Ask HN: Consulting while bootstrapping?
My co-founder and I are a couple of Ruby/Java coders with a broad range of expertise. We need to pay the bills while getting our product off the ground, so we're looking at doing some contract work.
We're experienced in the IT/coding realm but n00bs at the consulting thing, so here's some questions for people who have done this before:
1. What's the best way to start drumming up consulting gigs? Craigslist? Google ads? Cold calling?
2. What kind of rates are reasonable for a strong 2-person coding team with enterprise experience?
3. Are there any special pitfalls for bootstrappers that we should be aware of? We'll be trying to juggle product development with any other work that we do. Any time management tips? Legal things that we should watch out for?
I know we're not the only bootstrappers out there, so there's probably a lot of HNers with the same questions. Any advice that you give will be deeply appreciated.
And if anyone needs work done on Java/Ruby integration or full-text search, shoot me an email. :)
Published in 2010, this chronicle by @megaduck details the mechanics of building a profitable, self-funded business without venture backing.
The community focused on B2B customer acquisition channels, cold email vs SEO distribution, and balancing full-time employment with side-project development.
I think it's important to make a distinction between "doing consulting work" and "selling consulting work". I'm bootstrapping, and I'll do consulting work for clients I've worked with in the past, or with people who seek me out specifically.
There's no doubt that doing consulting work takes time from my business. However, I think it's an hour-per-hour trade-off -- overall, I haven't found that consulting work decreases my motivation.
On the other hand, selling consulting work can be stressful and exhausting; especially if you really need the money and you're not accustomed to selling. (And if you don't really need the money, then why do it at all?)
Some other thoughts:
1. If you get bad vibes from a potential client, politely walk away.
2. The more they pay you, the more they respect you.
3. Your client doesn't care about your startup, nor should they need to.
Consultant gigs aren't very fun, but they definitely can be a great way to pay the bills while you're planning for your next big thing.
I've recently (in the last week) started offering some specific services on a few forums that I'm actively participating in, and have already pulled in a few thousand bucks. Once I get the system down pat, I'll just crank out work, and eventually have my remaining debts paid off and be ready to do my startup I've been planning, with a few month's salary in the bank just in case.
If you can offer a specific service as your consultant income rather than just "hire me for whatever you need" type stuff, you can greatly reduce the amount of effort you need to use to make the same amount of money.
The biggest pitfall is that you will be successful as a consultant long before your startup will make any money and the temptation to drop the startup and concentrate on full-blown consultancy will be nearly impossible to resist.
If you are going to do this be rigorous from day one and set aside a number of days per week when you do not allow yourself to work on your consultancy stuff at all.
Stay away from consultancy jobs that are even remotely related to the startup you're doing.
both are hard.. and both are full time gigs. When you're not programming, you have to some how figure out how to find customers in consulting. Then trying to program for your clients, and then programming a startup. almost impossible.
I think it's really hard to do this personally because you will have to hustle business as if you own a second business. if you can get a part time gig or a job somewhere making what you need to make. It'll be easier, trust me.