My wife is in a position where she has an opportunity to leave her current position and start her own.

She has one client already wanting to work with her, which would amount to ~30% of her current salary.

From previous conversations, there are other consultants who do similar work (though not many), so this is an existing niche.

I'm leaning toward yes, this is likely the best opportunity she's going to get, though it's still a risk.


Others that have done this, what issues did you have? What caught you by surprise?

network a lot - meet as many LinkedIn contacts as you can for coffee
face-to-face is better than phone; phone is better than email; email is better than text
start a blog of pertinent topics in your field. Throw up a course on udemy or youtube. Let everyone know you're a solo consultant.
have a 30second elevator pitch describing what you do so your neighbors will semi-understand, because they may know potential clients

other stuff? know how much to charge and don't be shy about your rates. keep tabs on expenses, you'll need to know come tax time. Lots of ups/downs in billing, so be prepared for that.
maybe get a website domain name so you can get an email extension that makes you sound like a real company.

Enjoy your time and control over your life. Being a consultant for the last 12 years has been super-fantastic for me.
Good Luck!

Careful on potential non-compete or IP issues. Leaving current employer and taking a client will get a lot of eyes.

Does she want to leave and just go off on her own or is there a possibility of buying this section from her existing company?

Thank y'all for the comments, I'll try to address each one.

chico said:

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network a lot - meet as many LinkedIn contacts as you can for coffee
face-to-face is better than phone; phone is better than email; email is better than text
start a blog of pertinent topics in your field. Throw up a course on udemy or youtube. Let everyone know you're a solo consultant.
have a 30second elevator pitch describing what you do so your neighbors will semi-understand, because they may know potential clients

other stuff? know how much to charge and don't be shy about your rates. keep tabs on expenses, you'll need to know come tax time. Lots of ups/downs in billing, so be prepared for that.
maybe get a website domain name so you can get an email extension that makes you sound like a real company.

Enjoy your time and control over your life. Being a consultant for the last 12 years has been super-fantastic for me.
Good Luck!

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I think demanding a rate commensurate with her experience will be the biggest challenge for her - attracting clients vs charging enough to be "worth it".
She already has the name/domain purchased and is setting up the banking/quickbooks side.

Irish 2.0 said:

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Careful on potential non-compete or IP issues. Leaving current employer and taking a client will get a lot of eyes.

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Luckily the interested client doesn't already work with her current company, so we're in the clear there - but thank you, I did remind her to check on any existing non-competes, etc, she might be subject to.

OnlyForNow said:

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Does she want to leave and just go off on her own or is there a possibility of buying this section from her existing company?

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We wouldn't be able to fully support her company, so this wouldn't be feasible currently.

May want to take a look at a book called Start by Jon Acuff

So, I guess my question is, when she leaves will she be a direct competitor with her old company?

That's when the knives come out, especially if its going to significantly hurt their bottom-line.

Hence, my suggestion to by out her business line (small business grants work in this scenario).

Otherwise, she'll just have to go it her lonesome, y'all tighten the boot straps at the homefront, and you support her.

She'll lose all her benefits though... are you both prepared for that?

Don't forget to think about IT/electronics/computer costs for whatever it is she does.

OnlyForNow said:

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So, I guess my question is, when she leaves will she be a direct competitor with her old company?

That's when the knives come out, especially if its going to significantly hurt their bottom-line.

Hence, my suggestion to by out her business line (small business grants work in this scenario).

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Ah, okay. Not a competitor, and her company has used consultants (like what she'd be doing) to augment their workforce previously.

OnlyForNow said:

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Otherwise, she'll just have to go it her lonesome, y'all tighten the boot straps at the homefront, and you support her.

She'll lose all her benefits though... are you both prepared for that?

Don't forget to think about IT/electronics/computer costs for whatever it is she does.

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Benefits wise, I have better insurance, but the lack of retirement stinks. The plan is to make it up on the back end, but...

IT costs, etc: Aside from a computer/monitor/printer, we're budgeting for Windows & cloud back up... I'm not completely sure what to expect here.

Keep in mind you'll likely incorporate and go S-Corp. You will be on the hook for both sides of employment taxes. There are some advantages in terms of pre-tax IRAs. You can still contribute to a SEP or Simple and put away a bit more into the account(s) if y'all are comfortable doing that. You'll want to talk to a FA to minimize your taxable income.

Irish 2.0 said:

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Keep in mind you'll likely incorporate and go S-Corp. You will be on the hook for both sides of employment taxes. There are some advantages in terms of pre-tax IRAs. You can still contribute to a SEP or Simple and put away a bit more into the account(s) if y'all are comfortable doing that. You'll want to talk to a FA to minimize your taxable income.

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We'll have to; I don't know anything about running a business nor business taxes.


...nor tax evasion.

The proper term is tax avoidance…

Irish 2.0 said:

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The proper term is tax avoidance…

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All the more reason to hire it out.

It's happening. Thank y'all for the advice and things to consider.