Winning The New Rat Race: Consulting

Many people who exit the corporate world and want to set up shop at home are attracted to consulting. But if all those would-be consultants really understood how hard it is to make a go of it, they probably would try a different career. The most discouraging statistic: 70% of new consultants drop out in the first year, says the National Bureau of Professional Management Consultants (NBPMC). "You may have experience in an industry, but you need to know how to market that experience and convince people that you can do the job," says Rudy Lewis, president of the National Association of Home Based Businesses.

Despite the slim odds of success, five million home-based workers call themselves consultants in areas as varied as information management, software development, and human resources. So what can you expect when you decide to hang out your shingle? And how can you increase your chances of earning a decent living?