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