When you decide it is time to start your consulting business there are several things you need to put in place in order to brand and market yourself. Here are a few items to put in place to make sure your potential clients know you are offering your expertise for hire.
1. Be Findable: If you are out on your own now, the only way you can get consulting opportunities is if people can find you. This can be as simple as making sure your information is in various address books online. Google yourself and see what comes up. If the only way to find you is by paying a private detective or online service, many people will see who else might be available with similar credentials.
2. Tell People: Yes, this is networking. Tell your friends, family and colleagues that you are consulting on projects now. Make sure you let them know what types of projects you are looking for and what you have going on . This is also a good time to reach out to some of us recruiters to let us know in case we hear of any opportunities.
3. Make a consulting resume. Put your expertise down on paper, including relevant experience in a form like a resume. It can be more specific for the area you are planning to consult in, but it should give a good outline of your background. You can include projects you have worked on and clients you have worked with, and specific solutions you have brought to companies.
4. Have a business card. Put your name, company name if you have one, and all of your contact information on a card and have them ready for potential clients. You can get cards made up online quickly and inexpensively. I'll put my plug in for FedEx Kinko's who has always done a great job with my previous corporate and now WineTalent printing.
5. Put together a website or webpage so that people can find you even easier. There are many sites that can help you put together a simple web page that will let potential clients know you are in business. I have had good luck with www.register.com and www.godaddy.com. My current website was redesigned this year and S King Design did a wonderful job.
6. Get involved in industry functions. Getting out there and mingling with old contacts and getting your company listed in trade publications is important. If you can provide presentations or topic specific information your name can be put forward as an expert on industry meeting literature. This will also make you easier to find on internet searches as well.
Good Luck with your consulting business, and I look forward to hearing from you.
Showing posts with label independent consultants. Show all posts
Showing posts with label independent consultants. Show all posts
Saturday, December 5, 2009
Friday, February 6, 2009
Avoid the Taxman
Consulting in the wine industry? Thinking about it? Well, be smart and make sure you are a true consultant in the eyes of the IRS.
When you are making a career change, or in between traditional jobs it is natural to think about consulting. It's easy to put out your own shingle and say you're a consultant. But before you venture too far into consulting, make sure you are handling your business correctly.
Companies use consultants in various areas. Wineries use consultants for winemaking, vineyard management, marketing, sales and many other areas. There are many opportunities for a skilled professional to carve out a healthy occupation being a consultant. Companies use consultants frequently to handle areas that they feel need special attention. If a winery owner doesn't know the ins and outs of a particular subject, they will hire a consultant to provide them with the information and often to provide a solution for a problem. While wineries do hire many regular, full time employees for the majority of their positions, hiring a consultant allows them some flexibility.
Okay, so you want to consult, and a winery needs you. To protect yourself and the winery from any potential IRS problems, here are some guidelines to manage your business. The IRS offers an online 12 point checklist for you to review that a client can use to make sure they are hiring a consultant. A consultant is a business person who is responsible for their own business, taxes and marketing. A winery does not have any responsibility to a consultant other than that outlined in a consulting agreement. The general rule of thumb is that a person is an independent consultant if the hiring company has the right to control or direct only the result of the work, not what the work is to be done or how the work will be done.
The basic items the IRS checklist covers are:
For the following questions, a "yes" answer means the worker is an employee.
1. Does the principal provide instructions to the worker about when, where, and how he or she is to perform the work?
2. Does the principal provide training to the worker?
3. Are the services provided by the worker integrated into the principal's business operations?
4. Must the services be rendered personally by the worker?
5. Does the principal hire, supervise and pay assistants to the worker?
6. Is there a continuing relationship between the principal and the worker?
7. Does the principal set the work hours and schedule?
8. Does the worker devote substantially full time to the business of the principal?
9. Is the work performed on the principal's premises?
10. Is the worker required to perform the services in an order or sequence set by the principal?
11. Is the worker required to submit oral or written reports to the principal?
12. Is the worker paid by the hour, week, or month?
13. Does the principal have the right to discharge the worker at will?
14. Can the worker terminate his or her relationship with the principal any time he or she wishes without incurring liability to the principal?
15. Does the principal pay the business or traveling expenses of the worker?
For the following questions, a "yes" answer means the worker is an independent contractor.
16. Does the worker furnish significant tools, materials and equipment?
17. Does the worker have a significant investment in facilities?
18. Can the worker realize a profit or loss as a result of his or her services?
19. Does the worker provide services for more than one firm at a time?
20. Does the worker make his or her services available to the general public?
(from TaxProphet.com, http://www.taxprophet.com/apps/active2/indep-mm.html).
I know it is a lot to review, but it is good to know what is required, so that you can call yourself a true consultant. I am not a lawyer, but think the information is helpful. Let me know if I'm on or off base.
When you are making a career change, or in between traditional jobs it is natural to think about consulting. It's easy to put out your own shingle and say you're a consultant. But before you venture too far into consulting, make sure you are handling your business correctly.
Companies use consultants in various areas. Wineries use consultants for winemaking, vineyard management, marketing, sales and many other areas. There are many opportunities for a skilled professional to carve out a healthy occupation being a consultant. Companies use consultants frequently to handle areas that they feel need special attention. If a winery owner doesn't know the ins and outs of a particular subject, they will hire a consultant to provide them with the information and often to provide a solution for a problem. While wineries do hire many regular, full time employees for the majority of their positions, hiring a consultant allows them some flexibility.
Okay, so you want to consult, and a winery needs you. To protect yourself and the winery from any potential IRS problems, here are some guidelines to manage your business. The IRS offers an online 12 point checklist for you to review that a client can use to make sure they are hiring a consultant. A consultant is a business person who is responsible for their own business, taxes and marketing. A winery does not have any responsibility to a consultant other than that outlined in a consulting agreement. The general rule of thumb is that a person is an independent consultant if the hiring company has the right to control or direct only the result of the work, not what the work is to be done or how the work will be done.
The basic items the IRS checklist covers are:
- Behavioral Control: An independent consultant is not directed and controlled by the client. The client can only direct and control the work.
- Financial control: As a contractor, you have a financial stake in the work, and will incur expenses that the client does not need to reimburse for. Also, if you can show a profit or incur a loss you are more likely to be an independt contractor.
- Relationship of the Parties: As a contractor, you need to seperate your company as much as possible from your client company. You must maintain your own benefits, insurance and business. You are not an employee, and so you aren't entitled to the same benefits an employee is.
For the following questions, a "yes" answer means the worker is an employee.
1. Does the principal provide instructions to the worker about when, where, and how he or she is to perform the work?
2. Does the principal provide training to the worker?
3. Are the services provided by the worker integrated into the principal's business operations?
4. Must the services be rendered personally by the worker?
5. Does the principal hire, supervise and pay assistants to the worker?
6. Is there a continuing relationship between the principal and the worker?
7. Does the principal set the work hours and schedule?
8. Does the worker devote substantially full time to the business of the principal?
9. Is the work performed on the principal's premises?
10. Is the worker required to perform the services in an order or sequence set by the principal?
11. Is the worker required to submit oral or written reports to the principal?
12. Is the worker paid by the hour, week, or month?
13. Does the principal have the right to discharge the worker at will?
14. Can the worker terminate his or her relationship with the principal any time he or she wishes without incurring liability to the principal?
15. Does the principal pay the business or traveling expenses of the worker?
For the following questions, a "yes" answer means the worker is an independent contractor.
16. Does the worker furnish significant tools, materials and equipment?
17. Does the worker have a significant investment in facilities?
18. Can the worker realize a profit or loss as a result of his or her services?
19. Does the worker provide services for more than one firm at a time?
20. Does the worker make his or her services available to the general public?
(from TaxProphet.com, http://www.taxprophet.com/apps/active2/indep-mm.html).
I know it is a lot to review, but it is good to know what is required, so that you can call yourself a true consultant. I am not a lawyer, but think the information is helpful. Let me know if I'm on or off base.
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