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Business Consulting 30-Day Launch Protocol

By Bob Bly Congratulations on choosing one of the best extra income opportunities available. In this 30-Day Protocol, I will cover the basics of starting and building your own consulting business, complete with tips and actionable advice. I think you already have a pretty good idea of what consulting is: Consultants are in the advice business. Based on experience and knowledge, consultants tell clients how to accomplish goals they feel they cannot accomplish on their own. For example, a woman who is getting married may feel overwhelmed by the details. So she hires a wedding consultant to help plan the big day. Or a high school student wants an edge with his college application. So he hires a consultant to create a great admissions application. This may seem like small potatoes. It’s not. In 2012, the U.S. market for management consulting grew 8.5%, to $39.3 billion.1 In 2013, the global market for consulting services of all kinds—including management, operations, human resources, and IT—was $415 billion.2 To help you capture this booming market, I’ve created this 30-Day Protocol. So what is it?

The 30-Day Protocol

This 30-Day Protocol will show you how to build a consulting business from the ground up. Consulting can be a very rewarding business. It takes grit, determination, and a little know-how, but with the right information, I believe anyone can be a successful consultant. I’ve divided this protocol into five parts: Is Consulting Right for You, How to Get Started, Making the Sale, Surviving As a Novice Consultant, and Where to Go For Help. These sections are full of invaluable tips, advice, and troubleshooting. I’ve spent decades gathering this information, and honestly it is all you need to get up and running.

1 http://www.businessweek.com/articles/2013-06-13/where-the-growth-is-in-management-consulting Bloomberg Businessweek, citing market researcher Source Information Services, June 13, 2013: Where the Growth Is in Management Consulting 2 http://www.plunkettresearch.com/consulting-market-research/industry-trends Plunkett Research

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However, we know that there are Extra Income Project members who will want more information… Which is why I was able to get Extra Income members the best possible deal for my program, “The Six-Figure Consultant.” You’ll find more information about “The Six-Figure Consultant” at the end of this protocol. So without further ado, let’s get started.

Step 1 Is Consulting Right for You?

Many of us feel the pull of entrepreneurism, and the lure of doing something other than the usual nine-to-five. In a U.S. News & World Report poll, 62% of those surveyed who were under 30, said they wanted to be their own boss. And according to a study from the Entrepreneurial Research Consortium, more than 7 million adults in the U.S. are currently working on starting a business. This trend is not confined to America either. In Taiwan, 17% of the workforce works independently in small or home offices. So why the sudden move toward self-employment and entrepreneurship? Paul Karasik, a renowned sales trainer, observes, "What motivates people is doing what they love." When you're a consultant, you can make money doing the things that interest you the most. A book review published in National Home Business Report quotes best-selling author Richard N. Bolles as saying, "What the world needs is more people who feel true enthusiasm for their work. People who have taken the time to think out what they uniquely can do and have to offer the world." In the newsletter Words From Woody, David Wood quotes Michael Korda as saying, "Your chances of success are directly proportional to the degree of pleasure you derive from what you do. If you are in a job you hate, face the fact squarely and get out." And Timothy Butler, a director of career development at Harvard Business School, says, "Vocation has to do with your calling. It's what you're doing in life that makes a difference for you, that builds meaning for you." If you're contemplating a career as a consultant, you'll want to know what it takes and how to get started. Let's take a look at some of the questions would-be consultants should ask. And the answers.

What Are the Characteristics of a Successful Consultant?

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What does it take to be a consultant? Self-employment offers the potential for greater financial rewards and self-fulfillment than working for someone else, but there is also greater risk and uncertainty. In the book Setting up Shop: The Do's and Don'ts of Starting a Small Business, Randy Baca Smith discusses the personality traits shared by most entrepreneurial people. Smith's ideal entrepreneur is: a self-starter, a people-person, a leader, a good organizer, a hard worker, trustworthy, responsible, decisive, energetic, and in good health.

For consultants, I'd add a few more items to the list:

The consultant has to be part loner, part extrovert. As a consultant, you'll spend 90% of your time working alone. But you must be enthusiastic and outgoing in your meetings with prospects and clients.

Consultants must be good salespeople. Unlike corporate employees, whose supervisors set the assignments, the consultant must land a contract for each job. If the idea of going out and selling yourself makes you uneasy, consulting is not for you.

Consultants enjoy their work and are exceptionally good at it.

Consultants despise hierarchies, long chains of command, rigid thinking, inaction, and set routines.

Consultants embrace new problems and projects, unconventional approaches, and unstructured environments.

Consultants are curious, creative, self-confident, and optimistic.

Take another look at this list. If your reaction is, "that's me," consulting may be the career for you. Oh, and there’s one more item: You must have something to consult with people about—that is, knowledge that you can sell to others in the form of a consulting service. Consultants are experts in a particular field, skill, or topic; e.g., financial planning, business management, fundraising, search engine optimization, social media, obtaining grants, project management, lean manufacturing. Mark Ford, for instance, is an expert in entrepreneurship—particularly in taking businesses from small in size to multiple millions in revenues. Now, at this point, you may object, “All well and good, but how can I be a consultant? I don’t have any special expertise or knowledge.” I would argue that if you believe this, you are wrong. As economist and author Gary North puts it:

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You possess a lot more knowledge than you think. I have found that successful specialists often think, with regard to their specialized knowledge, everybody knows that. The fact is, hardly anyone knows it. In many cases, the specialist’s knowledge is valuable to those who don’t possess it, far more valuable than the possessor imagines.

It is for this reason that consultants can charge a lot of money and clients will gladly pay their high fees.

What Are the Advantages and Drawbacks of Consulting?

Consulting has many advantages: independence, autonomy, variety, money, the opportunity to set your own goals and pursue your own interests, and the status of being recognized as an expert in your field. Here are some of the reasons I’m so enthusiastic about the consulting trade and its many business advantages:

Consulting can be a lucrative profession. Even a novice consultant can earn $100,000 per year or more. Some of the top independent consultants I know have annual incomes exceeding the million-dollar mark.

You can work from home. No more wearing a suit and tie, no more commuting, no more horrible bosses, no more office politics.

You can work when and where you want. You set your own hours. Work as much or as little as you want—spare-time or full-time. And with a laptop and a smart phone, your “office” can be anywhere you care to travel.

Start-up costs are under $1,000 and overhead is minimal. All you need to work from home is a PC, phone, and high-speed Internet connection.

No employees necessary. You can have them if you want, but I prefer outsourcing routine work—proofreading, bookkeeping, graphic design, my website—to virtual assistants and service providers… again, minimal overhead.

No licenses or certifications required. No special training. You don’t even need a college degree—and certainly not an MBA.

Naturally, there are negatives as well as positives. Separated from the corporation, you might miss the prestige, the power, and the sense of belonging you’ve had as a manager. You'll give up the benefits, the expense account, the annual office Christmas party, and worst of all, the steady paycheck.

I believe, however, that the pros far outweigh the cons. Draw up your own list of personal pros and cons, and see whether you're still tempted to set up shop.

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Step 2 How to Get Started

Identifying Your Expertise Consultants are specialists, not generalists. As a communications consultant, you're an expert in one or more phases of business or some other activity, and that expertise, plus your time, is what you sell to clients.

John, a 27-year-old advertising manager, was bored supervising his company's advertising program. He wanted to start his own communications consulting firm, but few companies hire freelance advertising managers. How could he develop a marketable specialty? John had spent six months establishing an in-house system for fulfilling, qualifying, and tracking sales leads. He had even written an article about the experience for an advertising journal. Realizing that thousands of industrial-business marketers need help handling leads, John quit his job to start a consulting firm specializing in inquiry fulfillment systems. Using a one-page sales letter mailed with reprints of his article, John landed his first major contract within six weeks. If you're a manager or an administrator, focus on a single skill or area and become an expert in it. Some of today's most in-demand consulting specialties include environmental consulting, information technology, management, manufacturing, marketing, telecommunications, human resources, operations, and finance. Do you currently work in the corporate world? Take a look at your company's needs. In what areas do they use high-paid consultants? Those are the specialties you want to break into. If you are an engineer or other technical professional, you can offer your expertise as consulting or training. One chemical engineering consultant I met specialized in optimizing the yield (amount of product produced) in chemical plants. As a rule of thumb, the more technical your consulting specialty, the less competition you have and consequently the more you can charge. This is because the supply and demand ratio is in your favor. Therefore, a consultant in Six Sigma generally can charge more than a consultant in stress management. Also, consulting services that save or make the client money are valued higher than those that deliver less tangible results. If you can measure the results of your advice, do so—and if they are good, tell potential clients. For some people, the choice of consulting niche is obvious. My friend E.G. was involved in a major corporate implementation of SAP software for his employer. After that, he

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became a successful SAP consultant. In essence, telling other corporations how to do what he had already done. If you are not sure what your consulting specialty should be, remember, ask yourself these questions:

What do I know?

What is my education?

What is my work experience?

What are my major accomplishments?

What do I like?

What am I really passionate about? Make a list of your answers. Review the list and identify which areas people or companies routinely pay money for assistance. Pick the one you like best and build a consulting practice around that field.

Setting Business Goals In corporate life, career paths are clearly mapped out. At the ad agency, for example, the junior copywriters become senior copywriters; the senior copywriters become creative directors; the creative directors become vice presidents; and the vice presidents become senior vice presidents.

The consultant's career path is less defined. If you're self-employed, you can't covet the boss's position. As a result, your goals become achievements rather than job titles.

A consultant I know has the goal of winning new accounts in three different high-tech areas: telecommunications, microcomputing, and electronic publishing. Another wants to be the leading expert in his field—direct mail copywriting—and has hired a press agent to help accomplish this. A third wants his graphic arts studio to earn a quarter of its income from annual report work by next year.

Becoming an authority, taking on challenging assignments, making more money, working for prestigious clients—these are some of the things consultants strive for.

Think about what you would like to do. Do you want to write a book on your communications specialty, earn $2,000 per day, or become a popular lecturer?

Identify your career goals and commit them to paper. With a well-defined plan guiding your consulting firm, a consulting career can provide a lifetime of fun, challenge, and financial reward—not to mention the satisfaction of being your own boss.

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Choosing a Name for Your Consulting Business Part of establishing credibility begins with the name you choose for your consulting business. There are several choices:

Your name (Bob Bly, Consultant)

Your name in a company name (Bly & Associates)

A made-up company name (The Center for Technical Communication). Using your name gives an impression of a smaller firm but one that provides personalized service and attention. If your name is well known to a certain audience, using it as your business name takes advantage of this established credibility. If you use a made-up company name, your audience may not realize it's you doing the consulting. You can always start by using your name and change it later. Or you can do business under your name, and then start other companies or divisions using a variety of other names. Think about your audience and your product. For example, if you are a well-known motivational speaker named Ron Jones, it makes sense to have "Ron Jones" in large type on your promotional brochure and letterhead. Other products and services require a more official-sounding name. For example, one of my clients, Norm, owns several banks. You wouldn't hesitate to open an account at his Sterns National Community Bank. If he had instead named it Norm's Bank, he probably would not have many customers. Obviously, the name you choose depends on the market and type of business. When I went into corporate training, I saw that training directors wanted to deal with a company, not an individual. So I started doing business under the name (which I still use) the Center for Technical Communication. Who would you turn to for expertise in technical writing—Bob Bly or the Center for Technical Communication?

If you are using an official-sounding name to create a certain image, you can enhance that image by using a logo. Most big companies do. Most small companies don't. If you use a logo, you appear bigger than you really are. You can find a graphic artist to design a logo for you here: www.fiverr.com.

Creating a Business

Consulting businesses have low start-up costs. Here's a list of the things you'll need to begin your business:

A PC and a high-speed Internet connection. Many consultants write a lot of documents, especially reports. So you need a PC with word processing,

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Excel, and PowerPoint. If you travel, a laptop computer is a must.

A telephone. A desirable feature is "cal l wait ing," which lets an ordinary home phone handle two incoming calls simultaneously. Or, you can skip the call waiting, and if someone calls while you are on a call, have the phone route them to voice mail. Your business phone should be separate from your home phone. Get caller ID, which shows you who is calling whenever the phone rings.

Stationery. Envelopes, letterhead, business cards. Your stationery should look clean, crisp, and professional. A fine paper stock always makes a positive impression. Don't buy "ready-made" letterhead designs from the printer—have a professional graphic artist handle the job. The design and printing of business stationery should cost between $150-500.

Sales literature. Some type of brochure or flyer describing your services and qualifications is a necessity. According to the Thomas Publishing Co., 90% of industrial business buyers say they must have printed sales literature in hand before they'll make a purchasing decision. Most consultants use 4 x 9 inch folded brochures that fit in number 10 envelopes. A few prefer 8 1/2 x 11 inch flyers because they can be inserted into three-ring binders, and they won't be lost at the bottom of a file folder. You should also have a PDF version of your brochure you can e-mail to prospects.

Website. A website is a must-have for the independent consultant. Prospects need to find you online when they Google your consulting specialty. Even those who find you offline want to know you have a website. Pages that should be on your consultant’s website include a home page, service descriptions, consulting methodology (how you work), client list and testimonials, and your bio. Grab an appropriate domain name at www.ultracheapdomains.com.

A place to work. At home or a rented office? Working at home offers convenience, comfortable surroundings, and increased product iv i ty because t here 's no commuting. Rented office space connotes status and adds a feeling of legitimacy to a consulting enterprise. And for some people, it provides the necessary separation between work and home life. However, many successful consultants work at home, and rented off ice space is not a necessity. By all means, work at home if it pleases you. Wherever you work, you will need a desk, a bookcase, adequate lighting, and office supplies. A copier would be nice.

Money. Enough to live on for at least six months. This gives you time to gain clients and build your business, and it emancipates you from fear. If you're lucky enough to have three or four projects lined up, then three months' reserve funds should suffice.

Display Degrees, Awards, and Credentials In many ways, you can compare consulting with the other service professions (law, medicine, dentistry). But sometimes there are disparities. One of those disparities involves the way consultants establish credibility.

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Whenever you visit your doctor, lawyer, or dentist, you will invariably find his or her diplomas in full view in their waiting rooms and/or consultation offices. They are impressive. But those diplomas will not impress your consulting clients. Why? First of all, because clients rarely, if ever, come to your office. You almost always do business with them on their turf. And nobody carries copies of their degrees around with them. Secondly, as stated above, degrees do not place you as No. 1 in your field.

Instead, your credentials must be exhibited on your calling cards and stationery. And they should bespeak your expertise at the very top of your field. You can get credentials by taking a series of course in your field. Upon completion you are awarded a designation (e.g., Certified Novell Administrator).

You can also join one or more associations in your industry or specialty. For instance, I handle a lot of clients in the chemical industry, so I am a member of the American Institute of Chemical Engineers (AIChE). If you cannot join such organizations as a full member because you lack credentials (I could join AIChE because I have a degree in chemical engineering), many will allow you to join as an associate or “vendor” member. Other impressive credentials include published articles in the consumer media and professional journals, a high profile in the industry, and the authorship and publication of one or a number of books on your subject.

How Do I Set My Fees?

In a Peanuts cartoon strip, Charlie Brown asks Lucy why she charges a mere $0.05 for a session at her sidewalk psychiatry stand. Lucy's reply: "It's what the market will bear."

Your fee will be determined by the going rates for your type of service, as well as by the demand for you in particular. Self-confidence also plays a part; often, you can command a higher fee just by asking for it. Of course, I assume you want to be fair to both yourself and your clients.

In every consulting specialty, there's a broad but definite range of what consultants charge. Just as an attorney charges a higher hourly rate than a gardener or a handyman, a management consultant's fees are higher than those of a publishing consultant. While you still have your job, contact half a dozen consultants in your field and ask what they're charging. Their answers will guide you in establishing your fee schedule.

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Most consultants charge either by the day (per diem), by the hour, by a monthly retainer, or by the project. Set fees based on the best estimate of how long a project will take to complete.

When you get an assignment, get it in writing. A purchase order, signed proposal (see appendix A), or letter of authorization (see appendix B) clarifies the scope of the project and helps avoid misunderstandings later on. The purchase order should state the type of project, fee, and deadline. For first-time clients, especially smaller firms, consider collecting all or part of your fee in advance.

Jaws drop when consultants mention their $250-per-hour or $2,000-plus-per-day rates. But remember, those fees apply to billable time—time spent working on consulting projects. The consultant's income is $0 per hour during vacations, coffee breaks, lunch, and the hours spent marketing and running the business. "The economics of freelance writing are very simple," writes Advertising Age columnist James Brady. "No write, no p a y . " T h e s a m e h o l d s t r u e f or consulting. Never tell clients your annual income. Reason: If it is lower than theirs, they look down upon you. If it is higher, they think you charge too much. When asked how much money I make, my standard reply is, “I’m not Bill Gates, but I make a nice living.”

Step 3 Making the Sale

Where Do I Find Clients

There are several types of clients that buy consulting services. Some consultants work with individuals. For instance, there are consultants who help high school seniors with their college application essays. Career consultants help individuals write a resume and coach them on job interviewing skills. A wedding consultant works for an individual, the bride-to-be. Other consultants, such as Mark Ford, work with entrepreneurs and owners of small- to medium-size businesses that want to get bigger. These clients want results and practical advice. Still others take on assignments with Fortune 1000 corporations. These clients like meetings and want you to put your advice into a report. They can be bureaucratic with layers of management hierarchy. This is a condition that the consultant may find frustrating and counterproductive. Nonprofits, including charities, museums, and colleges, also hire consultants. They typically need help either running their operation or raising funds.

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A “prospect” is a potential client—someone who could, now or in the future, become a customer of your consulting business. The best source of prospects is p e o p l e y o u a l r e a d y k n o w : c o workers, colleagues, suppliers, acquaintances, business contacts, friends, even relatives. In his book How to Sell Anything to Anybody, Joe Girard estimates that the average person knows about 250 people well. Organize your "contact list" using index cards, a rotary card file, label matrices, a database or contact management software, or some other convenient system. When you start searching for clients, get in touch with your contacts via phone or e-mail. My f i r s t t w o c l ie nt s w e r e a f o rm e r employer and a graphic arts studio I had hired to produce some sl ide shows.

Advertising and promotion can generate dozens of new leads. Direct mail is particularly effective for reaching selected audiences such as human resource managers, training directors, CEOs, or ad agency creative directors. In an era in which prospects are inundated with e-mail, direct mail can really stand out. And the cost of direct mail is controllable since you can mail as few or as many pieces as you wish. Always include a business reply postcard or other response element with your mailing to increase its pull.

Large space advertising is usually not cost effective for independent consultants. But I've run small classified ads in specialty publications, and they've paid for themselves many times over.

Publicity—article writing, public speaking, seminars, press releases—won't generate as many immediate sales leads as advertising and direct mail, but it has the long-term benefit of enhancing your reputation. Reprints of your articles can be used in mailings or as leave-behinds after meetings and presentations. For useful PR tips, see my book Public Relations Kit for Dummies.

Referrals—"word of mouth"—are the best type of advertising. But this won't take place until you've been in business long enough to have worked with a half a dozen or so satisfied clients. Speaking in front of groups whose members are potential clients is effective, because it builds your reputation as an expert in your field. Get your talks audio or videotaped. Post the videos on your site, and mail the audio CDs to potential clients. Online options include ads in e-newsletters reaching your prospects, your own e-mail newsletter, pay-per-click advertising, banner ads, search engine optimization, and e-mails to rented lists. Also consider blogging and writing and posting articles online. Use appropriate keywords frequently (mine is “direct response copywriting”) in text you post on your site and your blog.

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Of the various social media channels, LinkedIn can be particularly advantageous, especially when you are just getting started as a consultant. Search LinkedIn for former bosses, coworkers, colleagues, and vendors. Connect with them and tell them about your new consulting business. I have gotten some great consulting projects that way!

Getting That First Sale The prospect is usually someone high enough in the pecking order to make some executive decisions, so he will often interview you in the same way that he would interview someone seeking employment. He will assume the role of grand inquisitor and expect you to answer all of his questions regarding your past experience, your other clients, and your expertise. (Note: This rarely happens when one of your satisfied clients has referred you to him.) Deflect most, if not all, of these questions by telling him that you will be pleased to submit any references and credentials required after you both have discussed his problem or project, since that is supposed to be the topic of this meeting. The point here is that he would not ask these questions in this manner if he were paying his first visit to a physician, a dentist, or an attorney. Your mien at this meeting should bespeak the question, "How can I help you?" If you allow the prospect to hold sway over the meeting, his esteem for you will decrease. So, deflect each and every question that is not pertinent to the project with a question of your own. First, ask about the nature of the project or the solution required of you for his problem, as well as any other client needs. Then ask about the time frame for the project. Subsequently, ask whether his organization has budgeted for this project. Finally, ask who the liaison person for the project is. The client will quickly come to understand that you are there as an expert to help him on a professional basis, and that you did not come to be interviewed. By your professional attitude, the client will get the message that Universal Studios would no more ask Meryl Streep to take a screen test at this stage of her career than you proving your worth to him at this stage of your consulting career. The client's responses to your questions will allow you to quickly qualify him or her. If he gives you vague answers about his problem or project, this means that he doesn't trust you or any other consultant. If he says that he and his organization have set no time frame for the project, this means that they consider it of little or no importance; ditto if they have not budgeted for it.

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You can assume from these responses that you either have a wheel spinner and time waster on your hands, or this is just another of the legion of executives who love to hold meetings without consequence. Cut this meeting short by offering your card and/or brochure and inviting the suspect (no longer a prospect) to contact you again when he or his organization has a strong need for your expertise. Do it firmly but with grace. On the other hand, if the prospective client has a fixed date on his calendar for the project or tells you that the need is pressing and they require outside expertise "yesterday," and, if they have budgeted for it and presented it to you in an intelligent manner, you have a "live" prospect. Listen intently and take careful notes for your future proposal (see appendix).

Starting a consulting business is a "Catch-22" proposition. People don't want to hire a consultant who doesn't have a list of big-name clients. But you can't have a list of clients until you've made a few sales.

How do you win your first assignments?

Give a free consultation. Since you don't have a track record, you have to prove yourself. A free demonstration of your skills and services lets prospects evaluate you firsthand. One ad agency I know of offers prospective clients with a free evaluation of their current advertising program. A management consulting firm I recently met with offers a free business assessment. To be an effective sales tool, the free consultation must give useful advice to the prospect, demonstrate why he or she should hire you, and take a minimum amount of time.

Work "on spec." A variation of the free consultation is to do work on speculation (on spec). This means the client doesn't pay unless he is satisfied with your work. Many ad agencies prepare on-spec preliminary camp a i g n s w h e n t h e y p u r s u e n e w accounts. Full disclosure: I have never worked on spec, because there are better ways to get new clients, such as offering a starter package of consulting services (see below).

Charge less than the competition. As a novice consultant, you may have to do more work for less pay to make your first sale. After you make your first few sales, you can charge new clients more competitive rates.

Offer a starter package. Instead of requiring new clients to buy an expensive consulting engagement, offer them some small amount of service to break the ice. Because it requires less time, the bill will be smaller, and the clients more likely accept this offer.

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Once you have handled assignments for half a dozen clients or more, list them on a client’s page on your website. Also solicit testimonials from your clients, and put these on a separate testimonials page. One caveat: Although you would think that a potential client who is a small business would be most impressed with a list of other small business clients, this is not the case. So try to get jobs, no matter how small, from a few Fortune 1000 firms early. When people ask “who are your clients?” these are the names you should drop.

Testimonials and References Whenever you complete a job for a client, and that client is satisfied, ask him to give you a letter of testimonial—a letter stating that he was pleased with your services, would hire you again, and recommends you to others.Start a file of these testimonial letters. Photocopy the best ones and send them to potential clients who inquire about your services. If you can pick and choose from among many testimonials, send the letters from past clients whose problems, business, and needs are similar to the current prospect. For instance, if you install computer systems for small businesses and a local liquor store owner makes an inquiry, send letters from other retailers in general and, if you have them, from other liquor stores in particular. Let’s say Jane Smith gives you a letter of testimonial. Ask Jane if you can use her as a reference. This means when a potential client wants to check you out, Jane has granted you permission to give her name and number to prospects. Because she is highly satisfied with your services and you obtained her permission to use her as a reference in advance, she will speak favorably about you. Have your references (name, company, phone number) on one side of a references page. Do not post them on your website. Hand or e-mail your references to any prospects who ask for them. However, if the prospect does not ask for references, do not provide them. The people on your reference list may be willing to recommend you, but being busy, they prefer that you keep the calls to them at a minimum.

Step 4 Surviving As a Novice Consultant

How Do You Gain a Professional Edge?

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How do you look and behave like an experienced consultant even when you are a novice? First, change your vocabulary. Never use the word "customer." Substitute "client." Eliminate the word "price" from your vocabulary; it's a fee. Plumbers, electricians, and other trades people get jobs. We get assignments. You are never "hired;" you are retained. Use professional language at all times. Here is another example of wrong psychology practiced by many hapless consultants. They invariably solicit an assignment by providing the prospective client with a resume or a curriculum vitae. They cannot get it out of their heads that they are no longer seeking employment. True professionals just don't do this. Any client requesting it is exhibiting a lack of respect for your professionalism. He wouldn't request a resume from his doctor, dentist, or lawyer. References, yes. A resume is out of the question. Develop an attitude of success. This is not done by image, flash, or any other accouterments like fancy cars, offices, or clothes. Nor is it done by brashness or arrogance. It is accomplished by developing a mien that bespeaks the truth about you. The truth is that you are now living the golden life by being your own boss, by paying your own salary, by keeping your own hours, and by the fact that you have complete freedom of choice. You may accept an assignment or reject it. You may charge whatever fee you think yourself worthy of. You may come and go as you please, wherever and whenever you please. No one can ever fire you! Psyche yourself along all of these lines daily, hourly, and every waking moment. You must do this to gain self-confidence. Later, your self-confidence will come automatically from the excellent results that you have achieved for your clients. Self-confidence is not an elective when it comes to consulting success. Why? Because prospective clients (as well as everyone else) can smell self-confidence; they can also smell fear. And everyone loves a winner.

Handling the Objection, “Your Price Is Too High.” The principles and rules set forth here are not meant to arbitrarily hamstring those fledgling consultants who are hungry for work. There is a certain amount of flexibility, although not apparent. For example, let's deal with the inflexible rule that no client should ever be allowed to bargain with a consultant regarding his or her fee. Suppose you quote a fixed fee of $28,000 for a project, and the client honestly (or dishonestly) states that his budget (or controller) has allowed only $22,000.

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It is not necessary to walk away, but you do not want the client to see you in the unprofessional light of allowing him to bargain with you. You DO want the $22,000! You reduce your price, but not in such a manner as to make the client think that you have indeed done so. Instead, you tell the client that you can take on the project for the offered price, but that it will be necessary to tackle the problem in a slightly different manner, requiring a bit less time on your part. This, of course, isn't true, because an expert professional knows only one way to solve problems—the best way, regardless of the time it takes. You want successful assignments, not failures. But the client needn't know your true motives, any more than you know his. Usually, the client is grateful that you have accommodated his financial constraints and have made him look good to his superiors. Of course, if the prospect lets on that he is not properly funded for the assignment in the first place, he is just wasting your time and his, and you are wise to quickly withdraw. Do not fear a prospective client telling you that he knows you charged so-and-so a lower fee. As previously noted, you will never do the same thing twice or do it in the same way. You merely tell the client that his or her situation is somewhat different, because it always is.

How Can I Break Away From the Corporation?

Should you quit your job "cold turkey," or do you begin to build your new business while you still have a job? My advice is to moonlight and get your consulting business going before you resign. Buy the office equipment and supplies you need while you're still receiving a paycheck. Start putting out "feelers"—calls to business contacts and colleagues to see if they might be potential clients for your new business.

At work, concentrate on those assignments that sharpen the skills and build the portfolio you will use as a solopreneur. One successful consultant told me: “A great way to jump-start your consulting career is to take on a difficult task while you are still employed—a project that no one else wants. When you complete it, you can then turn around and offer to repeat the process for other companies as their consultant.” Acquire specialized knowledge, skills, and experience that are in demand. The late P.S., a mining consultant, said: “If you become an expert in something, you will never go broke.” As long as you do not steal secret papers or shirk your job responsibilities, you are in no way wronging the corporation by planning your new life in your spare time. But to suddenly resign one day and then start planning , promot ing , and

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ru nning a business would be overwhelming (and straining on your finances as well).

How to Earn Big Consulting Fees

Consultants serve clients in three ways: giving advice, training, and implementation. Get good at any of these three services and you can command high fees. 1.) Advice: The consultant listens to the client’s problem and goals, and then advises the client on how to solve the problem and achieve the goals. Example: Mark Ford tells business owners how to make more money. But he does not do the grunt work. In my role as a marketing consultant, businesses come to me and ask how they can increase the ROI from their marketing program. I create a strategy and marketing plan for them. The more your consulting can improve quality, save time, or make or save your client money, the easier is to command high fees. 2.) Training: The consultant trains the client and their staff to give them skills to solve problems and achieve goals. Example: My friend G.B. does not write letters, memos, and other business documents for corporate clients. Instead, he trains their employees in writing skills so they can turn out their own letters and memos. G.B. specializes in business writing skills for the insurance industry. Yet he has never worked in insurance. What he delivers to clients is extensive knowledge of business writing combined with his ability to teach writing in an effective and engaging manner. Hand out an evaluation form at the end of your presentation asking students to rate you on a scale of 1 to 5, Trainers who average a 4 or higher can charge more and get repeat engagements. 3.) Implementation: The consultant executes the advice after the client reviews and agrees to it. Example: An accountant suggests how to reduce taxes, but also does the preparation of tax returns. For many years, my friend T.K .was a computer programmer for a large electronics manufacturer. When she parted ways with her employer, she hung up a shingle as an independent website designer and search engine optimization consultant.

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Step 5 Where to Go for Help

In my audio course “The Six-Figure Consultant,” I go into details regarding the steps required to start and run a successful consulting business. These include:

Picking a consulting niche or specialty

Identifying the target market you want to serve

Deciding what specific services to offer your clients

Determining the fees you will charge

Setting up your home office

Building your reputation as an expert in your field

Generating sales leads for your consulting services

Selling your services to potential clients

Writing a consulting agreement

Establishing your working methodology

Rendering services

Getting paid

And more. This 30-Day Protocol offers only a glimpse into building a thriving consulting business. But I’ve arranged to give you, free of charge, Disc One of “The Six-Figure Consultant.” In this, you will learn things such as how and why I decided to become a consultant, a more in-depth discussion on what consultants do, the different segments of the consulting industry, strategies consultants use to earn the highest compensation, a checklist of the qualities you need to be a successful consultant, what to include on your website, and the basics of how to use search engine optimization to make it easier for clients to find you. Please click on the links below to listen to the audio files. Enjoy! The Six-Figure Consultant Disc One, Part One The Six-Figure Consultant Disc One, Part Two The Six-Figure Consultant Disc One, Part Three After you’ve listened to the audio portion I provide, please click here to learn more about “The Six-Figure Consultant,” as well as a special offer available only to Extra Income Project members.

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Appendix A: Model Consulting Proposal

PROPOSAL FOR TRIPLING WIDGET PRODUCTION AT AMERICAN WIDGET Increasing widget production from 30,000 to 90,000 per week should be accomplished by: Making certain that the 90,000 widgets cost considerably less than three times the production costs for 30,000 widgets. Never allowing the increased production to exceed market demand thereby creating an inventory surplus. This calls for the installation of JIT (Just-in-Time) systems. Requiring less than triple the current warehousing and manufacturing space.

I propose to attack these three objectives in three phases:

PHASE I - A thorough study of the production methods now in use at American to produce 30,000 widgets per week, with a view toward:

a) Deciding which machinery now being used can be retained for the production expansion.

b) Whether increased automation can be utilized. c) Whether or not current line employees will need additional training and the type

of such training if required. d) How much additional production and storage space will be required. e) How much, if any, additional manpower will be required (depending upon the

efficiency and capacity of new automated equipment). f) Examining your sales records for the last three years to identify seasonal peaks

and valleys as well as the increase percentages you have enjoyed for those three years.

This study should take approximately 4-6 weeks. A complete report of my findings will be presented to you at the end of that time. My fee for this study and report is $15,000. After meeting with you to discuss the results of the report, you will decide whether you wish to proceed to Phase II. PHASE II - Recommendations and a "blueprint" for the expansion. Much of this phase will be conducted off your premises, because it will consist of:

a) My finding the very best, least expensive, and most reliably warranted equipment to meet the needs of the expansion.

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b) Projecting the new equipment's functions to determine the need and extent of any additional manpower.

c) Determining the exact additional space requirements of the recommended equipment.

d) Scheduling the phased-in new expanded production schedule. e) Projecting your expanded production costs.

This set of complete, detailed production recommendations will take an additional 4-6 weeks and will be presented to you with complete specificity. My fee for this "blueprint" is $15,000. After your study of these procedures, you will decide to accept it in part or in whole, and then determine whether you wish me to assist you in its implementation. PHASE III - I am prepared to assist in the implementation of your expansion by accepting the following responsibilities:

a) Assist in the design of the reconfiguration of the expanded production line and storage space.

b) Assist in the supervision of installing the new equipment. c) Train the staff and line people in the use of the new equipment. d) Install a set of quality-control procedures.

Because the duties described above depend in great measure upon the time of delivery of the new equipment as well as the learning time apportioned to the training sessions while your people are still working to produce your current capacity, I cannot fix an accurate time frame for this phase.

I shall, however, be prepared to spend whatever time is necessary to complete this phase. My fee for Phase III is $15,000.

I do not intend to work full-time on this project but will devote whatever time necessary to complete any and all of the phases.

It is understood that American Widget Corporation will:

a) Pay for all machinery and new equipment. b) Give me complete access to any files that relate to this project, as well as any

other information required. c) Prepare your staff and line people concerning my mission to assure me of their

cooperation.

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d) Assign a liaison person who can answer any questions I have or get any information I need, and to whom I can report any possible difficulties which may arise along the way.

e) Make every attempt to ensure that no "third-party" organizations or people outside your company will impede my work.

f) Understand that the time frames indicated in this proposal are approximate and subject to change by acts of God, labor strikes, or any other unforeseen circumstance of this nature.

Payment for each phase of this assignment is requested in advance. Reimbursement for out-of-pocket expenses in your behalf—travel, hotels, out-of-town meals, long-distance phone calls, etc.—will be billed on a weekly basis.

The fee for this entire project is $45,000. If you wish to retain me at this time for all three phases, you may take advantage of a 5% discount, and the fee will be $42,750. Your payment, in whole or in part ($15,000) with your signature at the bottom of this proposal will guarantee the date for the commencement of your expansion.

John McCaffrey, Vice Pres. John Doe, Consultant American Widget Corp. Productivity Enhancement Consultancy Date Date Appendix B: Model Letter of Agreement for Consulting Services

E.S. Consulting Firm Address Date Dr. X Address Dear Dr. X, I agree to handle your insurance claim file for the next 12 months. I promise to speed up payment from the insurance companies involved, bring all your old claims up to date, and ensure that all claims henceforth will be paid within 30 days. Additionally, I intend to train your staff, or anyone else you designate, in all of my methods and procedures.

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You will, in turn, open all of your receivable files to me and make certain that I receive all of your insurance claims in a timely manner. I do not intend to work full-time on this assignment but will spend as much time as is necessary to get and keep your claim files up to date. The training of your personnel will be done in your office, and you will be responsible for setting aside your employee(s)' time for it. The actual work on your claims will be done, for the most part, in my office. My total fee for this work is $20,000, plus expenses for long-distance phone calls to those insurance companies that do not have an 800 number. The fee is payable monthly at $1,667 in advance. Your signature, along with your check for the first month's payment, will effectuate this letter as a contract between us. Respectfully, (doctor's signature) (consultant's signature) date date nn