Welcome to another weekly edition of Leapfrog Scientist!

In this edition of the newsletter, we dive into the exciting realm of transitioning from a scientific career to consulting—a journey filled with opportunities and challenges. Drawing from our experience and insights shared during our presentation at the Society of Toxicology (SOT) last year, Preston and I aim to illuminate the path for fellow scientists aspiring to venture into the dynamic world of consulting.

We’ll share our 2023 SOT Tiny Tox Talk on “How Does a Scientist Break Into Consulting”, we'll provide a glimpse into our daily routines, offering examples of our typical activities. Additionally, we'll address questions that were posed about forming an LLC, securing initial clients, establishing hourly rates, and sharing insights on the highs and lows of consulting.

2023 SOT Tiny Tox Talk, “How Does A Scientist Break Into Consulting?

The problem

The greatest challenge for scientists in academia is that funding has not kept pace with the number of science PhDs awarded.  Prior to 2006, federal funding tracked with matriculated biomedical graduate students, but that funding has flatlined while graduate student numbers continued to grow. Each year, 7-8 PhDs are minted, but only 1 new faculty position is created. It is exceedingly unlikely that a PhD will make it to full professor. This is depicted in the illustration below of the NIH budget versus the number of life science PhDs awarded.

The probability of becoming a full professor range from 0.45% to 3.0% in the UK and US, meaning that there is a 97% to 99.5% chance of a PhD doing something outside of their narrow academic training.

Figure 1. NIH funding compared to the number of doctorates awarded.

The Solution

If you can’t be a professor like you planned when you entered graduate school, what else can you do with your PhD?

The answer is: anything and everything. There are several skills that science PhDs tend to excel at more than those in other career paths:

· Complex problem solving

· Data analysis and critical thinking

· Resource and information management

· Written and oral communication of technical matter

· Working long hours under absurd deadlines

These are in-demand skills that can be applied to a number of technical and strategic careers.  We will focus on consulting.

Figure 2. Employment outside of Academia.

What is a consultant?

Consultant: An ‘expert’ who provides opinion, analysis, and recommendations to a client to improve some aspect of their business.

• Does NOT require 20+ years of experience

• Can be paid hourly, through equity, contract, salaried, part-time, or full-time

• Must be able to solve messy and ambiguous problems from clients

What are the Different Types of Consulting?

Most people think of management consulting when they hear the word ‘consultant’, but there are myriad other consulting opportunities, from extremely technical to strategic generalist.

Management Consulting Firms – Large (>$1B revenue), also have ‘niche’ specialty divisions

‘Boutique’ Consulting Firms – ‘Niche’ firms (e.g. Life Science, Health Care, Manufacturing, Automotive, etc.)

Boutique Life Science Consulting (Toxicology) is what we are focusing on for entry strategy.

There are many kinds of consulting jobs that a toxicologist can do, even if you have just defended your thesis.

•  Regulatory Toxicology- FDA or EPA facing. Risk assessments. Product Safety. Regulatory Submissions

• Subject Matter Expert (SME) – study design, analysis, scientific/medical writing

•  Litigation Support – SMEs that conduct research/risk assessments for active court cases and/or testify on behalf of a litigant (expert witness)

•  Independent/Start your own firm

There is no standard path from academia to boutique life science consulting. The way forward from science into consulting can take many forms, depending on the individual’s skills and career plan.

1. Standard path for Big 3 (MBB)/ Big 4 is pretty straightforward but others and especially niche is very different for everyone.

2. Industry first then transition

3.  Other

Scientists’ on-ramp to consulting

Industry experience, case competitions, or business classes (audit 1 at your school) are needed for Big 3/Big 4 and strongly recommended for pursuing a consulting career in general.

Figure 3. Pathways from science to consulting.

Our Journeys:

Preston and I were classmates in graduate school in the Department of Pharmacology at Vanderbilt University Medical School, but as you can see, we had varied journeys to entering consulting.

A Day in the Life

Bonnie:

Some days are packed with consecutive meetings and concentrated evening work sessions. On other occasions, I may dedicate my time to conducting ingredient toxicological evaluations, risk assessments, conducting literature reviews, examining client data, or scrutinizing laboratory reports. If toxicology projects aren't on the agenda, I'm likely engaged in marketing endeavors for my company or for clients.

Preston:

No two days are the same. There might be a call with the client to put out a fire or react to an FDA decision. Later, I could be doing toxicological risk assessments for products, interrupted by multiple calls with other clients. After that, there might be a couple of hours of data analysis, followed by business development with potential clients.

Pros and Cons of Consulting

Final Thoughts: Build Your Network, be active on LinkedIn, share and develop yourself as a thought leader in your niche.

SOT Consulting Questions We Were Asked:

1. How do you set your hourly rate?

Setting your hourly rate as a new consultant requires careful consideration of several factors to ensure you’re pricing your services competitively while also reflecting the value you provide. These factors can help you determine your hourly rate.

• Evaluate your expertise and experience. Consider factors such as your education, certifications, years of experience, and specialized knowledge that set you apart from others.

• Research market rates for consultants with similar backgrounds, expertise and services in your industry. Look at online job boards, freelancing platforms, industry reports, and professional associations.

• Estimate your desired annual income. There are calculators that can help you determine an hourly rate based off of your current salary plus benefits.

• Consider your value proposition. Reflect on the value you offer to clients and how your services can help them achieve their goals or solve their problems. Consider factors such as the impact of your expertise on their business outcomes, the level of risk or complexity involved in your projects, and the return on investment your clients can expect from working with you.

• Factor your utilization rate. Calculate the percentage of billable hours you anticipate working each week or month. Keeping in mind that non-billable activities, such as marketing, administrative tasks, and professional development, will reduce your billing hours.

• Test and adjust. Once you’ve set your initial hourly rate, be prepared to test it with potential clients and adjust it based on feedback, market demand, and your evolving business needs.

2. How do you set up an LLC to get started? 

Starting an LLC (Limited Liability Company) involves several steps, but it’s generally straightforward. There’s a lot of companies out there that you can pay to do this, but it’s pretty simple and can save yourself a few hundred bucks. Here’s a step-by-step guide to help you get started.

• Choose a Name. Select a unique name that complies with your state’s naming requirements and is available and not already in use by another business entity in your state. Typically, the name must include “LLC” or a similar designation to indicate its limited liability status.

• Select a Registered Agent. Choose a registered agent who will receive legal documents and official correspondence on behalf of your LLC. They must have a physical address in the state where your LLC is formed and be available during business hours to accept mail and notifications.

• Files Articles or Organization with the Secretary of State or the appropriate state agency. Basically, providing basic information about your LLC, such as its name, address, registered agent’s name and address, and the names of its members. Typically, this is filed online at the time of LLC creation.

• Create an Operating Agreement. Note that this is not always required by law. This outlines the ownership structure, management responsibilities, decision-making processes, and other key provisions governing the operation of your LLC.

• Apply for an EIN. Obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS) for tax purposes. An EIN is a unique nine-digit number assigned to your LLC and is used for opening bank accounts, filing taxes, hiring employees, and conducting other business activities. You can apply for an EIN online through IRS website.

• Open up a separate business checking account.

• Create your company logo, website, and social media accounts.

3. What are your favorite and least favorite parts of consulting? 

Crazy work hours that happen periodically. Travel is fun but can be exhausting. Pay is great, especially compared to academia. Even industry postdocs pay significantly more.

Least Favorite:

• Inconsistent income

• Administrative burden (invoicing, bookkeeping, tax filings, etc.)

• Client Acquisition. Finding and securing clients can be challenging, particularly when you are starting or trying to expand your client base.

• Work-Life Balance. Maintaining a healthy work-life balance can be difficult as an independent consultant, especially when you are juggling multiple clients or projects. The boundary between work and personal life can become blurred, leading to burnout if not managed effectively.

• Isolation can be an issue, but for introverts not so much.

Favorite:

• Flexibility. Freedom to set your own schedule, choose your clients and projects, and work from anywhere.

• Autonomy. As an independent consultant, you have full control over your work and decision-making processes.

• Variety of Work. Independent consulting exposes you to a diverse range of clients, industries and projects, allowing you to continually learn and grow professionally. The variety of work keeps things interesting and enables you to develop new skills and perspectives.

• Higher Earning Potential. Independent consultants often have the potential to earn higher hourly rates or project fees compared to salaried employees in similar roles.

• Professional Development. You have the opportunity to expand your network, build your reputation, and establish yourself as an expert in your field. Each project presents new challenges and learning opportunities that contribute to your professional development.

4. How do you network to find your first client? 

Finding your first client as a new consultant can be exciting yet challenging. Here are some strategies to help you land a first client.

• Leverage Your Network: Start by reaching out to your existing network of contacts, including former colleagues, classmates, friends and family members. Let them know about your consulting services and ask if they or anyone they know might be in need of your expertise.

•  Offer Free Work or Consultations: Consider offering your services for free or at a discounted rate initially to showcase your skills and build your reputation. This could involve providing a complimentary consultation, conducting a workshop or training session, or offering a trial period for your services.

•  Attend Networking Events: Attend industry-specific networking events, conferences, workshops, and meetups where you can connect with potential clients and showcase your expertise. Be proactive in networking and engaging with people who may benefit from your services.

• Utilize Online Platforms: Create profiles on freelancing platforms, such as Upwork, Freelancer, or Fiverr, where clients search for consultants. Upload your resume to consulting firms such as Venebio that have a large network of consultants that they pull from based on expertise need.

• Market Yourself: Optimize your LinkedIn profile to highlight your skills, experience, and services offered. Join relevant LinkedIn groups and participate in discussions to increase your visibility. Develop a strong online presence by creating a professional website and utilizing social media platforms to showcase your expertise and attract potential clients. Consider writing blog posts, creating videos, or sharing case studies to demonstrate your knowledge and skills in your area.

• Partner with Other Professionals: Build relationships with complementary service providers, who may be able to refer clients to you or collaborate on projects.

• Cold Outreach: Research your target clients beforehand to tailor your approach and demonstrate how your services can address their specific needs or pain points.

• Seek Referrals: Once you’ve secured your first client, ask for referrals and testimonials that you can use to attract future clients. Satisfied clients can be powerful advocates for your services and can help you expand your client base through word-of-mouth recommendations.

A little bit about our consulting companies.

Founded in 2008, Venebio Group, LLC solves complex life sciences problems for a range of organizations including pharmaceutical companies, biotechnology and medical device manufacturers, and law firms, among others. Venebio’s clients range from multi-billion dollar global pharmaceutical companies and other Fortune 500 companies to smaller, privately owned biotechnology companies.

The consultants at Venebio represent a wide range of specialties, cultivated by years of experience. Our typical deliverables include:

• Scientific manuscripts

• Industry-facing documents

• Policy development

• Client internal-use research and whitepapers

• Regulatory submissions

• Litigation preparation

ToxPharm is an independent consulting company providing scientific and regulatory toxicology guidance specializing in the areas of:

•  In Vitro Toxicology (Genotoxicity, cytotoxicity, mechanistic studies)

• Toxicological evaluation of ingredients

• Preparation of FDA regulatory submissions for (Premarket Tobacco Product and Modified Risk Tobacco Product Applications)

• CRO Management- Study design, monitoring, compliance and reporting

• Literature reviews (Health effects, Tobacco use behavior)

• Regulatory strategies and safety toxicity assessment

• Risk Assessment

• Litigation support

Thanks for reading, and I hope you've gained some valuable insights into initiating your consulting journey as a scientist.

Next Sunday, I will be heading to the Society of Toxicology annual meeting and Expo, but I hope to share a sneak peak of my 2024 SOT Tiny Tox Talk, “From Specialization to Diversification: Building Your Scientist Brand in Toxicology”.

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Chat soon,

Bonnie