The$Keys$ToA Successful$$ Consulting$Career$ · This publication is not intended for use as a source of legal or accounting advice. The Publisher wants ... ANSWER: YOURSELF! Item

The Keys To A Successful

Consulting Career

A Comprehensive Guide To Setting Up Your

Consulting Practice And Establishing Your Business

The Keys To A Successful Consulting Career

V4 – 04.07.08

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Copyright Notice © 2004 - 2013 David Abingdon. All Rights Reserved. No part of this publication may be reproduced or transmitted in any form or by any means, mechanical or electronic, including photocopying and recording, or by any information storage and retrieval system, without permission in writing from the Publisher. Requests for permission or further information should be addressed to the Publishers.

Legal Notices While all attempts have been made to verify information provided in this publication, neither the Author nor the Publisher assumes any responsibility for errors, omissions, or contrary interpretation of the subject matter herein.

This publication is not intended for use as a source of legal or accounting advice. The Publisher wants to stress that the information contained herein may be subject to varying state and/or local laws or regulations. All users are advised to retain competent counsel to determine what state and/or local laws or regulations may apply to the user’s particular situation or application of this information.

The purchaser or reader of this publication assumes complete and total responsibility for the use of these materials and information. The Author and Publisher assume no responsibility or liability whatsoever on the behalf of any purchaser or reader of these materials, or the application or non-application of the information contained herein. We do not guarantee any results you may or may not experience as a result of following the recommendations or suggestions contained herein.

Any perceived slights of specific people or organizations is unintentional

Table of Content

S E C T I O N 2

Introduction 4

S E C T I O N 2

Consulting First Steps 7

S E C T I O N 3

Eight Key Steps To Consulting Success 11

S E C T I O N 4

Establishing Your Consulting Business 21

S E C T I O N 5

Setting Up Your Base Of Operations 25

S E C T I O N 6

Finally 35

T H E K E Y S T O A S U C C E S S F U L C O N S U L T I N G C A R E E R

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Introduction

Using your past experience as a springboard to consulting success…

QU ESTION: WHAT IS YO U R M O ST V A LU A BLE A SS E T? A N S W E R : Y O U R S E L F !

Item 1:

John’s boss at the advertising agency considered him one of his most valuable employees. John was always coming up with terrific ideas, and not only for specific ad projects. John frequently discovered innovative solutions for difficult problems, which saved the firm a lot of money. John made a good salary but when he came up with an especially profitable idea, his reward was often just a pat on the back and a “good job, John” from his boss. Then one day John realized: “If I was charging a consultant fee for all my terrific, money-making ideas, I’d be rich!”

And so that’s what he did. John quit his job and went out on his own as an advertising consultant. He marketed himself to advertising firms everywhere and easily earned £100 per hour. Even at that fee, his phone continued to ring frequently. He later boosted his fee to £200, and he still remains busy.

Item 2:

A copywriter was hoping to get £50 per hour for his editorial services. He was successful at getting a lot of calls and going to a lot meetings with potential clients but just about everyone told him his £50 per hour service was “too high.” Our copywriter noticed that he spent a lot of time discussing ideas, suggesting strategies, being invited to board meeting and offering advice. Yet, he landed very few actual writing jobs.

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It was frustrating to be sure, but he found a simple solution: He printed up a second set of business cards. His original business cards identified him as “copywriter.” But his new cards read “media consultant.” And he forgot about his £50 per hour writing fee because his new consultant fee was £175 per hour -- and he got it every time.

Item 3:

Tom was only 17 years old, but by that time, he had built a Web page for just about everybody he knew in his life -- many of his friends, a local chapter of the Boy Scouts, even his dad’s boss down at the bakery had tapped Tom for free Web site construction.

Tom was so good at building Web pages, he often shouted out, “I’m not home!” when the phone rang at his house. He was getting sick of building Web pages for anybody and everybody who wanted to set up a cybershop on the Web.

Tom originally started asking for £35 per hour, not for the money but to free himself from everyone who wanted to tap into his talents. He wanted to take the summer off before his first year of university. The result: Tom soon found himself making £35 an hour all day every day. So he started charging £50 an hour, yet the calls kept coming.

Finally, Tom told callers that he was no longer in the Web page design business but only served as a “consultant’ and that he charged £135 per hour -- and that was just for “advice” and not actual Web site building. Again, he hoped this would put people off. The result: Tom spent his entire summer earning £135 per hour by simply telling people how to build better Web pages.

The Time for Consulting Has Come!

These examples, all 100% true stories, make it clear: There’s money to be made in the business of consulting, and probably more money that what most people are making in their “ordinary” jobs right now.

The idea behind consulting is simple. If you have a skill, considerable experience or deep knowledge in any particular field, you have to potential to sell that knowledge and experience to others who don’t have it, and are willing to pay for it. You’re selling yourself, your experience and your information. If you have spent a lifetime developing your skills and knowledge, why simply give it away? While you have been working hard all these years, you have been building up equity in yourself. Your own brain is like a bank in which you’ve been making deposits. At a certain point, you can tap into all those “deposits” of knowledge and turn them into cash -- as a professional consultant.


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In the examples we have just cited, we have three people earning from £135 per hour to £200 per hour. Does that seem like a lot? Well, that’s good hourly pay for just about anyone, but the fact is, many consultants make a lot more than that. Consulting fees of £1,000 per hour or more are not uncommon. Consultants that are famous command truly astounding fees.

Consider Edward L. Bernays. Bernays is widely considered to be the “father of public relations” in the US. Bernays died at the age of 104 in 1995, but almost up to the day of his death, he was one of the most sought after public relations consultants in the world. His fee? One hundred dollars -- not per hour, but per minute! That’s right! Bernays earned $6,000 per hour, and was never short of clients. In fact, Bernays turned away dozens of clients every day, even at $100 a minute. His clients were world leaders, movie stars and major corporations. They paid his fee because they knew he was worth it. He could get results. If you can get results for your clients as a consultant, they’ll be willing to pay you lucrative fees as well. If a client believes spending a couple of hours with you can brings them thousands, or tens of thousands of pounds down the road, why wouldn’t they be willing to pay what you ask? If a client has a vexing problem that needs solving, they'll gladly pay the person -- a consultant -- who can make that problem go away.

That’s what this book is about. You’re going to learn how to become a professional consultant. Consulting is red hot. Right now, there are millions of people around the world making their living as consultant, and there’s certainly room for one more. That could be you.

Please note, becoming a professional consultant is not limited only to those with vast business knowledge, or expertise in science, computers or engineering. Indeed, more than one “ordinary” housewife has turned her knowledge of keeping a house full of kids and husband happy into a full-time “domestic sciences” consultancy. If you’re a used car salesman, you can become a consultant and share your car selling expertise with others, and do it for cash. Grow up on a farm? Your knowledge of animals and growing things can be valuable to a lot of people.

Working as a consultant is exciting, stimulating, financially rewarding, and perhaps best of all, puts you in control of your own destiny. You'll be your own boss. You’ll have more personal and financial freedom than you could ever get from a regular “day job” working for someone else. Better yet, you never know where your next consulting job will take you next. You may get a call from Hong Kong, London, New York, Antwerp or Melbourne -- you’ll meet a wide variety of new people, see a lot of new places and make new connections on each job you perform.

Sound like the lifestyle for you? Then let’s dig in and talk about the nuts-and-bolts of establishing yourself as a professional consultant.


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Consulting First Steps What does it take?

Credibility

QU ESTION: WHAT IS THE D E FI N I TI O N O F A C O N S U LTA N T?

A N S W E R : A N Y O N E W H O LIVES M ORE THAN 50 M ILE S FR O M Y O U !

The somewhat cynical answer to the question above makes a certain point about consulting. Perception means a lot. Perception can also be deceiving. To become a successful consultant, those that would hire you must truly believe you are what you say you are -- a consultant who can solve problems, get a job done, create new wealth, or save money.

The trouble is, it’s probably just as easy to create a perception of reality as it is to construct a reality based on fact. Almost anyone can print up some business cards and start calling themselves a “consultant.” Indeed, you don’t have to travel too far in the business world before you’ll hear someone tell you a tale of an expensive consultant who was hired and paid a lot of cash, only to deliver a lot of nothing. Ask around. You’ll soon find someone to tell you about that time they were “burned by a consultant.”

A lot of people are attracted to consulting because they like the idea of being paid a lot of money for doing very little work. To be perfectly honest, a lot of outright “con men” are attracted to consulting for this very reason. However, the trouble with operating as a phony consultant is that he or she generally only gets hired once. Then they have to look for a new client, then another, and another. Soon word-of-mouth will spread about this bad consultant, and that person may have to leave the country to find new clients!

But a lot of completely honest and competent people are attracted to consulting as well because they think -- or have been told -- that consulting is a get-rich-quick formula for success. It can be for some, but the reality is that

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building a consulting business the right way often means delaying great financial rewards into the future, while one takes the take proper steps to establish an honest consultancy which promises -- and gets -- results.

The great thing about consulting is that you don’t need a degree from Harvard or Oxford, a dazzling résumé, or a photo of yourself shaking hands with the President of the United States or the Queen to position yourself as a worthy consultant. But what you must do is clearly demonstrate that you are the "expert" you say you are. You must demonstrate in a black-and-white way that you know your stuff, and you must do so with great credibility. What kind of qualities make you seem credible? Wait! We better rephrase that. What kind of qualities INFUSE you with true credibility? (It’s important not to merely “seem” credible)! Here are some factors that can help:

1. Proven Experience -- A person positioning themself as a financial consultant, for example, should be able to show past experience working in this field, and have specific examples of success stories.

2. Solid Testimonials -- Nothing builds credibility better than having other people willing to put their names on the line for you. Ask people you have worked with in the past to give you a plug. This can be a previous boss, a co-worker, or someone you have already helped with your skill. Get their recommendation in writing, with a signature, and use it in your brochures, ads and other marketing materials.

3. Skills You Can Demonstrate -- When a cook wants to prove he makes great food, he can prove it by giving people a free sample of his culinary creations. If something tastes good, it tastes good. The physical senses don't lie! A consultant, no matter what his or her field, should provide a direct example of what they can do to show that what they offer really works.

4. References -- Similar to testimonials, but basically what any employer looks for. A reference. A real person they can call and ask: “How well did this guy work for you. Does he deliver on what he says he can?”

5. Certificates -- We already said you don’t need a diploma, but if you have one, it’s all to your benefit. Provide any and all diplomas, training certificates, licenses that you have to your consulting prospects. Prove you have the training.

6. Awards -- These always look good. If you have them, use them! Certainly the term “award winning” is overused these days and it makes some people skeptical. Some awards are Mickey Mouse, as they say, but others have real meaning. Don’t try to bolster your case with phoney or marginal awards. But if you have meaningful awards in your background, employ it as a selling tool! (For example: I have a friend who was surprised one day to get a "Certificate of Outstanding Achievement" from the U.S. Census Bureau. What did he do? He


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simply answered the questions on a regular census form to prove he existed! Using this "Certificate of Outstanding Achievement" as a promotion tool could raise some eyebrows)!

You may not need all of the above to prove to others you are a consultant worth hiring. Very often just solid work experience is all you’ll need. The point is, however, that the more you can offer to make your case, the better you establish your credibility.

Internal Credibility

So far, we have been talking about proving your credibility to the outside world. But there’s another important side of the coin: You must believe in your own credibility. You have to know you can be successful as a consultant. If you don’t truly believe in yourself, it will be next to impossible to make other believe in you.

You may need to go through a certain process to “prove” your competence to yourself. Let’s face it, it takes a certain amount of guts to risk going out on your own -- to be self-employed, to be responsible for figuring out where your next paycheque is coming from. This is why so many people stay stuck in the “same old rut” for years on end. You may hate your day job, but it’s also easy to think: “Well, at least I know for sure I’ll be getting a paycheque this week.”

It’s important to “disrupt” your own comfort level. Reflect upon yourself. Take stock of what you KNOW you can really do. Prove to yourself that you can produce this, or accomplish that. Look at what you have been doing in your current job for the past years. What solid work did you produce? What problems did you solve? What wealth did you help your employer generate? Then make the leap. Tell yourself: “If I can do this for my boss, I can do it for myself, and for my future clients.”

For example, I know a woman who worked as a secretary, and like the all best secretaries, she was extremely organized and used her time extremely well. She very often heard from her boss: “You keep this office running like a clock. I don’t know what I’d do without you.”

This secretary realized that she was extremely good at making an office run efficiently, and could help others to stop wasting their time on unimportant tasks. She began selling her self as a “office organizer” and time management consultant.

On her first consulting job, she was easily able to point out to a busy business owner who worked 15 hours a day, that at least 10 of those hours were spent on things like paperwork, helping employees with small problems, and basically putting out brush fires. She also was able to determine that when the business owner was actively prospecting for new customers and selling them,


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he was earning £200 per hour. When he was doing paperwork, he was earning literally nothing per hour.

Her solution: Pay some other employee £6 per hour to do the paperwork and other tasks, so that owner can spend the majority of his time doing that specific job that brought the most income -- £200 an hour. The results were spectacular, of course. Spending eight hours per day prospecting and selling at £200 hour quadrupled his income, almost overnight.

Our former secretary, who once earned £6 per hour herself, now easily gets £500 per 1-day session. She comes in, on site, and reorganizes office operations, and earns £500 a day doing it. For that £500, a client can realize £50,000 per year in extra income. Is she worth her fee? The answer is obvious! But the important thing was that she could prove her worth to others, and also prove it to herself. She did that. She established her credibility both externally and internally, and the rest is a history of success in consulting!


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Eight Key Steps To

Consulting Success The BIG questions and the essential attributes.

You wouldn’t be reading this if you weren’t at least intrigued by the idea of working for yourself some day, and you think consulting may be the ticket for you. That’s great! You’ve already taken the first step. You’ve started to think: “Maybe there’s something better for me. Maybe I can make more money and have more personal and financial freedom.”

Probably just about everybody has the same thoughts at least sometime in their working career. Sadly, the vast majority never act upon them. They read books like this one, think about it for a while, and then decide to remain in their familiar “comfort zone” even if that “comfort” is really a dreary life of drudgery and sameness.

What throws most people off track are the inevitable fears which crop up:

“But can I really do it?”

“Would anyone really pay me for my knowledge? It seems to good to be true.”

“What if I fail?”

“I’ve never been self-employed before. It’s just seems too unfamiliar.”

As if these common fears aren’t enough, a second limiting factor also inevitably arises: Lack of know-how. Even people who have supreme confidence in their own level of skills and knowledge stop short of taking the plunge because they don’t have a clue about how to get started as a self-employed consultant This situation is often worsened when they buy so-called “how-to” books, only to get a glorified pep talk, and no real “nuts-and-bolts” practical advice that shows step-by-step how to get started.

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Fortunately, this book is different. We’re going to discuss both the psychological and the specific, practical aspects of becoming a successful private consultant. When you get to the last page, you’ll no longer be hindered by lack of know-how. But before we move on, what about that first barrier we mentioned: Your personal fears and doubts. They can be tricky and sticky, and you need to deal with them.

Let’s take a look at that first question:

“Can I really Do It?”

To answer this question, just ask yourself two other questions: “Aren’t tens of thousands of other people working as private consultants right now? Aren’t they doing it successfully and making a lot of money?” The answer is clearly yes! If zillions of other people are doing it, why not you? But then some may think: “Yeah, but those people have those special personal qualities it takes to be self-employed. They have advantages I don’t.”

Certainly not true! Yes, it does take a special mindset and attitude to be self-employed, but it’s not a natural, genetic gift people are born with. Anyone can LEARN to become self-employed if they don't have it naturally. Whatever they lack can be compensated for and gained through a process of self education.

Also, think about this: Do you truly believe that everyone who is a successful, self-employed consultant is somehow better or more skilled than you? That’s impossible! Are some better and more skilled than you? Certainly, there are others with greater gifts than you. Isn’t there always in any endeavour? On the other hand, are there working consultants right now who are LESS skilled and talented than you? Count on it! The fact is, when and if you start working as a professional consultant, you won’t likely be among the top 1 percent or 10 percent of all consultants in your field -- but it’s just as unlikely you’ll be in the bottom 1 percent!

The point is this: Becoming a self-employed consultant means that you’ll be “in the game.” That’s all that matters. If you’re in the game and making money, you can count yourself as a success. You’re always going to meet others who are better than you, and those who are clearly your inferior. You don’t have to be the best or the worst. You simply need to get out there and start doing it. Where you "fit in" will take care of itself.

Let’s take one more negative thought before we move on:


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“What if I fail?”

Well, what’s the worse that can happen to you? If you can’t make it as a self-employed consultant, you can always go back to a regular job working for someone else. Failing as a private consultant does not cause death! It’s not fatal! It just means you tried, gave it your best, and it didn’t work out.

On the other hand, if consulting does work out for you, what you gain is absolutely enormous! More money, more freedom, more fun, more stimulation, more interesting people in your life and an extremely high degree of self-determination!

As you contemplate starting out as a self-employed consultant, why not take some time to write down every fear or worry you have about the prospect right now. Look at the items you have written down and face them frankly. Focusing attention on your fears often has the attention of dissipating them. Perhaps the worst thing you can do is simply deny your fears and plunge ahead. It's better to deal with them right away. If you want, create a contingency plan in the event you do fail as a consultant. Have a fall-back plan. At the same time, be determined to succeed.

To help you get your mind straight about moving ahead with your idea of becoming a self-employed consultant, it will be extremely helpful at this point to give you more perspective on what it takes to become a successful consultant. We're going to look at eight critical attributes that can be found in just about all highly successful consultants. I have no doubt that you are going to recognize some of these traits as ones you already possess. But if you find some you don’t, don’t worry. You can develop them and incorporate them into your own range of abilities.

Whatever the case, you will need most of these attributes if you are going to make it as a consultant. You can’t possess them or develop them unless you know what they are, so let’s have a look:

1. Communication Skills

I know a couple of brilliant mechanical engineers. These guys are so smart, they could fix the Space Shuttle with a pair of pliers, a tube of household glue and maybe a paper clip. They’re a lot more intelligent than I am, by a long shot. But never in a million years could they ever become successful consultants. Why? Because they are painfully poor communicators.

Sometimes engineers, and lot of science and numbers type people, are excellent when working with computer software, tangled masses of machinery or reading complex schematic diagrams, but when it comes to communicating


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information about all of the above to others, they just can’t do it. They’re good at doing, but poor at explaining things to others. (Not all technically oriented people to be sure! Many engineers are excellent communicators)! Have you ever taken your car to a garage and listen to a mechanic explain to you what's wrong with your car? If you're like me, most of the time that mechanic seems to be talking like he's from the planet Mars. You may have complete faith that he'll fix your car just fine, so it's not absolutely essential you understand every word.

But when you're a consultant, its different. A consultant needs to be understood. A consultant must be in command of his or her own body of knowledge, but it's equally important to have an easy and fluid skill of imparting that knowledge to others -- and in a way that others can easily pick up what they are told and apply it.

The first and most essential part of communication is listening. This is where even “good talkers” often falter, and where a lot of consultants trip themselves up. They enter a client’s domain thinking: “I’m the consultant, I’m the expert. I’m going to tell them what to do, submit my bill, and be on my way.”

This almost never works. That’s because even familiar business situations can vary greatly from place to place. A consultant with excellent communications skills spends his or her first hour or two -- or even a day or two -- asking questions and listening carefully to answers. Only after the consultant has taken in a ton of information from the client will he or she be ready to understand how their own expertise can be applied to the situation to get the job done.

It bears repeating: Only after you have listened, and listened a lot, will you be ready to start masking recommendations. And then you must have the ability to communicate those recommendations is a way that’s easy for the other to understand. It’s a gigantic plus if a consultant can provide written instructions that are easy to read, in addition to communicating verbally. Being able to provide and leave written instruction behind for your clients multiplies your value enormously.

Of course, not all consulting jobs require written documents. A wedding planning consultant, for example, may not need to provide ongoing instruction manuals, per se. But as a general rule, both oral and written skills greatly enhance the value of a consultant.

2. Understanding

When most business owners are asked what they want from a consultant, often highest on the list is: “To be understood.” That’s why people hire consultants. They have a situation they can’t handle themselves, or with their own internal resources. Very often, business owners feel they have problems


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or needs that only they understand. When they bring in an outside consultant, they are extremely eager that their situation and needs be understood. Great consultants are great "understanders." They also go beyond understanding and strive to establish true “empathy” with their clients. The dictionary defines empathy this way: “Identification with and understanding of another’s situation, feelings and motives.”

Notice that the term “feelings” is in that definition. That’s important for several reasons. Clients always have a certain emotional investment in what they do and why they do it. Sometimes, though, emotions can lead well-meaning people astray. A consultant needs to recognize this.

For example, a business may have a product that was developed by it’s founder 35 years ago but that product has long since become unprofitable and a drag on the company’s bottom line. An empathetic consultant will recognize the emotional attachments the business owner may have for the product, while at the same time, remaining emotionally objective. The consultant may have to recommend “killing” the product, give a rational reason why, and do so while acknowledging the emotional attachment to the product.

That’s why empathy is important. It helps you understand the motivations and emotions of your client, not just the practical aspects of the operation. The best consultant recommendations take all aspect into account. A detached yet empathetic consultant can give reasonable advice that in his or client’s best interests - whether the client likes it or not. You can't always force a client to do what you recommend, but you always have to try.

3. Be Adaptive

All restaurants are in the business of serving food, but can you easily see the difference between a McDonald’s and a mom-and-pop Italian eatery that’s been "in-the-family" for 80 years? Some insurance agents sell life insurance, while others deal only in liability policies for government entities. A restaurant consultant needs to be highly adaptable because all restaurants are different. An insurance consultant will often find him or herself in a wide range of unique situations.

A good consultant adapts. Differences can also mean more than the differences in business models. Individual business owners all have different perspectives and expectations of consultants themselves. For example; one restaurant owner may want to pay a consultant by the hour, while another wants to pay only “for results” or the "job done." Some clients will be eager to put your recommendations into practice, while others will be highly resistant to any change you suggest.


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Consultants need to see each individual job from many angles and respect and understand what the client wants and expects. Also, a good consultant knows when to say: “Sorry, I can’t help you.”

Even so, you may often find more similarities than differences. A great consultant understands the universal principles that underlay all businesses.

They want to provide a great product, create customers and make a profit while they’re doing it. They key is to ply these universal principles and goals while straddling the inevitable differences encountered “on the ground.”

Some consultants limit the variability they must adapt to by consulting only in narrow niche markets. For example, a restaurant consultant may target fast-food restaurants only.

But whatever the case: Be flexible. Be adaptable.

4. Work To Your Strength

In the above item, I mentioned niche markets. Get out a notepad right now and write down “niche marketing” in big bold letters and underline it! You can vastly increase your value and strength as a consultant by working to your own strengths, and by concentrating on business types that are very similar to each other. Consider marketing your consulting skills to a very narrow niche market. Think of the old adage: “A fox who chases too many rabbits often goes hungry.” When you stay firmly on your own turf, you avoid getting into situations where you are out of your element, or over your head. An efficiency expert may choose to focus on helping car dealers only. A financial consultant may key in on retirement planning only. A grant writer may seek government grants and then only for farmers raising exotic goats! Yes, you can be that narrow and enjoy great success. Think about it: How much competition are you likely to get from other grant writers who serve only goat farmers? Not many -- yet, as exotic as this sounds, there are currently more than 178,000 goat farmers in the United States alone. Combine that with Europe, New Zealand and Australia, and you get more than half a million potential clients!

Consultants who niche market enjoy a much higher successful response rate when marketing their services. Consultants who market their skills to wider, more general client bases are often happy with a 10 percent response rate of customer acceptance but very tight niche marketers report 80 to 90 percent successful paying client response. That says it all.


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5. Customer Focus And Commitment

So far we’ve talking a lot about what becoming a consultant can do to transform your current life into something better. We've been talking a lot about you. But let’s be careful about one thing: Great consultants never put themselves at the centre of their own universe! They put their customers and clients first! They commit themselves to providing real benefits that make a difference to those who are paying them good money to do so.

Great consultants truly care about their clients. They have a genuine desire to help, make improvements and better the lives of those who hire them. When they do that, the consultant makes money. When consultants put clients first and drive relentlessly toward producing results for them, the money aspect takes care of itself.

Many would-be consultants fail by not taking this attitude. They are attracted to consultancy because they want to make a lot of money. There is absolutely nothing wrong with that. Let me repeat: there’s nothing wrong with making a lot of money. But a consultant who can’t think past “getting my fee” is a consultant who is out of focus. Other people can smell an “all-about-the-money” person from a mile away. The consultant that delivers a so-so job, and then pockets a hefty fee will soon earn the reputation as a professional who is “just in it for the money.”

There’s no worse advertising than negative word-of-mouth advertising. There’s also no better advertising than positive word-of-mouth advertising. Keep this in mind: The vast majority of new business for consultants comes through person-to-person referrals. That means for every client you make happy, it sparks the potential for that client to tell someone else about you, and hire you.

So put your clients first. Be committed to your clients. Charge your fee. Set it as high as you think your market is willing to pay. Collect your fee free of guilt --but only if you delivered on the service you promised. Make that your commitment.

6. Be A Brutal Pragmatist

Very often, consultants find themselves in a difficult situation when meeting a new client for the first time. The client is extremely excited about a particular project or course of action that the consultant immediately recognizes as potentially disastrous, based on long experience.

But the client is so excited about the project, that the last thing he wants is someone dumping cold water on it. Rather, they are more interested for yet another rubber-stamp “yes man” who will “join the team” and help put the plan in action.


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The dilemma for the consultant is this: Does he or she tell the client what they want to hear, or give them the brutal truth? It’s a dilemma because the consultant is a position to make a lot of money if he or she simply tells the client what they want to hear, tell them they have a great idea, and gets to work on the project.

After the job is done, the consultant walks away with a nice fee, but what happens when the project results in disaster a short while later? That’s right. The consultant gets blamed. His or her reputation is damaged, and along with it, the potential for future business.

Here’s a great example: A freelance writing consultant friend of mine once got a very lucrative offer to ghost a book on the subject (and I promise I’m not making this up); “How to Start Your Own Concrete Business.” The client was a wealthy, retired construction contractor and was offering $10,000 for a short book that would have been fast, easy work for the writer.

But my friend decided to be brutally honest. He told the man: “I have to be honest with you, I can’t imagine there would be a very large market for a book about the concrete business. It may sell somewhat in a small niche market but almost certainly nothing like best seller status.”

The client angrily hung up. He really thought he had a blockbuster book idea. Our writing consultant saw $10,000 fly out the window but upon reflection, he didn’t want the reputation of writing books for people that are guaranteed marketing bombs. In the long run, he was better off.

It's better to be honest and brutally so when your gut and experience dictates it. Some clients will be hell-bent on committing economic suicide. The best you can do is talk them out of it. Give them your best advice. If they don't listen, you at least don't have to go down with the ship.

It can be a tough decision. It's very hard for any self-employed consultant to turn down a fat consultancy fee. But sometimes you have to.

7. Work Hard But Maintain Perspective

Some people escape the shackles of their regular jobs to become self-employed consultants -- only to become enslaved to themselves.

It’s easy for many consultants to become workaholics for a couple of reasons. First, the process of getting started with any new business usually requires an enormous amount of work initially. If you’re going it alone, you’ll simply have a lot to do. You’ll be creating your office, building a Web page, making phone calls, networking for new clients, developing marketing strategies, travelling, creating ads, finalizing the look for your business cards, letterhead, and so on. You’ll even be your own secretary, and hopefully, you’ll performing real consulting jobs as soon as possible.


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Because the first three months, or so, of establishing a new business can mean 15-hour days, it’s very often difficult to pull-back to more normal working hours later.

A second reason some consultants become workaholics is fear. They think to themselves: “Now I’m self-employed! The only thing between me and getting my next paycheque is myself! If I don’t keep at it constantly, the work could stop coming and I’d go broke!”

It’s important to be dedicated to your success as a consultant, especially at first, but at some point, you should develop a perspective. Did you really go through the trouble of leaving your old “wage-slave” job only to become a different kind of higher-paid slave to your own enterprise? Also, most human beings I know have “little side issues” to be concerned about, such as a spouse, children, maybe a dog and a cat. You can only neglect the personal aspect of your life for so long before things start to crumble.

Part of the reason you want to become a consultant is to make more money, and not just because you want to have more money but so you can also have more free time to enjoy that money. Sure, there are consultants who love what they do so much, they don’t care to take much time off. As the Chinese philosopher Confucius said: “The man who finds a job he loves will never work another day.” It all depends on you and your personal perspective.

But in general, I can say this: "Show me a consultant who works 18 hours a day, and I'll show you a bad consultant." So think about it this way: Taking time off does not hurt your business, it helps it! You prevent burn out, you stay sharp, you maintain the important infrastructure that makes up the rest of your life and you enjoy life more all around.

8. Confidence

Of course, to be self-employed in any endeavour requires a high degree of self confidence. This is perhaps especially true for consultants. Why? Because a consultant needs to project confidence to his clients -- sometimes even supply new levels of confidence for clients. If you are not genuinely confident in yourself, it will be impossible for you to make your clients feel confident with you. Note that confidence does not mean going into a client's office and taking over like a full-blown control freak. Remember what I said about communication and listening? True confidence is a lot different from arrogance. It also means understanding your own limits. When we talk about true confidence, we're talking about being extremely comfortable with what you know, and having a firm understanding of your own skills. It's important to know what you can do, and when to tell you client: "that's beyond my expertise." There's another old adage: "If you can do no good, at least do no harm."


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Some consultants feel that they have to come off as some kind of all-knowing god so that clients will not only "obey" but be happy to pay high consulting fees. But that's not self-confidence; it's exactly the opposite. The person who feels inferior often becomes a bully to overcompensate for his own perceived weakness. Great consultants are only using their hard-won set of skills to give their best advice to their clients because they are committed to their clients and then genuinely want to make things better for them. They stay within what they know they can do well -- and that's what given them confidence.

Confidence will also grow with each new success a consultant produces for a client. If you feel your confidence level is a bit low at this early point in your consultancy career -- or as you contemplate becoming a consultant -- don't worry. All you need is a little to get started. After you pull off that first successful consulting job, your confidence will soar to new heights, and you'll feel great!


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Establishing Your

Consulting Business Making sure that you get the basics right…

If you have read this far, you probably believe you have all, or at least some, of the qualities it takes to become a successful consultant. I’ve been talking a lot about the importance of self reflection, and the importance of understanding the personal qualities a person must possess to become a working consultant. This is the point where you have to be sure that you are ready to take the plunge -- that’s because now we’re going to start talking about money. It’s time now to think about what it’s going to cost you to get started as a self-employed consultant. It’s easy to think and dream and contemplate. But in our society, when money gets involved, well, that’s where the rubber hits the road! As you have probably often heard, the vast majority of new businesses fail less than a year after operation begins. The reasons are several but certainly one of the biggest reasons most new businesses fail is being underfunded. They simply don’t have enough start-up capital to float the operation until those regular, dependable profits start rolling in.

So the first thing you should do is take stock of your current financial situation with a great realism and pragmatism. Everyone’s status is different. You probably have all kinds of financial obligations -- children at home, house payments, credit card debt, car payment, basic living expenses, and all the rest.

Whatever the case, you need to consider how much money you will need to meet all of your financial obligations while you establish your consultancy business. Most financial planners will tell you that it’s wise to have at least six months of cash on hand to take care of all your needs. Most will also tell you having at least one complete year's worth of liquid capital on hand is far better. This scares a lot of people, and rightly so. If you’re not worried about how your bills are going to get paid while you take the risk of starting a new business, then you probably have very little common sense. At the same time,

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the last thing I want you to do is let this daunting challenge turn you off. Every day, hundreds of thousands of people roll up their sleeves and find the start-up capital they need. They make it happen. You can too.

In addition to the money you'll need to keep the wolf away from the door, you'll also need fund to outfit your new business. Fortunately, a single consultant operating alone can get by with as little as a telephone, computer and a spare bedroom to call an office! But you'll need more than that. For example, you'll need some money for marketing. You'll need business cards and letterhead. The incidentals can be many, such as buying lunches for prospective clients, travel to networking venues, such as seminars and trade shows. You may want to conduct a direct mail marketing campaign in search of clients. You'll almost certainly need a Web page. So it's not just the money you need to live for a year, or so. You'll have start-up expenses as well.

The next question is: Where are you going to find start-up capital? You’ll find no shortage of advice on this topic. There are dozens of ways to get money to start a new business, though not all of that advice is created equal, nor are the funding sources. Again, much depends on your personal situation, your credit rating, your current state of wealth, your connections to possible sources of money, and so on.

Perhaps the first source of start-up capital most people consider is a loan -- from a bank or even credit cards. This may or may not be the best course for you, but most working consultants would probably warn you strongly against a traditional bank loan. That’s because new businesses that start out with heavy debt loads are also highly likely to fail. The funny thing about bankers is that they like to get paid back -- on schedule, on time and with interest! If your consultancy shows great promise, but fails to start producing cash flow as soon as you hoped, your banker won’t care -- so long as you keep making your payments on time! I don’t have to explain to you what will happen if you fall behind on payments, or default on your obligations entirely.

So in the best of all worlds, it’s best to get the money you need, while avoiding the burden of debt. It can be done. Some people are lucky enough to have the proverbial rich uncle or aunt, or maybe a parent, who can float a personal loan. If that’s you, great! Just remember, they say blood is thicker than water but money tends to be “thicker” than even family ties. Money disputes have broken up many a family. If you plan to borrow money from a family member, make sure everyone understands the terms of the agreement, including who is going to pay back what, and when.

So what about the government? Will it provide you with cash to start a new business? Yes, that’s always a possibility. Thousands of people get things like economic development grants from government entities all the time. Note that a grant is not a loan, and never has to be paid back. You have nothing to lose by spending some time researching what is available to you, and applying for your share of the tax-payer-fed government pie. You'll find no shortage of resources to help you find sources for grant money. And don't look only to the


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government. There are literally thousands of private foundations which also grant money for economic development.

Some people take out mortgages on their homes, or a second or third mortgage to obtain the capital they need. Of course, when you do this your very source of warmth and shelter depends on your success, and that can be a very precarious position indeed. (Some find it highly motivating!) Other people sell their cars, auction off family heirlooms, sell land, or whatever they have to raise cash. That’s a very personal decision which only you can make.

In the end, it’s always best to simply use your own money if you can, and by that, I’m not including things like home mortgages. That’s not “your” money. It’s the mortgage holder’s money until you pay it back.

Perhaps the vast majority of consultants get started in the most simple way: They moonlight. Before they leave the security of their regular jobs and income, they seek consulting jobs they can perform on weekends, days off, or during vacation time. This obviously takes patience, stamina and dedication, but it’s an extremely secure “pay as you go and grow” plan that keeps you financially secure as you slowly but surely build a client base.

Partnerships

Another common start-up solution many budding consultants opt for is forming a partnership with an existing consultant, or someone else who also wants to get into consulting for the first time. A partnership can leverage the resources of both individuals, polling capital and work as the new consultancy builds a client base. A lot of people feel more comfortable when they are not going it alone. Having a partner means you have someone to confer with and share responsibilities. Yet another perceived advantage of having a partner is the depth it adds to your "product." A partner may have skills and knowledge you don’t have. If your abilities complement each other’s, you may have a dynamite combination.

But now the dark side of partnerships. Please pay careful attention: Business partnerships are the kind of business that fail most often! The reason is both simple and complex. The simple explanation is that when two people are involved in sharing money, work and other resources, disputes over those monies and resources can crop up very easily. The relationship can blow up and the partnership ends -- often as painfully as a bad marriage with protracted divorce proceedings to follow. What about the complex reasons? Let’s just not get into that!

Ultimately it’s up to you. My recommendation is to avoid partnerships, but it’s a personal decision. Certainly, many thousands of partnerships have not only worked but thrived. But from the standpoint of pure statistics, partnerships are definitely “high risk.”


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Associate Consulting

Some people ease into consulting by first taking on work for an existing consulting firm, or by actually becoming an employee of an established consultancy. The idea is to learn “on the job” about successful consulting. This latter option is okay, but at best, it’s a sideways move. You quit your regular job for another job -- and you’re still not a self-employed consultant. It’s also easy to “get trapped” in your new job and lose sight of your original goal.

Consultants who agree to take on associate consulting jobs for others also may encounter problem. The most obvious drawback is that your host consultant gets a cut of your fee - sometimes the majority of your fee! But even worse, while you work for another firm, you may be viewed as an employee of that firm, and you’ll be doing little to establish a reputation for your own company and yourself.

Three other warnings I have for taking on associate consulting jobs:

1. You will be working primarily for the growth and gain of your host company in exchange for a fee. That’s not really your goal. At least, that's not what this book is about! My goal for you is to establish your own consultancy with its own client base, reputation and all the financial rewards.

2. You may be helping to create, or enhance a future competitor for yourself!

3. You can be misused. Many times a host company subcontracts a big project down to another consultant, and loads them down with a ton of work and all the responsibilities of success or failure. The consultant gets paid, but then finds out that the host firm he worked for made 10 or even a 100 times that amount -- along with taking all the credit for the success of the project.

All this leads to my main point: Never loose sight of the primary reason you are reading this book. You want to become a consultant, work for yourself, develop your own sterling reputation and then enjoy all of the rewards and profits of doing so. It’s easy to get side tracked when you’re just starting out. Working for an established consultant can seem like “easing into” the world of consulting but it can backfire on you, and make you loose your way.

Maintain your confidence. Keep sight of your goal. Tough out the hard times and the lean times of your first months as a consultant, and the rewards will be far greater as you gain traction and build on your successes one at a time.


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Setting Up Your Base Of

Operations Home or Office? Staff or one man band?

This question always reminds me of an example once given by the great Swiss psychologist Carl Jung. Jung asks us to consider a large pile of pebbles. Half of the pebbles in the pile are one-inch in diameter and the other half are three-inches in size. So what is the average size of the pebble in that pile? That’s right -- two inches! -- even though there is not a single 2-inch stone in the pile!

There may be an “average” consultant business size, employee number, income level and so on. Some of the biggest consultancy firms occupy entire floors of high-rise buildings in major urban areas. They have plush offices, dozens or hundreds of staff and all the trappings of a thriving, wealth generating company.

But I know of an extremely successful consultant whose only real “office” consists of his mobile phone number, and the 30-foot yacht on which he lives 365 days per year. He has a great life. His “base” is the Florida Keys but he spends his time plying the waters of the Caribbean, sailing from one tropical port of call to another, taking on assignments were he can find them. His expertise is water purification, and he finds no shortage of clients among many Caribbean island nations looking for solutions to building and maintaining fresh drinking water systems.

How you set up your office will depend on what you want your life as a consultant to be like. But I want you to consider some general guidelines and be wary of some pitfalls that could cause you grief down the line.

The most successful start-up businesses avoid debt with ruthless efficiency. They “grow and they go.” That means that they attempt to fund the growth of their business only with the money they earn. They earn the money first, and then plunge it back into the business. This is light-years different from borrowing a lot of money now, putting it into the business, and hope it pays off later.

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A lot of start-up consultants worry about their image. They think that if clients are going to take them seriously, they have to present the image of a successful firm -- that means an impressive base of operations, with well appointed offices, plush carpeting, conference rooms with oak tables, swedish-design office furniture, sleek computers at every station, and lots of staff on hand, looking busy.

There’s nothing wrong with it, if you can afford it. If you can’t afford it, there’s a lot wrong with it. Images and perceptions account for a lot, but money accounts for even more. Never lose sight of your primary goal -- to make money as you help clients. It’s extremely hard to make money when you’re loaded down with debt.

Also, in my experience, consultants spend the vast majority of their time, not in their offices but on site with their clients. In fact, if you’re not doing that, you’re probably not engaged enough with your clients and the outside world. That’s where the action is. That’s where the money is made. It's out there!

Your clients are paying you for what you know and what you can do for them, not for how fancy your base of operations looks. Indeed, many consultants rely on the fact that they will be out and on site to conceal the fact that the consultant’s office is a spare bedroom and a telephone.

On the other hand, business is business. Your office environment, even it’s only your kitchen table, must comport itself as an environment of professionalism. You need a place -- a space -- to work, and when you’re in that space, it means that you are working. That means family and friends leave you alone during your business hours -- no exceptions!

So what you basically need is:

A room with a distractions-free environment.

A desk, and some minimal filing and storage space. Luckily, computers today have eliminated the need for a bank of file cabinets to store paperwork, but paper still accumulates even in this day of electronic information. You need to be a good record keeper, and that means having the space and equipment to keep it all stored and organized.

A telephone, preferably with two lines. The telephone should always be answered professionally. A lot of beginning consultants work out of their homes, and it’s never good when, say, one of the kids answer the phone. Have a dedicated business line which only you answer, and not just with a “hello.” State the name of your company, identify yourself and ask “How can I help you today?”

A computer. Today, your computer can double as a fax machine, file storage solution and, along with your printer, serve as a copy machine. Just be sure you do have excellent, reliable fax capability. A colour laser printer is also an almost must, and it should be a fairly fast printer


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Broadband internet service with your own Web page and e-mail.

All the computer software you deem necessary, including bookkeeping, accounting and tax preparation software.

Voice mail and/or answering machine.

Office supplies -- pens, paper, notebooks, toner, etc.

I won’t go into great detail on items that make up or comprise an office. For the most part, I am assuming that you want to start out consulting on a shoestring. Whatever the case, you are in a unique situation. If your office is going to be a rented commercial location on a busy street, that’s fine as long as you have mapped out what it will cost you in rent, upkeep, utilities, and so on. If you plan to convert a corner of your garage as your office, that’s fine too. I can think of three little businesses that started with one or two guys working literally in a garage -- Amazon.Com, Google and Apple (the computer company not the record label).

One of the most attractive aspects of consulting is that it’s conduciveness to limiting the need for formal office space. Think of the guy sailing the Caribbean in his yacht. I’ve heard of another consultant who works out of a large RV, traveling the expanses of North America, moving from location to location, earning money when he wants to, and just “camping out” when he wants some down time. Always remember: As a consultant, you are selling yourself. It’s you that your clients are most interested in, not your office.

Staffing

Ask any established business about their expenses, and they’ll tell you: employee payroll and management are among their biggest challenges. For a consultant, the advantages or disadvantages of having employees on staff can be a tricky issue. Getting it right is critical to your success.

Established consultants with steady cash flow may not only need employees but the bottom-line can benefit from them. Many consultants cannot imagine getting by without secretarial workers. A secretary answers phone, handles routine office tasks, such as filing, arranging meetings and schedules, making copies and keeping the boss organized.

Other consultant's may employ people who spend all their just prospecting for new clients, leaving the consultant free to do the actual work. Some consultants have their own accountants, PR personnel or Web site administrators, to name just a few possibilities.

Here’s the thing: Having employees must be justified with a basic cost-benefit analysis. If you earn £250 per hour while you are consulting, it’s well worth it


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to hire an office administrative assistant at £6 or £10 per hour to handle all those tasks you would have to do yourself -- and not earn £250 an hour to get done. Sometimes the smartest and most profitable strategy is delegating less productive tasks to others so you can spend all your time on high-productivity tasks. It’s smart management.

Yet, hiring employees invites a whole new level of complexity to your operation. The first concern is money. Employees are expensive, even the lowest paid staff. Unlike you, they’ll be regular wage earners. Employees need to get paid on time but income for a consultant is often very uneven. Even thriving consultant firms can never be sure where the next pound is coming from. Nothing is guaranteed. This never seems like a problem when business if booming, but when it isn’t ...?

Employees also bring something more than just payroll expenses to your daily concerns. Employees are human beings. They have all kinds of personal needs and problems. Employees can learn to dislike each other and start interoffice “wars” -- which you will have to solve or arbitrate in some way. Employees like time off, take sick days and will ask for personal time off when you least expect it. They may quit unexpectedly.

And think about this: Your employees will represent you. Whenever an employee comes into contact with a client or potential client, what kind of impression will that employee make? That impression will reflect directly upon your image and operation. If you want your employees to present a specific, professional image, you’ll have to train them -- which takes time and money.

I know of one professional consultant who worked alone for years but his wife finally convinced him to hire a personal assistant to handle some of his more mundane daily tasks. He stated:

“I ended up getting rid of my assistant after about six months. I found that I spent as much time telling her what to do and how to do it -- more or less the same amount of time as if I just did it myself.”

Again, this is the kind of issue that is situational. The majority of beginning consultants get by with no employees at all, while others find a secretary, at minimum, not only invaluable, but profitable. The bottom line is: You must be able to financially justify all employee related expenses.

I want to emphasize this: When it comes to employees, don’t be penny wise and pound foolish. Make a solid determination of what your own time is worth. If you find yourself spending several hours per day handling routine tasks, when you could be consulting during those hours for, say £200 per hour, then it’s foolish not to pay an assistant £8 to do those mundane daily tasks for you.


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Computer Age

I want to say something about computers right now because they have become such a huge factor in the business world. Computers have a direct bearing on some issues I have been discussing to this point, including the basics of running your office, your operation and even employee issues.

The more proficient you are with computers, the more you can get by without a lot of other things that traditional self-employment endeavours needed to supply in some other way in the past.

For example, on the market today are a multitude of software programs that do so many things a small business needs to do on a daily basis -- such as basic bookkeeping, typing letters, keeping spreadsheet data, customer data base management, communicating with clients, faxing, preparing visual aids for customer presentations, and so much more.

Think a little about the old days: A manager calls in his secretary to “take a letter.” The secretary walks in with her notepad. The boss dictates what he wants said and who to send it to. She writes it all down and goes back to her desk, types the letter, and then brings it back to the boss for review and signature. She then places it in an envelope and mails it. The letter gets to its subject maybe three days later.

Today, that same manager may simply take a few minutes to write up an e-mail and zap it to his contact who gets it instantly. So many changes are implied! There are so many fewer steps in the process!

This is true not just for basic communications but for a lot of other tasks, such as basic accounting and managing customer data. The result is that the self-starting entrepreneur who is proficient with computers has been empowered to do a lot more while getting by with a lot less. So, the more comfortable you are with using computers and all the basic software available to you, the more you can increase your chances for overall success. You may be able to do your own daily bookkeeping with just a few minutes a day. You can create and print out your own visual aids. Every one of these tasks is money saved because you’re not hiring someone else to do them for you -- and doing them yourself is not unreasonably time consuming.

Make yourself proficient with computers and as many software packages as you think you need. But also, don’t waste time with the many “whiz-bang” computer applications that look enticing but don’t really do anything to increase your efficiency. Also be aware that building and maintaining a professional Web site may still be in the realm of an outside specialist, as are some other computer and Internet related functions.

All this information about computers brings me to one of my primary rules for consultancy success:


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Learn to do things yourself!

I don’t know if anyone has ever made this an official rule in any consultancy professional group or in some text book somewhere but it should be. So let me repeat it:

Learn to do things yourself!

The more tasks and functions, from the very simple to the highly important, you can do for yourself -- with efficiency and without wasting time -- the greater your chance of success.

Naming Your Company

Let’s talk now about a very fundamental aspect of setting up a new business: Naming it! Choosing a name for your company is an important marketing decision which requires considerable forethought. A company name must be more than just that by which you are identified. A company name should carry a certain amount of its own marketing weight. What do I mean by that?

Well, it’s amazing to me how many start-up businesses choose “say nothing names” which don’t really tell us anything about the product. Consider these names:

Bill Johnson Associates Smith Enterprises Bob’s Plumbing Service

Who is Bill Johnson? He could be anybody and his “associates” could be involved in just about any kind of business. What about “Smith Enterprises”? What does that tell the general public about what this “enterprise” does? At least “Bob’s Plumbing Service” let’s us know that “Bob” is a plumber and that he can come over and unclog your drain. But even then, does anybody really care or know who “Bob” might be?

It would be better if Bob would put something into the name of his business that would express a quality or benefit about his plumbing service, such as “Super Fast Plumbing.” If someone need a plumber quickly -- and who always doesn’t -- which service are people going to call first when they scan the Yellow Pages to select among dozens of plumbers? The one named after “Bob” or the one that says it’s “super fast.” The answer seems obvious.

The same goes for your consulting service. Certainly, as a consultant, you are selling yourself but if you are a relative unknown, naming your business after yourself may not be the best marketing strategy. What’s better: “Miller


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Consulting” or “Quality Hotel Management Experts”? If both are hotel management consultants, the latter is much better.

In general then, seek a name that not only identifies your consulting for what it is but which also suggests a benefit. Make the name carry some of its own weight by telling the public not only what the business is and does but how well it does it or what makes it different from the pack. You may be proud of your own name, and it’s an ego-boost to name a company after yourself but that does little to further your cause.

Made Up Names

A second option for naming a company are made up names. One of the biggest document copy services in the world is “Kinko.” The company was founded in 1970 by American Paul Orfalea. Why the name Kinko? Kinko was Orfalea’s nickname because he had very curly hair. Kinko was recently absorbed by the giant delivery entity FedEx.

Kinko is an example of a company that achieved mega-success with a name that doesn’t really mean anything. So doesn’t this violate my rule about a good name having to have say something about the service?

Yes, it certainly does but it goes to show there are no hard-and-fast rules about naming a company. Just be careful. If you choose a made-up name, it can work but it may take years to educate the public to associate your chosen, made-up name with the service it provides. It took several years of operation and millions of dollars in advertising to turn Kinko into a household word in the US. Luckily, copy-making was an industry poised for explosive growth in 1970, before the era of the common PC computer on every desk. Raw demand for copy service helped Kinko become what it did over the past three decades.

As a general rule, made-up names work best for industries where there is robust cash flow, excellent potential for fast growth and high demand. As a private consultant, you may or may not have the same advantages, depending on your area of expertise. Also, be careful that your made-up name does not mean something significant in a foreign language. Example: The name “Coca-Cola” when pronounced phonetically in Chinese means: “Bite the waxed tadpole.” I promise I am not making that up. Thus, Coke slightly alters it’s name when marketing in China. Who wants to buy a soft drink called, “Bite the waxed tadpole?” You don't want to make up a name, only to have is mean something funny -- or sexual or vulgar -- in another language.

Finally, made-up names can sound frivolous or fake, even though it make seem clever from your point of view. A few years ago, Apple Computer issued one of it’s least successful computers, the LISA. What did LISA stand for? “Let’s ... Invent ... Some ... Acronym.” As I said, the LISA was one of Apple’s less successful models and was quickly discontinued. I’m sure the name didn’t help. It was nothing more than a clever inside joke.


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Add a Kicker to Your Name

One way to enhance a name is to add a line to it, sometimes called a strap line, as in, “Johnson Consultants -- Retail Security Experts”. If you choose a strap line, above all, keep it short, simple and punchy. Make sure your target market gets an immediate idea of what it means. Be wary of industry jargon in your strap line. Many people might understand, “Nelson Computer -- IT Specialists,” although that’s pushing it. But “Nelson Computer -- StopNode Enhancement” would probably lose most people.

So you have four basic options when naming your company:

1. Your own name

2. A name that describes your service.

3. Invented names.

4. Names with strap lines

All four can work. Ultimately, it’s the quality of service you provide that will make or break your company. Your company name itself will not make or break your company -- unless you choose a name that sounds foolish, obviously turns people off, or confuses them.

To Logo Or Not To Logo

In addition to a fine name, you may want to consider creating a logo for your business. I have to admit, I am an agnostic on this issue. A good logo can become a unique identifier of your business. If your logo is striking and easy on the eyes, as they say, it will enhance your marketing efforts.

Think of some of great logos that we all have burned into our minds: The McDonald’s golden arches, the lips and tongue of The Rolling Stones, the circled triad of Mercedes. We see those logos, and they seem to instantly sum up everything about the product.

But now see if you can picture the logo of these great companies: Microsoft, Hewlett Packard, Sony, Kodak. Any logos spring to mind? Well, speaking for myself anyway, I have to say, “not exactly.” These companies are doing fine with the image they have, however. But logos can be a big waste of time and money, as well. The American broadcasting giant NBC spent $10 million in the late 1970s to create a new logo which was kind of a blocky looking “N.” It was a huge flop and quickly fell out of use.


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As a starting small consultant, go ahead and create a logo, but don’t expect people to recognize it until you push it for a few years. On the other hand, if your logo “looks cool” it may give you a more professional look. You’ll probably have to hire a professional designer to create a striking logo, unless you have an artistic flair of your own.

Creating Your Business Model

I just want to mention business models briefly. For example, many consultants see themselves as a “one man show.” Their goal is to be hired by other entities that need the expertise of a consultant to solve a problem, create a product, help improve cash flow, etc. The consultant performs the job, gets paid and goes onto the next client. That’s a pretty simple and straightforward business model. But other consultants make their model more complex because they visualize ways they can enhance their effectiveness and serve clients better. For example, some consultants model for frequent use and cooperation of associate consultants. When you bring in an associate, you might add 10 or 20 percent to what you bill your client, which you can do as long as you are upfront about costs for fees with everyone. You can also make yourself available to serve as an associate for others.

Your business model can also describe your basic mode of operation, such as detailing how you perform most of your work on site of your client, your geographic sphere of operations, and detailing the fundamental action steps you perform while delivering your services.

Nailing down your business model will help you visualize what you can do and cannot do, and will also help your clients understand how you work, and how you can help them.

Insurance And Legal Structure

You will almost certainly need to buy professional indemnity and liability insurance. The kind of policy you will need can vary widely and here you will need to have a good discussion with an insurance provider you know and trust -- and also an insurance provider who has great experience in serving private consultants. Perhaps one of the biggest ways a lot of private consultants get into trouble is taxes -- that is, failure to claim or pay taxes properly. I know so many consultants who get their first £4,000 check and say to themselves, “Wow! I’m £4,000 richer!” But no -- he is £4,000 richer MINUS tax liability. I urge you to


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always think in those terms. It’s tempting to get behind the eight ball on tax liabilities. It’s best to take care of your tax liabilities right away and never count your profits until you obligation to the government are met.

Much of your insurance coverage and tax situation will depends on how you organize your business. In this regard, you have basically three choices:

1. Sole trader.

2. Partnership.

3. Limited liability company

Each will make a difference in how your taxes are accessed, and have legal implications. Many if not most consultants opt for limited liability because, as such, the company and the owner will be separate entities in the legal sense. That means you can protect your personal assets in the event you are sued, and things go badly. As a sole trader you are totally exposed both professionally and personally. If you have partners, your partners, or your partner’s legal team, can turn on you and hang you out to dry.

My advice is to talk to your legal adviser or accountant.


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Finally…

Now it really begins…

By reading this short manual, you have absorbed a large amount of information about getting started as a consultant. Still, there's a lot more to learn and that is what the Alchemy Consultants Training Course is all about… And after that… Getting out there and doing it!

You must take action. You must not delay that action. You will learn 10 times more about what it means to be a successful consultant in your first three months of DOING than you would from reading a 100 books on the subject. We best learn by doing ... and making mistakes ... and learning from those mistakes. We also learn from our successes. But you'll make no mistakes, nor have no success, unless you are actively DOING!

You are your own best teacher. So get into the real classroom -- the classroom of life -- and get ready to start your new life as a successful consultant.

Conclusion


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Your Notes

The$Keys$ToA Successful$$ Consulting$Career$ · This publication is not intended for use as a source of legal or accounting advice. The Publisher wants ... ANSWER: YOURSELF! Item

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