The Executive Gig Economy: 7 steps to using your MBA to craft a flexible career

By Jacqui Goldman and Angela Rastegar

Intrigued by the flexibility of the gig economy, but not sure how to leverage your MBA in a way that makes sense? Today, there are 55 million freelancers in the U.S., and 40 percent of the workforce will be independent by 2020. Gig opportunities are no longer limited to manual tasks, and your MBA network and skills make it easy to achieve flexibility as an independent consultant.

Here’s a seven-step guide with the ‘do’s and don’ts’ of choosing your own career adventure.

1. Make the Leap

Do: Figure out why you want to jump into consulting. The benefits could include:

• Flexibility: Gain the time and freedom to travel, take care of kids or pursue hobbies.
• Learning: Test out a new sector or get a feel for a company before joining full time.
• Bridge: Earn supplemental income while job hunting or iterating on your startup idea.

Don’t: Don’t underestimate the stress of not having a steady income and the loneliness of flying solo. Professional development is lacking (few teams will give detailed critical feedback or mentorship). The perception that you are short-term can also make it challenging to turn a consulting gig into a full time role.

2. Setting Up Shop

Do: Decide whether or not to incorporate. Some clients can treat you as a W2 employee, or will hire you through a vendor management company. Others will prefer to hire you as a 1099 independent contractor employee. Either way, you can write off a number of personal expenses. Make sure to get tax advice and choose the structure that makes sense for you.

Don’t: Don’t forget about taxes. If you are compensated as a 1099 independent consultant, remember that you will need to pay income taxes, plus self-insurance tax (15.3%, which goes to Medicare and Social Security). Make sure to estimate what you will owe to avoid an expensive surprise. If you are a W2 employee, taxes will be removed from your paycheck, so this is less of a concern.

3. Find your Clients

Do: Spread the word through your network that you’re looking for consulting work (the more specific you can be about your interests, the better!). We’ve found 100% of our work through our networks.

Find companies that are looking for consultants for reasons that match your interest:

• If you want a short term, flexible gig, look for companies with staffing gaps due to employee absences, like maternity / paternity leave, or time-boxed projects.
• If you are seeking a pathway to a full time role, one good source of projects is companies that are testing out a new position or strategy. In any situation, make it clear that you are interested in a full time position if that is your goal.

Don’t: Don’t go through HR teams — that’s a better path when you are pursuing a full time role.

4. Sell the Engagement

Do: Put a lot of work up front into defining the project. This includes:

• The proposal: Develop a clear, well-scoped proposal to help your client solve a problem. Be as specific about deliverables, point of contact, and timelines as possible.
• Pricing: Pricing is highly variable, and can be structured as hourly, daily, weekly, monthly or by project. A mid-career MBA would typically charge $1000 — $3000/day, or $100 — $300/hour. Generally, we prefer the day rate model, as it creates clear boundaries, but also encourages casual conversations (which are important for getting up to speed, but can feel awkward to engage in when compensation is hourly). Equity (e.g. 10–25 bps vesting over the duration of the project) can also be a component of compensation for startups.
• Duration and format: Ask for as much context as possible upfront and be transparent about your goals. Is the work in person or remote? Is there an option to extend the contract? Can this turn into a full time role? When will you check in to decide on full time opportunities or extensions?

Don’t: Don’t forget the ‘hidden costs’ of being a consultant! Rates are higher than a full time salary because you have to account for periods of unemployment and take care of your own benefits and expenses. Supplies (laptop, work materials, $2,000/year), health insurance (~$300/mo), local transit, and taxes can add up.

5. Ramp Up

Do: Get to know the team. Schedule 1:1s with everyone you’ll be working with to get smart about the organization and team dynamics to integrate quickly.

Don’t: Don’t rush the ramp up process. Make sure you give yourself enough time to get up to speed and to really understand the client needs. Also, don’t assume your client knows how to manage you or which direction to take! You were hired because you are an expert, and are expected to drive the project and relationship.

6. Make the Most Of It

Do: Own your integration — make an effort to participate in team bonding events; sometimes projects become full time jobs, and first impressions can’t be recreated. Continue to solicit and collect feedback — each new environment offers an unparalleled learning opportunity. And of course, have fun with it!

Don’t: Don’t under-communicate. Let people know what you are working on, your progress, and your roadmap. Share early drafts or skeleton deck deliverables for feedback and to manage expectations.

7. Wrap Up

Do: Use every project to build your portfolio and references — ask for feedback and a written testimonial of your work. Connect with everyone you worked with on LinkedIn — a team member could become a client down the road! And send thoughtful thank you notes to everyone you worked with.

Don’t: Don’t be surprised if you feel sad to leave an interesting problem and great people behind. It can be tough to jump in and out of projects, especially once you’ve invested. But as an independent consultant, your next challenge is right around the corner!

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About the Authors:

Angela F. Rastegar helps businesses balance the tension between long term sustainability and short term growth. As an entrepreneur with 12 years of experience, Angela has worked on corporate strategy, social and environmental impact, nonprofit management and grant making, business development, and marketing. Angela is also the founder of a consumer tech company, Agora for Good. She holds an MBA from Stanford.

Jacqui Goldman loves building new products and experiences with other curious people, and she’s done that as an investor, operator and advisor. She started her career in private equity investing, has held executive roles at startups in consumer tech and retail, and has consulted for companies from early stage startups to the Fortune 500. She holds an MBA from Stanford.