| With layoffs and downsizing becoming more and | | | | much you will be paid. In slow economic times, |
| more frequent in today's job market an increasing | | | | payments tend to be delayed, so you may want |
| number of people are parlaying their experience | | | | to indicate an interest charge on payments |
| and know-how into a small consulting practice. | | | | delayed over thirty days.* Scope of work. As in |
| Consulting can be a wonderful and fulfilling field but | | | | the proposal, be careful what you promise to do |
| to be successful you have to be much more than | | | | for the client. If the limits of the project are too |
| a well-paid business advisor.In part 1 we covered | | | | broad or fuzzy, you could be responsible for |
| how to set up, market, and qualify leads for your | | | | years of follow-up work at no fee.* Duration. |
| consulting business. In part 2 we will cover how to | | | | Some projects, especially if you are dealing with |
| write proposals, contracts, and build better | | | | the public sector, can be delayed suddenly, even |
| relations with your clients.Once you've met with a | | | | in the midst of your assignment. By specifying a |
| prospect, identified problems, and convinced the | | | | duration in the contract, you protect yourself |
| prospect that you have something to offer, you | | | | from unforeseen delays and stoppages of fees. |
| will try to sell him or her specific solutions. Your | | | | But you are also reassuring clients that they will |
| solutions should be presented in a proposal that, if | | | | see results in a reasonable time frame.* |
| the client accepts it, forms the basis of the | | | | Guarantees. Be careful about what you guarantee |
| contract. Knowing how to write a good proposal is | | | | in terms of project results. Guarantee only that |
| one of the most important things a consultant | | | | which you have control. Don't guarantee increases |
| must know to succeed. Poorly written or poorly | | | | in productivity even if you're working on a |
| organized proposals will destroy any chance for a | | | | productivity-improvement assignment. There are |
| contract.While every proposal is different, all | | | | too many other factors over which you have no |
| proposals should contain certain key things:* | | | | control.* Ownership. In the contract, even more |
| Background and definition of the problem. Review | | | | than in a proposal, it is important to specify who |
| what caused the client to call on you, and what | | | | owns materials you develop during the |
| specific problems your work will solve.* Scope of | | | | assignment. For example, will training materials you |
| the assignment you propose. Explain what you | | | | develop in conjunction with a training project be |
| are going to do to solve the problem. It's more | | | | owned exclusively by the client, or can they be |
| important here to also pinpoint what you will not | | | | used by you for future training assignments.* |
| be doing. Don't leave the boundaries of what you | | | | Nondisclosure. A nondisclosure clause is essential. It |
| intend to do fuzzy or the client will never be | | | | should prohibit disclosure of both your own and |
| satisfied with your work.* How will you be doing it. | | | | the client's proprietary data, technology, and |
| Give details on how you'll conduct the assignment. | | | | strategies.The overriding goal of a consulting |
| You should include specific information but still | | | | project is, of course, to satisfy your client by |
| keep it general so that the client understands it | | | | doing the best job possible. However, this is not |
| can't be done without you. Also include how and | | | | always as easy as it sounds. Internal conflicts in |
| how often you will be reporting to the client on | | | | the client organizations, or conflicts between you |
| the progress of the project.* Deliverables. List | | | | and the client, can lead to a contentious, and |
| what you will be producing during the course of | | | | ultimately unsatisfying relationship. Never |
| the assignment (plans, seminars, programs, | | | | underestimate the importance, and potential |
| designs, etc.) Also specify who will retain | | | | difficulty, of maintaining a good relationship with |
| ownership of what you produce (for example, | | | | your client.You should always treat your clients |
| whether the client can conduct seminars based on | | | | with respect. Never talk down to a client or make |
| the program you conceived during the project).* | | | | him or her appear stupid or unknowledgeable. And |
| Fees and costs. Make an estimate of how much | | | | never get into personal conflicts with clients or |
| the client can expect to pay, broken down into | | | | employees of client organizations. Otherwise, it is |
| fees and reimbursable expenses. For example, | | | | unlikely you will be considered for future |
| "Fees are estimated not to exceed $25,000, and | | | | projects.As a consultant, your will become privy |
| reimbursable expenses are estimated at $4,000."* | | | | to inside information about the organizations that |
| Resources needed. These include on-site desk and | | | | hire you. Your clients expect you to keep that |
| computer equipment, access to materials, and | | | | information to yourself. If clients hear you giving |
| specific personnel resources and the roles the | | | | details about other clients, they'll assume that you |
| people are to play.* Schedule. Pinpoint when the | | | | will be as loose-lipped with their own |
| project starts and when you expect the | | | | information.Sometimes, you are going to have to |
| assignment to be completed if started on | | | | take sides as part of a project. But, if possible |
| time.Use graphics and illustrations in your proposal | | | | avoid taking sides in internal conflicts. To be |
| because they help to convey a lot more | | | | effective and respected as a consultant, you |
| information. Don't stop your marketing efforts | | | | must remain objective at all times.As a consultant, |
| after you've submitted the proposal. Follow up | | | | you will often be considered by employees of |
| with calls, letters, and e-mails to be sure the | | | | client organizations as a hired hand brought in by |
| proposal has been received, and ask prospects if | | | | management to do harm. For example, |
| they need more information. Don't hesitate to | | | | employees may think you were hired to help |
| check periodically on the progress of the proposal | | | | downsize the organization. There will be times |
| evaluation.One of the most important questions a | | | | when you might face outright hostility and |
| consultant can ask is, "How much should I | | | | perhaps sabotage. Be prepared to deal with those |
| charge?" Fees compensate your time, effort, and | | | | problems by, for example, specifying in the |
| know how. But they must also cover your | | | | contract that success is contingent on employee |
| overhead, expenses, benefits, and time spent on | | | | cooperation.As a consultant you will wear many |
| marketing between assignments.The fee | | | | hats, business advisor, salesman, administrator, |
| structure you choose depends on the project. If | | | | and production manager. You will have to learn to |
| you can estimate accurately how much time you | | | | wear all these hats with ease. But being an |
| are going to spend, then you can ask for a fixed | | | | independent consultant will allow you to have a |
| price plus expenses. If the time you will spend on | | | | career that gives you freedom, excitement, |
| the project is unpredictable or variable, then bill by | | | | fulfillment, and money. But most of all being an |
| the hour to ensure that you are paid for your | | | | independent consultant allow you to use your |
| time.Never start a project without getting a | | | | expertise to reach out and help many people to |
| signed approval from the client. There is too much | | | | succeed and fulfill their own dreams.It is the |
| money, too much time at stake, and too many | | | | ultimate win-win situation.Copyright© 2005 |
| details to cover. Never base the agreement on a | | | | by Joe Love and JLM & Associates, Inc. All rights |
| handshake, no matter how friendly you are with | | | | reserved worldwide.Joe Love draws on his 25 |
| the client.A contract can take on one of three | | | | years of experience helping both individuals and |
| forms. One option is to include a letter of | | | | companies build their businesses, increase profits, |
| agreement in the proposal for the client to sign. It | | | | and achieve total success. He is the founder and |
| should clearly indicate that the signature signals | | | | CEO of JLM & Associates, a consulting and |
| approval for the contract. You can also have a | | | | training organization, specializing in personal and |
| separate contract, preapproved by your lawyer, | | | | business development. Through his seminars and |
| for the client to sign. Or, in some cases, clients will | | | | lectures, Joe Love addresses thousands of men |
| draw up their own contract. It's very important in | | | | and women each year, including the executives |
| this situation to let your lawyer review the | | | | and staffs of many of America's largest |
| agreement.Here are some important points that | | | | corporations, on the subjects of leadership, |
| should be included in every contract:* Payment | | | | self-esteem, goals, achievement, and success |
| and billing terms. Specify how frequently and how | | | | psychology. |