By the time this column reaches your hands, we may all have a better understanding of how long and deep the global recession will be. But as I'm writing these words, it's still unclear. What is apparent is that a lot of big companies, particularly those that are publicly traded, are downsizing—and many project managers are among the layoffs. While the United States is bearing the brunt of the job losses so far, other countries are bound to follow.
This is not the first recession in our lifetimes and it certainly will not be the last. But if it looks like you might be a casualty of the recession, this could be your opportunity to embark on a new career as an independent project management consultant. Some say that in Latin America, we have become experts in dealing with economic downturns and recessions, and one of the strategies many professionals use in our region is turning to self-employment during harsh times.
An independent career is not for everyone. Here are three tips to guide you in deciding whether to step out on your own:
1. Can you do it financially? One factor to consider is the size of your current bank account—or your severance package. It should be large enough to cover all your household expenses for at least three months, which is usually the time needed to generate some revenue.
2. An economic crisis can sometimes open up business opportunities. When faced with the prospect of a massive downsizing, companies usually eliminate more positions than they can actually spare. Therefore it is likely that those same companies will decide to go back and hire contracted project managers in the near future.
3. As a project manager, your best asset is your own experience and knowledge. The initial investment needed for a knowledge-based business is very low compared to other types of commercial endeavors.
Step by Step
It's also helpful to take steps that will help you ease into a solo career:
■ Work on the network of contacts you already have from your current job. Let everybody know you have decided to become an independent consultant and are interested in contract opportunities in your field of expertise. Call subcontractors, partner companies and business associates from other areas in your company—and approach them in a very optimistic mood.
■ Take advantage of social networks, especially those devoted to professional networking, like LinkedIn, Plaxo or Ryze. Update your contact information and work on establishing new contacts. This can be the perfect window to showcase the talent you have to offer.
■ Develop a presentation or brochure packaging your abilities. Don't make the mistake of approaching potential buyers with a pitch of “I do any kind of project management consultancy.” Establish clearly how you can add value to current projects and what kind of services you can provide.
■ Think about diversification to augment cash flow. Consulting services usually have long selling and collecting times, so you may need to add some training work to your offerings. Get in touch with your local PMI chapter, university or training company to offer yourself as a trainer or facilitator on project management topics.
■ Most importantly, be open to change. If you've been working in the corporate world for a long time, going solo is a complete change of pace. Take stock of yourself and research good entrepreneurial techniques. When a recession hit the Mexican economy in 1997, that's exactly what I did. And 11 years later, I'm still working on my own. PM
Roberto Toledo, PMP, managing director of Alpha Consultoria, is a trainer and consultant who works across Latin America. He can be reached at [email protected].