Opened Door with Bright Light_by ponsulak

Laid Off? Now You’re Free to Consult!

 

“We must be willing to get rid of the life we’ve planned, so as to have the life that is waiting for us”

– Joseph Campbell

The first time many people consider PR freelancing or consulting is the day they learn their job is no longer. If you’ve recently been laid off, or are concerned you might be, the time to think about working as a PR consultant is now.

This may be temporary while you simultaneously seek full-time employment, or you may find you love it so much you permanently join our ranks! Did you know:

There’s no better time to be an independent communications consultant! The on-ramp to consulting may be easier than you think – learn more below.

Important first steps

Opened Door with Bright Light_by ponsulakWhere to begin? If you’re facing involuntary independent status, your head is likely reeling a bit, and that’s to be expected. Beyond the traditional job-seeking advice, here are a few consulting-related items to consider in the near-term:

  • If you’re still technically employed, plan to take copies of any information your company policy allows, in particular those related to your network of contacts (including business cards and emails) and work samples. If possible, retrieve any personal information you may have on your company cell phone, laptop, etc. You’ll need that information to help secure your new consulting contracts.
  • Don’t be ashamed of your status. These days there is no stigma against those that have been laid off, and there’s no need to apologize (even implicitly) as you network. Try to quell those demons.
  • Consider your health insurance options. If you’re married, take a look at the plans available through your spouse’s employer. In the U.S. if you’re unmarried, the selection is undesirable, or your spouse is also self-employed, you can usually obtain temporary insurance coverage through your employer’s COBRA plan. This will likely seem expensive, but it is worth doing near-term while you investigate your options further.As a starting point in your research, be sure to review the re-cap/transcript of the Solo PR PRO Twitter chat on health insurance, where we were joined by an expert insurance broker who addressed consultants’ most common questions.
  • Initially, don’t worry about a business structure, name, or any of those things that might feel overwhelming in the wake of a layoff. You can do independent PR consulting under your own name, and as a “sole proprietor,” with no up-front paperwork required. When tax time comes, you’ll just use the Schedule C form to report your income and expenses.
  • Speaking of expenses, start keeping track of them immediately. As you may know, you can deduct some of your job hunt expenses, but you can also deduct expenses if you do any kind of consulting.Just grab a folder and start stashing your receipts for anything professional, such as networking lunches, association dues, and meeting attendance fees. If you meet a colleague at their offices and you have to pay to park, that receipt goes in the folder. Buy some legal pads to write out your consulting ideas? Receipt in the folder! You get the idea… you’ll be surprised how quickly it adds up.
  • And then there’s the big question: fees. If you worked with freelance PR pros in your previous position, you probably have an idea of what PR consultants are charging in your area. If not, an excellent resource is the annual Writer’s Market publication. which often can be found in the Resources section of your local library. Though written primarily for freelance writers, Writer’s Market includes a “How Much Should I Charge” section that offers some guidance on hourly fees for PR activities. Keep in mind that the rates for freelance writers are often lower than those for experienced PR professionals.For comprehensive, step-by-step advice on rate setting, retainers and project pricing, consider joining Solo PR PRO Premium and download our exclusive book series “Show Me the Money.”

— When it comes to setting consulting fees, the biggest newbie mistake is failing to consider the extra financial responsibilities you have as an independent. In particular, in the U.S. a full 15.3% of your income will go to the self-employed version of FICA (versus half of that — 7.65% — when you’re an employee). That’s in addition to your tax rate. Add it up, and you can easily find 40% or more of your pay going to Uncle Sam. Now before you go slamming your fist on your desk cursing the IRS, just remember it’s nothing to get upset about if you plan ahead and take this into account when setting your fees.

— Another mistake is forgetting that you now will be responsible for a variety of non-billable work (sending invoices, new business plans, etc.) related to maintaining your business. You might have a billing rate in mind, but when you consider these factors you may find you should be billing considerably more than that. It will of course depend on your skills and experience — just be sure not to short-change yourself! In many ways, the market will perceive your level of expertise based on your fee level.

  • And most importantly, equip yourself with the necessary knowledge to navigate the intricacies (and avoid the pitfalls) of formulating contracts and negotiating payment terms with new clients. It’s crucial to become informed on the various types of contracts and arrangements that can come up whether you’re working directly for a client or sub-contracting under another consultant or agency.Solo PR Pro’s freeGet It In Writing! The Consultant’s Guide to Contracts” ebook outlines various types of contracts (e.g., sub-contracts, letters of agreement, non-disclosure agreements, etc), key things to keep in mind (e.g., non-competes, types of recourse for breach of contract, etc) and provides full contract examples.

This is just a quick-hit list of initial considerations so you can get started quickly – often the key to keeping your chin up and building your confidence after a professional setback.

It’s my hope that regardless of what direction you end up heading long-term, the result will be an even more satisfying career that brings you fulfillment and enriches your life. To your success!

Image Credits: Opened door with bright light image courtesy of ponsulak at FreeDigitalPhotos.net.

  • This not only applies to the PR industry but as well as the online marketing side of things. Since being laid, though I’ve been vigorously looking for full-time work, I’ve been given the opportunity to work on several projects and client work since doomsday. Its been a great experience thus far and has taught me a lot. I can say now, though looking for full-time, that this time has been worth it for my career and has helped me grow even further.

    Great tips and thoughts here, Kellye!

    Sonny Gill’s last blog post..Too Much Transparency or Lack of Common Sense?

  • Kellye Crane

    @Sonny- Thanks so much for sharing your experiences, Sonny. You’re a perfect example of someone making the best of the current environment. It’s great to hear that you’ve continued to gain expertise as a consultant during this period, which will no doubt help you land that next job!

  • This is such a useful post for anyone thinking about freelancing or consulting, whether they have been laid off or not. In some ways, a layoff can be the perfect push that someone needs to go for it! Especially when you do have a day job, there’s so many easy reasons to talk yourself out of going solo. You’ve definitely debunked some of the most common ones.

    I think the most challenging issue is finding a starting point. How do you find that first client? Do you do some volunteer/pro bono work at first just to build up a portfolio?

    Thanks for a great post that got me thinking.

    @amymengel

    amymengel’s last blog post..Capital Region Communications Pros on Twitter

  • Karen Strong

    Great information! Being on my own now for 8 years I can attest to Kellye’s great advice on getting started as a consultant.

    The “tax situation” can seem a bit scary, but as long as you plan ahead and save a portion of each billing for taxes you’ll be fine. The only piece of advice I would add is get a good accountant to help you navigate the ever-changing tax laws.

    Keep up the great work Kellye!

  • I agree with these very good points, and, as someone who’s just finished her fifth year of solo PR consultancy, there’s plenty of work out there. Most important to remember: It’s important at all times in your career to feel as if you have options, even if you don’t exercise them. Solo work is one such option…and it leads to many more options, in turn.

    One more option: If you’re in the Washington, DC, area, my colleague Kate Perrin runs PRofessional Solutions, the area’s only temp firm for public relations help. It includes temporary and temp-to-permanent jobs. Check it out at http://www.prstaffing.com. It’s one way to get your toe in the consulting waters without going out on your own completely.

    Denise Graveline’s last blog post..photos as a social-media strategy: 5 views

  • cwcomment

    Consulting is a great way to go and lets you harness the power of small in your career. You keep building your network, keep food on the table, adding to your resume and you’;; b in te right spot when things get better and a full time job opens up with one of youre clients.

  • Kellye Crane

    @Amy- Thanks for sharing your thoughts. We’ll be covering how to find clients in an upcoming post.

    @Karen-Definitely agree that getting an accountant should be undertaken early on. It’s great to have a consultation when you first start, so they can help you think about your operations in advance.

    @Denise- Yes, I think feeling “stuck,” without options, is the worst feeling in the world. Thanks for your comment!

    @cw- You’re so right! Doing consulting work can help you be in the right place at the right time, in addition to the other benefits.

  • Clarice

    Thanks for this great article. I was informed that my position was being eliminated in a few months. I am taking the time I have left to strengthen relationships with my contacts. As soon I felt more comfortable “announcing” the unfortunate news, I have started receiving calls from people in the industry inquiring about my services.

  • This is an excellent resource for newbies like me. I recently found myself laid off, and navigating through the start-up waters seemed overwhelming. Thanks for all of your tips!