• Skip to main content
  • Skip to primary sidebar
  • Skip to footer

BABLOCKS.COM

The Building Blocks for Your BA Career

  • MEMBERSHIPS
  • COURSES
  • RESOURCES
    • AI/ChatGPT for Business Analysis
    • Career Guidance for Analysts
    • Live Session Replays
    • Podcast
    • Terms & Definitions
    • Our BA Community
    • STAGES
  • LOG IN
  • START FOR FREE!

Emal Bariali / September 17, 2023

Business Analysis Consulting: 3 Things to Consider Before Making the Leap into BA Consulting

Becoming a freelance business analysis consultant can greatly increase your income, but there are many other factors to consider when making this important decision.

As a business analyst, you might be tempted to look at the 2x to 3x income potential of becoming a freelance business analysis consultant and use that as the only determining factor for taking the leap.

In this article, I'll give you a few more things to consider to ensure you're making the right decision by moving from a permanent BA role to a freelance independent consulting role.

1. Consider the Job Market

Not all BA job markets are made equal, and the job market that you have access to should carry enough demand for business analysis consulting services to ensure you'll be able to continually land new contracts to make your consulting practice over the long run.

Remember that most business analysis contracts last between 6 months to 12 months and that you have no guarantee of continued employment after your contract is up.

I transitioned into BA consulting while working in Toronto, one of the strongest job markets for business analysts.
I transitioned into BA consulting while working in Toronto, one of the strongest job markets for business analysts.

2. You Will Lose All Your Benefits

Your employer is currently compensating you far more than the income that hits your bank account every pay period.  This additional compensation comes in the form of fringe benefits and will not necessarily appear on your pay stubs.  Here is a list of the most valuable benefits you may be receiving today that you'll be forfeiting when you become a business analysis consultant:

Fringe benefits enjoyed by permanent employees:

1. Retirement plans

2. Health benefits

3. Life insurance benefits

4. Medical leave benefits

5. Paid time off (PTO)

6. Education/training benefits & tuition reimbursement

As an independent freelance business analysis consultant, you must secure these benefits on your own without the help of an employer-sponsored program to help you.

3. You Are Now a Business Owner

Remaining a permanent employee shields you from much of the complexity and risks of having to start and operate your own business. Your employer manages the multitude of risks that come with operating a business, and you as the employee, get to enjoy a relatively simple employment life.

As a business analysis consultant, one of the first decisions you'll be confronted with is to form the legal structure for your business (incorporation, or sole proprietorship).  Making this initial decision can require you to project the income you expect to generate, and get a full understanding of the tax implications of one vs. the other to make the most optimal decision.

Business operations that consultants must consider:

1. Bookkeeping, accounting, and legal costs of operating a business

2. Optimizing personal income through a corporate structure

3. Business development responsibilities

4. Risk of tax and regulatory compliance with changing laws

The Bottom Line

Although the income potential for freelance consultants is quite high, you should consider the additional complexity and risk that you're introducing into your career by becoming a freelance business analysis consultant.

Image

About the Author

Emal Bariali is a seasoned business analysis professional with 20+ projects executed since starting his BA career in 2005.

Emal has managed to 5x his yearly business analysis income by developing his BA skills and transitioning to BA consulting in one of the strongest BA job markets in the world: the Greater Toronto Area

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

Featured Articles

1: Business Analysis Consulting: 3 Things to Consider When Taking the Leap into BA Consulting

2: Business Analysis vs. Business Analytics

3: Agile Methodology: The Benefits & Drawbacks of the Agile for Business Analysts

RSS BA BLOCKS PODCAST

  • 9: The 4 Ways ChatGPT and AI Will Change Business Analysis January 11, 2023
  • 8: Customer Requirements for COTS vs. Custom Built Solutions April 26, 2021
  • 7: How To Ace Your Next Business Analyst Interview (Part 1) August 19, 2020
  • 6: Agile Myth vs. Agile Reality: An Interview With Dean Kulaweera August 10, 2020
  • 5: What Do You Want From Your BA Career? January 30, 2020
  • 4: The 3 Elements of Your BA Career Strategy January 21, 2020
  • 3: Top 3 Sources of Skills for Business Analysts November 4, 2019
  • 2: Top 3 Sources of Stress for Business Analysts October 28, 2019
  • 1: How to Create a Fulfilling Business Analysis Career October 21, 2019
See all podcast episodes.

Footer


The Building Blocks for Your BA Career

The BA BLOCKS Program

A fully integrated skillset that makes it easy to become a high performer.

► BA BLOCKS vs. Other Programs

► Refund Policy: You should never feel “stuck”

Formal BA Training

Hands-on, project-driven experiences that challenge you to grow.

► Foundational Business Analysis (FOBA™)

► Business Analysis Practitioner Certificate (BAPC™)

A Business Analysis Primer

A comprehensive tour of the BA profession to help you plan your BA career.

► Business Analysis 101 Course

Featured Articles

  1. Business Analysis Consulting: 3 Things to Consider When Taking the Leap into BA Consulting
  2. Business Analysis vs. Business Analytics
  3. Agile Methodology: The Benefits & Drawbacks of the Agile for Business Analysts

RSS Podcast Episodes

  • 9: The 4 Ways ChatGPT and AI Will Change Business Analysis
  • 8: Customer Requirements for COTS vs. Custom Built Solutions
  • 7: How To Ace Your Next Business Analyst Interview (Part 1)
  • 6: Agile Myth vs. Agile Reality: An Interview With Dean Kulaweera
  • 5: What Do You Want From Your BA Career?
  • 4: The 3 Elements of Your BA Career Strategy
  • 3: Top 3 Sources of Skills for Business Analysts
  • 2: Top 3 Sources of Stress for Business Analysts
  • 1: How to Create a Fulfilling Business Analysis Career

Copyright © 2023 · BA BLOCKS  

  • Terms of Use
  • Privacy Policy
  • Refund Policy
  • About Us