Here is a blunt but polite way to handle this common objection to moving ahead with a consulting project, from my friends at the Rain Group.

It is called “Get a Reality Check.” 

“Most of the time I when hear, ‘Let me think about it,’ what people really mean is ‘No thanks.’ Can you tell me is that what’s happening here today?”

Many salespeople are afraid to pose this question because they believe they are somehow “planting a negative thought” in the prospect’s mind. David Sandler, the founder of Sandler Training, used to say, “You can’t lose what you don’t have.” If you need a reality check, ask for one.

Ironically, posing this question usually gives you the information you need to rescue the sale. You’ll learn if there is a chance of working together. If there is not, it is better to know now before you waste any more time.

This is but one of eight recommended responses.  For all eight, visit here.

Your time is too important to chase non-opportunities. Furthermore, you need to know when to move on to better ones. It was our policy to make not more than three follow up phone calls. By being polite, we often got callbacks later.

But even if not, our time was better spent on paying projects.

Finally, don’t fear rejection. It is a fact of life selling anything.  But you do need to know when to hold ’em and when to fold ’em. Asking the question above helps you decide.

P.S. Many years ago I enrolled in the Rain Group’s on-line class on selling professional services. Even as an experienced sales engineer I found it very useful in my consulting business. Or just read their book.

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This post was inspired by a recent post from fellow AZ blogger (and person I have long admired) Pamela Slim.  She started off with this quote, which I borrowed:

“In the beginner’s mind there are many possibilities, but in the expert’s there are few.”  ― Shunryu Suzuki

It got me thinking about our roles as consultants. Most of us have wide knowledge and experience in our area of expertise. As such, we could offer many possible solutions to the problems faced by our clients.

But our real value is the ability to winnow those possibilities down to a select few, and then make recommendations. Much like a doctor (also a professional consultant) who makes a diagnosis followed by a prescription or recommended course of action.

So how do you do this? You begin by asking questions, and then carefully listening to those answers. Those answers may lead to more questions, so you dig deeper.

As a consulting engineer, I’ve long followed a methodology used by medical doctors known as differential diagnosis. First heard this from a client whose brother was an MD. As we were troubleshooting his problem, he shared this approach he had learned from his brother.

Later, I had a chance to expand my understanding thanks to an MD from the Mayo Clinic. An airplane seat mate, I asked about the term. As a teaching doctor, he broke into a big smile and shared his knowledge (and wisdom) as we flew across the country. The flight was most memorable, and has since influenced consulting approach.

The goal is to “rule things in – rule things out.”  For example, the Mayo MD said, if a patient presents with a red rash, there may be a hundred possible causes. But with some additional information (such as vital signs or simple questions) one may be able to quickly reduce this to but a few possibilities.

Based on that, you begin by treating the most likely cause. Even then, you are playing the probabilities, so if the initial treatment does not solve the problem, move to the next most likely solution. Or, as mom and dad used to say, “If at first you don’t succeed, try again…”

I have since modified the approach. Rather than prioritizing solely on probabilities, I first try the very simple solutions. Learned this after spending several days trying most likely solutions, while ignoring an easy low probability solution that worked. A bit embarrassing.

Doing this also gives rise to an occasional consulting miracle. For example, even if the simple solution has a 1% probability of success, that still means that one out of a hundred times it works. And when it does, everyone thinks you are a genius.  🙂

Finally, don’t just treat the symptoms — seek to treat the cause. The goal is to not only understand the problem, but to identify the underlying root cause of the problem. Asking questions, digging deeper, and using differential diagnosis all help.

We’ll dig deeper ourselves in a future post on the “Five Whys'”.

This post precipitated a new category — troubleshooting — where I will share more insights on this important facet of consulting. 

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This post was inspired by Bob Bly, a favorite marketing guru, who just happens to be an engineer — and who shares his common sense advice through a regular newsletter.

Here was his post:

Subscriber MF writes:

“Right now I am having a very slow month — slowest in the history of
my firm.

“Bob, how do you or others manage the psychology of ups and downs
in business?”

This answer to this question has two parts.

First, instead of “managing” your worry and concern, why not just
get rid of those anxiety-causing slow times altogether?

And yes, there is in fact something you can do to either totally
avoid slow times … or failing that, certainly minimize their
frequency and duration, so it becomes a non-issue.

It’s my “double pipeline” lead generation strategy.

In a nutshell, you figure out how much lead-generating
self-promotion you need to generate enough inquiries to keep you
busy.

And then you do twice that amount of marketing!

By doing so, you will have two times as many potential new
clients and projects as you need.

So if Prospect W doesn’t come through, you don’t agonize over it
— because Prospects X, Y, and Z are waiting in the wings, ready
to pull the trigger on your services.

Second, have multiple streams of income.

That way, if your primary business gets soft for a time, then
instead of worrying about it … or sitting around with nothing to
do …

…you focus one of your other profit centers until the lull in
your main business is over.

That way, you are still productive — and you still have money
coming in.

Now, admittedly, these two strategies don’t actually address the
“psychology” MF asked me about.

But consider: You can use the first tactic to prevent or reduce
to near-zero slow times.

And with the second, you don’t really care if your main profit
center is in a slump, because you can stay active and profitable
with your other money makers.

In other words — problem solved.

Alfred E. Neuman famously asked: “What — me worry?”

And now, you don’t have to.

Sincerely,

Bob Bly

And here is my reply to Bob. We occasionally share comments, just as we share an interest in engineering, marketing, and running our own businesses.

Hi Bob,

Like MF, our business slowed to a trickle 25 years ago. This after five years in business by which time we thought we had it figured out. It was a bit scary.

But rather than panic or give up, we reassessed the business. So my late business partner and I adopted a “portfolio” approach for our engineering consulting firm.

Starting in 1987, we had focused on two markets — defense (where we had a lot of experience) and personal computers (exploding at the time.). But in early 1992 both markets came to a screeching halt. Not only that, our two largest clients cut back too.

Upon examination, we realized we had been doing a fair amount of medical electronics. So we initiated a three prong marketing approach:

• Approached a leading medical magazine and and offered to write tutorial articles
• Got involved in a medical electronics professional group
• Made some good contacts at the FDA.

Six months later business was back on track.  A publisher approached us about a book based on the articles; we were invited to participate in some trade shows;  and referrals started coming in from the FDA and others. The result — credibility and visibility in a new market.

We later replicated this approach in several other areas. As engineers, it was not that difficult — we already knew 95% of what we needed to know — the remaining 5% was unique to the industries but was easy to learn with a little bit of effort. Thus, the “portfolio.” Over the years, when one area was down, another was up.

At the same time, we decided to add training to our services, in addition to design and troubleshooting. Although it took considerable effort to get this off the ground, we eventually trained 12,000+ students over 25 years, yielding over $12 million in revenues (not all profit as we had promotional and fulfillment expenses, but still very worthwhile.) That added another pipeline to our revenues.

We also developed a software package with useful engineering tools unique to our niche. Although not as successful financially as the classes, it did bring in occasional beer money. The latter a nod to our German heritages (Kimmel und Gerke…)

Feel free to share my story as a bit of encouragement. Too often people see downturns as setbacks and even give up. In our case, it got us our of our comfort zones, and on to bigger and better things.

Not too bad for a couple of goofy electrical engineers just trying to make a living on our own terms 🙂

Want more info about Bob? Check out his Success Story here, or visit his web site at www.bly.com.  BTW, he has around 60,000 followers, and his newsletter is FREE.  He does sell books and more, but all useful and very low key. He even offers a guarantee if you are not satisfied.

I’ve never met Bob in person, but hope to do so at some time in the future. Until then, I will continue to enjoy his marketing insights and will share them from time to time. 

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Here is a reply to a post by Cubert at Abandoned Cubicle regarding layoffs… which somehow seems appropriate for Labor Day…

Best damn thing that happened to me – twice. The first time got me thinking about starting my own business — the second time (a dozen years are) cinched it.

Thirty+ years of running my own consulting engineering firm was great – much better than another thirty+ years of cubicle life!

The first layoff came two years out of college, with a very pregnant wife. Fortunately, soon found another job, but the experience profoundly affected me. I became a frugal Mr. Money Mustache (a fellow blogging engineer) of the 1970s.

I also started planning my escape – whatever it was going to be. Dropped the MSEE studies. Got practical — took a class on TV repair (not practical today), followed by getting a Master Electrician’s license (a bit more practical.) The goal — be able to put food on the table for a now growing family.

Stepped in up a bit when a friend (who became my business partner) and I started moonlighting. Got my PE (Professional Engineer) license, something I had blown off in school. Spent time learning and doing, not wasting time on TV or sports events.

Even made a career change to Sales Engineering to hone my business skills. 

The second layoff came twelve years later with a startup. After providing much needed help with sales and marketing, got laid off (OK – fired) after 18 months when the founder’s buddy joined the company. (The buddy that did not have the cojones to do so at the start. )

Oh well — it was a “learning experience.” That means it cost me, was painful at the time, but in retrospect worth it for the experience gained. Plus it vastly improved my BS detector.

So I hung out my consulting shingle. Bad way to start a business — I lasted about three months before climbing back into the corporate womb. Was not FI (Financially Independent) and could not generate income fast enough. But even more determined to have my own consulting business.

Socked money away, and started creating credibility and visibility via writing and teaching. When it became apparent layoff number three might be on the horizon, I made my JumpToConsulting.

That was in October 1987 — the day the stock market crashed. But once again I survived, and was now OI (Occupationally Independent.) Thanks to hard work, frugal living, a very supportive spouse, and a bit of luck I achieved full FI status a few year later. 

The last 30 years have been a blast. I’ve traveled the world solving problems and teaching classes in my engineering speciality. In 2010 I started a blog (JumpToConsulting) to help guide others who might be so inclined to pursue this path to independence.

In 2015, my business partner and good friend of 40 years passed away, and I decided to wind the consulting practice down. I still do about 6-8 projects a year, mainly training which I love to do.    

Now semi-retired, I split my time between MN (where there are grandkids) and AZ (where there is no snow.). With LI (Location Independence), I achieved the “hat trick” of FI/OI/LI.  

Those are MY layoff stories. Last fall, Cubert and I met for coffee in MN. I encouraged him (and encourage all of you) to make your dreams real. Frugal living and focused hard work pay off. 

Independence rocks — Uncle Daryl

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As an Arizona resident, John McCain has been my Senator for 22 years. I did not always agree with him, but I always had great respect for him.

I was greatly annoyed by the smear by “W” against him in South Carolina in 2000, when the story was spread that he had fathered a black child. I was in South Carolina at the time on business, and saw the local news stories.

The truth is he and his wife had adopted an infant with a birth defect from Bangladesh. She was their youngest daughter. In spite of the racist lie, he was gracious in the resulting loss of the primary.

Although I never met Senator McCain, his office responded quickly and politely whenever I wrote about an issue — even when we disagreed. Not always true of other politicians.

Here is a favorite personal McCain story:

Shortly after moving to Arizona from Minnesota, I found myself sitting behind the late Senator Paul Wellstone (MN) on a flight to Minneapolis. BTW, we were both in coach. Wellstone, like McCain, was not pretentious.

As we were retrieving our bags from overhead, I told Senator Wellstone I was a former constituent, as well as an admirer of his willingness to fight for what he deemed right.

He asked where I now lived, and I replied “Arizona — where the politics are clearly not the same as Minnesota.” I’d already seen enough of Arizona politics to make me question my move.

Wellstone thought a minute, and then replied, “You know, you have a good man there in John McCain.” Political opposites, both often worked together with mutual respect.

As I soon learned, Wellstone was right. McCain spoke truth to those in power. He condemned torture, spoke out against racism (No ma’am, Senator Obama is not an Arab…), and criticized dirty politicians.

He was truly an officer and a gentleman, an increasingly rare breed.

Rest in peace, Senator McCain.

P.S. Sorry if I stepped on any political toes (no, not really…) As consultants, we often need to “call them as we seem them” … just as John McCain did.

© 2018 – 2020, https:. All rights reserved.

This post was inspired by Michael Katz, Chief Penguin of Blue Penguin Development.  I subscribe to his free bi-monthly newsletter, and suggest you do so too. Great marketing ideas (and even classes) for solo entrepreneurs.

In a recent newsletter, Michael opened with this great story, where he recommended using stories to illustrate ideas. Since I like and use stories in my training classes, I sent him the following comment:

Hi Michael,

Here is a quick story. I’ve been telling stories as real world examples in my engineering training classes for many years. But I often wondered if it was effective or just boring people.

That was until Phoenix blogging colleague and friend Pamela Slim pointed out research showing we humans remember stories even if we forget facts.

So I started telling people at the beginning of the class that I would illustrate key points with stories, and why I was doing so.

End of class reviews typically include comments like “loved the stories; great stories, and more.” So I no longer worry.

Which brings me to another quick story. As an engineering student 50+ years ago (where has the time gone?) a favorite professor told the story of a researcher at Bell Labs who discovered a new semiconductor electronics effect.

What made the story interesting was the researcher had a PhD in forestry – he was originally hired to study telephone poles.

At the next exam, the prof asked about the “XYZ” effect. For some reason I could not remember, but I wrote it was discovered by a Bell Labs researcher with a PhD in forestry.

The prof gave me full credit with a note on the exam saying “not the answer I was looking for, but you were obviously listening in class.”

He had many other fascinating stories that I still remember, and think of him whenever I tell a technical story in my classes.

Thanks for sharing your stories!

Just got back from a class. Many positive comments about the stories, and how much students appreciated my sharing real world experiences, rather than just pumping out facts and equations.

Stories also work with general consulting recommendations. They can prove a point, while also reinforcing your credibility. Sometimes you need to convince a client to try something they don’t really want to do — success stories can help!

More MichaelKatz info here:

Resource Review – The Likable Expert Gazette (January 2013)

Writing Magazine Articles – An Interview with the Blue Penguin… (September 2016)

Some Marketing References… (September 2017)

Join us TONIGHT (8/20/18) for the FREE Monthly Teleconference

• “Ask Daryl Anything About Consulting”
• Register here
• Bring you questions, or just listen and learn from others 

© 2018, https:. All rights reserved.

So asked fellow blogger Cubert at Abandoned Cubicle in a recent post. Cubert is a 40 something engineer who is (by design) a year from Financial Independence and retirement.

In this post, he expresses concerns about being bored and more in retirement. Perfectly normal to get the jitters as one approaches the cliff.  Remember the same feelings myself, but with the parachute strapped on my back, I JumpedToConsulting and never looked back.

Here are my comments of encouragement:

Quit my corporate job 31 years ago to start an engineering consulting practice. It has been a blast, and I would do it again in a heartbeat.

Was it retirement? No, but it WAS freedom from the cubicle and all the attendant corporate BS. On second thought, maybe it was a form of early retirement.

And while now winding down in my 70s, I still do 6-8 projects a year — of my choosing. Keeps me professionally engaged and brings in fun money.

Did I miss the paychecks? No. While the business income fluctuated, I drew a modest fixed salary and watched expenses like a hawk. Banked the profits in investments and tax deferred retirement accounts.

To begin, I stashed away enough to go six months without pay, but never needed it. Was back to my old paycheck level in a year, and exceeded it soon after. Was fully financially independent in a few short years.

Did I miss the routine? Hell no. As a consultant, every day brought something new and challenging. No more boring and useless meetings. No more cleaning up messes created by higher-ups in the food chain.

Rather, interesting work that helped improve things for my clients.

Did I miss the prestige? Are you kidding? Never needed it, and am often bemused by those who do. Maybe that is why I was never a good corporate rat.

Not bragging — just offering some encouragement for everyone.

And trust me, Cubert — you won’t be bored. Rather, you will wonder when you ever had the time for a full time job. You may even wonder why you didn’t do so earlier. Best wishes as you transition to your new life!

In a reply, Cubert expressed a specific concern about health insurance. With a young family, a very legitimate concern. My advice here was to purchase the highest deductible policy available, and self-insure the nominal stuff. More below:

• Insurance Questions
• More Insurance Comments

The Affordable Care Act makes that simpler, as you can not be denied coverage. I know several independent consultants who have taken advantage of that — one with a congenial heart defect. (Please — no comments from political trolls.)

Cubert also expressed possible interest in consulting in his retirement. As an engineer, that is very doable as his skills and experience are already in demand. More below:

• Top 5 Reasons to Consult in Retirement
• Retirement Success Story – Don the Engineer
• Retirement Successs Story – Karl the Engineer
• Doing Well by Doing Good – Lynn the Nutritional Consultant

Finally, I invited Cubert, and anyone else interested in consulting, to join us for my new FREE monthly teleconference on consulting. Register Here.

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© 2018, https:. All rights reserved.

Time for another success story. This one is about Bill Gnan (PE) who started his engineering consulting firm 16 years ago.

Obviously, he has been a success, and proof that it can be done. Engineers, take note!

Met Bill at an engineering seminar I taught last week. Even in semi-retirement, I remain involved through teaching. At this stage in life, it is most satisfying to share my years of experience, just as I do with JumpToConsulting.

Actually, we first met almost 20 years ago, when Bill worked for a past client. He reminded me of a long forgotten design guide I developed for them, and which he graciously shared with me. Kind of neat that he kept it, and proof that our consulting efforts can live on for years. And a sincere pleasure to reforge an old connection.

Here is Bill’s success story: 

(1) What prompted you to consider consulting? Was there an event, like a layoff, or was it just a general itch to be on your own?

My wife and I were middle managers with significant commutes. We had young children (6 and 4) who were in after school and pre -school care (dropped off at 7:30 and picked up between 5-6PM). It was a struggle.

We were involved with our kids in church, Cub Scouts and youth sports – something was going to break (our marriage or our kids). The pressure of being a middle manager (all responsibility – very little control) were tremendous. One of us needed to have more schedule flexibility.

We decided that as a PE with good reputation in a niche field (facility electrical engineering), I could work from home – that was the genesis of the need to be “on my own”.

(2) How has it been going? Since started sixteen years ago, you are obviously well established in your business.

It has gone very well.

Early on it was about having more time for my family and for leadership roles in volunteer organizations and making similar (a bit less) money to my previous job.

It took 7-8 years (as kids became more independent) for it to be lucrative.

(3) What do you like MOST about consulting?

The schedule freedom.

(4) What do you like LEAST about consulting?

That we are always on the job!

(5) How do you get your clients? (BTW, the number one question I get asked when someone finds out I’m a consultant.) What marketing techniques work best for you?

When I started I was able to keep my employer as a client which was key (in fact they are still a client)!

I had been working so long in our area that I had many contacts and specific expertise in unique niche areas that are subsets of the electrical facilities engineering discipline (theme park, health care, water wastewater) where engineering services are not a commodity.

(6) How do you set your fees? (Second question I get asked.)

I initially charged my former employer a rate slightly higher than my hourly rate (adding my contribution to FICA, and a small amount for overhead), wanted to keep them as a client.

Slowly over time I increased my rates to what the market would bear (even large firms). Determined that I would not attempt to compete on fee/price. Goal was and is to be the very best at what we do.

(7) How did you decide what to consult about? And why? (Third question I get asked.)

Simply offered services for which I had become or was becoming viewed as an expert.

(8) Lessons learned since you started consulting?

Wow – too many to list…

• Don’t compete on price, it is a downward race to the bottom for those who get involved in such a race.
• Set up my practice as something like a country physician’s medical practice, I know, care for and even love my clients, the service is what is important. I make house calls and accept emergency calls in the middle of the night, payment secondary matter – give preliminary advice over the phone.
• Don’t go along with foolishness, we are professionals (like doctors), We must listen to the patient, but the patient doesn’t direct treatment unless I agree.
• Walk away from bad or risky deal. Write proposal carefully (include what you will do, what others will do and what you will not do).

(9) What next? Do you plan to do this the rest of your career (like I did?) Or is this a stepping stone to other things?

Will do it for the rest of my career.

Currently have two other employees who work on large, long term design projects. I plan to scale back to just me doing niche studies/consulting – selectively accepting assignments.

So, within the next 5-10 years, I will look to hand off many of my large projects (6 months – 1 year in schedule duration, 100’s of design drawings) type clients to trusted younger engineers in our area who I am trying to coach into becoming consultants!

(10) Finally, what one piece of advice would you give to our fellow engineers who might be thinking about consulting?

Helps to have some security (dual income/working spouse with benefits, etc) to lessen the pressure to earn money, provide stable cash flow, so that you can make good long term decisions not panicky short term decisions (like acceptably risky or undesirable work or cutting fees to get work).

(Ed. Note – If married, VERY important to have the support of a spouse. Would not have made it without the support I got, for which I am forever grateful! — Daryl) 

Thanks, Bill. It was great to reconnect with an old client who went on to bigger and better things. And glad you were so successful in your JumpToConsulting.

Do you have a success story to share? If so, please send it in…

Here is Bill’s contact information:

Gnan Engineering Services, Inc.
3521 Wild Eagle Run 
Oviedo, FL 32766 
407.971.1861 
www.gnanengineering.com 
info@gnanengineering.com 

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Long time friend and recent returnee to the consulting ranks wrote:

Just got an unusual series of email inquiries from a prospect:

• I’d like to talk to you.
• Sorry, I’m going on a trip. Let’s connect in a week.
• I’d like to talk to you tomorrow.
• Sorry, I’m busy so I’d like to talk to you next week.
• I’d like to spend an hour on the phone with you. Oh, we currently have no budget for consulting.

I told him I’m on vacation and can’t talk with him for an hour at the moment. Hopefully, I won’t hear back. He clearly does not value my time.

I agree. No consideration — no budget. Not a good potential client. Don’t call him back.

BTW, I just tried something for a one hour consultation that worked well. It was an EMI question, so I explained I no longer traveled for consultations (I still do for training.)

I asked for some details so I could refer him, but I added I’d be happy to answer any quick questions ( a few minutes) he might have.

He felt he needed more time, and asked could he pay for that? I said OK – CC or PayPal, and we talked for a hour followed up another hour of research. No problem paying — no rush — and no guilt about imposing on me.

 A colleague has a policy of offering a half hour, and then letting the client decide if it was worth it and whether to continue. I did the same here — suggested if not happy he did not owe me anything.

He told me how much he appreciated the help (and my “policy”), and asked if he could call again. It all worked out well, and I now have a new “phone client.”  Not a lot of $$$, but it will buy dinner out a few times.

I reworked the EMIGURU web site to reflect that. My past policy was always “no charge” for phone calls, but some would go on for a while. I still do that for old clients or friends. But I think this might be a good way to handle new inquiries, and weed out those not serious.

Steve added:

Good advice. I’d add “If a prospect wants to set up a 1-hour phone call with an open agenda, quote them a 1-hour consulting fee. They’ll quickly self-sort into prospect or suspect buckets.”

Give it a try and see how it works for you.

There is a wonderful Chinese proverb that goes like this…

‘A single conversation across the table with a wise man is worth a month’s study of books.

 — Graham McGregor – The Expensive Marketing Solution

Got a question or comment?  Send me an e-mail and I may share it with our readers.

© 2018, https:. All rights reserved.

Once again, it is time to reflect on Independence., and the price others have paid to secure it for all of us. It is why we celebrate the Fourth of July.  

Consulting can also lead to Personal Independence (PI.) It has for me in three ways:

—Occupational Independence (OI) – This was the big attraction for me. Chafing under the corporate bit, I finally set myself free 30 years ago.

It has been a most satisfying ride, and I would do it again in a heartbeat. Never looked back. 

—Financial Independence (FI) – Although not FI when I started, I reached the goal in just a few years. Nothing like running a business to sharpen you financial focus.

Fortunately, I had the support of a willing spouse, and enough money stashed to cover my expenses for a six months to a year. Never had to touch the stash.

–Location Independence (LI) – This let me move to AZ with minimal disruption. The kids were grown, weary of cold MN weather, and ready for a new adventure.

Even better, after a few years we ended us splitting our time between MN (where there were now grandkids) and AZ (where there was no snow.). All possible thanks to LI.

Not bragging — just offering some simple encouragement.  Happy Fourth of July!

Remember — Uncle Daryl want YOU… to find your Independence too.

© 2018, https:. All rights reserved.

Here is a link to a recent consulting fee study from Consulting Success.

Over 33,000 consultants were polled, including Yours Truly. Not sure how many responses, but with that size database the results are statistically significant.

Here are some a key findings:

• 44% of the consultants with less than 4 years experience earn over six figures. Yes, even if you are just starting out, the potential is there.
• 72.5% of consultants bill based on time. Very popular with technical consultants, but I recommend charging by the project rather than by the hour.
• For 56.7% of consultants, their average consulting project is $10,000 or less. Many well executed smaller projects still add up to big $$$. They did for us.

Unfortunately, the study does not share specific rates. But primarily serving management consultants, Consulting Success emphasizes ROI (return on investment) based fees.

For example, if you can show a predicted ROI of $100,000, one should be able to sell a fee of $10-20,000 — regardless of time spent.

In my opinion, ROI is not as useful for technical consultants where clients are looking for concrete solutions to specific problems. Nevertheless, the data is still useful.

Special thanks to Consulting Success for sharing their results.

You may be interested in these past posts:

• Mangement vs Technical Consulting… (2011)
• Questions on Fees… (2013)
• Some Comments on Fees… (2015)
• Don’t Cut Your Fees… Cut the Scope… (2016)
• Consulting Fee Study – 2107… (2017)

© 2018, https:. All rights reserved.

Wonder how many times I’ve said that?  Enough that I told Mary (my wife) that she can add that to my headstone 🙂

Yes, not everything I’ve tried worked out as hoped. But enough worked more than well enough. Had I never tried, however, I would not be where I am today.

Support helps. More than once Mary egged me on with “Well, why don’t you try it, and see what happens?”  That included starting a consulting business. I’ve suggested this phrase might be fitting for her headstone.

So don’t fear taking chances. After seven decades on the planet, I’ve learned “You won’t regret what you have done as much as what you have NOT done.”  

But manage risk. Don’t gamble more than you can afford to lose. Have a backup plan. Prepare for the worst, and hope for the best. Then roll the dice, and see what happens.

And remember, not doing anything is still a decision. And it may not be the best one.

In closing, one of the first big chances I took was asking my wife to marry me. We hardly knew each other, but we both decided to “try it and see what happens.”  Yes, “it seemed like a good idea at the time.” 

And it was. We celebrate fifty years together next week. We share two sons and six grandchildren. It has been one grand adventure!

Thanks Mary, and Happy Anniversary. With my love and gratitude — Daryl

More here…

• To the Entrepreneur’s Wife on Mother’s Day…
• Some Engineering Humor…
• Read About the goofy Hat…

© 2018 – 2022, https:. All rights reserved.

In a recent discussion with a young consultant, he expressed concerns about handling his ever growing list of clients. (He is obviously doing a good job…)

Having been at this game a bit longer, I suggested the ABC method for prioritizing clients. We used if for years, and it goes like this:

• All new clients start out as A-clients.
• If they pay promptly and are pleasant to work with, they stay as A-clients.
• If they delay payments and/or are a bit difficult, they become B-clients.
• If they are really slow paying and/or are very difficult, they become C-clients.

When the phone rings, you take care of the A-clients first, and the B-clients next. You try to cull the C-clients, unless you are desperate. In that case, you charge top dollar and get payment in advance.

I then shared the Pareto Principle (80/20 Rule) which posits that 80% of your business comes from 20% of your clients (A-clients), while 80% of your problems come from a different 20% of your clients (C-clients.). The numbers may not be 100% accurate, but the principle still holds.

A common mistake is to focus on the C-clients, who suck up too much time with too little renumeration. This is an easy trap to fall into. After all, we consultants are driven to solve problems. But at the end of the day, the consultations must be profitable and should be fun.

If you are feeling really Machivellian, you could refer your C-clients to competitors. Just make sure the competitors are not friends 🙂

Seriously, I do not advocate this – better not to sully your reputation among your colleagues.

If really bad clients, you can always fire them. This should only be done as a last resort, but if it needs to be done, then do so. Life is too short to deal with bullies or deadbeats.

Had only a couple of “firings” in my 30+ years of consulting — most of my clients have been a sincere pleasure to work with.

P.S. You are invited to my first free monthly teleconference.  Can’t make it? Please join us next month.

© 2018, https:. All rights reserved.

What does it meant to be a professional? Here is an anecdote from my past:

– Many years ago, I had a question on a contract and asked my attorney “What should I do?”

— He replied, “The decision is yours. My job – as a professional – is to lay out options as clearly as I can. If you still have questions, please ask.”

— He went on, “If you ask what I would do, I can share that. But the decision is still yours, and I will respect whatever you decide.”

I have shared that story many times with my engineering clients. To me, this is the essence of being professional.

P.S. The same attorney also told me, “Please ask before you sign anything you don’t understand. I’d rather keep you our of jail than get you out of jail.” Liked that advice too 🙂

With summer approaching, now shifting to twice monthly for posts. This also frees up some time for other things, such as the long planned FREE monthly teleconference. 

© 2018, https:. All rights reserved.

Making mistakes are part of starting and growing any business (including consulting firms.) In fact, if you’re not making some mistakes, you’re probably not trying hard enough — nor are you learning.

Here are five mistakes I’ve made:

(1) Not sticking to the knitting – Back in the late 1990s, we got caught up in the dot-com frenzy. When a colleague approached us about collaborating on a web portal, we jumped right in. After all, we didn’t want to miss the boom.

If didn’t take too long before the boom went thud. But not until we had spent thousands of dollars for a software developer, and hundreds of hours trying to sell ads to pay for it. We even took out a booth at a trade show, secretly hoping Microsoft might buy us out.

It became obvious this business did not fit with our consulting practice. We had no leverage. It really belonged with a magazine where they could add it to their advertising options.

So we sold it. Remember the trade show booth? One publisher had expressed interest, so we approached them about partnering. They countered with an offer to buy us out. Done deal, and everybody was happy. We even escaped with the shirts on our backs.

Lesson learned — stick with what you do best, and make sure anything new fits with your existing business.

(2) Not paying attention to receivables – When we started, we provided contract instruction for a training company (no longer in business.) They were a major client, and kept us pretty busy.

Everything went fine for a couple years. Then they started to slip in paying their invoices. Pretty soon they owed us a about $25K, which included both time (soft cash) and expenses (hard out of pocked cash.) About that time, we discovered they owed all of their contract instructors similar amounts.

After a brief panic, we got mildly aggressive about getting paid. We liked the work, and didn’t want to antagonize them, but we still needed to get paid. It took a year or more with continued pressure to get their account current.

Not long after that, the training company filed for bankruptcy, effectively stiffing many other instructors. As much we liked working with them, we no longer extended credit — all jobs were “payment in advance.”  It soured the relationship, but it saved our bank account.

Lesson learned — watch your receivables, and enforce payment. You are not a bank.

(3) Not getting a deposit – This one blindsided us, and cost about $10K in lost time and travel expenses. It was a small company, and they were in a panic. So we dropped everything to fight their fire.

Unfortunately, before getting paid they went bankrupt. Our invoice fell within a 90 day window, which meant the payment was denied by the courts. Had we been paid, it would have been “clawed back.” All completely legal.

The bankruptcy itself was a sham. The small company was owned by an equity firm (affiliated with a certain past presidential candidate from Utah.)

They put several firms in bankruptcy after shifting assets. It stunk to high heaven, but there was nothing we could do. We eventually got ten cents on the dollar, which paid our  lawyer.

Losing the travel expenses was really annoying. Not only did they steal our time, they stole our money.

Our lawyer suggested getting a travel advance from everyone, or even the full fee in advance. Apparently if you don’t extend credit, the advance payments can’t be “clawed back.” (Check with your own attorney on this.)

Incidentally, this has not been a major problem. In 30 years, we only lost money twice, and had one close call as discussed in Lesson #2. But I still get an advance deposit prior to travel (typically $2500.)

Lesson learned – get a deposit prior to travel.  If worried, get progress payments or full payment in advance.

(4) Not controlling our own training programs – After a few years of consulting, we decided to offer our own training programs, based on solving the problems we were seeing. Clients began asking for this to avoid future problems, and we decided to add classes to our services. It took several attempts to get this right.

We started by collaborating with a test lab with moderate results. Their emphasis was on testing and regulations, while our was on design. So we split the time for our first class.

The initial feedback showed much higher interest in how to prevent and fix problems, while the testing interest was more esoteric. It was bit touchy, but we decided to go on our own. We did, however, remain good friends with the test lab and collaborated on other projects.

Later, we approached a test equipment vendor about adding us to their seminar program. Working with their field sales personnel, we presented two multi-day seminars which were well received.

We promoted via highly targeted direct mail, and that worked well. We then wrote a white paper with recommendations on how to proceed.

Unfortunately, their marketing department had their own ideas. They spent a ton of money on a fancy promotion with almost zero results. No second chance – they had blown the budget.

So after licking our wounds, we offered to run the program. We would pay for the direct mail promotions, prepare and print the materials, and present the classes. They would provide meeting space and local support, but at no cost to them.

If finally worked. We trained over 10,000 students with that project, netting us $12-15 million. Not too bad for a couple of goofy consulting engineers just having fun.

Lessons learned – take control when needed (and don’t give up.)

(5) Not appreciating barriers to entry – Already addressed this in a previous post, but it bears repeating.

This little adventure took place during out “part-time” consulting phase. It took place in 1981, in the early days of the personal computers. We were still very green about consulting, but willing to experiment and learn.

We developed a three hour seminar on using personal computers for business for a local vocational school. The initials offerings were highly successful, so with the schools permission we decided to do a full day version which we promoted at ran our expense.

But instead of the 80 people like our last class, 3 showed up. What happened ??? Unknown to us, a new computer store decided to promote their business with FREE seminars. How do you compete with free? You don’t.

Thus ended our computer seminar adventure. We learned about barriers to entry. As I groused to my business partner over beer, “We’re engineers. Never again will I go into a business where some kid in a computer store can eat my lunch.”

Our later training programs took an engineer with several years of experience, along with the ability to actually teach (another barrier.)

Lesson Learned – First figure out the barriers to entry. Then use them.

There have been other mistakes over the years, but these were the biggest ones. We always looked at our mistakes as learning experiences. As such, we paid our tuition and gained new knowledge in how to run our consulting firm.

Closing thought –  My late business partner often mused, “I never make the same mistake twice. It often takes me three or four times until I realize what I’m doing wrong.” And then we would laugh and move on.

RIP Herr Kimmel – It has now been three years since you left and stuck me with this crazy engineering consulting firm. So here is a toast – which I hope is wrong 🙂 

© 2018 – 2019, https:. All rights reserved.

Is sales a dirty word to you?  Does it strike fear to pick up the phone and talk to a stranger? And do you need to sell in the first place? After all, as a consultant, the world should simply recognize your expertise, right?

The answer to the last question — WRONG! And if you are not willing to master some basic sales skills  don’t even bother to hang out your shingle as a solo consultant. Yes, you might make it — I’ve know one or two who have — but the odds are very small that you will succeed without first selling yourself and your capabilities.

Never fear – there are resources out there relevant to consultants. Here are several.

Podcast –  As I did recently, spend thirty minutes listening to a podcast by Anthony Iannarino. Speaker, author, and successful sales leader, Anthony share valuable insights for consultants who are worried about the negative stigma of sales.

Anthony discusses how to embrace sales as a way to help others achieve results they might not achieve on their own. Isn’t that what consulting is all about?  

This podcast is part of a free series from Consulting Success, hosted by Michael Zipursky, a entrepreneur, coach, and founder/CEO of a firm dedicated to helping consultants grow. While his focus is on general management consulting, his firm is still a good resource for professional/technical consultants as well.

Book – When recently asked for a book on sales for consultants, I immediately thought of Rainmaking Conversations by the RAIN Group. Well written, you can learn a lot in a few hours with this book. I’ve reread it several times, even though I consider myself pretty seasoned in sales.

The book outlines a simple process for selling consulting services, which differs from selling products. Also, it eschews old fashioned huckster methods, and advocates acting as a professional advisor. Think like a doctor, not like a used car salesman. 

Here is my review of the book, done back in 2011.

Classes – While there are numerous on-line and live classes on sales, I once again found the RAIN Group useful for consultants. I purchased their on-line version several years, and gained some new insights. It is a bigger investment, and may be more than a newbie might want to make. Worthwhile down the road, but their book will get you started right away.

A great introductory and affordable sales class is from friend, colleague and fellow Arizonan Pamela Slim. I purchased her introductory on-line sales class some years back. Pretty basic, it would be perfect those just starting out in any small business. Not only does Pam address simple techniques, but in her gentle way she also addresses the emotional hurdles of selling.

Blog posts – Here are several posts I’ve done on the subject. These reflect almost forty years of sales and marketing experience — seven years as a Sales Engineer, three years as a Technical Marketer, and thirty years as an independent Consulting Engineer. And I’m still learning…

• Seven Steps in Selling
• Sales Step #1 – Establish Rapport
• Sales Step #2 – Qualification
• Sales Step #3 – Diagnosed Prescribe
• Sales Step #4 – Quote/Propose
• Sales Step #5 – Deliver 
• Sales Step #6 – Follow Up
• Sales Step #7 – Referrals

Finally, check out my recent post “Sales as a Bridge to Consulting” which in turn references a magazine article “Sales Engineering – Is It For You?”

For me, sales is NOT a dirty word, but a learned skill that was crucial to my success as a consultant! 

© 2018, https:. All rights reserved.

According to a recent survey of clients seeking technical consultants, these were the top four areas of need:

• Robotics
• Block Chain
• Cyber Security
• Artificial Intelligence

This information courtesy of Michael Bryant in a webinar last week, Building the Consultant Practice of Tomorrow Using Today’s Online Tools. 

Fellow engineer Michael founded Software Synergistics, a successful software consulting firm in 1996, and like me has been having a blast running his own business. He also has been sharing his expertise (including this webinar) through his support of the San Diego chapter of the IEEE Consultant’s Network.

His webinar was sponsored by the national office of the IEEE Consultant’s Network, the same sponsor of my recent webinar, So You Want To Be A Consultant?

Even if you are not a geek, you are invited to view the FREE recordings of both seminars.

Special thanks to the IEEE (Institute of Electrical and Electronic Engineers) for hosting these seminars. The Consultant’s Network is another useful resource if you are contemplating your own JumpToConsulting.

© 2018, https:. All rights reserved.

To those of you who follow this blog, my apologies for the recent lack of activity. Been busy here, and hope to pick up the pace again.

My personal goal has been one blog post per week, but may drop back to twice a month. Want to spend more time developing the on-line class on consulting. So keep watching.

In order to achieve that goal, I plan to alter my experiment in civic responsibility – aka the HOA (Homeowner’s Association) board. While valuable experience in dealing with difficult (and often irrational) people, it takes time away from more important goals.

To be clear — it is not all bad. I’ve learned much, and worked with some very good and dedicated people — but a few bad apples do spoil the barrel. It may be time to move on.

Also busy this month with some fun — a training project in San Diego, and a family event in Minneapolis. Next month I hope to be back in the blogging groove.

Thank you to those of you who responded to my question last month:

What would YOU like to know most about starting or running a small consulting practice?

I am still soliciting input for my pilot course, so if you have not answered, I’d love to hear from you here. 

• Please let me know if you are interested in the pilot. It will be limited to 10-15 to allow more personal time, and will be offered at a substantial discount over the full course.
• The pilot is based on expanding my recent on-line webinar with the my professional society. The webinar is FREE –  you do not need to be an IEEE member to view it.

As always, thank you for your interest in JumpToConsulting, and and best wishes with your consulting concerns and activities. — Uncle Daryl 

© 2018, https:. All rights reserved.

Putting together a pilot for a multi-module class on consulting. I have some ideas, but dear reader, I need YOUR help.

What would YOU like to know most about starting or running a small consulting practice?

Please take a minute and send me a short email to daryl@jumptoconsulting.

Big Thank You!

Uncle Daryl

P.S. Just curious about consulting? Click here for free one hour webinar.

P.P.S. Sign up for my newsletter for future info on the pilot class.

© 2018, https:. All rights reserved.

Here is a comment I made over at Abandoned Cubicle regarding making more money from your cubicle job. I mentioned Cubert once before, as he quietly (and anonomously) plots his course towards Financial Independence.

In this post, Cubert recommends negotiating your salary. Many people (particularly engineers like Cubert and me) can be reluctant to do so. But if you don’t ask, you don’t get!

He also recommends jumping ship if you are still unhappy. It took me a while to figure that out, but once I did it made a big difference. Thus, my story on jumping ship:

Good advice. By jumping ship into my last corporate job (over 30 years ago) I doubled my income the following year. And I got to work for a great company and a great boss.

How did I double? Moved back into sales engineering. My new base salary was the same as my old salary, plus I now got commissions, bonuses, and a company car. And it was great preparation for starting my own engineering consulting firm several years later.

So I heartily agree with jumping ship if you are unhappy with your compensation. And I heartily recommend technical sales or better yet, starting your own firm. Sure worked well for me.

The bottom line. We are all responsible for our own careers. If unhappy, take charge — don’t wait for others. And don’t be afraid to stretch yourself (as I did when I went into sales engineering — and later into consulting.)

For therein lies the path to Independence (Financial, Occupational, Location, and more…)

P.S. Interested in consulting?  Check out my FREE webinar recently done for the IEEE (Institute of Electrical and Electronic Engineers), my technical society.  Watch it Here. 

© 2018, https:. All rights reserved.