I recently asked my LinkedIn community what area of self-employment in data intrigued them the most: consulting, training, or selling software. Overwhelmingly, respondents gravitated toward consulting.
I get it: consulting sounds glamorous. It conjures images of authority, importance, and prestige. People come to you with challenging problems, and you solve them. It’s the pinnacle of knowledge work, right?
Well, here’s the honest truth from someone who has been down that road: solo consulting is one of the hardest ways to run a data business. In this post, we’ll dig into why this is the case and explore alternative paths that might serve you better.
The harsh reality of solo data consulting
Consulting might look enticing on the surface, but beneath the glamour lies a host of significant challenges. Consulting tends to have a limited scalability because you’re essentially selling your time. Whether charging hourly or by project, your earning potential is inherently capped. Moreover, each consulting project typically requires considerable administrative work, such as navigating corporate security protocols, gaining necessary data access, and managing client credentials. These tasks consume valuable time that would be better spent on productive, income-generating activities.
Additionally, consulting projects frequently experience scope creep. As employees, many of us are conditioned to overdeliver to impress our bosses and teams. However, in consulting, repeated overdelivery without additional compensation quickly becomes unsustainable. Every extra task, no matter how small, eats into your profitability and overall productivity. While consulting does offer prestige and potentially lucrative short-term income, it can quickly lead to burnout, especially if you’re consistently navigating unexpected hurdles.
Training: the underrated powerhouse
Many people overlook training because of the lingering stigma that “those who can’t do, teach.” Yet, in reality, training offers substantial long-term advantages. Unlike consulting, training engagements are generally straightforward. The scope is well-defined upfront, providing clear expectations for both you and your client. Training sessions are repeatable and scalable, meaning you develop a strong curriculum once and can reuse it across multiple organizations. This dramatically reduces the time spent reinventing and customizing content for each new client.
Another major advantage of training is minimal administrative burden. You rarely have to wait for access to client systems or data credentials. Training usually takes place in a controlled environment, allowing you to focus entirely on delivering impactful content. Additionally, training often expands naturally into content creation, course development, or curriculum design. These related activities create multiple revenue streams and increase your professional authority.
Many industry leaders incorporate training into their business models precisely because it scales so effectively. While initial income per session might be lower compared to consulting, the potential for repeat sessions and broader market reach ensures strong overall profitability. In short, training provides sustainability, scalability, and consistent value.
Selling software: the quiet achiever
Selling software is another excellent avenue for a self-employed data professional, although it may seem less accessible initially. Particularly in data-focused communities like Excel users, creating and selling productivity add-ins or tools can significantly boost your visibility and provide ongoing passive income. These products embed you into your customers’ daily routines, building strong brand recognition and loyalty over time.
Unlike consulting, selling software enables you to define your engagement terms clearly from the outset, avoiding lengthy negotiations or scope issues. Additionally, after the initial investment in product development, software can generate consistent, recurring revenue with minimal ongoing effort. This passive income potential makes software sales extremely attractive and complementary to other business activities like training.
Even in more open-source communities, such as those centered around Python, you can monetize expertise through service-level agreements, premium support offerings, or specialized add-ons. These approaches similarly allow you to set clear terms and generate predictable revenue streams without ongoing burdens of individual consulting projects.
Putting it all together: what’s right for you?
While consulting may feel prestigious initially, training and software product creation provide more robust foundations for sustainable and scalable businesses. Here’s a quick comparison to help you clearly evaluate each path:
| Aspect | Consulting | Training | Selling Software |
|---|---|---|---|
| Scalability | Low (limited by your available time and custom client demands) | High (easily repeatable and scalable sessions or materials) | High (product can scale indefinitely once created) |
| Administrative hassle | High (frequent logistical hurdles, security clearances, and client management) | Low (minimal logistical and admin requirements) | Low (mostly upfront development effort) |
| Risk of scope creep | High (common and can significantly reduce profitability) | Low (scope clearly defined from start) | Low (defined product specifications upfront) |
| Income potential | High initially, but limited by billable hours and project volume | Moderate to high, grows with your audience and repeat business | High and potentially passive once established |
| Prestige | High (perceived as authoritative and expert-driven) | Moderate (valuable but sometimes less prestigious) | Moderate to High (strong brand recognition potential) |
| Revenue consistency | Variable (dependent on finding and securing new projects regularly) | Consistent (repeat engagements, courses, and sessions) | Consistent to Passive (recurring product sales) |
| Startup effort and cost | Moderate (mostly time-intensive to establish credibility and client base) | Low to Moderate (content creation and curriculum development upfront) | High initially (product development, marketing, customer support) |
| Long-term sustainability | Challenging (often leads to burnout without careful management) | Strong (repeatable, scalable income streams) | Very strong (sustainable passive income potential) |
Why working for yourself is still the best choice
Despite the challenges of solo consulting, working for yourself in data is incredibly rewarding. You gain freedom, flexibility, and opportunities to profoundly impact people’s professional lives. Additionally, you join a vibrant, supportive community of fellow data entrepreneurs. The key is choosing the path that best aligns with your long-term goals. Training and software product creation offer significant scalability and sustainability advantages, helping you build a thriving and enduring business.
Before diving into solo consulting, carefully evaluate your options. If you do choose consulting, ensure you set firm boundaries, rigorously manage project scopes, and diversify your offerings to safeguard your sustainability.
Conclusion
The appeal of consulting’s glamour and prestige can obscure its practical limitations. Training and software sales represent powerful alternatives for building long-term success. Ultimately, your decision should reflect your personal strengths, ambitions, and preferred lifestyle.
I’d love to hear your thoughts or experiences in the comments. Which path resonates most with you, and why?
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