Why Federal Employees Should Start a Consulting Business in 2026

If you’ve been in federal service for any length of time, you’ve probably noticed a change. The “stability” that once defined government work isn’t what it used to be.

Shutdowns, hiring freezes, and reductions in force have become regular parts of the federal landscape. Every year, the same questions surface: Will we get paid this month? Will our projects be funded? Will my position survive the next budget cut?

After two decades in uniform and years working alongside civilian federal employees, I’ve seen this cycle repeat itself over and over again. The problem is — most people are still caught off guard when it happens.

That’s why I created this video and this post: to show federal employees exactly how to take control of their financial future by transforming their government experience into a profitable consulting business.

Not theory. Not hype. Real, proven steps that other federal workers have already used to build six-figure consulting careers — often while still serving in their government roles.

The Harsh Truth: Federal Job Security Isn’t What It Used to Be

There was a time when a federal job meant lifetime security. You got your pension, your benefits, your steady paycheck — and that was enough.

But times have changed. We’ve seen record shutdowns, continuing resolutions, and spending freezes that leave thousands of employees uncertain when their next paycheck will arrive. Even those in “safe” positions face pay freezes and career stagnation.

And yet, most federal workers still rely on that one source of income.

Here’s the uncomfortable truth: if your entire livelihood depends on a single employer — even the U.S. government — you’re one policy shift away from financial stress.

That’s why it’s not just smart, but necessary, to build another stream of income. And the best way to do that isn’t to drive Uber or start selling online products. It’s to use the skill set you already have — the one companies are willing to pay top dollar for.

Why Companies Will Pay Federal Employees (and Veterans) So Well

Your federal experience is more valuable than you might think.

Here’s why: companies are constantly trying to win contracts with the federal government. But most of them don’t understand how the system actually works — how agencies make purchasing decisions, how acquisitions flow, how compliance works, or how to position their proposals correctly.

You do.

That insider knowledge is worth real money.

When a company is competing for a multimillion-dollar contract, having someone who understands government processes can make or break their success. That’s why I always tell federal employees — you already have the expertise people will pay you for. You just haven’t packaged it yet.

When you learn how to translate your government experience into a consulting offer, you unlock the potential to earn what many commercial consultants make — $150K, $300K, even $500K+ per year, depending on how you position yourself.

The Three Steps to Building a High-Paying Consulting Business

Over the years, I’ve helped hundreds of veterans and federal employees transition into consulting. And it always comes down to three key steps:

Step 1: Learn the Basics of Government Contracting

Even if you’re not an acquisitions professional, it’s critical to understand how the government buys. That means learning about solicitations, funding, proposal evaluation, and contract awards.

Once you understand that system, you can help companies navigate it — and they’ll gladly pay you to do it. This knowledge turns you from “a former federal worker” into “a trusted advisor.”

Step 2: Set Up and Structure Your Business the Right Way

This is where most people stall out. They get excited about consulting but never take the proper steps to look professional.

You need to form an LLC for legal protection, set up a business bank account, and get insurance to build client trust.

Then, build a simple website that explains what you do and who you help. Optimize your LinkedIn profile so it clearly shows your expertise and credibility.

These steps might sound small, but they’re the difference between looking like a freelancer and being treated as a professional consultant.

Step 3: Learn How to Sell and Price Your Services

You could be the smartest person in the room — but if you don’t know how to sell your services, you’ll struggle.

That’s why the most successful consultants master the sales process:

• Identifying high-value clients

• Conducting discovery calls

• Writing proposals

• Negotiating contracts

• Pricing services based on value, not hours

This last one is key. Stop thinking in terms of hourly rates. When your expertise helps a company win a $2 million government contract, your value isn’t your time — it’s your impact.

That’s the mindset shift that separates six-figure consultants from those who stay stuck charging by the hour.

Setting Up for Success: Building Trust and Credibility

Consulting is a relationship business. Clients don’t just hire you for knowledge — they hire you because they trust you.

That’s why presentation matters.

When clients see that you have a registered business, professional insurance, and a clear service offering, they see you as reliable. Combine that with a clean LinkedIn profile, good testimonials, and consistent communication, and you instantly stand out from the crowd.

It’s not about pretending to be a big firm. It’s about presenting yourself as a serious professional who delivers real results.

Value-Based Pricing: The Secret to Scaling Your Income

If you only take one thing away from this, let it be this:

Stop trading time for money. Start charging for value.

Federal experience is rare and powerful. When you help a company shorten its sales cycle, avoid compliance mistakes, or win a government contract, you’re directly contributing to their bottom line.

Your pricing should reflect that.

At GovClose, we teach consultants to position their offers around measurable outcomes — not hours worked. That’s how you can earn $10K to $25K retainers or per-project fees. You’re being paid for your insight, not your time.

Real Federal Employee Success Stories

I’ve seen this transformation firsthand.

One of our GovClose graduates, a former GS-13 program analyst, started consulting for small defense contractors, helping them prepare proposals. Within her first year, she made over $120,000 in side income — while keeping her federal job.

Another, a retired contracting officer, began advising tech companies on how to sell to the DoD. His first private consulting contract paid him more than his annual government salary.

These stories aren’t exceptions — they’re becoming more common every year. The key is having the right training, community, and roadmap.

How GovClose Helps Federal Workers Launch Their Consulting Careers

That’s why I built GovClose — to help federal employees and veterans turn their experience into thriving consulting businesses.

Our one-year certification program walks you step-by-step through:
✅ Understanding how the federal government buys
✅ Structuring your consulting business legally and professionally
✅ Building your brand, website, and LinkedIn
✅ Learning how to sell and price your services
✅ Getting coaching and mentorship from real GovCon professionals

We also host a weekly “war room” — a hands-on group session where we review proposals, refine strategies, and share wins.

You’re not just learning theory; you’re implementing alongside a community that’s doing it with you.

Protecting Your Financial Future

Government service is honorable — but it shouldn’t be your only source of financial security.

When the next shutdown hits, or when hiring freezes delay your promotion, you’ll be glad you built something of your own.

Consulting isn’t about leaving government work; it’s about creating options. It’s about ensuring your experience continues to pay dividends, even when Washington politics don’t go your way.

You’ve already served your country — now it’s time to serve yourself and your family’s financial future.

Final Thoughts

If you’re a federal employee, you already have the skills. You already understand the system. The next step is simply learning how to package that experience and build a consulting business that gives you financial freedom, stability, and purpose.

That’s what we teach every day at GovClose — and it’s exactly what dozens of our graduates are doing right now.

Don’t wait for the next shutdown to remind you how vulnerable a “stable” paycheck can be.

Start taking control of your future today.

👉 Learn more about starting your consulting business at GovClose.com

👉Get Weekly Government Contracting Business Tips: https://federalytics.substack.com

👉 Explore the GovClose Certification Program for step-by-step training

👉 Follow me on LinkedIn for free live training and Q&A