Going 1099 is a book that teaches you how to become a solo federal sub-contractor and gain control of your working life, earn more money and unlock more free time. I wrote it because quite a few people have asked me how they can become a 1099. I figured it was best to write a single book that I can send them and that I can share with others who are interested. This newsletter goes out Monday - Friday and covers topics that will help you succeed in starting and maintaining successful 1099 career.
1099 or W2 for a small company?
The downsides of working for a large company like Booz Allen, Deloitte, Peraton, etc. are known. They can be bureaucratic and often make you do extra work outside of your billable hours. Small companies generally have a different set of pros and cons. In the government contracting world, you may be able to negotiate some very 1099-like terms with a small company.
Working for a small company might be great! But there is one major difference between working as a W2 at a small company working as a 1099: psychology. As a W2 employee, it's easy to get psychologically comfortable and think the company will "take care" of you. At a big company, this comfort comes from its size. If you're a Booz Allen contractor, there is likely another contract you can go to if your project fails or gets canceled for whatever reason. If worst comes to worst, you might even get severance! At a small company though, the company doesn't have the scale or resources to really protect you. Sure the owner might be a nice guy or gal and do their best to make sure you're taken care of, but at the end of the day, there is not much they can do if your position gets terminated. The problem is, it's one thing to know this intellectually and another to psychologically adopt it. As a 1099, you learn to take responsibility for your own career and take appropriate risk management measures. You develop a healthy paranoia to things going wrong. As a small company W2, you are exposed to the same risks as a 1099 but are too comfortable to keep networking, improving your skills, etc. If something happens, you're left unprepared and in a uncomfortable financial situation. As a 1099, there is no hiding from yourself or the risks inherent in government contracting. Whatever path you choose, make sure you understand the risks you're assuming and adopt an appropriate psychological posture. If you're interested in learning how to get your first solo 1099 federal sub-contract, check out my book: |
I'm Dale, the author of Going 1099
Going 1099 is a book that teaches you how to become a solo federal sub-contractor and gain control of your working life, earn more money and unlock more free time. I wrote it because quite a few people have asked me how they can become a 1099. I figured it was best to write a single book that I can send them and that I can share with others who are interested. This newsletter goes out Monday - Friday and covers topics that will help you succeed in starting and maintaining successful 1099 career.
One of the reasons a company would bring on a 1099 or a sub-contractor is because bringing on a full time W2 employee would be too risky. If a contract has a limited amount of time left on it and there is a vacancy, companies may not want to hire someone because they're not sure if they'll have billable work for the employee after the contract ends. This is when hiring a 1099 would make sense, even if it reduces their margin. They're trading margin in exchange for a lower risky profile. In...
Hi all, Not returning to the newsletter just yet but thought I'd send out a link to an interview I did with Jonathan Stark on his podcast, Ditching Hourly. https://podcast.ditchinghourly.com/people/dale-davidson Jonathan advocates for getting away from hourly billing in your independent consulting practice. I agree, but I discuss why that's difficult in government contracting but why it might be okay anyway, particularly if you're jus getting started. He's a great follow for those of you who...
Hi all, I've enjoyed writing this newsletter for over a year now, but I've decided to take a hiatus for the time being. There is an extensive archive if you'd like to go back and read the previous ones. As always, if you have 1099 questions, feel free to ping me via e-mail at dale@1099fedhub.com. Good luck to you all! -Dale If you're interested in learning how to get your first solo 1099 federal sub-contract, check out my book: Going 1099: How to become a solo federal sub-contractor and gain...