My Notes on “The Complete Idiots Guide to Consulting” by Robert Bascal:
Why do people hire consultants?
- Objectivity
- Fresh viewpoint
- Lack of in-house expertise
- Cost-effectiveness
- Completely lost
- Expert credibility
Other Notes
- Prepare in advance. Get all your ducks in a row before you embark on a career
- A consultants main goal is to make sure the client never needs him or her again – so they come back to you with a different problem
- Clients confuse wants and needs
- The less money you have, the more likely you are going to make decisions you regret (eg taking a project you’re not qualified for)
- The more areas you specialise in, the more people will see you as expert in none
Clients agenda when meeting for the first time
- Doesn’t want to waste time
- Needs to determine if you can help them
- Comfort levels with your personality
Your agenda when meeting for the first time
- Looking fit between project and ability
- Gauge the clients perception of the problem, what they have done to address it so far
- Start getting a sense of where the root of the problem is (may not be what they think)
Before you accepting the clients contract offer, ask yourself these questions
- Do I have time in my schedule to do this project effectively?
- Is the compensation adequate taking into account time over-runs that most projects experience
- Any red flags or gut feelings that hint as future problems, that I need to clarify?
- Are there unstated assumptions or expectations that the client might have that you should talk about?
What should the final agreement / memorandum of understanding contain?
- A brief description of the project and the services you will provide
- A timeline
- What you must deliver (physical things, services, reports)
- Fees and timing of payment
- Specification of billable activities and their rate
- Description of how expenses will be reimbursed
- A statement indicating who owns the products of the project – copyright and reproduction rights
- A cancellation clause that outlines what happens in the event one party or the other cancels the project
Marketing Options
- Cold calling – to get a face to face meeting (then do 25% talking, 75% listening)
- Networking – for professional and social relationships – don’t push
- Providing Free Services: offer no-fee speaking engagements for professional associations, chamber of commerce, nonprofits – present something valuable, no selling
- Television and Radio interviews
How clients choose consultants
- Demonstrated expertise and experience
- Demonstrated understanding of clients industry or situation
- The good listener often gets the contract
- Credibility and integrity
- Gut feeling sense of fit
Fee Structure Options
- Hourly billing (stuck working for someone!)
- Fee per project (no surprise and room to be efficient and finish fast)
- Results based (proportion of increased revenue – but hard to measure)
- Mix: Ask for a bonus in proportion to achieving agreed upon improvement objectives
Must-read books
- Flawless Consulting – A guide to getting your expertise used – Peter Block
- The flawless consulting fieldbook and companion – Peter Block
- How to succeed as an independent consultant – Herman Holtz