When to Transition From Being an Employee to Independent Consulting

A majority of full-time independent workers report high levels of job satisfaction, according to MBO’s recent State of Independence report. In fact, 65% feel more secure in their careers than they did in traditional employment.  

This sense of security comes from building diverse client relationships rather than relying on a single employer, creating a more stable foundation for long-term career growth. 

Transitioning from Employee to Independent Consultant

Switching from being an employee to an independent contractor is a big career change. While the freedom and potential rewards are appealing, it’s important to plan your exit carefully. Our team at MBO Partners offers strategies to help you maintain professional relationships and protect your interests during this transition. 

Planning Your Exit

Before you announce your departure, make sure you’re mentally and financially ready. Keep your plans to yourself until you’re sure you’re making the move. Having backup plans is smart, but try to focus on what’s ahead instead of second-guessing your decision. 

See: Checklist: How to Start a Small Business 

Setting Professional Boundaries

How much you share depends on your situation and your relationship with your employer. Be upfront about your consulting plans while staying mindful of any legal restrictions. Take time to review your contracts for non-compete clauses and understand how they apply in your state. 

Managing the Transition

Choose your notice period based on your current projects and how long it might take to find a replacement. A smooth departure can help position your employer as a future client. Even in tough situations, staying professional and following your contract’s notice requirements can keep the door open for future work. 

Check Out: How to Become an Independent Contractor: 4 Questions to Ask 

Crafting Your Message

When you resign, keep things positive. Highlight the skills you’ve gained and express gratitude. If it feels right, you can mention your consulting services—your employer might even become your first client. Frame your decision as a strategic career move, not a critique of the company. 

Protecting Relationships

Your reputation depends on how you handle this change. Avoid discussing internal disagreements or company problems. Focus on your goals and future plans. Build your network thoughtfully, sharing your news with trusted contacts as you transition to independent work. 

Learn More: Networking Tips to Boost Your Small Business Growth  

Legal Considerations 

Review all employment documents that could affect your next steps. Talk through any restrictive clauses with your employer. If you’re hoping to consult for them later, check their rules on rehiring former employees—some companies require a waiting period before bringing back contractors. 

Establishing Your Business Foundations

Before you leave your job, make sure your business is set up properly. Registering as a sole proprietor or forming an LLC can offer legal and tax benefits. Setting up a separate business bank account, getting the right insurance, and deciding on your pricing strategy can help you hit the ground running. 

Marketing Yourself

Once you’ve made the transition, it’s time to position yourself like a pro. A strong LinkedIn profile, a polished website, and a solid portfolio can help you attract clients. Consider joining online marketplaces, connecting with peers, and asking for referrals from past colleagues to keep your project pipeline full. 

See: 6 Tips for Networking Via LinkedIn 

More Tools and Resources Available for Independent Contractors

MBO’s guide on transitioning from a full-time employee to an independent contractor can give you additional support as you make this next step in your career. 

If you’re seeking more resources on your journey as an independent contractor, visit MBO’s blog for expert insights and recommendations. Our blog covers a wide range of topics, from financial planning to client management, to help you succeed in the world of self-employment. Plus, if you’re looking for opportunities in your field, join our talent marketplace to connect with top clients and exciting projects. 

This article from MBO Partners does not constitute legal or financial guidance.