Consulting for your Current Employer: Make Your Boss Your First Client
Alright, like last week, this week’s reader question Monday occurs on Tuesday, but this time because I was traveling all weekend until getting home Monday morning at 3 AM. So I basically just walked in the house, laid down and went to sleep, rather than logging in to publish.
Today, I’m going to talk about consulting for your current employer. Er, well, consulting for your current-but-soon-to-be-former employer. How do you flip your current salaried gig into a consulting arrangement?
Here’s the actual reader question.
You mentioned in a post that when you started freelancing full time, you negotiated a contract arrangement with the employer you were leaving. I was wondering if you could go into how you framed that conversation and if there were any special circumstances that allowed you to do that. Thanks!
First of all, it’s now been a pretty long time since I did that. My recollection is thus rather hazy, but I think my specific situation will not prove overly helpful to most reading.
That position was an executive leadership role. Leaving one of those voluntarily, with an offer to consult, tends to have a high chance of success compared to leaving an individual contributor role. They needed my help with things like hiring my replacement, transitioning responsibilities for my direct reports, and that sort of thing. And, I doubt most of you reading this advice (or the reader asking) are leaving CIO/CTO roles. So I won’t focus on that.
Instead, I’ll draw on my career experience and lengthy organizational consulting history here. How can a software developer convert an employer into a client?
Captive Shops
Before you set your master plan in motion, however, stop to consider something. What do you want your freelancing to look like?
In Developer Hegemony, I talk about how corporate opportunists should view themselves not as employees, but as companies of one. For instance, most people don’t think anything of volunteering to work 45 or 50 hour weeks for no extra money. They assume it’ll all take care of itself come annual review time. (It won’t.) But if you regard yourself as a company of one, then this behavior looks like you agreeing to give a client a 25% discount on your services for no reason.
If you’re a corporate employee and not in the habit of viewing yourself this way, I suggest you start. It’ll help you avoid sucker culture. And it’ll give you interesting perspective, such as the fact that you’re really a service provider with exactly one client — namely your boss. And that client exerts total control over your financial well being. This makes you a so-called captive shop — you’re a captive of an 800 pound gorilla client that can crush you on a whim.
The question to ask yourself when you contemplate going freelance is whether or not you want to stay that way. Seriously. Because this will determine how you approach making your transition.
The Tom Hagen Strategy
In the movie The Godfather, Tom Hagen is a lawyer that represents the Corleone crime family. In one scene, he explains his livelihood to another character’s dismissive challenge of “who the hell are you?”
I have a special practice. I handle one client. Now you have my number. I’ll wait for your call.
As lawyers go, Tom Hagen is a captive shop. He puts his fate entirely in the hands of the Corleone family, who treats him as a de facto employee. If you want to go this route (at least to start), then you have a specific strategy for converting your employer to your client. It has two core components:
- Make yourself indispensable.
- Offer your resignation, but with a budget-neutral pitch to stay on indefinitely as a contractor.