (usually after a period of service)
Disadvantages
The main disadvantage is the tendency of these shops to keep rates down, and the lack of individual consideration in their contracts. For example, it's not unusual for the client company to be able to terminate your contract with little or no notice and for no reason, while the worker must provide up to 30 days written notice, or must complete the term of the contract.
Some folks are now asking the shops and/or client companies to provide contractors the same duration of notice.
Making It Work for You
Especially as you begin your contracting or consulting career, these shops make a great deal of sense. They provide stable employment while you get to know the market and learn a new way of working.
Consulting Firms
Consulting firms provide expert help in a variety guises to various client companies. Sometimes, they specialize in an area of business, such as data processing or banking. They have one or more consultant on staff who is an expert in one facet of the client's business. For example, an online help developer who is also familiar with banking or lending practices.
How They Work
Small consulting firms sometimes hire folks for project work. That is, for the duration of a project they are doing for a specific client. These assignments can be a lot of fun and a great opportunity to learn.
Larger consulting firms (such as EDS or Anderson Consulting) prefer to hire staff consultants who can be sent out on a variety of projects for the firm. They generally have multiple projects going on at once, and may require your assitance on more than one assignment. These firms will also hire specific skills on a project basis, though they prefer to work with in-house talent. (That improves their profit margins.)
Advantages
Pure consulting, or project work can be very interesting. These projects tend to encompass lots of new technology and business philosophies. It's a great way to trade your existing knowlege base for some new skills. Also, consulting tends to pay better than contract work. After all, they're hiring you for your expertise.
Disadvantages
These kinds of projects are often emergencies — that means lots of overtime, and perhaps travel. Be prepared for the occasional "death march" to a deadline you didn't establish. And be aware that most assignments will involve a lot of team work. If you're the kind of person who likes to work on teams, contributing to a shared goal rather than on your own, you'll enjoy this kind of work.
Making It Work for You
Consulting firms are both hard and the rewarding work. Don't try to start your career here, though. You need to bring some kind of business knowledge or expertise to the table in addition to your communication skills.
Cooperatives
Cooperatives are groups of people with a shared interest who band together to service a common need. Cooperatives are most often seen in the marketing and advertising communication arena's, though we're seeing more and more of them filtering to other areas.
How They Work
Example: A group of "creative" workers, a writer, an illustrator, a video producer and an editor, band together to form a professional cooperative. Whenever possible, they will refer work to one another. They may rent a building together, and take advantage of group insurance rates, while continuing to work as independents, within the loose structure of the cooperative.
Advantages
Cooperatives offer a support system and semi-structured work environment. They can also make your small business appear larger than it really is by providing a pool of ready talent from which you can draw.
Disadvantages
Be sure you understand any possible legal liabilities. You may decide sharing work with professionals outside your cooperative better suits your client's needs. Make sure this is acceptable within the cooperative.
Making It Work for You
Cooperatives may be the perfect situation for obtaining working space & the benefits of working within an organization without a lot of the hassle.
Project Work
Project managers often build a team for each new project or hire workers for the length of a project, to fill a need on the project team. Project workers become part of a team working towards a common goal. For example, a project to write a new accounting system for the client.
How It Works
There are as many different ways of structuring project work as there are projects. Generally, unless you are part of a project team (for example, a team assembled by a consulting firm), you will be hired for a piece of the project.
Certify that the scope of your work for the project is clearly defined from the outset, and that you, within reason, can control the scope of your efforts. (This means that you get to size the effort, rather than having it sized by someone who won't be doing the work.)
Advantages
Project work can be challenging and offer a great deal of work within a specified period of time.
Disadvantages
As with any team effort, you won't be able to control all the things that affect your work or when it must be completed. As long as the project manager is willing to let you provide input to the sizing of your task list this shouldn't present problems.
Making It Work for You
Working with other professionals can be especially interesting on project teams, particularly watching seasoned project teams react to and solve problems. It's a great situation situation to treat as a learning opportunity.