Ask HN: What mistakes did you make when starting as a consultant/freelancer?

Article summary

The article asks consultants and freelancers to share mistakes they made when starting out and what they learned from them. One example given is a consultant who started a project without taking an advance and didn't get paid. The author is setting up their own consulting practice and wants to learn from others' mistakes. The goal is to gather advice and lessons learned to help new consultants and freelancers avoid common pitfalls.

Main themes

• consulting mistakes
• tax optimization
• freelance rates
• business planning
• client management
• tax laws and regulations

What commenters say

• Underestimating the amount of work a job will require is a common mistake that can be mitigated by doubling the estimated time and charging accordingly.
• Hiring a good tax person immediately can save a significant amount of money and help with business planning.
• Charging per hour is generally recommended over charging per project to avoid scope creep and ensure fair payment.
• Setting rates too low can lead to clients who waste time and try to micromanage the project, while higher rates can attract better clients who give more latitude.
• A good accountant is worth every penny and can help with tax optimization and business planning.
• Estimating taxes and putting aside money quarterly can help avoid unexpected tax bills and penalties.
• Different countries have different tax systems and laws, and it's essential to understand these to optimize business structure and minimize tax liability.