How to Make the Transition from Employee to Consultant

"Cash is king when it comes to building out a runway for you to transition from a full-time, regularly-paid employee to a consultant with money coming in sporadically. Make sure you take the time (without spending too much money) to build up the systems you no longer have now that you're self-employed. Research what your rate should be when you start charging clients, and then learn to state your price without apologizing or feeling guilty."

"Don't want to go back to an office full-time? Starting your own business can be your next step to financial freedom. In my last essay, we talked about layoffs: the cardboard-box walk of shame, the HR "we'll be in touch," and the silence of your laptop because you have been kicked out of your company's Slack workspace. For some people, the next step is clear: update the résumé and start sending applications into the void."

Transitioning from full-time employment to consulting requires cash reserves to cover irregular income and a clear runway. Build affordable administrative systems—billing, contracts, taxes, and benefits—before leaving steady pay. Research market rates and practice stating fees confidently without apologizing. Recognize multiple self-employment paths and choose the right structure and stage before forming an LLC or printing business cards. Consider personal reasons—control over schedule, income autonomy, or escaping managerial oversight—when deciding between returning to applications or launching a business. Plan finances, operations, and pricing to create sustainable freelance or consulting work.

Read at Substack