How risky is freelance consulting?

[eteb3]

So, I and others I know are freelance consultants in various fields - basically expertise for hire.

I've always assumed this is ultra-low risk, as the worst an unhappy client can do is sue to recover the cost of the work done (or not done, as they'd say). Or maybe you spill coffee on their laptop or something.

Then I read in Small Business for Dummies (albeit US edition) that consulting is high-risk work.

We all have degrees, some have professional qualifications - but not the sort with fiduciary duties.

*Tax aside*, am I a mug for doing this unincorporated?

Thanks.

 

[mattk]

I think it depends on what kind of consultancy you are doing. If you give a company incorrect advice, cause a security breach or some other kind of incident that results in significant financial loss, then yes the risk is high. If you design logos for a living, not so much.

 

[Mark T Jones]

Get your insurances right, good credit control and a decent route to market I'd say it's at the low risk end of the spectrum.

The US is of course notoriously litigious

 

[saton]

Any freelancer takes a risk. This is the search for customers, and the calculation. customers may not be able to pay for the order you have completed.