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