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I've heard this factor of two from people running consulting/contracting businesses. The biggest reason according to one of them is the the inconsistency of wor
by unishark 7y ago
I've heard this factor of two from people running consulting/contracting businesses. The biggest reason according to one of them is the the inconsistency of work over the longer term. You can't always keep everyone busy, sometimes to keep clients you need to be available and waiting on them.
And that is the cheapest kind of firm with minimal overhead. For larger firms it is probably an even bigger multiplier.
- bryanrasmussen 7y agoexactly, furthermore if you are a self-employed consultant depending on your country's rules if you do not have a job to do at the moment you can't get any government benefits until you get a job. For example in my country if I lose a job and I have a consultancy that I have made money on in the last year or two (I forget) you have to close it down, and then wait some months, and go through some bureaucratic thing to get them to say ok he really shut down the company before you can get the normal government payment for someone unemployed. Obviously as starting a company is also not without its work and costs you don't want to do that, which means you need to have the money to last a few months between gigs.