Develpreneur: Become a Better Developer and Entrepreneur

One of the critical choices in accepting a project is whether you will bill based on a fixed or hourly basis.  The bottom line is that one approach places more risk on you as a provider.  The other puts it on the customer.  At least, that is the typical thought.  However, you can adjust a fixed bid or how the hourly rate is paid to shift risk around. Fixed or Hourly as a Project Approach I think that this is a decision that should be considered far more from the basis of how the project will go as opposed to finances.  A fixed bid will make it far more likely that a customer will want to squeeze all they can into the project.  On the other hand, the provider will try to keep it as thin as possible.  That does not mean both parties are greedy or unfair.  They are just going to focus on more or fewer features depending on where they sit.  Even worse, a fixed bid can lead to a large number of hours spent on nailing down change requests and what should be included as part of the original definition.  That is overhead that does not serve anyone.  It may be me, but I find less haggling is a path to less stress. Finding Fairness There is not one approach that will be more intrinsically fair as pricing goes.  The key to that always comes down to what is billed and what is not.  There are arguments around pricing for bug fixes.  However, you cannot be fair in that discussion without accepting that they do occur.  That leaves it up to the provider to bill for hours worked and include bug fixes or not.  If they do not bill for bug fixes, then the standard rate will need to go up.  They are effectively being paid for their time.  Thus, legitimate uses of time (including testing and bug fixing) need to be addressed.  It may sound good to have an agreement where bug fixes or support will be free but that time will likely be covered in a higher general rate. Rather than try to solve fairness and budget concerns through fixed or hourly pricing, it is better to focus on requirements and estimates.  A project that is well designed and defined will be easier to estimate in terms of hours worked, time elapsed, and total cost.  At the end of the day, that is the goal of everyone involved. Learn more in the book written for Develpreneurs at any stage in their progress:  https://www.amazon.com/Source-Code-Happiness-Finding-Success-ebook/dp/B07MKZBF6R  

Whether you are running a side hustle or a full-blown business, at some point you will need to create consulting invoices.  Well, unless you do not care about being paid for your work.  This is a process that is often overlooked.  However, the way you invoice can help you get paid on time, impress a client, and even market your services to expand the business. Consulting Invoices Are Not Redundant I have come across some consultants that feel like an invoice is redundant.  Whether they sent a status with time worked or had a consulting agreement, they seem to think nothing else is required.  They may send a bill, but decide that the extra work of an invoice is not needed to get paid.  This is possible in some cases but still misses the point.  Every interaction with a client is a chance to impress them positively or negatively. That includes communications with the accounting or billing department.  You are letting an opportunity slip by if you do not spend the time on a professional looking invoice. Pacing and Surprises It is also tempting to send an invoice only when you need the money or work is complete.  Although that may be the agreement, it is not a recommended approach.  A few smaller invoices will be more likely to get paid (at least partially) than a single, large invoice.  They will often get paid faster as well.  Just as you should be providing regular progress on a project to the customer, they should make the scheduled payments for your fees.  That holds for a fixed-bid project as well. Set a time frame with your customer that makes sense (weekly, monthly, quarterly, etc.) and invoice them on that schedule.  You can bill a percentage of a fixed bid project or hours worked for a given time period.  I know that accounting can be an annoying overhead.  On the other hand, regular billing can help your receivables stay within a reasonable range and help you avoid the headaches around getting paid for work done long ago. You put in the work and should be producing quality deliverables.  With that in mind, there is no reason for a customer to avoid paying invoices on the schedule you agree upon.  When that becomes a problem, the conversations and project quality can be less than you desire.  As usual, the more you can get ahead of these things, the easier it is to avoid mistakes and arguments. Learn more in the book written for Develpreneurs at any stage in their progress:  https://www.amazon.com/Source-Code-Happiness-Finding-Success-ebook/dp/B07MKZBF6R  

The most common discussion I have had around consulting is setting the price on my services.  Yes, customers care about my rates.  However, the conversations tend to be focused on what the pricing should be for the person with whom I am speaking.  There is no silver bullet for this challenge.  On the other hand, it is not as difficult as many of us think. Setting The Price Based on the Market The easiest way to figure out a good rate for your services is to look at the market.  If you are already employed, then you have a salary to use for a metric.  If not, then take a look at the typical salary ranges for your skill set in your area.  This can be found through job sites like monster.com or business (or career) analysis sites like Glassdoor. The computation based on your salary is easy math, divide by two thousand.  Thus, if you are making $60,000 per year, then your base rate is $30 per hour.  You probably want to add a modifier to cover expenses and ten to twenty percent on top is going to be solidly in the market rate.  Therefore, our example would bump up to $33 to $36 per hour.  If you go with that number, then your odds of being aggressively priced in the market are pretty high. Remember The Details The money involved in working for yourself can seem like an offer too good to refuse.  However, there are a lot of things you will give up that need to be factored in.  The benefits you receive from an employer will disappear.  That means you need to factor those into your pricing.  If you want to work for yourself full time, then make sure you have some reasonable estimates for health, dental, and vision insurance.  Those can add up quickly. Personal time off, sick days, vacation days and even Holidays off will also go away.  You can take those days off, but you will not get paid for those hours you do not work.  That may impact the modifier you apply to your base rate.  It may be surprising, but many consultants look at a forty percent multiplier to that base rate as a break-even point.  When in doubt, try out a price for a while and see how it goes.  You will be hard pressed to change a rate mid-project, but you can always bump it up for the next one. Learn more in the book written for Develpreneurs at any stage in their progress:  https://www.amazon.com/Source-Code-Happiness-Finding-Success-ebook/dp/B07MKZBF6R  

There is a book on having difficult conversations.  The challenge is that we do not like having them.  They tend to be difficult.  Unfortunately, this can complicate honest communication.  It is a challenge when we are trying to be positive and be seen as one that brings good news.  It is even worse when we worry whether someone will shoot the messenger. Real News Over Good News The most common reason for hiring a consultant is to get another honest view of a situation.  There is always a hope of getting good news.  However, the desire is to hear the truth warts and all.  It is not uncommon for the expectation to be that a consultant is not going to be sunshine and rainbows.  There is already a sense that something is wrong otherwise there would be no need for your services. Being a Scape Goat Another thing we should remember as a consultant is that we are expendable.  I have come across situations where the only reason a consultant is brought in is so they can deliver bad news.  Think about some of the special steering committees that are created to research a topic.  They often are comprised of people that have respect. Nevertheless, the committee also often is comprised of outsiders that can deliver bad news and walk away without concern.  We are here to do the work others prefer to avoid.  With that in mind, you should embrace your role and know that other opportunities will always be available for those that maintain integrity. Learn more in the book written for Develpreneurs at any stage in their progress:  https://www.amazon.com/Source-Code-Happiness-Finding-Success-ebook/dp/B07MKZBF6R  

As we continue to discuss consulting communication, we turn towards venting.  This topic includes negative communication as well.  To be clear, negative is not the same as disagreeing.  You can stay positive while communicating a disagreement.  We are held to a higher standard when in a consulting role and we should always remember that fact. Consulting Communication Stays Positive It may seem difficult or even impossible, but any professional communication you make as a consultant should be positive.  Think of some classic wording approaches like problems are just challenges or even opportunities.  Rather than highlight a negative you want to remain focused on providing solutions.  It will not help your perception as an impartial skilled observer when you dip into frustration or personal attacks. Everyone Else Is Doing It I think most of us are comfortable enough with keeping our written communication positive.  However, when we are hanging out with a team or other informal discussions, this becomes more difficult.  It is not uncommon to be in a situation where someone is comfortable enough with you as a consultant to vent or "air dirty laundry."  These situations may draw you into joining in on the rants.  Unfortunately, you are still an outsider of some sort and held to that higher standard.  If you want to help yourself avoid tricky situations, then you need to avoid joining in on these sessions. You do not need to walk away, but instead quietly listen and maybe even add a positive twist on the situation where possible.  It may sound insulting, but you need to be the "adult" in these situations.  I am not saying the people venting are childish but instead that you want to stay a calm voice of reason.  Even if you agree with them 100%, you still want to focus on staying positive and finding solutions. Learn more in the book written for Develpreneurs at any stage in their progress:  https://www.amazon.com/Source-Code-Happiness-Finding-Success-ebook/dp/B07MKZBF6R  

There are all sorts of documents that are needed for a consultant.  However, the ones that provide a form of CYA documentation may be the most vital.  This sort of communication is not only valuable in proving you did what you said, but it can also be a critical key to retracing your steps. Why Bother With CYA Documentation? A consultant is a temporary worker by definition.  With that in mind, why should we even bother with protecting ourselves via CYA documentation?  There is always the "avoiding a lawsuit" argument.  Nevertheless, it may be even more critical to protect our reputation or brand.  It is one thing to lose a client.  However, if that leads to you losing more clients or being passed over for projects, then it can be fatal.  Losing money on a project is survivable.  Losing credibility may require your business to end. Problem Solving and Decision Making This type of documentation is critical when things go wrong.  On the other hand, it is highly useful in reviewing decisions as well.  It may seem like there is no need to revisit a choice, but I have found that to be common.  This need for a review most often occurs when a team or members of a team change.  That is not the only reason though.  There have been occasions where a well thought out design was presented to upper management and decisions were questioned. We usually support our decisions in a presentation. However, what if something seemed unassailable because it was decided early in the process?  As we will see in future episodes as well, communication and documentation are crucial skills for a successful consultant. Learn more in the book written for Develpreneurs at any stage in their progress:  https://www.amazon.com/Source-Code-Happiness-Finding-Success-ebook/dp/B07MKZBF6R  

One of the hardest parts of building a consulting career is the disruptions that always occur.  This is a path that often follows the feast or famine roller coaster.  Therefore we bounce between too much work to keep up and not enough to pay the bills.  There are ways to soften the blow of these disruptions as well as those that are larger such as health or family issues.  These more substantial disruptions can knock you off of your career path for months or years, and improper planning can extend those even further. Documentation Bridges Disruptions First and foremost, the better you document your current path and plans, the better.  You likely have projects in progress, side hustle work going, and grand ideas for the future.  If you have to walk away for a few months then how clear will these valuable things be?  Will you be able to dive back into them?  I have to hazard a guess that the answer is "no."  That is unless you are already knocking this particular suggestion out of the park. The documentation needed to soften the blow of those disruptions is not complicated.  You can keep it to bullet points, rough estimates, and any prerequisites.  Information like this can be documented in a few minutes each week, and that investment can significantly improve your time to ramp back up after a disruption. Make It Easy To Accept Disruptions come in all shapes and sizes.  Some of these disruptions can directly relate to your happiness and quality of life.  When you plan for the disruptions, then you can decide to put stuff on hiatus much less stressful.  You have less to lose and thus can choose happiness over your career advancement when it makes sense.  Once you get past the disruption, it is best to get things moving forward again.  A disruption will stop your momentum.  We have often discussed how important that is for success.  Therefore, get it moving forward as soon as possible.  A little planning for a rainy day can help you enjoy the good times even more and switch gears from a hiatus to full steam ahead in your career. Learn more in the book written for Develpreneurs at any stage in their progress:  https://www.amazon.com/Source-Code-Happiness-Finding-Success-ebook/dp/B07MKZBF6R  

As we look at how and when to start a consulting business (or project), it helps to consider timing.  Sometimes you can select when to start, and other times the decision is made for you.  In this episode, we look at that final push to get started on your consulting career. Circumstances Often Give That Final Push There is plenty of stories about people that were fired or laid off and forced into consulting.  The safety of a day job disappeared and left only one viable option.  It may seem obvious, but that is not the ideal final push.  Instead, you want to build up your projects and pay to a point where it costs money to go to your "day job."  I have experienced both situations and have to say that either case is at least a step in the right direction. Build Your Client List No matter how you advance into consulting, you want a list of potential clients.  The good news is that you can achieve this by making your current boss happy.  Likewise, every employer you leave on good terms is a potential client in the future.  Think about it.  They know you, like your work, and already have a good relationship with you.  Therefore, it makes more sense for them to hire you than someone they do not know even if that person has a better resume. Learn more in the book written for Develpreneurs at any stage in their progress:  https://www.amazon.com/Source-Code-Happiness-Finding-Success-ebook/dp/B07MKZBF6R  

This season is focusing on lessons learned from a consulting career.  A lot of the content can be found in the Develpreneur book.  However, we will go a little deeper into getting that side hustle going.  This episode kicks off the season by looking at some things to do in preparing for consulting or at least taking control of your career. Preparing for Consulting or Your Career It turns out that a lot of the work you need to do for a side hustle is just as crucial for your career.  The key steps are things that will help you create a productive workspace and then avoiding a search for common tools (pens, pencils, charger cables, etc.).  These are things you may already have laying around that just need to be organized, or you may need to buy some of these things over the years.  I will discuss some items, but you can build your list by keeping track of what you use on a typical day or week of work. Common Items To Forget If you start your career with an employer that is good at providing you with the tools you need, then it is easy to overlook essential items.  With that in mind here are some things you need to have available. Phone Printer Paper and Ink/Toner for said printer Reliable Internet Connection Licenses for you needed software Personal/Business email account Stapler/Three-hole punch Shredder Accounting software/package There is much more covered in the podcast to help you put together your list of tasks to complete.  These will help you avoid headaches as you launch that business. Learn more in the book written for Develpreneurs at any stage in their progress:  https://www.amazon.com/Source-Code-Happiness-Finding-Success-ebook/dp/B07MKZBF6R  

This is a perfect time for us to look ahead at season seven and beyond.  We will continue providing content for advancing your career starting with a deep dive into the book.  Each chapter will get a few episodes and will be expanded upon with those.  This season will be a cross between an audio version of the book (abridged of course) and an addendum to it. More To Come For Advancing Your Career As we look ahead to the blog posts, podcast episodes, and presentations for this year we will stay focused on how to become a better developer.  We will be cutting back on the weekly blog posts in the first quarter.  Thus, there will be roughly two a month and we will be focusing on the tools we use for this site and the production of content.  Why not start with the things you know best?  Be on the lookout for an article on Buffer and Lucky Orange to start the year off right. We are trying to reduce our time commitments to producing content this year.  However, we will still be turning out three podcast episodes a week.  Our streak has continued to nearly two hundred episodes and we do not plan on letting that lapse. Meetups and Classes Our Launch Your Internet Business class passed its second birthday and will not get an annual touch up.  Instead, we will be looking for some more classes to create this year and may even do them as a meetup as well as the recordings.  More to come on that front. As always, your feedback is invaluable in providing content you can use.  Please contact us with any questions, suggestions, or requests.  That is the best way for us to help you advance your career.