Counter argument for those who think consulting is "great" (because it's not - at least from a business owners perspective). TLDR: consulting has huge variable

Counter argument for those who think consulting is "great" (because it's not - at least from a business owners perspective). TLDR: consulting has huge variable costs, you have to float A LOT of money, no reoccurring revenue, difficult to differentiate since people are your "product". - the business model of consulting is extremely grinding, difficult and exhausting for business owners - your "product" is your people, which causes all kinds of business problems - the only way to scale revenue is to hire more people - more people means you need more billable hours, which means you need more customers in an industry that DOES NOT HAVE REOCCURRING revenue. As such, if you try to sell your consultancy - you get extremely low multiples on revenue. - cash flow becomes a MASSIVE PROBLEM because there are hard costs to pre-sales actives to win business, and even after business is won, you have to float your staff salaries typically 45-90 days until billing kicks in. (think about that for a moment, if you have 10 employees who you pay $120k/year/each, if 90 days is the float time, that $300k in cash reserves you need just because of float (3 months * $10k/mo * 10 employees) - when you're not billable, that's literally costing you money in order to pay your staff. You can QUICKLY become unprofitable in a matter of just a few months. - You're margin is inverse rated to billable time. E.g. if you are marking up your staff's salaries by 30%, that means to breakeven - that staff needs to be billable 70% of the year. (And that is assuming $0 presales/marketing/etc costs) Again, consulting is a brutal business to be in.