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Pat E. GoodwinPat Goodwin Associates
SHOULD I BECOME
A CONSULTANT?
You ARE One!
You were paid for that service—just not separately billed.
You already have an area of expertise.
You have functioned often as an internal consultant.
Difference: ‘Packaging’
An outside independent Bill for the service No responsibility for execution
Why do it? 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 . . .
Self-employed Solo operator but seek others
expertise Working out of home or low-overhead
office
Working for a consulting firm
NOT. . .
Do I Want to Do It? Uncertainty of income 3+ months of income
saved Prospecting Selling Hassles of self-
employment
Can I Do It? 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? Functional or technical area(s) Industry / industries Geographic areas A “matrixed” specialty? Collaborate with support group of
specialists
What We’ll Cover:
I. The consulting processII. Managing your practiceIII. Building your practiceIV. Assessing your personal
‘fit’
I. The Consulting Process
The “How”
Consulting:
Giving (selling) advice professionally.
The Independent Consultant:
A personal service business based on trust.
Consultant:
‘Brain on legs’
Consulting vs. Contracting
CONSULTING Independent
professional
Autonomy is critical
Deliverable is knowledge
CONTRACTING Employee without
benefits
Part of the team
Deliverable is a work product
Content vs. Process
CONTENT Functional area Technical
expertise Single
intervention Contract
opportunity Linear project Boundary issues
not key
PROCESS Broad applicability Team dynamics Often expands Contract will
compromise role Cyclical
involvement Boundary issues
are critical
Edges get blurred . . .
Can slip easily from consultant to contractor
Can slip easily from content to process consulting
Watch where you step!
Consulting Stages
1. Meet and qualify the client / issue
2. Define the agreement3. Collect, analyze data-purpose,
process, people, personal
4. Provide recommendations, possibly re-contract
5. Implementation phase6. Close-out / follow-up
1. Meeting & Qualifying
Presenting problem
Background Stakeholders and
prime mover Attempts to solve Duration Resources Expectations
2. Defining Agreement Services Resources Deliverables Timetable Compensatio
n Rights Acceptance
3. Collect, Analyze Data
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
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 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
Not the consultant’s role! Danger!
Can advise as consultant Can refer a resource to implement Can serve as overseer for
implementation
6. Closeout / Follow-up 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
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
Content area? Specific services? Geographic market? Market need
trends? Prospects? Biz objectives? Form of business? Risks/constraints?
Setting Fees What’s the market rate?
What’s my expertise worth?
What’s my income objective?
Market Rate?
In Texas today: Day? Hour?
Other approaches:
Project Service trade Pro bono
Your Work Value
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: $ 8,500
Day: $ 850
Hour: $ 100
$150,000 per year is…
Month: $ 12,500
Day: $ 1,250
Hour: $ 175
Billable Days
START-UPMonth total: 31Weekends: -7Administrative: -3Professional: -3Selling: -8
BILLABLE:10
MATUREMonth total: 31Weekends: -
7Administrative: -
3Professional: -2Selling: -6
BILLABLE:13
Overhead
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?
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: New networking Old networkingGroups: Speaking / Teaching Lecturing Publishing
Don’t overdo:
Brochures Direct mail “Broadside” flyers Advertising Yellow pages
(Save your money)
Prospects to clients:
Personal familiarity Trusted referral Quiet research Validating your credentials Trial contact Bio Data Sheet, Business
Cards
Web Presence
Checklist item Doesn’t “sell” Validates your
practice Gives you
global reach
Web Page Features
Identity Credentials Photo/Bio Charter /
niche Services Professional
Groups
Testimonials Examples Fee guidelines Availability Topics E-mail link
Web Page Benefits Tells your unique
story Validates prospect’s
choice Makes ‘yes’ easy:
comfort zone Can be interactive Easy to keep fresh
Practice-building keys:
Display your knowledge, expertise Professional visibility in the right places Show your unique style Frequently add value
IV. Assessing YourPersonal ‘Fit’
Is It Right for You?
Benefits of Consulting
Autonomy Variety Low cost of entry Low overhead High earning
potential Great satisfaction, if
a fit
Risks of Consulting No structure No support
system Income
uncertainty Need to invest in
self with uncertain return
Work-life integration issues
Self-check:
No structure? Self-promotion? Closing a sale? Comfort zone? Personal
situation? Money drive?
High-earning Consultant:
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
versusMoney drive
Comfort Zone:
Built-in structure Rewards of managing Satisfaction of getting
results Accepted expertise
Test the waters…
Tricky to ‘try it for a while’
Tough to toggle with job search
Contracting is viable option
Consulting can lead to employment
Making the DecisionPERSONAL FIT
Expertise Interest Risks
SITUATIONAL FIT Financial Spouse, family Circumstances
Questions?
