The New Business of Consulting : The Basics and Beyond

Everything you ever wanted to know about consulting--a practical roadmap for aspiring entrepreneurs Seismic changes occurring in the workforce are leading to more and more people entering the world of contract, freelance, and contingency work. Rapid changes in demographics and advances in technology have led companies and talent to engage in profoundly new ways and consulting is one of the keys to success. The New Business of Consulting is authentic and practical, and shares the knowledge and skills required to start and grow a successful consulting business. From how to make a smooth career transition, to how to determine a consulting fee, to how consultants inadvertently create a bad reputation, it covers everything you need to know to thrive and flourish in this competitive field. Covers contemporary topics, such as how to achieve success in the gig economy Discloses a reliable technique to land the clients you want Presents options to help you balance your life and your business Prepares you for naming your business, managing critical financial issues, and building a client relationship Shows you how to take your income and impact beyond working as a solopreneur The crucial start-up days of a consulting business may be frenetic and fraught with questions. This new edition provides sanity and answers all the questions. It includes practical tools, templates, and checklists that you can download and implement immediately. The New Business of Consulting: The Basics and Beyond Contents Exhibits and the Companion Website Foreword Acknowledgments Introduction 1 So You Want to Be a Consultant What Is Consulting? Why Consulting Now? Why Get into Consulting? Why Now? Business Trends Consulting Trends Client Perspective Consultant Perspective Four Ways to Get Started As an Employee As a Subcontractor Side Hustle Self-Employed Independent Consultant Myths About Consulting Realities and Rewards of Consulting Realities Rewards Just What Are You Getting Yourself Into? Here’s an Explanation of Each Statement Clues You Are Ready For the Consummate Consultant 2 Talents and Tolerance Your Skills for Success Personal Characteristics of Successful Consultants Roles You May Play Signs of a Mediocre Consultant Your Personal Situation Financing the Business Working Alone Working from Your Home Being a One-Person Company Needing family Support Caution: Business Owner Ahead Entrepreneurial Characteristics For the Consummate Consultant 3 Dollars and Sense How Much Income Do You Require? Calculation Method The 3 × Rule Consider Your Personal Situation How Much Should You Charge? Determine Typical Charges Determine Your Fee Pricing Strategy Selecting a Pricing Structure Daily Rate Hourly Rate Fixed-Price Projects Per Person Retainers Conditional Fee Performance Percent Fee Value-Based Fees Other Pricing Decisions Definition of a Day Half-Day Events Perceived Value Proposals or Sales Meetings Pro Bono Other Charges Travel Expenses Materials Overhead Cost to Hire Travel Time Fee Increases Ethics of Pricing Determine Your Market Pricing Strategy Save Bargains for Department Stores Charge Higher Rates for a Unique Project Money Discussions Value of a Guarantee For the Consummate Consultant 4 Starting . . . Why Some Start-Ups Succeed and So Many Fail What’s in a Name? Selecting an Accountant Selecting a Legal Entity Sole Proprietorships Partnerships Limited Liability Companies Corporations A Business Plan to Guide You Cover Page Table of Contents Executive Summary Business Description Market Analysis Competitive Analysis Organization and Management Marketing and Sales Service or Product Line Financial Projections Appendices Print Your Business Plan Plan to Use Your Business Plan Plan a Review with Yourself Financial Supporting Documents Start-Up Costs Start-Up May Cost Less Than You Think Home Office Advantage Finding Your Niche Who Your Ideal Client Is What You Will Do Why Clients Will Work with You Your Image Is Everything Experiencing the Experience Maze Plan Ahead Expand Your Networking Identify Creative Options For the Consummate Consultant 5 . . . And Staying in Business Marketing from Day One Creating Your Marketing Plan Formatting Your Marketing Plan Develop a Marketing Plan for Free Using the Internet Creating Your Website Using Social Media Surprising but Practical Thoughts on Marketing Market All the Time Keep Yourself in Front of Your Clients Have a Strategy Go for the Big Fish; You’ll Spend the Same Time Baiting the Hook Keep an Eye on Your Competition Wallow in Your Junk Mail Mail a Lumpy Envelope Personalize Your Marketing Know How to Acquire a New Client Use Your Clients to Market Your Services Tactics for Low-Budget Marketing Contacting Potential Clients Cold Calls Cold Call Warm-Ups Ways to Track Client Contacts Questions Clients Will Ask If Your Clients Don’t Ask Proposals Lead to Contracts Proposals Contracts Why Would You Refuse an Assignment? For the Consummate Consultant 6 The Cost of Doing Business Keeping Records for Your Consulting Business Plan for the Worst Watch Your Cash Flow Bill Immediately Use a Reliable Delivery System to Send Invoices Monitor Accounts Receivable Methodically Know Your Clients’ Reputation for Prompt Payment Include Project Initiation Fees in Your Proposals Offer a Prepayment Discount Refrain from Paying Client Expenses Make Your Money Work for You Bank on Good Advice Obtain a Line of Credit for Your Business Use a Business Credit Card Wisely Compare Leasing and Purchase Rates Carefully Play Up Your Small-Business Status Act on Late Payments Immediately Pay Bills When They Are Due, Not Before Compare Actual Expenses to the Budget Monthly Track Your Expenses Set Aside Petty Cash Charge Your Client Invoices The Clients’ Expenses Project Revenues Deal with Bad Debts Keep an Eye on Your Numbers Expenses Value Growth Consider Capital Investments For the Consummate Consultant 7 Building a Client Relationship Relationships: It’s Why You’re in Business The First Meeting Four Phases of Building a Client-Consultant Partnership Phase I: Finding the Right Match Phase II: Getting to Know One Another Phase III: Being Productive Phase IV: Creating Independence Adding More Value Selling: Helping Clients See the Value Attracting High-Value Clients Seven Selling Mistakes Consultants Make How Many Clients Do You Need? How to Improve the Relationship Continuously Decisions Communication It’s the People Maintain the Relationship After the Project Ensure Success For the Consummate Consultant 8 Growing Pains Adding People Should You Hire Staff? Should You Recruit a Partner? Should You Consider a Practice? Do You Want to Hire Subcontractors? Can You Use Graduate Students? Growing Without Adding People Could a Temporary Service Meet Your Needs? Do You Want to Subcontract? Have You Considered a Joint Venture? Do You Want to Collaborate with Another Consultant? Do You Want to Offer Other Services? Can You Expand into the Product Market? Expand Your Geographical Market Do You Want to Expand Domestically? Do You Want to Expand Internationally? Doing Everything You Can to Grow Your Current Business Some Questions Ideas Outside the Norm Your Options For the Consummate Consultant 9 The Ethics of the Business Consultant to Client Delivery of Services Business Aspects Bottom Line Consultant to Consultant Subcontracting Other Consultant-to-Consultant Experiences Client to Consultant Parting Ethics Shots Codes of Ethics International Ethics For the Consummate Consultant 10 Exude Professionalism Competencies to Boost Your Consulting Success Competency 1: Professional Standards Competency 2: Professional Awareness Competency 3: Consulting Skills Competency 4: Communication skills Competency 5: Mindset Success Competency 6: Business Development Competency 7: Business Management Competency 8: Building Relationships Your Competency Level Continuing to Learn Attend Learning Events Ask Others Join an Association or Group Study on Your Own Identify Resources Co-Consult or Train with Others Create Mentoring Opportunities Aspire to the Best of Your Knowledge Balancing Your Life and Your Business Identify the Imbalance Make Your Own Rules Enjoy the Doing Take Time Off Identify Other Interests Take Advantage of Being at Home Managing Your Time Business Time Savers Travel Time Savers Giving Back A Personal Checkup For the Consummate Consultant 11 Do You Still Want to Be a Consultant? A Week in a Consultant’s Life Visualizing Success Taking Action Get Ready, Get Set . . . For the Consummate Consultant APPENDIX Helpful Resources and Links Reading List About the Author Index EULA **Everything you ever wanted to know about consulting―a practical roadmap for aspiring entrepreneurs** Seismic changes occurring in the workforce are leading to more and more people entering the world of contract, freelance, and contingency work. Rapid changes in demographics and advances in technology have led companies and talent to engage in profoundly new ways and consulting is one of the keys to success. __The New Business of Consulting__ is authentic and practical, and shares the knowledge and skills required to start and grow a successful consulting business. From how to make a smooth career transition, to how to determine a consulting fee, to how consultants inadvertently create a bad reputation, it covers everything you need to know to thrive and flourish in this competitive field. * Covers contemporary topics, such as how to achieve success in the gig economy * Discloses a reliable technique to land the clients you want * Presents options to help you balance your life and your business * Prepares you for naming your business, managing critical financial issues, and building a client relationship * Shows you how to take your income and impact beyond working as a solopreneur From how to make a smooth career transition, to how to determine a consulting fee, to how consultants inadvertently create a bad reputation, this authentic and practical book covers everything you need to know to thrive and flourish in this competitive field. -- Edited summary from book