Advice to Independent Consultants, from an Independent Consultant - Simran B

Whether you identify as a contractor, freelancer, independent consultant or run a small consultancy, interim work in the financial services sector can often be seasonal.?

But the good news is that traditionally the market ramps up in September and October, so it’s time to brush off the CV, get match sharp for interviews and get ready for (hopefully) a rush of opportunities in the later half of the year!

If you are thinking of going into contracting or have done your first project and are daunted about how to go again, I thought I would ask some seasoned professionals in my market (Financial Crime, Compliance and Risk) for some top tips for going out on your own.

Simran offers a range of services, from advisory and specialist consultancy, regulatory change/ transformation and providing regulatory guidance on both contentious and non-contentious issues, to the FinTech, Start Up and ‘traditional mainstream’ industries.?

She kindly spent some time answering my questions on her experience as an Independent Consultant and offers some advice for anyone who is new to the market or interested in picking up a different perspective.

What services do you provide as an independent consultant?

I provide a variety of services ranging from advisory and specialist consultancy support, mainly where firms have a specific objective such as being a start up requiring help in a protracted change/transformation programme, seeking guidance on regulatory support both contentious and non-contentious financial crime matters. I also provide interim support for MLRO and Head of Financial Crime positions.

What prompted you to start on your own?

I wanted the flexibility and variety of work where I had the control over the work I do/do not do. I also wanted the ability to work in multiple sectors for financial crime such as payment services, fintech, e money, specialist lending that working in one firm for 2-3 years would not have achieved. I have learned a lot and met some amazing people along the way.

What is the biggest learning you have had since going out on your own??

The level of self-discipline you must have not just with the work but also with the administration. It is very easy to fall behind and you need to invest the time and resources into the right software, lawyers and accountants to support your own business.

Has IR-35 impacted your work? Any advice for ‘winning’ work outside of IR-35?

IR35 has heavy impacted the industry. It has seen many firms taking a blanket approach towards classifying contractors as employees and in essence places pressure to be paid under an umbrella company. My advice for winning work outside IR35 is to target firms that may be subject to an exemption, gently and politely clarify work scope and ask for an IR35 determination rather than it be assumed you are caught within it. Look at the deliverables, timeframe and whether you are there to do project work or a BAU role. If you are caught, invest the time to research the best umbrella company if this is required. They all have different rates and some have better reputations than others. I would recommend to other contractors to ensure if they do have to operate within IR35 that their rate has to reflect NI contributions so that your rate doesn’t include the NI contributions for both employee and employer.

How important has networking been for you winning work? Any networking tips for independent consultants who are out on their own??

I believe building relationships are essential to any firm who is building a business and focusing on developing them over a period of time. I personally am not someone that ‘networks’ at events but I do believe and have seen people buy people- especially those they trust. However it is not just end clients that you need to build relationships with but other consultancies, peers, recruitment agencies and so on. Whilst networking events are helpful to meet people when you start, I have found reaching out to people I have met along the way and their own contacts has been very useful. The best advice I was ever told was use interviews as a networking opportunity, 3 people who interviewed me in the past offered me consultancy work and one has became my business coach. It’s a very small world!

How important is it to offer a niche service as an independent consultant? Can you be a ‘jack of all trades’?

It depends. I have worked in financial crime but started in regulatory compliance and have branched into governance, risk, and change/transformation. I like variety and was a driver for being self-employed. However, I believe it’s important to start with a primary discipline and know it well as it is your foundation block. However, I believe both approaches can be successful it simply depends on your objective and if you want career progression/change in the types of roles you can do. The only think I would say about being a jack of all trades is it tends to be harder to develop deep subject matter expertise and clients are increasingly requesting detailed knowledge in the relevant area rather than transferrable skills.

What should you keep in mind when agreeing a scope of work with a client?

1.????Be clear and precise about the deliverables and timeframes

2.????Consider if there are any assumptions and dependencies, list and document them clearly as if there are delays because you eg do not receive information, this justifies the delay in the deliverables

3.????The out-of-scope items should be detailed and often longer than what is included. Many people will assume work items are included when they are not so its important to be clear up front

4.????A written scope of work should only be produced after a detailed discussion with the hiring manager. It’s a small point but written words can often get misunderstood without the verbal/face to face dialogue to go with it

5.????BE REALISTIC- There a temptation to agree to anything so as to win work but it is never good business. Be realistic about what you can deliver and to your skillset and experience.

6.????Do not be afraid to properly charge- I often seen people over commit to scopes of work at discount prices which then reflects in rushed work leaving clients frustrated. If the work is in depth, technical and lengthy be clear and upfront above the charges and explain why. If the client does not want to pay then consider the scope being re-defined rather than committing to work you know requires more time and commitment as it often ends in disaster

7.????Remember to say no- as difficult as it is to say, going into scope a project/work you need to be open minded and willing to compromise. However, if you genuinely do not consider the work can be done within the timeframe, has too many dependencies etc sometimes you need to be able to know when to walk away. As a business owner you need to consider your firm’s brand and reputation and taking on the impossible may not be in your interest, but this is of course fact specific and in extreme cases.

8.????Be careful to use phrase and words that have specific connotations. I have been in many scoping meetings where phrases have been used that can widen the scope considerably. Therefore as plain language as possible is always best.

Are there any projects or types of work that you would avoid??

The only projects to avoid are ones where you feel you cannot deliver to the standard you need to. If you are not supported, resourced or you are already at work capacity, be honest with yourself and as said sometimes it’s important to say no to get better projects and protect your professional reputation.

The only exception would be in change/remediation programme where that has been repeated plans but they for whatever reason have consistently failed. I would not advise avoid at all costs but be clear in the interview process in understanding why they have failed and where you can help- if at all.?You need to know you can help and be part of the solution not another casualty.

Do you have advice on negotiating rates with clients?

Always keep a range rates i.e. between X-Y, as clients like to feel they have choices and it often means you do not rule yourself out if you set one binary figure. Psychologically it helps to win work and that there is an impression of flexibility. It can present an impression that the only thing that matters is the day rate and this is not an advisable picture you want to create when you manage your own business. Working with great people, doing interesting work and expanding your knowledge are also very valuable attributes and its important that you convey that to your clients when negotiating.

Benchmark your rates! Investigate and research what peers and consultancies are charging so that you are charging within industry standards because pricing yourself out of the market will not assist in obtaining work

Be willing to compromise if necessary. For example- if a client has a budget but can offer repeat work and is a lengthy contract a slight deduction on your day rate may be commercially sensible.

However that said, know and value your worth. If you are being asked to complete complicated and detailed work, then there is a price for that and sometimes you just need to be firm but polite in your pricing.

What does the future look like for you in this market???

Who knows? It is clear the market is evolving into the fintech and payments sector which is really interesting. I hope more firms diversify with FS services and it may see me working with none traditional firms with an FS angle which I am excited about.

Are there any resources you would recommend other independent consultants investigate/ invest in??

Sign up to all forums and newsletters relevant to your industry to keep abreast of market changes. Attend some industry forums but you definitely do not need to do all of them!

I also invested in legal protection insurance for my firm and the law firm supporting the business has given me access to a databases of useful articles for small business owners like myself to read up on business issues.

Is there a difference between working for as an Independent Consultant rather than directly for industry as an employee??

The main thing is flexibility. As a consultant you are independent so less involved in business day to day such as people management, performance management etc it is entirely focused on the work. Sometimes this can feel a bit isolating if you are used to being part of a work community, but if you have the right attitude you can still make that as a consultant but note that sometimes clients in industry may not see as you as a ‘part’ of the business.

When you work directly for industry there are more responsibilities and pressures, but you are offered job security, benefits, pension and career progression. However, you do fall into a hierarchy and the firm’s way of working.

Is there anyone+ that you would recommend getting in touch with to hear about new opportunities? (Apart from myself?)

I have been supported by many people in the market and know many that work hard with contractors to ensure they are supported and get great projects.

-???????Phil Creed at fscom of course who is one of the nicest and smartest professionals I have ever met with the best sense of humor!

-???????Priya Giuliani at GuideHouse– understands the market intricately well and has helped me and others on obtaining projects and putting people in contact with each other. She always replies and is one of the hardest working professionals I have met

-???????Tom Boulderstone at Barclays Simpson- one of the most professional, courteous, and helpful Financial Crime recruiters both as a contractor but was hands on when helping build out a FC team on a previous engagement. Has a fantastic understanding of the market.

-???????Paul Geist – An excellent FS recruiter who has subject matter knowledge as if he was practicing in the field and knows the business at analyst to senior executive level. Has helped both as a contractor and as a client when building out many Financial Crime teams from inception.

-???????John Flynn and Steve Barnett at Gracechurch FC Prevention- two of the most sincere and knowledgeable people I met and who work with actively contractors ensuring they are properly remunerated. John’s knowledge across financial crime is somewhat extra-ordinary as is Steve’s in programme management.

If you think Simran expertise could be utilised within your business, please feel free to connect with her directly via Linkedin: https://www.dhirubhai.net/in/s-b-a600a7a8/.

Hi! I am a Senior Talent Associate at fscom, a specialist Governance, Risk and Compliance consultancy that services the Fintech and Investments market across the UK and Ireland.

If you are a regulatory compliance or financial crime professional and interested in opportunities with fscom, or the fintech market, reach out to [email protected]