Presented by: Alan Landers President FirstStep Talent Strategies

Presented by:Alan LandersPresidentFirstStep Talent Strategies

30 years experience in OD, L&D, and HR 14 years heading OD consulting firm 21 years consulting internally or

externally VP of Training for a Fortune 250 VP of Performance Management VP of Marketing Clients include: Microsoft, Dun & Bradstreet,

AT&T, Texas Insturments, General Motors, Hewlett-Packard and many more

University partners include: University of San Diego, Auburn, Southern Methodist, Michigan State, Washington State, San Diego State, among others

Alan LandersPresident, FirstStep Talent Strategies

Your Facilitator

Getting Started Building a Practice Marketing Competing Developing Products Pricing

Topics

Agenda

Getting StartedWhat Most People Do Print business cards Create a web page Tell friends Contact former

employers Wonder what happened

1. Set aside cash2. Research health insurance3. Understand ups and downs4. Establish a support network5. Get healthy6. Get organized7. Develop your sales skills8. Define the scope of your

practice9. Decide how to position your

practice10.Identify your competitive

advantage

11.Create a marketing plan12.Promote yourself and establish

your credibility13.Follow up after 1-on-1

meetings14.Network effectively15.Put together a portfolio16.Learn how to write a proposal17.Price your services18.Develop a line of products19.Stay at the cutting edge20.Build strategic alliances

Get a Good Start20 Things to do up front

1. Market and Brand their practice

1

2 2. Sales and Negotiations3

3. Develop Products

4

4. Network

5

5. Research

6

6. Administrivia

7

7. Publish

8

8. Create Systems and Processes

9

9. Strategic Planning

10

10. Professional Development

What Consultants Do

And by the way – they also consult

Tier I: The Entrepreneur: a sole proprietor who is the only employee

Tier II:The Boutique: comprised of 2 to 5 people who have a formal or informal partnership or collegial arrangement

Business ModelsTypes and Sizes

Tier IV: The Big Boys: with thousands of consultants who dominate the market

Tier III: The Movers & Shakers: firms with 10 or more consultants and a substantial brand

Define Your ServiceClients are interested in...

What’s hot?What’s coming?What’s new?What hurts?What helps?What’s essential?

Not what can you do!

11 Ways to Add Value to an Organization

Add Value

1. Increase customer satisfaction, retention, sales2. Expand products, services, markets, channels3. Improve employee performance, engagement,

skills4. Improve productivity, streamline processes,

restructure5. Improve quality, safety, environmental issues6. Reduce costs, errors, wastage, minimizing

downtime7. Improve planning, strategies, competitiveness8. Improve leadership depth & breadth9. Improve technology, systems, analytics10.Add Expertise 11.Coaching, mentoring, advising

Adding ValueAdding Value by Transferring Knowledge & Skills

1. Make it part of the contract2. Make someone responsible3. Create a transition

plan/schedule4. Involve different groups and

individuals5. Some of the work early and

most of the work later6. Meet regularly to discuss

progress7. Capture learnings and make

them available

Keenly Interested

FindYour Niche

Given what you know and can do, who would be interested in it? Why?

Socio-demographics: Age, Gender, Profession, Experience, Skill-level, etc.

What industries would find your services and products beneficial? Why?Consider: pressures they are experiencing, pain points, trends, legislation, the economy, workforce issues, geo-demographics, etc.

What about the competition?How entrenched are they? How do you compare? What is your advantage? How difficult would it be to penetrate that niche?

Once you find your niche, be sure yourmarketing materials use words that will resonate within it.

Market Like MadMarketing Options

Press Releases Image Management Pro Bono Work Websites Publishing or Being

Quoted Newsletters Speaking Engagements Professional Associations Testimonials Referrals Networking Broadcast Media

Words That Sell

Build CredibilityGetting Published: Quick and EasyMost Difficult to Easiest:

1. Write a best selling book2. Co-author a book3. Write an article for a journal4. Write an article for a

magazine5. Write an article for a

website6. Write a letter to the editor7. Write an article for your

website8. Write a newsletter9. Participate in blogs

Share and Learn

Network Face-to-Face

With Potential Clients Host a networking event Conduct a free seminar or

workshop Provide a free demonstration

of a product and give away a sample

Host an expert round-table discussion

Raffle your services at a charity event

With Peers Join the Board of Directors Volunteer on Committees Attend meetings regularly Participate in conferences

and EXPOs Seek help (information) Become a mentor Contribute to newsletters

1. Trust2. Understand the client’s business3. Understand the client’s specific needs4. Senior level management experience5. Contract specificity6. Clearly defined deliverables and key success factors7. Thorough front-end assessments8. Custom-tailored solutions9. Involvement in implementation and ablility to lead

change efforts10. Project management skills11. Direct, timely, clear communication12. Gratitude

Satisify ClientsFactors Impacting Client Satisfaction

ExamplesMeasure

Performance

Why analyze the competition?

Competitor Analysis

To identify openings that allow you to standout andattain competitive advantage

What You Should Know Their niche or target market The needs they address How they add value Their differentiation strategies Their core products and services Their fee structure How long they’ve been in business How their business is doing Their size and growth trends Their strategic alliances How they are perceived (brand) Their possible weaknesses

The Competition

Analyze the Competition

10 Sources Competitive Advantage 1. Unique or special knowledge, skills,

experience2. Proprietary intellectual property 3. Proprietary or superior technology,

systems, or processes4. Advanced, efficient, and flexible

distribution channels5. Ability to enhance and/or create of new

resources and capabilities for clients quickly

6. Incomparable products or services tailored to a specific market niche

7. Strategic alliances that provide any of the above

8. Competitors’ weaknesses (real or perceived)

9. Established brand or affiliation with one10. Being at the right place at the right time

Competitive Advantage

Income Limitations

PROBLEMYOU ONLY MAKE MONEY

WHEN YOU ARE ACTIVELY CONSULTING OR TRAINING

BEST PRACTICEFIND WAYS TO GENERATE

INCOME WHEN YOU AREN’T

WORKING!

What are this company’s products?

Products

Guangzhou Jindi Tin & Hardware Company

Consultant Products

15 Ways to Leverage Your Expertise

Product Lines

Fee TypesWhat are the options?

Flat Rate for Entire Project including ExpensesFlat Rate plus ExpensesHourly RateDaily RateOnsite/Offsite RateContingency RateRetainerOutsourced

Sample Hourly RatesHourly Consulting Rates - Examples

Computer Tech Support: $100 -$145 Training & Facilitation: $90 - $150 IT Consultant: $200 - $500 Proprietary Training: $200 - $400 New Product Consulting: $200 - $500 Strategy Consulting/Facilitation: $300 -

$500 OD or Restructuring: $300 - $500 Mentoring/Coaching Executives: $300 -

$500 Coaching Managers: $200 -$250 HR & Benefits: $200 - $400

Austin K. Pryor (www.tenonline.org, Oct. 2001)

Rates for Senior Practitioners

Realistic Income FiguresWhat it’s really like early

You will probably charge around $1,500 a day You may work 50 days a year, after a slow start 50 x $1,500 = $75,000 gross annual income You’ll have to deduct expenses

$75,000 - $60,000 = $15,000 net You take a $200 per day salary

50 x 200 = $10,000 Labor costs Leaving a $5,000 annual profit

6.6% of Gross

Five ChoicesIncreasing Income

1. Increase # Billable DaysMore marketing, No vacations2. Lower Labor CostsLower income expectations3. Reduce ExpensesDifficult to go below $60K4. Reduce Profit Margin5%-10% instead of 15%-25%5. Sell Products or Certifcations

Discounting FeesPros and Cons

Arguments ForKnow client’s limitationsPro bono workValid business reasonHelping a former clientUnderbid the competition

Arguments AgainstDifficult to charge moreBecomes a habitUndervalued mindsetPrice vs valued serviceClients’ perspectives

I seldom do it... there are other options

Options to Discounting

1. Do it entirely for freeWrite it off as a marketing expense

2. Share the expense across clients2 or 3 clients share the cost of an event

3. Use a menu approachPick and choose what they want

4. Break it upConduct the intervention in phases

5. Discount parts, not allDon’t charge for the easy stuff

6. Include disposables in the contractInclude items you can eliminate

Thank You