Because on the other hand, I'm finding it fairly easy to make a living (circa > 3k a month) as a part-time software consultant in the economic times of now. So I'm curious why you had trouble surviving. Especially since you are more than competent when it comes to software engineering.

3000.
- Taxes, 30-50% = 1500
- Accountant, 100 = 1400
- Rent + Expenses (0-5000) = !

1400 a month / easy going 170 hours/month = 8 per month

McD pays 8-10/hour.

Sure, there is creative accounting, living in basement, or moonlighting, which can eliminate most of the above.
Part-time is also different. While it may seem harder due to less time, it's easier, since it's just supplementary income. So if one month nothing comes up, you don't care, since you have steady income.

A good way to estimate income, take total revenue per month, divide it by 4.

I absolutely despise "computer consultants/technicians" that charge ~$100 to install a Windows operating system.[/quote]

- Car, fixed cost, registration, amortization, .... $?
- Fuel
- Microsoft licensing deal and OEM copies (you're not a pirate, are you)
- 1 hour / installation (McD rate, $10)
- Manuals, training, support CDs, driver CDs, recovery tools
- Toolbox (screwdrivers, spare screws, vacuum, stickers, ....)
- Replacement cables
- Clothing + shoes + cleaning (it's easy to get dirty)
- Own laptop
- Office supplies (printer for receipts, accounting, ...)
-

$100/install is about right.

Now consider something else. Let's say you go into this as a business. You charge $40/hour. If you work really hard and in ideal case that your customers are perfectly lined up, you would top at some 7000/month. Again, a fine sum. But not even nearly enough to hire someone else or to do anything beyond breaking even. It doesn't buy an office, doesn't pay for extra workers (that need to be trained, perhaps certified, who need their own transportation and more).

It's simply not a scalable business model, so it will remain part time. The second you start a business you need much higher revenue just to break even, let alone make a fine living.

That's ludicrous! Instead, I believe in pricing dependent upon the magnitude of work, the financial situation of the customer, and whether the stream of income will be continuous or one-time. Those are just some of the factors that should be taken into consideration, in my honest opinion.[/quote]
Your profile says 18 years old. Your views are consistent with that and 3k+ would indeed make a very nice income, especially if part time.

But things get much more complicated with real business.

Well what exactly was your market? Where did your clients come from and how did you extend your reach?

Because on the other hand, I'm finding it fairly easy to make a living (circa > 3k a month) as a part-time software consultant in the economic times of now. So I'm curious why you had trouble surviving. Especially since you are more than competent when it comes to software engineering.

$3000 a month gross is not much to live on, in the real world. Mortgage, car payment, taxes, business fees, gas, and food by themselves can chew up almost all of that. Throw in various bits of insurance (you are insured against liability if things go wrong with a client, right?), lost time on failed projects, downtime when you can't find business at all, and legal overhead (what happens if a client breaches contract with you?)... you need a lot more than $3K to survive.

Keep in mind that your skill set doesn't matter when you are a consultant; to get business, you need contacts. Networking and developing a business is a full-time job by itself, and is mandatory work if you want to make a genuine living at consulting. Yeah, those one-off gigs are nice while they last, but what do you do when you've consulted yourself out of opportunities in the local market? (This is the situation I landed in.)

You have two options: expand your market, or get a permanent job.

Expanding is a double-edged sword, though. To get more prospective clients, you need to be able to travel, have high availability via phone (and, whenever possible, in person), and you need to have a laundry list of already-impressive clients so you can even be offered a chance to bid on jobs. All of that requires money, and money requires clients. If you don't have the client base, you can't afford to expand, unless you want to go into debt. Slow growth isn't an option if you're already in the red financially.

Moreover, all of those things are basically impossible to do on a part-time basis. You cannot have the kind of availability and travel flexibility that a true consulting position demands if you only work 20 hours a week, and with that time being mainly evenings and weekends.

The real world operates on a 9-to-5 schedule and takes place across the country, if not the globe. If you can't be around to have in-person meetings or conference calls or whatever, you'll get no business. Simple as that.


I had over 40 hours a week available to consult during my freelance phase in life; but it was shifted around other obligations. That killed my availability for the most part, and that in turn limited my potential market. As I said above, eventually I dried up all the work that could be done for that market, and there was nothing left to do but give it up for a cubicle.

ApochPiQ: Thanks for the insightful reply. I reduced my costs my using a family certified public accountant, and a family lawyer. Not to mention I live out of my dorm room. I definitely have felt a lot of the things you pointed out. Luckily a good portion of my income comes from annual subscription-based fees and support.