So You Want to be a Consultant

So You Want to be a Consultant?

Presented by John W. Stout

Copyright © 2009 Stout Systems Development, Inc. All Rights Reserved.

This presentation copyright  2009 Stout Systems Development, Inc.
All Rights Reserved. STOUT is a registered trademark of Stout
Systems Development, Inc. Corporate, product, application and
publication names as well as certain images used in this presentation
About
are copyrighted by and/or are trademarks or registered trademarks
of their respective companies or owners. Links to other Web sites
are provided for convenience and Stout Systems Development is not
responsible for the content of those sites.

About

This presentation is not advice about the
subjects on which you should consult
Note: Your technical know-how is only about
50% of your business success

The Current Business Scene
Disruptions
More regulations, oversight
Higher costs of business
(insurance, taxes)
Global economy factors

Less freedom today than 10 years ago
So you have to find the freedoms in the
existing scene

So Is This the Right Time to Consult?
When layoffs happen, companies inevitably fall
behind on production schedules

Even if hiring is frozen, consulting opportunities
may well be available

There are still plenty of opportunities locally


How Do You Find Customers?

This is the most frequent
question I am asked

One answer: referrals

But you must also grasp marketing concepts
Survey your market!


Your 30-Second Commercial
Have a 30-second statement of what you do
Be able to say it at a moment’s notice
Must state the pain/problems you solve. Example:
“Stout Systems is a software development and staffing
company that is fueled by the most powerful
technology available—Human Intelligence.
Stout Systems eliminates the stress and frustration
brought about by badly orchestrated software projects
and overwork due to understaffed projects. Stout
Systems helps you say goodbye to frustration and
hello to achieving your project targets and technical
talent needs.”

Promoting
Promotional vehicles:
Media articles
White papers
Public speaking
Networking events
User groups

Most consultants underestimate the
quantity of promotion they must do

Promoting

Surveys are key!

Ask your customers/market before
you do any marketing!

Branding
Branding sets you apart
Makes customers reach for your services
Successful branding example: “I’m a Mac”

Book: Defying Gravity and
Rising Above the Noise
by David Brier


The Role of Social Media
Traditional Marketing and Public
Relations are Changing Rapidly

“No matter what I hear, read, or
find on TV, radio, or in a magazine
or in a newspaper, I can verify it on
the Internet.”

You are what you publish
Content drives action
Book: Groundswell, Winning in a World Transformed
by Social Technologies by Li and Berhoff

Often the problem you have been called in to
solve isn’t the problem

Spend less time presenting and more time asking

Demonstrate your competence by the questions
you ask

What Legal Points Must You Know?
Always have a written contract that:
Defines the relationship
States the exact work to be done and deliverables
Payment terms
Business types
Independent (1099), LLC, or Corporation
Affects taxes you pay
Affects how and if customers will hire you
Insurance
Liability
Workers Compensation waiver

Consulting to Big Companies
You need to have a manager
on your side to get in and stay in
More prone to arbitrary
decisions from higher levels
Be prepared to deal with purchasing
department (their job is to get best price)
Be prepared to work through a third party
contractor management firm


Everybody wants big projects
AboutBig
Longer revenue stream, more “security”
Sales gets a rest
Small projects
Keep you going when you don’t have big ones
Small projects can open the door to big ones

What to Charge and Getting Paid
Lowest bidder doesn’t always win

Upfront: qualify customer’s ability to pay you
Mini-qualifier: will they make an advance
payment?

Best practices:
Charge for each actual hour worked
Always give something extra

Getting Paid: It’s Not Automatic
Invoice with:
your business name
full contact info
payment terms

Accounts depts. often have their own rules
… and may change them arbitrarily

You’ve gotten paid when your check clears
And what if they don’t pay?
“The last invoice” syndrome

What About Royalties?
With royalties, your getting paid depends on:
1) customer’s ability to sell product
2) customer’s effectiveness at collections

You must be confident in their ability to do both

Tip: Negotiate a guaranteed minimum payment


Find out what is really needed
by your customer
Then do it, or find a another
source if you can’t

Bill the customer for what you
actually produce

Deliver What You Promise

STOUTSYSTEMS.COM

So You Want to be a Consultant

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