Marketing

Four Pricing Rules…

Here are four pricing rules I shared as a comment a Blue Penguin Marketing, a favorite blog I follow.

–Always set your fees to make a profit — that way you can’t go broke
–Never cut fees — cut scope instead
–Don’t be greedy — a happy client will often come back for more
–If in doubt, quote the lowest price for which you would do the project — that way there are no regrets if you lose out.

More info on Blue Penguin Marketing in my blog post here. Michael is a guru of solopreneur marketing.


P.S. If you are serious about doing a newsletter, check out Create Exceptional Newsletters. Great on-line class — I did it myself a few years ago.

© 2022, https:. All rights reserved.

A Marketing Gimmick That Worked…

Although not a big fan of marketing gimmicks, here is one that proved successful for us. Beer was involved…




The back story. When I moved to AZ in 1996, I ended up with a 602 phone number, while my business partner in MN had a 612 number. Furthermore, we had an answering service (also 612), and we knew this would cause confusion. 

Particularly for the poor saps receiving our wrong numbers. We discussed an 800 number, but then things got interesting.

We had already jokingly declared our selves as “EMI-GURUs” (EMI = Electromagnetic Interference, our engineering speciality), and thought that would be a good number. But while the 800 number was not available, the newly opened 888 number was. So we jumped on it.

In addition the phone number, we then secured the URL www.emiguru.com for a planned website, launched soon after.

Being on a roll, we even had a button made. We took the button to a trade show, and had people clamoring for them. Even our competitors were sporting them — all in good fun.

We knew we had a winner!

We later handed them out to clients and students— probably 5000 or more. On one occasion I walked into a test lab with a new client, and stuck on a cubicle wall was our button.

Needless to say it gave the client great confidence. (I made sure he went home with one.)

No, we did NOT copy the Staples business stores with their “Easy” button. I like to think they may have copied us 🙂

BTW it is red because I’m a graduate of the University of Nebraska — AKA “Big Red.”


Gimmicks can be tricky. As a professional, you don’t want to be seen as too silly. Overall, this was a great success.We were soon known across the US electrical engineering community as the “EMI-GURUs.” Easy to know how to contact us too. And people even pinned them in their cubicles for everyone to see.

For this and another successful gimmick, see Lead Generator #19 – Gimmicks. 


This post was inspired by the daily marketing letter from Graham McGregor of New Zealand. Been following him for years. Contact him here for more creative marketing ideas.


© 2022, https:. All rights reserved.

From the Mailbag… Final Reports and Security…

Here is a recent question from blog reader regarding client reports:

I’m looking at moonlighting, and have been enjoying digging through your blog. So far I have one quick question – did you have to deal with securing your data or reports?

Was it was ever a concern for you? Did you just send any documents you created as Word or something similar?

Here is my response:

While I sent reports in PDF, I never encrypted them. But not a bad idea to do so if sensitive data is involved. My accountant does so with any financial or tax information.

For security, both Bill and I shredded client files three years after filing taxes. Our lawyer advised this to protect both us and clients from legal “fishing” if lawsuits were involved.

If sensitive, we would immediately ship the files to the client upon project completion. The sensitive cases were for “expert witness” cases (very few) and medical devices,

When we started in 1987 (pre-Internet) we sent typed reports, which usually ran 5-10 pages. We had a cover page, a single “Executive Summary” page (for management,) followed by the “Technical Details” with as many pages as needed.

These reports were on our letterhead and spiral bound. We then placed them in a presentation folder, which also included our brochure and business cards.

We followed the same format with PDF reports, and used electronic letterhead. If the client requested, we would also send a bound hard copy. In recent years, reports were electronic.

Although many consultants do not enjoy writing reports, in my opinion this is a very important final step in any consultation. You charge for your time, of course, but the reports are a final touch in marketing. They often lead to repeat business, even years later.

Be sure your contact information is on every page!


 

© 2022, https:. All rights reserved.

Five Tips to Avoid Being Sued…

Good advice from Craig Thompson, JD/EE/PE, an engineering colleague turned attorney. I first met Craig many years ago as an engineer in Minnesota. He now practices patent law in Texas.

These five tips are from a recent mailing (comments are mine.)

(1) Create – and Use – Strong Contracts.

We used a few simple two page agreements, vetted by our attorney. One page of “boilerplate” and one page with specifics. Simple, but with enough details to clarify responsibilities and protect both us and our clients.

As such, we could turn out a engagement letter/agreement in minutes.

(2) Incorporate your business

Always a good idea, both for legal and marketing reasons. In the latter, is shows you are serious. But don’t do this yourself — use an attorney to make sure it is right.

(3) Standardize Policies and Procedures

We kept ours simple. Many were incorporated in the one-page “boilerplate” attached to our agreements. Since every client received a copy, we were consistent.

(4) Provide Top-Quality Customer Service

No need to say more. Do a great job — happy clients don’t sue. Address misunderstandings immediately. And if you screwed up (it happens) apologize and fix it.

(5) Purchase Liability Insurance 

Two types – general and professional liability (errors and omissions.) Discuss with your attorney, along with incorporation options. Both types are available from professional societies.

First, a disclaimer… Do NOT consider this legal advice. Rather, contact Craig (ThompsonPatentLaw.com) or your attorney of choice for professional help.

For more details… and Craig’s take on each tip, download his FREE REPORT here. It is short, sweet, and filled with good ideas.

Finally… Bill Kimmel and I had the pleasure of meeting Craig over lunch many years ago about the time he was starting out in patent law. It has been a pleasure to watch his firm grow. Although we never used his services for patents, he did provide a good referral for some trademark work. I’m delighted to pass Craig along as a resource.


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© 2021, https:. All rights reserved.

A little marketing experiment that worked well…

Here is a follow on to a recent post about a marketing experiment shared with my colleagues at Teach Your Gift Pro.

Thought I would share a recent marketing experiment – a free one hour “Lunch & Learn” for as a sample of a multi-day technical class. Reminded me of a movie trailer.Worked well — we had 60+ prospective students for a $2000 course ($20K+ in house.) Minimal cost to promote. We used GoToWebinar but Zoom would work too. I suggest others consider this. Like getting free samples at Costco.

Been doing this class in-person for about ten years through a training company that markets to the defense industry. When COVID hit last year, we switched to virtual live on-line. I’m listed in their catalog which greatly simplifies my marketing. The fee split is fair — I just show up and teach. With on-line, no more travel — yea!

Thanks to Mirasee and the “Course builder’s Laboratory” the switch was a no brainer. Had to do a little reformatting, but otherwise very simple. Would have switched to on-line earlier but inertia (both mine and the market) kept things in-person. No going back now, and students prefer the new way too.

Now to share a little more success. Last year my class got a commendation from the Asst. Secretary of the US Navy. What a nice surprise that was. Also very gratifying as we learned we helped “keep them sailing.” A reminder that all our classes are more than just the $$$.  Best wishes everyone.

“Lunch & Learn” sessions can work for consulting too. We already used this method in our practice, often co-hosted with test laboratories. Mini-seminars with mutual marketing. Everybody liked them.

  • A variation on this theme are talks at professional society meetings. These groups are always looking for speakers, which often meant flying a speaker in for the occasion. As we were doing dozens of live courses around the country, we had a standing offer for evening talks whenever we were in the area. It was always fun, and good for business too.
  • Thanks to Zoom (and similar platforms) on-line sessions are becoming more popular, such as the examples I’ve just described. And there are always both live and recorded recorded webinars, like the FREE one on consulting I did in 2018 for the Institute of Electronic and Electrical Engineers (IEEE), my professional society. Listen here.

You don’t need to develop a full blown training program to take advantage of the explosion in on-line learning. While you probably won’t make money on short presentations, the are still great ways to gain ever critical visibility & credibility.


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© 2021, https:. All rights reserved.

How We Made $15+ Million by Adding Training To Our Consulting…

For over 25 years, training was an important part of our consulting business. Financially rewarding, too. But I must confess we didn’t plan it that way…

Here is the story, as shared with colleagues in a program in which I participate. (Teach Your Gift Pro by Mirasee.) My first encounter with Mirasee was in 2018, when I enrolled in a class with the goal of converting existing live class materials to on-line.

Although the course was very useful, due to inertia (mine and the marketplace) I did not proceed — but then COVID changed all that. The result? Last year I did four live multi-day virtual classes on-line, with more in the future.

But as my wife pointed out, I am once again failing retirement. That’s OK, though, as I still meet my three pronged criteria of “Have Some Fun — Do Some Good — Make Some Money.”  This is from my post at Mirasee:

Hi B2B Colleagues,

Let me share some marketing insights based on 30+ years of B2B training.

Since 1987, my late business partner and I helped our engineering colleagues learn how to identify/prevent/fix Electromagnetic Interference (aka EMI) problems as part of our consulting business (www.emiguru.com). Yes, esoteric, but stick with me as I share a few things learned along the way regarding B2B marketing.

What started out as a request for help by a couple of clients (Can you teach us how to do a better job next time?) evolved into a financially rewarding training business. 12,000+ students (and about $15 million in revenues) later, the training part is still alive but at a lower level as I ease into retirement.

Not bragging — just offering some encouragement. When we started I had no idea where the B2B training would lead. It has been great fun and obviously pretty successful. But it did not happen overnight.

In 1992, we stumbled into working with a marketing partner — a prominent test equipment supplier to electronics designers (our mutual target market.) We ran the program (promotions, registration, and fulfillment, the latter including arranging meeting space and more.) We shared mail lists (both direct mail and email) and had great field support from their sales force.

We got revenue, and we both got highly qualified leads (those who were both interested and could spend money.) It was win-win-win as the students won too. That relationship lasted about 25 years until it died out due to the increasing cost of promotions and fulfillment.

In 2012, we were invited by a long established training company to be in their catalogue. Another marketing partnership. As they specialized in the defense industry, we developed a highly focused class for their market.

It was not too difficult as we had a lot of consulting experience plus existing materials. In this case, the training company handled the promotion, registration, and meeting arrangements. All we did was show up and teach. Now on line, it is even easier.

In 2018, I signed up for the “Course Builders Laboratory” with the idea of converting two multi-day classes from in-person to on-line. Learned a lot, but due to inertia (mine and the market place) did not move forward.

Then COVID happened. Last year led to four multi-day on-line classes (pilots?) with more on the horizon. The best part — no travel for me or my students — and the market is now world wide. Yea!

Today I am investigating a new potential partnership to resurrect the original commercial course. The financial equation is much more favorable with on-line delivery. Much less cost to promote and fulfill. No travel and hotel/catering costs, and a much broader potential market. I’m excited about the prospects.

As you can see, I am a big proponent of partnering in the B2B marketplace. I hope this has been useful, and that I haven’t blathered on too long. I know much of Mirasee’s past efforts have been aimed at B2C, but rest assured there is a huge market in B2B, particularly with the move to on-line learning. The marketplace if different but there is a lot of  lot of $$$$ to be had, along with great satisfaction.

Best wishes — Daryl

PS -Also working on a short B2C course on how to start/build/operate a small consulting practice based on my 40+ years experience. More of a labor of love (see my blog at www.jumptoconsulting.com.) But the real $$$ for me are in B2B – and that is still fun too. 

As I pointed out in an earlier post, there is a great synergy between training and consulting. Each can feed the other.

Training, however, requires a lot of time and commitment, so I don’t recommend jumping in with training when starting out in consulting. Long term, however, the payoff is there, and it nicely augmented our retirement funds.

If training has appeal, consider teaching for an educational institution, such as university, junior college, or adult educational  program. This can even be done prior to making a full time JumpToConsulting, providing visibility/credibility and experience. In fact, that is how we got started — moonlighting as evening instructors in adult-ed over 40 years ago.

Hope this has been helpful, and perhaps even planted some seeds on how to make your own JumpToConsulting!

P.S. – The $15 million was not all profit, as we had promotion and fulfillment costs. But it was still quite profitable ($10M+) while also feeding the consulting side of the business.  


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© 2021 – 2023, https:. All rights reserved.

Don’t let fear hold you back…

Good advice from a recent newsletter by Bob Bly, fellow engineer turned successful copywriter and consultant. could not say it better myself.

Dear Direct Response Letter Subscriber:

Subscriber GR writes:

“I’m mostly interested in starting and running a successful
freelance copywriting business. I’m not a fast writer, but I
write good copy. In my last job, I wrote a lot of use cases for
hi-tech.

“My problem is that I am not comfortable doing marketing. It’s
a fear. That is the obstacle for me — and confidence.”

The answer is rather simple….

Do not let fear hold you back.

Understand that courage is NOT the absence of fear.

Courage is feeling the fear … and doing it anyway.

If marketing and selling your services is out of your comfort
zone, step out of your comfort zone.

The fact is: when you are feeling uncomfortable, challenged, or
discouraged — that means you’re growing.

Also, do small tests of your self-promotions that cost little
money.

That way, if they don’t work, you haven’t spent the rent
money … and you still have money to test other things

If the small test is successful, “roll out,” which means
repeat the promotion as long as it makes money … and do it in
incrementally larger sizes or volumes.

Motivational speaker Dr. Rob Gilbert says the simple key to
success in marketing or anything else is this:

Do more of what works — and stop doing what doesn’t work.

One more thing…

Persistence is also important.

The reason many people fail is they give up too soon.

Sincerely,Bob Bly
Copywriter / Consultant
31 Cheyenne Dr.
Montville, NJ 07045
Phone 973-263-0562
Fax 973-263-0613
www.bly.com

If you are not already a subscriber to Bob’s FREE newsletter, sign up a www.bly.com.  Bob also shares his wealth of advice through very reasonably priced e-books, etc.


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© 2020, https:. All rights reserved.

Don’t fret about giving away advice…

Giving away advice can be good marketing, and inexpensive too.

This was prompted by a recent query. With rare exception your potential clients do not want to “steal” your ideas — rather they want to know you understand their problems and can fix them. And those who do want to steal your ideas are not worthy clients in the first place.

Here are three examples where giving advice away paid big dividends in my consulting business… sometimes years later.

Giving away advice turns into a class…

This recent example occurred when I booked an in-house class with virtually no sales effort. The client merely wanted to know when I could be there, and how much it would cost. So we agreed on a time, and I provided a quote.

Total time: under ten minutes. The purchase order arrived a few days later.

Upon arriving at the client site, the client mentioned why it went so fast and easy. It seems many years ago he had a problem, and Bill, my late business partner, gave him four quick things to try. Number four worked.

Happy to have the problem solved, the client offered to pay. Bill said, “No, we don’t charge for quick solutions. Just keep us in mind for future business.”

Years later, now at a different company, my client was asked for a recommendation on a training class in our specialty. He immediately gave me a call (Bill having passed on.) He shared his story, and said how much he appreciated our approach.

Was it with it? Of course, in good will alone. But financially, the return on investment was well over 1000:1 in terms of revenue from the class versus revenue from billing a few minutes of time. Plus I had a very happy client.

Not holding back, but “opening the kimono”…

In addition to not charging for a few minutes, our policy was to not hold back — but rather to share whatever we knew.

One exception, of course, was not sharing another client’s confidential material. However, we shared lessons learned from other consultations. It is your experience that clients seek.

As I was going into a detailed description, I asked “Is this too much information, or do you want me to keep going?”

The client replied, “Please continue — I appreciate it. By the way, the last consultant we hired (for different problems) would hold back. We assumed he was afraid that if he gave away too much advice we would not hire him again. Well, after he solved he immediate problem, we all agreed not to work with him again.” Ouch!

This occurred early in my consulting career, and stuck with me ever since. We jokingly called it “opening the kimono.” It served us well.

The on-line endorsement…

Several years into our business, I ran across this on a popular forum.

Someone asked for a consultant in our specialty. A quick reply was, “Call Kimmel Gerke Associates. Not only are they good, but are easy to work with and they won’t nickel-and-dime you.” You can not buy that kind of advertising.

I immediately called Bill with my discovery. We both agreed that our policy of sharing information and not charging for quick answers was the right approach for us.

Other ways to give away advice…

Writing articles and giving free presentations were central to our marketing efforts for many years. These often turned into paid consultations and training classes.

Nothing like getting a free sample to whet your appetite for more. It also enhances that ever important visibility and credibility.

More thoughts here from an earlier post.


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Who is your ideal client? And how to find them…

The Number One question I’m asked by those interested in consulting is “How Do You Get Your Clients?”

My Number One answer is usually “Peddle your behind off.” Meaning, if you are not willing to market and sell your services, you are better off not pursuing independent consulting.

But to be successful, you need to be strategic about your marketing. As the esteemed business consultant Peter Drucker noted, “The better the marketing, the easier the sales.”  Strategic marketing is the linch pin to starting and operating your own consulting practice.

Many blanch when faced with marketing and sales, particularly my engineering colleagues. But as  mentioned in previous posts, this is not a big deal. It is just another problem to be addressed. And that is what do as consultants — solve problems.

So the first question to ask yourself is, “Who is my ideal client?”  Consulting is a niche business — you can’t serve everyone, not do you want to. Like fishing, what type of fish are you going after? Bass? Trout? Or maybe deep sea fishing? You need to focus your efforts.

Many “experts” say to focus on the CEO, or at least the C-Suite. That might work for McKinsey, but not for most of us as individual practitioners. Seriously, is a CEO interested in solving a subtle engineering problem or marketing problem? Only if it is costing a LOT of money.

For us, we quickly realized our ideal clients were engineering managers, project managers, or directors or VPs in smaller companies. Those close enough to the action, and with budget authority to retain us. (Our projects were typically under $20K — even at those levels you don’t need many to succeed.)

The second question to ask yourself is, “How do I reach my ideal client?”  This is where visibility and credibility become vital.

People buy professional services from those they know, like and trust. There are many ways to establish this — most revolve around writing, speaking, and networking. Here are 20 ways we have used to attract business.

A caveat — although social media is all the rage, don’t rely on that alone. Consider traditional  marketing like magazine articles, speaking at conferences, or being active in professional organizations. The goal is to be in front of prospective clients in a positive light.

Consider geography. If your potential market is local, focus on local publications and events. If nationwide, focus on methods with nationwide coverage. We started out local, and later expanded to cover both.

What if I am just starting out? Practice aggressive networking. Reach out to friends, colleagues, and past employers. Let them know you are in business, and available to help. Give them specific examples of services you can provide.

A simple direct mail campaign can work wonders. So can phone calls. But DON’T ask for business — just ask for help in publicizing your services. That way you are not seen as a pest. But if anyone does need your services, they will ask you.

Make a list of the top 100-200 people you know, and reach out to 10 a week. If your market is local, you can even offer to meet for coffee. Ask for advice — ask about problems and trends they see. And although you may be excited about your business, don’t go into hyper sales mode. Just listen and learn.

All of the above take time and creative effort, but the payoff is there. As the late Howard Shenson (the consultant’s consultant) advised, the ultimate goal is to have clients clamoring for you. But they can only do that is you are visible and credible, and knowable and likable.

Cheers — Uncle Daryl


 

© 2019, https:. All rights reserved.

Don’t be an e-mail pest…

Time for a mini-rant.

In recent months, I’ve received numerous unsolicited e-mails that follow this format:

  • The first e-mail offers some unwanted service, like updating my website, increasing my leads, or even handling my HR hiring or payroll needs. (The latter is amusing as I am a one person firm, which simple research would have uncovered.)
  • The second e-mail, two days later, asks if I’ve read the first email (already deleted) and wants to set up an appointment.
  • The third e-mail, nine days later, gets a bit snarky. By that time I’m so annoyed that even if I did need the services I would NOT use this person.

Here is a specific example. It is thinly disguised, but if you have received the same email, you will recognize the perpetrator.

On Mon, Jan 21, 2019 at 6:28 am, CW wrote:

Hey Daryl,

Curious if Kimmel Gerke Associates is on an older payroll/HR system, like ADP or Paychex?

If you are, Ripoff can easily save your team 50+ hours of admin work (and, likely, thousands of dollars) every year. How, you ask?

Unlike older platforms, Ripoff integrates all (not just some) of your employee systems — blah, blah, blah…

Do you have any interest in a quick demo to see how we compare?

Thank you!

CW
Account Executive
Ripoff| CA License #999999


On Wed, Jan 23, 2019 at 9:53 am, CW wrote:

Hi Daryl — any thoughts on my email below?

Let me know if you (or someone on your team…) would like to connect this week.

C


On Feb 1, 2019, at 8:02 AM, CW wrote:

I’m not sure if this changes anything, but not only can Ripoff connect your current HR systems together, it can connect Kimmel Gerke Associates’s IT systems together, too.

You can manage your team’s computers, software licenses, user accounts and passwords — in addition to their payroll, health insurance, 401k, etc. — all in one dashboard.

Are you able to manage all of those things in one place today?

CW
Account Executive
Ripoff| CA License #999999

By the third unsolicited piece of spam (possibly illegal) I have NO interest in working with Ripoff on anything — ever!

Normally I just ignore this kind of foolishness, but feeling ornery, I sent the following note back. Feel free to use it yourself. If enough of us do so, maybe we can at least slow down these marketing idiots.

Please remove me from your list and all future mailings. I am a one person firm, and not in need of your services.

Had you done any research you would know that, and would not be sending repeated unwanted spam.

Which begs the question — why would I do business with someone who does that? Food for thought from a successful business owner of 32 years.

My suggestion – find a way to attract business to come to you.  Don’t be a pest!

If YOU are a marketing consultant recommending this approach, please STOP. If you are thinking about this approach, DON’T do it!

Instead, set up a program to ATTRACT business. Marketing guru Seth Godin calls this permission marketing. Uncle Daryl just calls this common sense.

You can do this many ways — here are 20 ideas from an early post (with detailed follow on links) on JumpToConsulting. The twin goals are establishing credibility and visibility – having clients come to you – not being just another e-mail pest!

End of Rant. 


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© 2019, https:. All rights reserved.

Which customer niche…B2B, B2C, or B2G?

When considering WHAT to consult about, you should also consider WHO you will serve. There are three general niches to consider:

  • B2B – Business to business
  • B2C – Business to consumer
  • B2G – Business to government

Each niche calls for different business approaches. When starting out, it is best to focus on one of the three. You can always expand into the other niches later.

B2B – The realm of many technical specialists like engineers, and where I spent my consulting career. Our clients ranged from Fortune 100 companies to small firms. Most were designing and manufacturing technical products, and were experiencing EMI (electromagnetic interference) problems.

Problems ranged from product test failures to production line failures. A common denominator was pain, always a good motivator for calling in a consultant. Much like being a doctor or dentist 🙂

Marketing was outbound — writing magazine articles, speaking at conferences, networking through professional organizations. Credibility and visibility were key. The reach ranged from local to world-wide.

Sales were inbound — clients usually called requesting help. (No cold calls or knocking on doors to convince clients of a need.) Referrals were golden. 

Purchasing was via purchase orders or contracts. Since our consultations were typically a week or less, we used simple quotations or engagement letters. Simple contracts were used for longer projects.

Payment came from company funds, and may not have been officially budgeted.  But when the “cost of failure” was significant, money appeared.  

Our clients were typically Project Manager, Directors, or Engineering VPs, with appropriate purchasing authority. We rarely dealt directly with purchasing agents, or with the “C-Suite” so prized by management consulting firms.

B2C – The realm of many business specialists (accountants, lawyers, financial planners…) or personal specialists (coaches, counselors, personal trainers…) Clients are often individuals or small businesses.

Most clients are seeking brief help or experience they do not have themselves. It may be driven by pain, seeking improvements, or even fun (such as wedding planners.)

Marketing is often local — networking/speaking with civic groups, or writing local magazine/newspaper columns are effective. But thanks to the Internet, the reach is often expanded through blogs, Facebook, and on-line communities. Either way, high touch personal involvement is key.

Sales and purchasing are often simple (checks, credit cards, or PayPal.) Payment comes from personal funds, which often means smaller fees than B2B.

B2G – The realm of many larger consulting firms. Those working with the federal government are often referred to as “Beltway Bandits.” Nevertheless, there are opportunities for individual consultants if one understands and is willing to work with the bureaucracy.

After working many years in the defense industry, we elected not to pursue this niche. In our early days, however, we did pursue a state grant (which we won) and several federal SBIR (Small Business Innovative Research) contracts (which we did not win.) I’ve known several consultants who built their practices around grants and SBIRs.

Marketing is highly dependent on networking. As such, it can work well for those leaving a government career (military or political) where one can leverage contacts and experience.

There are also publications (such as Commerce Business Daily) that list projects and RFPs (Requests for Proposal.) A word of caution – many are “wired” for preferred vendors. Not complaining — it is just the way it is.

Sales consists of submitting RFPs. In order to maintain fairness, there are strict rules and deadline for RFPs. If you are new to the game, you may want to partner with an experienced vendor or contractor.  Often times, small special efforts are sub-contracted.

Typical payment is via contract, which may be subject to audit. As such, you may need an accountant to assure compliance with government accounting rules.

Typical B2G clients are government agencies or branches of the military services. Your point of contact will be a program manager, unless you are working on a subcontract.

The choice of your business niche is personal – there is no right or wrong. While we were successful in the B2B niche, I know successful consultants in the B2C and B2G niches. Just choose carefully and wisely.


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© 2018, https:. All rights reserved.

My top 5 mistakes as a consultant…

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.

Do The Hard Stuff … Not The Cool Stuff…

When trying to decide on what to consult… don’t go with the cool stuff that everybody else wants to do (and thus won’t pay for)… rather, go with the hard stuff that others don’t want to do (and will gladly pay for.)

We learned that lesson thirty years ago transitioning from part-time to full-time consulting. As engineers, we would hear about design projects that sounded cool. But those were the projects that in-house engineers kept for themselves.

On the other hand, clients were happy to farm out the not so cool jobs — such as EMI (electromagnetic interference), and area where we had years of experience.

So we decided to focus on the “table scraps” of EMI. But those table scraps proved lucrative, and we both made small fortunes doing what others did not want to do. And we got to do it as independent consulting engineers.

Another bonus was most clients did not need full time EMI help. So we moved from client to client, quickly picking up new experience and knowledge. We also escaped corporate politics, a major reason for making our JumpToConsulting in the first place. Freedom rocks!

Others have stumbled into the same solution. When engineering colleague Ken Wyatt approached early retirement, his original plan was to teach wildlife photography, a long time passion. But he quickly found little interest — although cool, nobody was was willing to pay serious money for something they could learn on their own as a hobby.

So Ken went to Plan B. (As engineers, it is a always good to have a backup plan.) He began consulting in the same area as his old job (EMI.) Was he going back to work? No, he was building a new business the has proved quite successful. And like me, he enjoys his freedom.

Incidentally, we were delighted to have Ken join us in the EMI fray. It was like having another doctor in a town full of sick people. With my business partner’s passing and my pulling back, I now regularly refer business to Ken. Would not have happened if had stayed with the cool stuff.

This is good advice for all — not just consultants. A recent magazine article told how high-tech companies often struggle to find programmers to work on the tough problems — while there is an abundance of those who can write simple phone apps. The former is hard — the latter is cool.

One last example — my older son, the catalyst for this blog. With an MBA in finance, he loves business and is now a CFO. At one time, he hung out his consulting shingle, until a client made him an offer he couldn’t refuse. A side benefit of consulting — high visibility into opportunities you might never see otherwise.

Early in his career, he worked for an accounting firm. Lacking his enthusiasm for finance, I commented, “People like me will pay people like you good money to do their taxes.” He just laughed. It may not be easy —it may not be cool — but it pays very well and he enjoys it.

Finally — as a consultant, remember that people will pay YOU good money to solve their HARD problems — but not their COOL ones.

Last year, millions of 1/4 inch drill bits were sold — not because people wanted to buy 1/4 inch drill bits — but because they wanted 1/4 inch holes.


Other posts you may find of interest:

© 2018, https:. All rights reserved.

Bigotry and business don’t mix…

Time for a mini-rant… While I try to stay politically neutral, this seems particularly appropriate these days… 

Don’t mix business with bigotry!

Last year I read about a pizza place that was under fire for saying they would not serve at a gay wedding. Then they whined that the press was out to crucify them. Really?

What if they had refused to serve Blacks…or Jews…or ??? Didn’t we get over that in the last century? (Based on recent events, maybe not…)

Furthermore, how foolish! With the country equally divided on so many social issues, why alienate half your potential customers?

But let’s be positive.

What would have happened if they said they WOULD serve such customers? Let me share the Pittsburgh Willy story.

In 2012, I wrote about Randy’s success as a successful Arizona hot-dog entrepreneur. Yes, he is not a consultant, but I love his hot dogs… and his stories.

One of my favorite stories was how Randy became a preferred vendor in the local gay community. Sorry to say, Arizona is not the friendliest place for gays. But when asked to support the Gay Rights parade several years ago, he readily agreed.

He and a friend even carried a banner. He joked they were a minority — perhaps the only two straight guys in the parade. Later he served gourmet dogs from his hot dog cart to a hungry crowd – the only hot dog vendor to do so. Pretty good business decision, huh?

In addition to being a good businessman, Randy is an very friendly and funny guy. So when asked to support a gay event in Bisbee AZ, once again he agreed. He was the only hot dog vendor invited to the event. As an aside, one of his gourmet hot dogs – the Big Willie – was a huge hit 🙂

Randy graduated from the hot dog stand, and has since opened a restaurant in Chandler, AZ. The dogs are great, and EVERYBODY is welcome there. Just good business!

So as a consultant (or any other businessperson) I suggest you do not tolerate discrimination or hate of any kind.  DON’T add bigotry to the mix! 

<End of rant>

P.S. If this post offended you, don’t consult. If you can’t look beyond your own views, you don’t have what it takes to succeed as a consultant.

(More here from folk musicians Peter, Paul, and Mary.) 

© 2017, https:. All rights reserved.

Do I Need a License to Consult???

Some times yes … sometimes no… sometimes maybe… Here is a quick overview:

–If you are a business consultant, you probably don’t need a license other than possible tax licenses. There are no licensing boards for business consultants.

–If you are a professional consultant, however, you may need a license before offering your services to the public. In certain professions it is mandatory – don’t even think of practicing medicine or law without a license.

In other professions like engineering or accounting, while legally mandated it is not always enforced. But don’t use the title PE (Professional Engineer) or CPA (Certified Public Accountant) unless you are licensed – you will invite the wrath of licensing boards.

Nevertheless, I often encourage my engineering colleagues to pursue a PE license. The following comment expands on why I do so. This was in response to a rather heated discussion on an engineering blog on the necessity of a PE license.

Glad to hear of your success against some clearly overreaching bureaucrats.

I say that as a PE/EE. Did getting my PE license make me a smarter engineer? No, but it did provide credibility when I started a consulting engineering firm 30 years ago, just like a CPA does for an accountant. It also has opened more than a few doors.

The PE license is valuable if you work for a consulting firm. This happened to an electronics design colleague (PE/EE) some years ago. He obtained his PE as a personal goal, not needing it while working for defense contractors.

Laid off in a slump, prospects were grim. That is, until he inquired at an engineering consulting firm, where most of their PEs were in electrical power. The firm was ecstatic to hire a PE/EE with electronics experience, to handle building electronics systems. Thus began a new and satisfying career.

As such, I often recommend the PE license — you never know when it might be useful. (Says the engineer who was laid off twice before he finally wised up and started consulting.)

More details on the engineer above here. Remember, when consulting it is all about credibility and visibility. Licenses and other valid credentials enhance that credibility.

P.S. Will be slowing down for the summer. Have grandkid plans, and hope to get in some RV time too. Best wishes for your summer too!

© 2017, https:. All rights reserved.

Consulting Fee Study – 2017…

Here is a link to a recent fee study by Consulting Success.

While this blog focuses on general business consulting, technical consultants should find this of use as well.

FYI, typical fees at Kimmel Gerke Associates were project based. Typical projects were in the $5,000 – $20,000 range and up. Typical annual compensations exceeded our corporate salaries, plus providing retirement funding, profits, and tax benefits.

As such, we did better than staying “employed.” Plus we had a lot more fun and freedom.

Not bragging — just saying it can be done. But it doesn’t happen overnight or without some work. You first need to build “credibility and visibility.”

Never too soon to start the process, so ask “What can I do TODAY?” Best wishes…


Here are three posts to help you start…


P.S. May slow down here for the summer, but stay tuned as I continue to share  thoughts on making your own JumpToConsulting.

© 2017 – 2018, https:. All rights reserved.

Five Steps in Marketing…

Time to begin a new series… on marketing… the last in the triad of “getting business.”  The other two elements are generating leads and making sales. Like the legs of a stool, all three are equally important.

Don’t overcomplicate things. Getting business is much like going fishing. There are three simple steps:

  • Marketing – Decide what kind of fish you are after and where you might go.
  • Leads – Based on that, decide what kind of bait and tackle to use.
  • Sales – Catch the fish and get them in the boat.

Here are five key marketing questions to consider:

`(1) WHAT services will you offer? And is there a market? Are there any fish in the lake? Is there competition?  Barriers to entry? Any way to test? Remember, you don’t need to catch all the fish —  only enough to feed you.

(2) WHO will you offer them to? What kind of fish are you going after? Who is your ideal client? Come up with some personas — law firms with 5-20 attorneys who need help with juries? Engineering managers with EMI test failures —  my personal favorite?

(3) WHERE will you go to find them? Mountain streams for trout — southern lakes for bass. What are your target niches – industry, geography, B2B/B2C/B2G?

(4) HOW will you reach them? Bait and tackle. Gave you twenty ways to generate leads. Now is the time to pick a couple, make a plan, an start executing. It’s never too early. Remember, if you want a baby, it takes nine months. So if you want a baby in a month, you should have started eight months ago.

(5) WHY are you doing this? Probably the most important question. Hating you job or boss is NOT a good reason. Nor is just getting laid off (or fired.)  Is there a higher calling driving you? A drive for independence (my favorite?) Do you want it so bad you can taste it? Is there something you always wanted to do, and now is the time?

Take some time to consider these questions, and jot down some answers. We will expand on each of these questions in future posts.

Stay tuned…

© 2017, https:. All rights reserved.

Writing magazine articles… an interview with the Blue Penguin…

Recently did a half hour interview on writing magazine articles, on of my favorite (and successful) marketing methods. The interviewer was Michael Katz, the founder/owner of Blue Penguin Development, a one man firm that teaches solo professionals how to better market their practices.

Earlier this year, Michael formed the Blue Penguin Content Club. For $9.95/month, you get two 30 minute group calls each month — a weekly 48 second marketing tip — membership in a private Facebook group — and access to all the past recordings. Given Michael’s expertise and experience, this is one a heck of a deal.

Michael graciously allowed me to include the LINK to the interview HERE. So grab your favorite beverage, sit back, and enjoy Micheal and me discussing the ins and outs of getting your own magazine articles published. (30 minutes.)

Finally, if you enjoyed this, sign up for the Content Club – you won’t regret it. Full disclosure–no remuneration for me, and no penguins were harmed making this recording.

PS –  Michael has a free newsletter that I have been reading for years, along with numerous short courses and more.

PPS – Listen to the interview here.

© 2016, https:. All rights reserved.

Visit me with the Blue Penguin…

As the “featured guest” of the Blue Penguin next Tuesday (August 23, 2016). I’ll be sharing insights on writing articles to build your credibility/visibility as a consultant. Join the Blue Penguin Content Club, and you can catch the session too.  Click here.

Way back in 2013 I wrote about the Blue Penguin and the Likeable Expert Gazette. In 2000, Michael Katz launched Blue Penguin Development, a one man firm that teaches professional service providers how to position themselves as “likeable experts.” Much of his emphasis is on newsletters (a favorite technique of mine) and social media.

More recently, Michael formed the Blue Penguin Content Club. For $9.95/month, you get two 30 minute group calls each month, a weekly 48 second marketing tip, membership in a private Facebook group, and access to all the past recordings.

Trust me — this is a great deal! And Michael is funny (and bald, which always sets well with me.) If you don’t want to invest $9.95/month, you can still get Michaels’ free newsletter.  As his newsletter name suggests, he is simply a likeable guy (and an expert in what he does.)

Hope to see some of you next week. Well, I can’t “see” you, but you know what I mean 🙂

P.S. Been a little slow on the posts here. It’s the dog days of summer. We’ll pick up the pace again in the fall.

P.P.S. Had 31 attend the consulting session at the IEEE EMC conference in Ottawa. Several were already consulting, and several more were on the verge of making their own JumpToConsulting. Way to go, my fellow geeks!

© 2016, https:. All rights reserved.

Opportunities Abound When Ecosystems Collapse…

This post was inspired by a 2011 post by Pam Slim (Avatars, Ecosystems, and Watering Holes), where she discusses creating you own healthy business ecosystem.

But what happens when an ecosystem collapses? Most people panic, but a few recognize the opportunities — often excellent for starting a consulting practice.

Scientists tell us every major extinction event was followed by an explosion of new life. A prime example is the asteroid that destroyed the dinosaurs, which gave rise to the mammals and ultimately the naked apes known as homo sapiens.

When an ecosystem collapses, the balance of nature is upset. Those at the top of the food chain (the huge dinosaurs) are displaced, and new opportunities explode (for the tiny mammals.) But eventually a new equilibrium is reached, and evolution resumes its slow grind.

So it is with business. Sudden changes give rise to new opportunities, at least to those willing to pursue them. The inertia of the dinosaurs often prevents them from doing the same. In fact, the dinosaurs usually fight the changes and thus miss the opportunities.

A minor engineering ecosystem collapse helped launch our consulting firm.

  • Thanks to the personal computer explosion, by the early 1980s electronic interference problems to radios and televisions were increasing exponentially.
  • As a result, the Federal Communication Commission issued new regulations.
  • But there were few engineers that understood the problems, and how to fix them.
  • Most of those engineers were well entrenched in the defense industry, and not interested in tackling commercial electronics.
  • Thus, the engineering ecosystem for addressing these problems collapsed.

Recognizing the opportunity, we jumped in with both feet. But the economy was teetering too, and the first day in business the stock market crashed (October 1987.) A double whammy. But thanks to multiple opportunities with very limited competition, we did very well.

A second collapse occurred in the mid-1990s. Driven by the same interference problems, the European Union passed strict laws on interference on a wide range of electronic devices. If you could not demonstrate compliance, you could not export to the EU.

  • Once again, many big players (the dinosaurs) missed the changes (the asteroid.)
  • Once again, the engineering ecosystem suffered a minor collapse.
  • Once again, the little guys (the tiny mammals) like us did very well.

This is when we launched our training business, which took off like a rocket. This time, people were hungry for both help and knowledge. We often joked that while the consulting paid the bills, the training funded the retirement.

Would we have the same quick success today? Probably not, unless the ecosystem again collapsed. The growth would be much slower under today’s more stable conditions.

So, don’t fear the changes. Rather, seek them out. Remember, when the ecosystem collapsed, the mammals proliferated and the dinosaurs died out.

© 2016, https:. All rights reserved.