self-employment in public · why agencies hire consultants… o risk-taker o outgoing o disciplined...

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Self-Employment in Public Health

Tiffany Tate, MHS ’96 SOHPH

February 12, 2013

o Grant-Writing o Program Planning o Health Education/Health Literacy o Program Evaluation o Data Analysis and Reporting o Strategic Planning o Marketing/Communications o Media Relations o Event Planning o General Consulting (all of the above) o Contract Work o Others???

Self-Employment Opportunities

o Government Agencies

o Nonprofit Organizations

o State and Local Health Departments

o Hospitals

o Colleges and Universities

o Private Companies

o Professional Associations

o Insurance Companies

Potential Clients

o Flexibility in work schedule

o Ability to select work location

o Ability to select projects

o Ability to choose colleagues

o Relatively limitless earning potential

Advantages of Self-Employment

o Must find work

o No Work = No Pay

o Possible unpredictable/unstable workload

o Responsible for work-related expenses

o Increased administrative responsibility—the “buck” stops with you

o Limited or no workplace camaraderie

Disadvantages of Self-Employment

o Seeking expertise in specific area

o Need to satisfy short-term staffing need

o To help meet deadlines

o Oftentimes cheaper than full-time employees

Why Agencies Hire Consultants…

o Risk-taker o Outgoing o Disciplined o Self-Motivated o Personable o Good Communicator (verbal and written) o Organized o Creative

Consultant’s Profile

Cost of Self-Employment

o Equipment o Dedicated phone number o Computer o Printer o Copier o Fax/fax subscription o Scanner o Postage scale o Postage meter o Credit card capabilities

o Office Supplies o Equipment Repairs o Meeting registrations o Professional publications

(ie. journals) o Professional association

memberships o Mileage and travel o Professional email

address and/or website

o Office Space - $600 to $1,200 per month

o Health Insurance – Up to $1,000 per month

o Disability Insurance – up to $500 per month

o Professional Liability Insurance – appx. $400 annually

MAJOR Expenses

o Life Insurance - $30 to $100 per month…up to $1,200 annually

o Retirement - up to $13,000 per year

o Self-Employment Tax – Approximately 15% of income

Other MAJOR Expenses

o Develop a plan and do your homework o Find a mentor o Research consulting opportunities o Find a niche o Take advantage of trainings offered or

covered by your employer o Become an expert in one or more areas o Build relationships in your field

Preparing for Self-Employment

o Join professional associations o Spread the word o Save 6+ months of living expenses or pay

bills in advance o Be creative with your departure o Maintain good relationships with former

employers o Start “on the side”

Preparing for SE (cont.)

o Health Disparities

o Obesity

o Health Reform

o Access to/Utilization of Care

o Patient-Centered Medical Care

What’s Hot in Public Health?

o Public Health Emergency Preparedness (eg. Pandemic influenza) o Information Technology

o Health Literacy

o Research, research, research o Find a good accountant o Get impressive letterhead and business cards o Decide on business name and structure –

incorporate or not? o Register with appropriate departments and

programs (eg. small business, minority business associations)

o Consider industry standard and business expenses when determining fees

Getting Started

o Check going rates, considering experience and education

o “Tate Formula” o Start with ideal (yet reasonable) annual salary o Divide by 2080 to get hourly rate o Add 30 to 40% for fringe o Add 15 to 40% additional for consultant

expenses

Setting Your Rate

Desired annual salary: $100K

$100K / 2080 = $48.07 per hour

Fringe: $48 * 0.3 = $14.40

Consultant Expenses 48 * 0.3 = $14.40

Consultant’s Hourly Rate: $48.07 + $14.40 + $14.40 = $76.87

Hourly Rate: $77

Setting Your Rate: “Tate Formula”

* Note that 2080 hours a year may not be guaranteed.

o Staffing and Business Growth

o MFN Clause

o Insurance Coverage

o Retirement Planning

o Taxes

o Vacation and Leave Time

Ongoing Considerations

Commit to Excellence

Push for long-term contracts

Secure retainers, when possible

Stay in close communication with clients

Be flexible

Follow through

Define and Maintain Balance

Give back to clients and community

Tips for Success

Contact Info:

Tiffany Tate 410-484-6515

tiffany_tate@msn.com