4 Tips for Transitioning from an In-House or Agency Role to a PR Consultant
Lately, it has seemed like more and more communications professionals are leaving in-house and agency roles and striking out on their own. For someone who has been consulting for 5+ years, this recent trend made me reflect on some of the advice that I’ve received in my career, as well as lessons that I’ve learned through my own trial and error. This is by no means an exhaustive list (I could probably write a novel), but the below 4 tips have been indispensable to me as I’ve started out and built my consulting practice.
Lock Solid Contract: When I was getting ready to sign my first client, they (unsurprisingly) asked for a contract. I thought, “Oh shit. Right.” With the help of a legal site and some advice from my network, I was able to create a standard contract to adequately serve my needs. But here are some things I learned along the way that a legal site won’t tell you:
- Termination Clause: What’s your “out” if a client doesn’t turn out to be the right fit? Conversely, what if a client no longer wants or is able to work with you? Make sure this is spelled out in black and white so should you have to cross that bridge, you’re covered.
- Deliverables: PR is one of those strange beasts where you’re essentially telling someone that you may get results and you may not get results, but that they’re just going to have to “trust you”. While those of us in the industry know that there are so many factors that can go into whether an engagement is successful or not, it can be hard for someone whose day job isn’t communications to understand just how much goes into PR outside of the most visible aspects like media relations. Just like your termination clause, make sure your expected deliverables are crystal clear so if questions arise, you can always map back to them and ensure everyone is on the same page.
Know Your Worth: Everyone’s favorite question: “How much?” Now that you’re a consultant, you’ll need to pay for your own insurance (unless you can go on a partner’s plan) and you’ll also be paying quarterly 1099 taxes (since those are no longer taken out of your paycheck). A good rule of thumb is to save 50% of every paycheck (painful, I know). Remember, you also don’t get benefits like paid vacation, sick days or maternity/paternity leave. So, while every consultant is different and you’ll learn what fee structure works the best for you, I’d recommend that you calculate what you will be responsible for out-of-pocket and make sure that is reflected in your rate. (i.e. If you charge $2K/month; half of that will go to taxes and if you don’t have insurance, that could potentially be another $500 depending on your plan. Meaning that you’re left with $500 net.)
Tools of the Trade: I don’t love proposal creation, billing or accounting. In fact, I hate it. I’d prefer to focus 100% of my time on my client work. But unfortunately, the above are all very necessary when running your own business. Here are some tools that I’ve found invaluable as a consultant:
- Freshbooks: This is a dead simple billing tool. You’re able to create client profiles, issue invoices and even set it up to receive payments. While I haven’t used it, I’ve also heard good things about Intuit’s Quickbooks specifically because it will automatically calculate your quarterly taxes based off your invoices. Regardless of what you use, I would invest in one of these.
- PandaDoc: I used to just do Google Docs, but I’ve found this to be the easiest and most professional tool to create and send proposals. I love that PandaDoc allows for digital signatures, so I just add my contract into the proposal to streamline the process.
- Accountant: Finally, I’d recommend you invest in an accountant, if only for the first year. In addition to quarterly taxes, you’re able to write-off a number of expenses from partial rent/mortgage if you work from home to equipment like the above tools, your phone/phone bill and more. I would engage someone who specializes in or is familiar with 1099 consultants to help you navigate the tax nuances.
Find Your People: There is NO way I could have consulted for 5+ years without finding my tribe. I was lucky to have my dear friend, Sarahjane, who was also a fellow consultant and served as my mentor and biggest champion when starting out. While I still lean on her, now that she’s gone in-house, I’ve found a network of other consultants that I interact with daily. We trade advice on pitches or how to handle client issues and share new business referrals. If you’re primarily working from home, it’s so important to have someone that can be a sounding board or that you can just talk with to keep you motivated, creative and let’s be honest, sane (though fair warning, you will still talk an inordinate amount to your dog ;)
Are you a consultant? What are some of your tips or best practices for someone that’s transitioning from an in-house or agency role into consulting?
