SHOULD I BECOME A CONSULTANT Pat E Goodwin
SHOULD I BECOME A CONSULTANT? Pat E. Goodwin Pat Goodwin Associates pat@patgoodwinassociates. com
You ARE One! v v v You already have an area of expertise. You have functioned often as an internal consultant. You were paid for that service—just not separately billed.
Difference: ‘Packaging’ v v v An outside independent Bill for the service No responsibility for execution
Why do it? v v v Self-employment-Autonomy Life Long Learning-You know more than you think you know Good earning potential Satisfying work-Challenging Networking opportunity
We’re talking about. . . v v v Self-employed Solo operator but seek others expertise Working out of home or low-overhead office NOT. . . v Working for a consulting firm
Do I Want to Do It? v v v Uncertainty of income 3+ months of income saved Prospecting Selling Hassles of selfemployment
Can I Do It? v v Do I have the ‘right stuff’? Opportunity to learn Get help- Other Consultants-Experts What if I get over my depth?
What’s Your Expertise? v v v Functional or technical area(s) Industry / industries Geographic areas A “matrixed” specialty? Collaborate with support group of specialists
What We’ll Cover: I. III. IV. The consulting process Managing your practice Building your practice Assessing your personal ‘fit’
I. The Consulting Process The “How”
Consulting: v Giving (selling) advice professionally. The Independent Consultant: v A personal service business based on trust.
Consultant: ‘Brain on legs’
Consulting vs. Contracting v CONSULTING Independent professional v CONTRACTING Employee without benefits v Autonomy is critical v Part of the team v Deliverable is knowledge v Deliverable is a work product
Content vs. Process v v v CONTENT Functional area Technical expertise Single intervention Contract opportunity Linear project Boundary issues not key v v v PROCESS Broad applicability Team dynamics Often expands Contract will compromise role Cyclical involvement Boundary issues are critical
Edges get blurred. . . v Can slip easily from consultant to contractor v Can slip easily from content to process consulting Watch where you step!
Consulting Stages 1. 2. 3. Meet and qualify the client / issue Define the agreement Collect, analyze data-purpose, process, people, personal 4. 5. 6. Provide recommendations, possibly re-contract Implementation phase Close-out / follow-up
1. Meeting & Qualifying v v v v Presenting problem Background Stakeholders and prime mover Attempts to solve Duration Resources Expectations
2. Defining Agreement v v v v Services Resources Deliverables Timetable Compensation Rights Acceptance
3. Collect, Analyze Data v v v v v Start with stated problem: What they think they want may not be what they need Get to all key stakeholders-Buy in Get to important information sources Peel the onion Pinpoint the core issue Define a practical solution: Purpose, Process, People, Personal Why doesn’t the client do it
Data-Gathering Tips v v What’s really important? To whom? Follow the work flow (through silos? ) Anything working right? Where? Why? Where’s resistance coming from? Why?
4. Recommendations v v v v To all stakeholders Start with stated problem Trace the research Reframe the problem. Purpose, Process, People, Personal Get all reactions Sum up acceptance / resistance Get closure—or re-contract
5. Implementation v Not the consultant’s role! Danger! v Can advise as consultant Can refer a resource to implement Can serve as overseer for implementation v v
6. Closeout / Follow-up v v v May complete the consult On-going advice may be sought Probability of follow-on work Retained for audit / follow-up References: Ask permission to use work as an example for other projects
Additional Reading v v Flawless Consulting by Peter Block Process Consulting by Edgar Schein The Business of Consulting by Elaine Beich Other recent books by Elaine Beich
II. Managing Your Practice ‘A Day in the Life. . . ’
Business Plan v v v v Content area? Specific services? Geographic market? Market need trends? Prospects? Biz objectives? Form of business? Risks/constraints?
Setting Fees v What’s the market rate? v What’s my expertise worth? v What’s my income objective?
Market Rate? In Texas today: v Day? v Hour? Other approaches: v Project v Service trade v Pro bono
Your Work Value v v v SALARY-BASED Your annual compensation Divide by 2, 000 (hours) Your accustomed rate per hour CONSULTING Multiply by 3 for parity Multiply by 4 for uplift
Your Income Objective $100, 000 per year is… Month: Day: Hour: $150, 000 per year is… Month: $ 12, 500 Day: $ 1, 250 Hour: $ $ 8, 500 $ $ 850 100 175
Billable Days START-UP Month total: 31 Weekends: -7 Administrative: -3 Professional: -3 Selling: -8 MATURE Month total: Weekends: Administrative: Professional: Selling: 31 -7 -3 -2 -6 BILLABLE: 13 10
Overhead v v v v Office. . . ? Technology Administrative Marketing / Branding Professional Self-employment taxes & benefits Travel Costs Insurance / Legal Fees
III. Building Your Practice How Do I Get Clients?
Where to start? v v You’re not at ground zero! Check your resources: Vendors, Customers Check all contacts! Sort as: - prospects (platinum!!) - advocates (gold!) - talkers (silver)
What works: 1: 1: v New networking v Old networking Groups: v Speaking / Teaching v Lecturing v Publishing
Don’t overdo: v v v Brochures Direct mail “Broadside” flyers Advertising Yellow pages (Save your money)
Prospects to clients: v v v Personal familiarity Trusted referral Quiet research Validating your credentials Trial contact Bio Data Sheet, Business Cards
Web Presence v v Checklist item Doesn’t “sell” Validates your practice Gives you global reach
Web Page Features v v v Identity Credentials Photo/Bio Charter / niche Services Professional Groups v v v Testimonials Examples Fee guidelines Availability Topics E-mail link Linked. In
Web Page Benefits v v v Tells your unique story Validates prospect’s choice Makes ‘yes’ easy: comfort zone Can be interactive Easy to keep fresh
Practice-building keys: v v Display your knowledge, expertise Professional visibility in the right places Show your unique style Frequently add value
IV. Assessing Your Personal ‘Fit’ Is It Right for You?
Benefits of Consulting v v v Autonomy Variety Low cost of entry Low overhead High earning potential Great satisfaction, if a fit
Risks of Consulting v v v No structure No support system Income uncertainty Need to invest in self with uncertain return Work-life integration issues
Self-check: v v v No structure? Self-promotion? Closing a sale? Comfort zone? Personal situation? Money drive?
High-earning Consultant: v v v v Strong drive to make money Runs a BUSINESS! Works a niche Strong belief in self Focused, Disciplined, Motivated Comfort with selling ‘Expert power’ drive
The Consulting Conflict ‘Expert power’ drive versus Money drive
Comfort Zone: v v Built-in structure Rewards of managing Satisfaction of getting results Accepted expertise
Test the waters… v v Tricky to ‘try it for a while’ Tough to toggle with job search Contracting is viable option Consulting can lead to employment
Making the Decision v v v PERSONAL FIT Expertise Interest Risks SITUATIONAL FIT Financial Spouse, family Circumstances
Questions?
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