by Kevin Loney.

This is part of a series of articles for new DBAs, as first presented on http://www.kevinloney.com

Since going independent, I have received an increasing number of questions from DBAs who are considering going independent. I am not a lawyer or an accountant, so I do not offer advice on the different types of business structures you should pursue. I strongly encourage people considering independent status to read all they can about LLC, LPs, S corps, C corps, and all other business types supported in their country. Consult with an accountant and an attorney before entering into any business arrangement.

As an independent, you will need to assume responsibility for the functions previously provided by your employer. These overhead functions include the following, listed in order of decreasing effort:

Marketing.

Even if you are a well-known among DBAs, your target market is not DBAs - it's the vice presidents, CIOs, and directors who pay for DBA resources. Expect that marketing yourself and maintaining business relationships will take more time and effort than any other part of your overhead.

Staying current.

If you are independent, how do you plan to stay current with the technology you are supporting? Will you pass up billable hours to go to training classes? Will you go to user groups? If you go to user groups for training, how will you balance your training needs against the marketing possibilities at user groups? Will you purchase your own home license of Oracle? If so, what version and options will you purchase?

Business Planning.

You should not go into business without understanding your product, your customers, and your marketing plans to reach those customers. In this case, your product is your services; how are your services different from those of your competitors? You may be able to establish a niche based on specific technical knowledge or a particularly solid business relationship. Also, what is the long-term plan for your business? Will you be doing the same thing five years from now?

Accounting.

If you set up your accounting procedures properly, the accounting efforts will be minimal. Depending on your business structure and your work locations, you will need to establish payrolls, pay sales tax, and pay estimated income tax. In general, you will see your accountant a lot more than you see your lawyer.

Legal.

Depending on your practice, you will probably see your lawyer the most at the beginning of the incorporation process. Later legal involvement may center around reviewing contracts and dealing with changes to the corporate structure.

All those little things companies provide: Health insurance. Business and tort insurance. Sick leave. Paid vacations. Career paths.

Even with those requirements, going independent can be well worth it if you are prepared for it. You must be prepared to devote yourself to each of the areas listed above, and you must be able to assume risk in areas previously handled by your employer. For example, as an independent you are responsible for generating income, establishing relationships, invoicing customers, and paying creditors. If you are not willing to assume the risks involved in each step, then you are not ready to go independent.

If you go independent, you will need to focus on building and maintaining relationships with a wide variety of customers. Ironically, that's the same skill that's required to be an effective DBA - the technology is the easy part.