Are You Nervous About the "New Technology Consultants" on the Block?

There's a lot of buzz in the technology business world about the recent employees being shed by the big boys. And there will probably be some more.

Although I am pretty certain that has more to do with getting rid of unnecessary fluff that has been there for years (with the opportunity to axe without being questioned) more than economy reasons for the tech companies. But there are a few important things to keep in mind about these happenings.

Yes, maybe the small business technology world will be flooded with new "consultants", but it will be very short lived. And it will only effect others in the tech world that are "consultants" and not business owners. You aren't one of those people, are you?

Here's why. First, from a legal standpoint, unless hiring an independent for a short burst gig like 6 months or so, you can't do it. Hiring an independent that makes more than half of their income from one source is not a consultant. They are called "employees".

This isn't the 80's and early 90's. Fed and state government entities have been cracking down on this for a good 10 years now and the past few years have been major eye openers to business owners. It may have started with businesses that typically hire illegal immigrants but I have witnessed professional service providers getting nailed left and right recently with techs, consultants, and sales people.

Second, no SMB owner in their right mind is going to trust an ex-big business worker with taking care of their business needs, especially in this economy. They typically know little to nothing about small and medium sized businesses needs or how they work. There is no track record or stability available from them. And like I've said before, if the value for the dollar layout isn't there, businesses are not going to pay for it.

Last, let's do a reality check here. A very, very small percentage of these former employees turned consultants want anything to do with running or owning a business. They didn't choose to jump into your world on their own. They were pushed out and are trying to make a living while they look for another job.

These people are, and want to be, employees. They shouldn't be considered as any kind of competition to you unless you also don't really have a business and add no value to your clients.

Actually, this may be an opportunity to pick up a good employee or two if you're in a position where you need more headcount to get you out of the "tech grind" and work more on your business instead of in it.

Keep building your business by way of structure and profits, eat the lunch of your cowering competitors, and forget about the possible "new consultants" unless you want to take them on as new employees.


To Your Business Success

George Sierchio
The Consultant's Coach