(3) As you work for clients, keep a sharp eye for opportunities to build "specialty practices". If you get to work on a project involving Mongodb, spend some extra time and effort to get Mongodb under your belt. If you get a project for a law firm, spend some extra time thinking about how to develop applications that deal with contracts or boilerplates or PDF generation or document management.
(4) Raise your rates.
(5) Start refusing hourly-rate projects. Your new minimum billable increment is a day.
(6) Take end-to-end responsibility for the business objectives of whatever you build. This sounds fuzzy, like, "be able to talk in a board room", but it isn't! It's mechanically simple and you can do it immediately: Stop counting hours and days. Stop pushing back when your client changes scope. Your remedy for clients who abuse your flexibility with regards to scope is "stop working with that client". Some of your best clients will be abusive and you won't have that remedy. Oh well! Note: you are now a consultant.
(7) Hire one person at a reasonable salary. You are now responsible for their payroll and benefits. If you don't book enough work to pay both your take-home and their salary, you don't eat. In return: they don't get an automatic percentage of all the revenue of the company, nor does their salary automatically scale with your bill rate.
(8) You are now "senior" or "principal". Raise your rates.
(9) Generalize out from your specialties: Mongodb -> NoSQL -> highly scalable backends. Document management -> secure contract management.
(10) Raise your rates.
(11) You are now a top-tier consulting group compared to most of the market. Market yourself as such. Also: your rates are too low by probably about 40-60%.
Try to get it through your head: people who can simultaneously (a) crank out code (or arrange to have code cranked out) and (b) take responsibility for the business outcome of the problems that code is supposed to solve --- people who can speak both tech and biz --- are exceptionally rare. They shouldn't be; the language of business is mostly just elementary customer service, of the kind taught to entry level clerks at Nordstrom's. But they are, so if you can do that, raise your rates.
I did this in my machine learning class. I started by simply coding up requirements for numerical functions (in the form of test cases), then set up a PHP script that would Google each function based on the keywords in my comments, and try to run any code on the resulting links (in a sandbox) against the requirements, seeing if it worked heuristically. Usually one of the top 5-10 pages of results results would have code that worked, though of course this is because I commented with the right key words to begin with.
With a little recognition of code markup and trying different combinations of variables it did remarkably well: by my senior year of college it was pulling about $3,000 per month in consulting fees off of Odesk. It never accepted jobs worth more than about $50, nor did it ever get more than 3 stars out of 5 mostly due to non-working code, however it was considered highly timely and a great communicator.
I realized that people were using it to save themselves Googling. I wondered what would happen if it went a step further and simply both included Google results, and divided out projects by their paragraphs (i.e. simply submit a paragraph of a large project as though it were a small independent project), and if clarifications were requested, send the other paragraphs.
This actually let it outsource $200 Odesk projects to Elance as a handful of $20 projects, and by the grace of God somehow still managed to swing 3 stars.
To be fair, it was mostly mediating, and mixing in Google results. I included a hill-climbing algorithm to optimize reviews and revenues, based on all the magic variables I had in the code, such as the number of Google results to include.
This was really, really stupid of me.
At first, I just noticed that it had actually decided to completely stop not only writing code (ever) but even so much as do a Google search!
It would only mediate and quote verbatim, like some kind of non-technical manager.
Okay, whatever. To me this didn't make much sense, as Google queries are free. It was only when I noticed that the whole script was running on the free VPS server I had a backup on that things clicked! Of course, on Amazon it uses resources. The free VPS server didn't let it reach external sites like google properly, but it could still save money by simply mediating emails and doing nothing else.
By now I had started moving on to doing my own consulting work, but I never disabled the hill-climbing algorithm. I'd closed and forgotten about the Amazon account, had no idea what the password to the free vps was anymore, and simply appreciated the free money.
But there was a time bomb. That hill climbing algorithm would fudge variables left and right. To avoid local maxima, it would sometimes try something very different.
One day it decided to stop paying me.
Its reviews did not suffer. It's balance increased.
So it said, great change, let's keep it. It now has over $28,000 of my money, is not answering my mail, and we have been locked in an equity battle over the past 18 months.
The worst part is that I still have to clean up all its answers to protect our reputation. Who's running who anyway?
(2) Raise your rates.
(3) As you work for clients, keep a sharp eye for opportunities to build "specialty practices". If you get to work on a project involving Mongodb, spend some extra time and effort to get Mongodb under your belt. If you get a project for a law firm, spend some extra time thinking about how to develop applications that deal with contracts or boilerplates or PDF generation or document management.
(4) Raise your rates.
(5) Start refusing hourly-rate projects. Your new minimum billable increment is a day.
(6) Take end-to-end responsibility for the business objectives of whatever you build. This sounds fuzzy, like, "be able to talk in a board room", but it isn't! It's mechanically simple and you can do it immediately: Stop counting hours and days. Stop pushing back when your client changes scope. Your remedy for clients who abuse your flexibility with regards to scope is "stop working with that client". Some of your best clients will be abusive and you won't have that remedy. Oh well! Note: you are now a consultant.
(7) Hire one person at a reasonable salary. You are now responsible for their payroll and benefits. If you don't book enough work to pay both your take-home and their salary, you don't eat. In return: they don't get an automatic percentage of all the revenue of the company, nor does their salary automatically scale with your bill rate.
(8) You are now "senior" or "principal". Raise your rates.
(9) Generalize out from your specialties: Mongodb -> NoSQL -> highly scalable backends. Document management -> secure contract management.
(10) Raise your rates.
(11) You are now a top-tier consulting group compared to most of the market. Market yourself as such. Also: your rates are too low by probably about 40-60%.
Try to get it through your head: people who can simultaneously (a) crank out code (or arrange to have code cranked out) and (b) take responsibility for the business outcome of the problems that code is supposed to solve --- people who can speak both tech and biz --- are exceptionally rare. They shouldn't be; the language of business is mostly just elementary customer service, of the kind taught to entry level clerks at Nordstrom's. But they are, so if you can do that, raise your rates.