General Consulting

Some comments on fees…

Here is my reply to a post at Consulting Success regarding fees. Good info on this site — but with an emphasis on business/management consulting rather than on technical consulting.

As consulting engineers, we’ve used “project fees” for years. When quoting, we provide a budget and a general estimate for time. We use an internal hourly rate for estimates, but don’t include that in our quotes.

To me, hourly rates are useless. For example, if I’m getting a kitchen remodel, I don’t care what the contractor’s hourly rate is — I just want to know how much the project will cost. BTW, I’ve used that analogy on procurement people when asked about hourly rates.

Finally, we don’t bid “fixed fee.” Rather, we include a statement that “we will not exceed the budgetary estimate without client approval.” This gives us some room for contingencies or small changes. Clients and procurement people seem to like it too.

Hope this helps. I always appreciate Michael Zipursky’s insights.

Do you have questions of fees?  Ask away…

P.S. Been a crazy week here, as Mary broke her arm. On the mend after surgery…

© 2015, https:. All rights reserved.

Don’t Hoard Your Experience… Share it…

Learned this lesson early in my consulting career. Fortunately, somebody else made the mistake, and I was able to benefit from their goof-up.

We’ve always had a policy of full and open disclosure for our clients. Retain us, and we will share everything we know about our specialty, with the exception, of course, of proprietary client information.

Worried abut overloading a new client, I quipped,

“We don’t hold back. You can tell me when to shut up, when you’ve had more than enough details and information…”

He replied,

“No, I really appreciate your being open. The last consultant we had (on a different problem) didn’t want to share anything. Seems he was afraid if he disclosed all he knew, we wouldn’t need him anymore.

My engineers were frustrated, and we all decided as soon as we have everything we needed, we’re done.  Which is a shame, as if he were more forthcoming, we’ve have him back again and again.”

Wow, I thought, I’m glad we didn’t follow that approach. Based on this incident, we made it a formal policy to ALWAYS share what we knew.  Even if it means they don’t need us again, because we’re pretty sure they will recommend us to others.

P.S. As a consultant, your goal should be to work yourself out of a job. Your client should always be in a better state after working with you. They will thank you for it by their referrals and recommendations — and by inviting you back for new problems.

© 2015, https:. All rights reserved.

Are You an Economic Slave???

Ninety percent of Americans have virtually no savings… so says the latest issue of Money magazine. If you are in the ninety percent, consulting may offer a way out.

The problem with most jobs is that the income is fixed. Unless you are in sales (commissions) or an executive (bonuses), you have little opportunity for upside. But a consulting side-hustle can change that, and may even lead to full financial freedom.

Of course, making more money alone won’t do it. You need to cut your expenses too. Fellow engineer Pete (Mr. Money Mustache) saved his way to freedom in seven years, by cutting his expenses by 75%. Yes, it can be done purely by aggressive savings.

But you’ll get there faster, and with less pain, if you combine frugality with some extra income. I’m a strong advocate of combining both approaches — make more/spend less.

There are lots of ways to make more money. Unfortunately, many are scams or borderline scams. You know what I mean – multilevel marketing, on-line schemes, too many franchises, etc. Most of the money is made by the promoters — not the producers.

But consulting, even part-time, allows you to control your own destiny. The start-up costs are low, and you get to keep the profits of your labor. Other than the IRS, you don’t need to share those profits with those further up the food chain.

This is not meant to disparage other small businesses, such as restaurants, shops, specialty manufacturing, etc. But most of those require capital, commercial space, and employees. Not a problem if that is the way you want to go – or have already gone. 🙂

Since you are reading my blog, however, I assume you have at least a passing interest in consulting –which I define as marketing/selling/delivering professional advice, with the goal of  improving your client’s situation.

No, you are not selling products or get-rich schemes – just your time and advice. You are joining the ranks of other professionals – doctors, lawyers, accountants, engineers, architects, business advisers, and more.

Doing so part time is a good way to start. That is what I did. For several years, my business partner and I moonlighted on engineering projects. Eventually, the itch got so bad we went full time. But is was much easier making the transition from part-time to full-time, than from ground zero.

Two final pieces of advice:

  • First, avoid conflicts of interest. You don’t want to lose you day job, and you don’t want to affect your reputation. Integrity matters.
  • Second, keep a low profile.  You don’t want to inflame petty office jealousies. The voice of experience speaking.

My challenge to you — As the new year begins, give some thought to your own economic freedom. Remember, Uncle Daryl wants YOU — to be FREE. Happy New Year!

P.S. Back in the game… My goal is one post per week each Monday, with additional ones as the mood strikes. So join us Mondays, or sign up for our feed and newsletter.

© 2015, https:. All rights reserved.

2014 Annual Review…

Well, another year gone by, and time to reflect.

Got this idea from Chris Gullibeau of The Art of Nonconformity. He does this each year, and each year challenges others to do the same. Great idea!

So once again, I’ll review three categories:

But first, a quick overview…

The Jump-to-Consulting project is now FOUR years old.
The catalysts were questions by my older son, questions by other colleagues, and a fat file for a prospective book. With today’s economy, many people are considering options such as consulting.

I was also intrigued by blogging, and simply wanted to learn more about this Internet phenomena. What better way that to just start a blog. Incidentally, that was the same attitude that got me into consulting. Curiosity, and a desire to learn.

The EMI-GURU project began 35+ years ago, and led to full time consulting in 1987. It has been great fun, and quite successful. I’ve traveled the world, and made a lot of friends along the way.

It made me both location independent and financially independent. Best of all, it allowed me to practice my profession as an Electrical Engineer in a ways I didn’t even imagine as a student or young engineer.

EMI-GURU also provides the grist for JumpToConsulting. Much of what is discussed here is based EMI-GURU experiences. The stuff I talk about is not theory — rather, this is real world and is based on 35+ years experience in the consulting business!

HIGH-LIGHTS in 2014…

Jump-to-Consulting – The blog is up to 150 posts. Had hoped for a few more, but still proved to myself that I can keep a blog going. Slowed down a bit midyear, but no plans to stop.

Not many readers (it is a pretty tight niche), but it has helped several make their own personal JumpToConsulting. (Way to go!) So don’t be bashful — your questions and feedback mean a lot, and they do inspire me to keep going here.

EMI-GURU – Not much new to report here. Continue to ramp down the one-on-one consulting, but still involved with the technical classes. Teaching (and sharing what I’ve learned) is a primary passion.

Personal – Dropped a few more pounds, which means I’ve kept the weight off for a year. Went into maintenance mode with Uncle Daryl’s SEC (Stop Eating Crap) diet, and it worked. But time to get more serious about this lifestyle change.

After 30 dogless years, we “adopted” a pooch in August. She has been great fun, and also an incentive to walk a couple of miles every day. I call her my “personal trainer.”

Spent about eight weeks in our RV. The longest trip was 4700 miles in the fall, visiting grandkids in CT followed by a ride through the mountains of the east coast. Beautiful fall scenery! Also visited several Civil War sites to temporarily satiate my interest in history.

LOW-LIGHTS in 2013…

Jump-to-Consulting – Slowed down in the second half of the year. Not burnout, but time for some reflection, precipitated by the passing of two friends a few weeks apart. So I simply decided to take some time off.

EMI-GURU – Business is slow, but at this stage in my life, I’m content. Leaves more time to goof off. No desire to return to the 30-40 trips per year of a few years back.

Personal – No low lights other than losing a couple of friends to cancer. That, and the closing of a favorite local funky restaurant, the Chino Bandido (Chinese-Mexican.) But life goes on…

LOOKING FORWARD to 2015…

Jump-to-Consulting – Ready to get back into the groove. Keep on blogging, with at least one post per week. Also considering an E-book, on-line classes, monthly newsletter, and a FREE monthly roundtable. Watch my blog for more details. Better yet, sign up for the newsletter!

EMI-GURU – Continue teaching technical classes, which I really enjoy. As an old codger, there is nothing like seeing a younger engineer (and even an old timer) suddenly “get it.”

Also continue to pass consulting jobs to my business partner, who is still very much involved in both consulting and training. I’ll back up as needed, but rest assured, EMI-GURU is ALIVE and WELL!

Personal – Spend time with the grandchildren, along with reading, writing, and more travel in our little RV. Restart the weight loss program from maintenance mode. A goal is to eventually lose another 60 pounds so I can join the centennial weight loss club.

May move back to our house, due to disappointments with the patio home “experiment.” Lesson learned – beware of dysfunctional HOAs (home owner’s associations.)

Wishing you all the best in 2015! And THANK YOU for reading my blog.

© 2015, https:. All rights reserved.

Seven Steps in Selling…

The lead generation worked… the phone rings… now what?

Let the sales process begin… This is where the rubber meets the road — or where the consultant finally meets the client. Many people see sales as mysterious at best, and manipulative at worst. Neither are true for selling consulting services.

Consulting is a helping profession…

You’re not peddling products, or trying to meet a quota. You’re not manipulating, or being sleazy. Rather, you are simply trying to help your clients.

Like a doctor, you are solving problems. Or like an architect, you are turning dreams into reality. Either way, your helping improve your client’s life!

Looking at it this way makes it worthwhile, right?

Sales is a process…

If you’ve never been in sales, it may seem mysterious – even scary at times. But you can learn to sell– just as you can learn to paint, play a musical instrument, or write software.

Once you understand the process and the underlying principles, it all starts to make sense. It’s simply not a big deal. So don’t let the fear of learning a new skill stop you. And once learned, you may even start to enjoy the process. I certainly do.

But I’m an introvert, you say – not some back slapping extrovert. So what? Most consultants and professionals are at least somewhat introverted. After all, we live in a world of dreaming, pondering, diagnosing, creating, and reflecting. We’re thinkers!

As an aside, some of the most successful sales people I’ve known are introverted – some even highly introverted. They are also highly professional, with a passion for helping their customers. Just like good consultants.

Selling consulting is different…

–First, you’re not selling a tangible product — you’re selling an intangible service. As such, you typically need to develop a higher degree of trust with potential clients.

Your goal is not to sell another car this month and move on — rather, your goal is to be a trusted adviser, and hopefully for the long haul.

–Second, you need to deliver what your client bought. Remember — nobody likes to be sold — but we all like to buy — so make it pleasant!

And unlike product sales, the sales process does not stop when you get the order. You still need to deliver, and your long term business success depends on how well you execute this part of the process.

My seven steps in selling…

Hundreds of books have been written about selling, and most include a simple multi-step process. I’ve read dozens myself, plus I’ve been subjected to numerous sales training classes as a former sales engineer.

Some books and classes were better than others, but all helped form my ideas.

One drawback of many of these books and classes is their focus on products. (An exception is Rainmaking Conversations, reviewed here.) Most have four or five steps, and most assume the sales process is over once the order is received.

So I decided to expand things. I’ve used the popular AIDA model (Attention- Interest – Desire – Action) and added three additional steps – Delivery, Follow-up, & Referrals.

(1) Attention (Establish Rapport) This is the initial contact phase, and the time to build rapport. It is also the time to address any client concerns or fears. These are particularly important if the client has not or does not use consultants on a regular basis.

I usually begin by asking about the problem, followed by asking how they heard about us. The latter gives me some insight into the trust level.

If it is a referral, the trust is already high. If they’ve found us on a web search, it may be lower, so some reassurance may be needed.

(2) Interest (Qualify)The next step is to determine if you can help, and can they buy. In the former, don’t be afraid to turn business away if you don’t feel comfortable with it.

If the fit looks good, ask about schedule. If asked, you can also provide a budgetary estimate (go on the high side), subject to change pending more details.

(3) Desire (Diagnose & Prescribe) – At this stage, you may be able to offer preliminary diagnosis and recommendations. If not, ask more questions.

For example, I may say, “Based on what we’ve discussed, I suspect XXX, which we’ve seen before. We can handle this several ways… ”

(4) Action (Quote) – The next step is to ask for the order! This is where many consultants fall down, due to fear of rejection. This is also known in the sales world as closing.

For simple projects, I usually just ask if they would like a quote. If they agree, I quickly review the tasks and schedule for consensus, and then provide a one-two page quote. Often, a purchase order will be issued based on the quote.

For more complex projects, we may decide on an additional meeting for further explorations. This may also mean detailed contracts, which we’ll discuss later.

(5) – DeliverTime to provide what you promised. If working on-site, show up as scheduled and suitably attired. The latter depends on your client, but business casual is usually safe. If unsure, ask ahead of time. Be professional!

Check with client as you progress – don’t wait until the end of the project to find out you were going down the wrong path. Keep the appropriate management in the loop.

An important part of delivery is getting paid. For simple projects, we accept purchase orders, For more complex projects, we may request progress payments or retainers.

(6 )- Follow up – Assuming a successful consultation, ask if there are other things you might help with.  Specific projects? General training? Don’t assume the client is aware of your other services.

As any experienced sales person will tell you, subsequent sales are always easier than the first.  Assuming you’ve done a good job, you’re now a preferred vendor/adviser.

As a minimum, get permission to add you client to your mail list for periodic follow-up. Newsletters work great for keeping in touch.

(7) – Referrals
– Ask for permission to share their name with future prospects. To protect confidentiality, we do not list clients on our brochure, but we do list past projects. If a personal reference is needed, we still call to confirm as a courtesy. (Our business can be sensitive.) Never been turned down.

Depending on your business, written testimonials are great marketing tools — particularly on your web site. And don’t hesitate to ask if there are others who might benefit from your expertise.

So now you have Uncle Daryl’s Seven Steps in Selling. We’ll examine each of these in more depth in future blog posts.

Please comment or write if you have specific questions! Happy selling…

© 2014 – 2022, https:. All rights reserved.

Setting up shop… some questions…

From the mailbag: Just last week an engineering colleague (and reader of this blog) announced he was making his own JumpToConsulting. Way to go, Glen!

His announcement e-mail also had several specific questions. After addressing them, I decided to share my comments here.

(1) Quotations & Proposals

We use a two page format. The first page defines the project and tasks, and the second contains “boiler plate” such as terms, rates, etc. That makes it easy to respond – just fill in the blanks on page 1.

Here is a sample, which we send on a letterhead:

****** Quotation ******

Client: XYZ Corp.
1234 Main Street
Somewhere, AZ XXXXX
ATTN: John Smith

Purpose: The client designs and manufacturers military doodads, and is failing MIL-STD-461 radiated emissions tests.

Tasks: The consultant, an electrical engineer specializing in EMI/EMC design and troubleshooting, will assist XYZ as follows:
— On site troubleshooting and reviews at XYZ facility in Somewhere, AZ
— Optional summary report (4-8 pages typical)

Schedule: By mutual agreement (or actual date if scheduled)

Budget: $XXXXX, based on 5 days (4 days on site plus 1 day travel time) plus estimated travel expenses of $2,500. Add $XXXX for optional report.

Please note this is a budgetary estimate. Actual time and expenses will be invoiced. Quotation will not be exceeded without prior client approval.

Terms: Net 30 upon invoice. Purchase order and advance travel retainer of $2500 prior to travel. Quotation valid for 60 days.

Daryl Gerke, PE                                                              April 3, 2014
Kimmel Gerke Associates, Ltd.
EMC Consulting Engineers

I don’t believe in lengthy contracts (keep it simple.) But if you are doing a longer term project, more detail might be needed such as progress payments, etc.

Some companies will have their own consulting agreements. Don’t hesitate to change them if there is something you don’t like.

For example, we remove any limitations on working for others. There is nothing proprietary about what we do. If we limited ourselves to one computer company/one medical company/etc. we’d be out of business in a year.

We do sign standard NDAs (Non-Disclosure Agreements) as long as they do not contain any non-compete restrictions.

(2) Business Insurance

You will probably need a General Liability insurance policy, which most companies now require. We got ours through an insurance broker – about $800/year for two of us. Your accountant or attorney can recommend a broker.

You may or may not need Errors and Omissions insurance. Also known as malpractice insurance, it depends on your area of expertise. Although we are engineers, we don’t carry O&E as our area has little risk of litigation. If we were civil engineers or architects, however, we’d carry it.

(3) Business Bank Account

You also need to set up a separate business bank account. You may need to wait until you have incorporated depending on the bank.

Incidentally, I recommend having an attorney handle an incorporation. Don’t do it yourself to save a few bucks. The attorney will recommend the best legal structure for you – LLC, Sub-Chapter S, C Corporation, etc. The attorney can also handle filings, registrations, and tax documents and IDs.

Finally, these administrative details are pretty simple. The big issue is the marketing – getting the business. But for smooth operations, now is the time to get these details in place.

P.S. Got a question? Drop me a line through the ASK DARYL page.

© 2014, https:. All rights reserved.

Hi tech shifts to independent workforce…

So says a recent article in Computerworld — Your next job, next year, may be self employment.

According to Emergent Research (a firm focused on small businesses trends) approximately one million IT (Information Technology) workers today are self-employed. This represents about 18% of the IT workforce.

Not only that, the independent IT workforce is growing at about 7% per year (versus 5.5% for all independent workers – which is still not too shabby.)

According to Steve King, a partner at Emergent, this growth is driven by companies that want to stay ahead of the game. “In today’s world, change is happening so quickly that everyone is trying to figure out how to be more flexible and agile, cut fixed costs and move to variable costs,” said King.

These statistics bode well is you have the itch to hang out your shingle – particularly for my fellow high tech colleagues. All this sounds like fertile ground for new consultants!

King goes on, “For people with skills… there is there is a lot more opportunity to find part-time employment and set up your own shop and work as a consultant and contractor than there has been in the past.”

This last comment suggests a side hustle strategy, particularly if you are not ready to go full time.That is how we made our JumpToConsulting. It is also a good insurance policy -and certainly better than depending on luck.

Personally, I’d rather my income and financial well being depend on my own skills/experience/contacts rather than on some impersonal bureaucracy. But being laid off twice in my pre-consulting career has no doubt affected my perspective.

So stick around here and I’ll share my ideas and encouragement -geek or not- on how to make your own JumpToConsulting.

© 2014, https:. All rights reserved.

Coffee with Marty@StartupProfessionals.com

Had coffee today with Marty Zwilling, of StartupProfessionals.com. It was a great time meeting with a fellow “boomer-geek-blogger-entrepreneur” from Arizona.

As the name suggests, Marty specializes in helping new entrepreneurs get started. This includes advice on business plans, funding, angel investors, patents, incorporations, and more. He also writes a daily blog, and has written two (about to be three) books.

His primacy focus is on nurturing and building small businesses that want to grow. But his site is a great resource for prospective consultants, too.

The catalyst for today’s meeting was a recent blog post One of These Days You May Not Be An Entrepreneur. Marty listed eight reasons why many never make the jump to starting their own business. The same reasons prevent many from making their own JumpToConsulting.

Incidentally, Marty has impressive credentials. With a background in accounting, he worked in high-tech most of his career. His first taste of entrepreneurial success was at IBM, when he part of the “skunk works” project that spawned the IBM PC.

From then on, he was hooked on small high tech businesses. Even after retiring, he couldn’t give it up. (See Two Cures…). First he volunteered at the Arizona State University business school, and subsequently started his blog and consultancy.

Did I mention he has over 700,000 Twitter followers? A great marketing story by itself. Considered a thought leader for startups, he also writes for Forbes and others.

We spent an hour together as we pondered and commiserated about why so many “wannabees” can’t or don’t make the transition.
Many are refugees from larger businesses, with the requisite  experience and knowledge to succeed.

So what is holding them up? Two major issues seem to be fear and perfection.

–Fear – Some people fear failure, while others actually fear success. Both stem from a fear of the unknown. As for failures, I consider them great learning opportunities. And I never trust anyone who claims that they never failed.  Either they are lying, or they were good at blaming others. (Once had a boss like that – in a startup no less.)

The secret is to face it and even embrace it. Don’t be foolhardy, but don’t let it paralyze you either. Ask “What is the worst possible thing that can happen?” Have a backup plan, but then move ahead.

–Perfection – This is a big problem with my fellow engineers. But a product doesn’t need to be perfect, it just needs to good enough. Same thing with a consulting service – you don’t need to outrun the bear – just the other guy.

In either case, you can always tweak the product/service later. Furthermore, the market will guide you in making those improvements.

Finally, overcoming the two hurdles of fear and perfectionism is not enough. But they are the necessary first steps in making a jump to any small business – consulting or otherwise!

P.S. – In a future post, we’ll cover Marty’s “success story.”

© 2014, https:. All rights reserved.

Quick advice for a newbie…

At LinkedIn (Succeed), Dave Wacker posed this question:

Any thoughts on starting a small consulting company?

Here is my reply:

Hi Dave,

Started my consulting engineering firm 30+ years ago. Part time for nine years, then went full time in 1987 – the day the market crashed. (The first day in business was the worst day in business — all the rest have been much better!)

Here are some quick thoughts:

* Identify your specialty –clients want specialists not generalists.

* Define two niches – demographic (ideal clients) and geographic (local, national, or ??)

* Based on those niches, develop three or four simple marketing strategies (write, speak, network) -you want to create credibility and visibility, and your goal is to have clients call you (think like a doctor.)

* Keep the above simple and focused – you can’t be everything to everybody, particularly when starting out.

For more ideas, visit my blog (https://www.jumptoconsulting.com) where I have just about finished a series on 20 Ways to Attract Clients. All methods we’ve used in our practice. Over 120 posts with lot’s of other free “nuts and bolts” stuff too.

Good luck, and welcome to the wacky world of consulting!

To date, 35 others have also left comments. Lot’s of good ideas being shared…

© 2014 – 2016, https:. All rights reserved.

Top 10 Reasons NOT to Become an Independent Consultant…

Still time for New Year’s Resolutions. In case your resolutions include consulting, here are 10 reasons NOT to go there. Not being negative – just being honest.

1. You dislike risk – Starting any business involves risk. To be blunt, some people simply do not like risk. Nothing wrong with that, but if risk makes you uncomfortable, you’re better off not starting a consulting practice – or any small business.

2. You don’t like to market or sell – The first piece of advice I give anyone considering consulting is to be prepared to peddle your butt off. With rare exceptions, the world will NOT beat a path to your door, no matter how smart you are.

3. You lack practical experience – Just because you just got your MBA doesn’t make you an independent business consultant. Most clients are looking for experience. So if you are a newly minted anything with the urge to consult, I recommend spending a few years with an existing firm before going out on your own.

4. You don’t know WHAT to consult about – As a variation, you may have experience but don’t know what to specialize in. Remember, most consultants are specialists, not generalists. And it better be fun – no sense pursuing something you don’t like or enjoy.

5. You don’t know WHO to consult for – You need to identify your niches, both demographic and geographic. You can always change or expand, but you better have some specific targets in mind before you start.

6. You just got laid off –
Don’t know how many calls I’ve had over the years from colleagues who just lost their jobs. NO, do NOT do this… unless you have enough money to keep you going for at least six moths without any revenues (a year might be better.) See my story.

7. Your finances are not in order – See the comment above. If you don’t have money in the bank, or someone who can support you, stick with you regular job. Then start saving – aggressively – so that you can break free later. See Mr.  Money Mustache for ideas – he “retired” in his 30s and now does his own thing with no financial worries.

8. You aren’t ready to make sacrifices – In time, money, and relationships. Like to watch lots of sports? Forget it. Like to buy toys? Forget it. Like to dine out regularly? Forget it. You need to focus your resources on starting you business. And make sure any significant other agrees with you, so that does not end up as a sacrifice.

9. You have little kids – In my opinion, not a good time to start any business, unless you have no other choice. When little, they need your love, attention, and guidance. And your spouse needs your help. Besides, they grow up way too fast. You can always start a business later, but you can never get this time back.

10. You think its cool – One of the worst reasons to start a consulting practice, or any business for that matter. In today’s culture, being an entrepreneur is often seen as cool. But it is really a lot of hard work. You better have the passion (along with the ability) to help your clients solve their problems and/or improve their situations.

Some candid advice from Uncle Daryl. Consider it a counter balance to my earlier post – Top 10 Reasons to Become an Independent Consultant.

Finally, if you still want to consult, come on in — the water’s fine. For me, it has been a 30+ year blast. Best Wishes in 2014!

© 2014 – 2019, https:. All rights reserved.

Lead Generator # 20 – Last (and perhaps least)… Advertising…

There is a reason I saved advertising for last — because (IMHO) it is just not that effective for consulting practices — particularly when starting out.

Yet advertising is the first thing many newbies want to try. After all, Proctor & Gamble uses it to sell soap, and General Motors uses it to sell cars. We’re bombarded by ads every day, so it must be the way to go, right?

Two problems with this thinking.  First, you’re selling a service, not a product. Second, you’re a small business with limited resources, not a huge conglomerate with deep pockets. Incidentally, we’ve seen large company refugees struggle with this transition.

So forget about radio/TV, newspapers, and national magazines. While you’re at it, forget about on-line consumer-oriented stuff like AdWords or PayPerClick. Think like a doctor, not like a car dealer.

Nevertheless, some advertising should be in your marketing mix. The secret is to rule out “mass market” advertising, and focus on “niche market” advertising. You’re not trying to build brand awareness for a new toothpaste — rather, you’re trying to attract the right clients to your services.

With that in mind, let’s look at some adverting methods suitable for consulting. They combine focus with direct response. Consider both printed and on-line versions of these methods.

–Space ads – Place small ads in specialty publication read by your potential clients (not necessarily by your peers.) For example, if you are an engineer looking to provide expert witness services, advertise in legal magazines, not engineering magazines.

Unless they are potential clients, avoid academic publications that are read primarily by researchers. We once made this mistake, and all we attracted were inquiries from recently minted PhDs looking for employment.

Example – We run “business card” ads in two specialty publications that serve our niche. Not every issue — usually the annual buyer’s guide and the trade show edition. If we have an article appearing in the magazine, we run a space ad in that issue too.

–Directories – Pick directories that will be checked by potential clients. Some directories are run by magazine publishers, and others by trade/professional/business organizations. Consider both types.

It is usually best to avoid generic directories such as the yellow pages, unless your market is local. When we once ran a yellow page ad, we got inquiries from copier salesmen — but no business leads.

Example – We are listed in several directories, both print and on-line. Some are free, some have a nominal charge. When offered, we pay a premium for highlighted listing.

–Direct mail – Use targeted lists, including your own. Make it response driven. Include an offer for a white paper, newsletter, etc. Avoid fluff letters that sound like press releases. If you don’t have a call to action, don’t mail it.

Consider a mix of e-mail and snail mail. The former works better for high volume and repetition (such as mailing newsletters). The latter works better for low volume messages, and may have a bigger impact. Sometimes a “real” piece of mail stands out. If using e-mail, make sure you are not spamming.

Example – We’ve used targeted direct snail-mail for 20 years for our classes. Some years we’ve sent out over 100,000 mail pieces. The is not cheap. Years ago the response rate was 1-2%, but has since dropped lower, so make sure it is worth it. While e-mail may be cheaper, our response rates have been even lower yet.

Finally, consider advertising “air support” for your other marketing efforts — NOT your primary method for lead generation. Don’t put all your lead-generating eggs in the advertising basket!

P.S. This concludes the series on “20 Ways to Generate Leads.”  The next series will be “Seven Steps in Selling,” with a focus on selling consulting services.


© 2014, https:. All rights reserved.

2013 Annual Review…

Well, another year gone by, and time to reflect.

Got this idea from Chris Gullibeau of The Art of Nonconformity. He does this each year, and each year challenges others to do the same. Great idea!

So once again, I’ll review three categories:

But first, a quick overview…

The Jump-to-Consulting project is now THREE years old. The catalysts were questions by my older son, questions by other colleagues, and a fat file for a prospective book. With today’s economy, many people are considering options such as consulting.

I was also intrigued by blogging, and simply wanted to learn more about this Internet phenomena. What better way that to just start a blog. Incidentally, that was the same attitude that got me into consulting. Curiosity, and a desire to learn.

The EMI-GURU project began 30+ years ago, and led to full time consulting in 1987. It has been great fun, and quite successful. I’ve traveled the world, and made a lot of friends along the way.

It made me both location independent and financially independent. Best of all,it allowed me to practice my profession as an Electrical Engineer in a ways I didn’t even imagine as a student or young engineer.

EMI-GURU also provides the grist for JumpToConsulting. Much of what is discussed here is based EMI-GURU experiences. The stuff I talk about is not theory — rather, this is real world and is based on 30+ years experience in the consulting business.

HIGH-LIGHTS in 2013..

Jump-to-Consulting – The blog is up to 120+ posts. Had hoped for a few more, but still proved that I can keep a blog going. No burn out, and no plans to stop.

Not many readers (it is a pretty tight niche), but it has helped several make their own JumpToConsulting. (Way to go!) So don’t be bashful — your questions and feedback mean a lot, and they do inspire me to keep going.

EMI-GURU – Not much to report here.  Although business is slow, had some interesting consultations during the year. Also taught a bunch of classes — both in-house and public. Teaching is a primary passion.

Personal – Finally finished all the patio home remodeling, so now we can just enjoy it. The final touch was the little hot tub on the private patio. Best enjoyed with some wine.

Lost over 40 pounds! Woo hoo! Now on the SEC (stop eating crap) diet, and it is working well. Combined with the workout routine, I have more energy and feel years younger. Should have done this a long time ago.

LOW-LIGHTS in 2013…

Jump-to-Consulting – Still no book, but not sure another formally published book is that important to me right now. Been there, done that. Intrigued, however, by E-books.

EMI-GURU – Business still slow, but at this stage in my life, I’m content with the business levels. Leaves more time to goof off. No desire to return to the 30-40 trips per year of a few years back.

Personal – A planned RV trip to Alaska got cancelled at the last minute, but we did have several shorter trips that were fun. One was a trip around Lake Superior, which we had not done for almost 40 years. Beautiful scenery and a very good time.

LOOKING FORWARD to 2014…

Jump-to-Consulting – Keep on blogging. Considering an E-book or two, along with offering some on-line classes. Nominal fees may be involved to offset the costs of running the site.

EMI-GURU – Continue teaching the technical classes, which I really enjoy. As an old codger, there is nothing like seeing a younger engineer (and even an old timer) suddenly “get it.”  Love to share what I’ve learned. Will still accept consulting opportunities, but will no longer actively pursue them. Happy to help when I can.

Personal – Spend time with the grandchildren, along with reading, writing, and more travel in our little RV. Stick with the weight loss program – this is a lifestyle change, not a diet. Goal is to lose another 60 pounds so I can join the centennial weight loss club.

Wishing you all the best in 2014! And THANK YOU for reading my blog.

© 2013, https:. All rights reserved.

Lead Generator # 19 – Gimmicks

Generally not in favor of gimmicks here – thing like coffee cups, key chains, T-shirts, etc. Frankly, I’m not sure they are appropriate for most consulting practices.

But the RIGHT gimmick can be an effective marketing tool, as long as it is practical and useful.

Planning calendars are a good example — and they keep your name out there all year. I’ve been the recipient of desk planners and pocket planners, and appreciated them both. And when using them, I was always favorably reminded of the calendar donor.

While we’ve not given out calendars ourselves, we have used two other gimmicks with success. Both are useful, and one even includes a bit of humor. Neither is expensive, and both are keepers — having a much longer potential life than calendars.

Useful Bits of Information (UBI) – This is a three fold mini-brochure that fits a shirt pocket. The inside panels contain several tables of engineering information relevant to our business, while the outside panels brief descriptions of our services and backgrounds. Most important — both sides contain our full contact information.

Our fellow engineers love stuff like this (and we do too.) While our business cards may get tossed, UBI may be saved for years. If/when a need for our help arises, the contact information is readily available — including our toll free 800 number.

UBI was conceived many years ago as an inexpensive handout for talk at a trade show. When people began stopping us in the halls to get their own copy of UBI, we knew we had a winner. We now hand these out with our business cards, and also in our classes.

To date, several thousand UBIs are out there, silently marketing our services while helping our engineering colleagues.

EMI-GURU Button – This is a two inch metal button one can wear. It is bright red, like the Staples “Easy Button.” Since we were first, we’ve often joked that Staples must have copied US :-).

Our fellow engineers like this too. After all, who doesn’t want to be a guru? Like UBI, the button gets saved. We’ve even seen them pinned on cubicle walls – advertising our services to other engineers at the same time. More silent marketing.

A narrow white border has both our web site (WWW.EMIGURU.COM) and our toll free phone number (1-888-EMI-GURU.) As an aside, ALWAYS include your contact information on ANY marketing materials.

The button was conceived as a handout at a show to announce our website and phone number. Like UBI, we knew we had another winner when people were stopping us in the halls. Appreciating the humor, we even had several of our friendly competitors wearing our button.

Incidentally, the button was instrumental when we trademarked “EMI-GURU”, as it established legal proof of the use of our trademark. Or so our lawyer explained. We also pass out the buttons in our classes, making our students “deputy EMI-GURUs.” Good fun.

So don’t overlook gimmicks, but do make them useful or fun. Most important, they can generate leads when you least expect it!

© 2013, https:. All rights reserved.

Lead Generator # 18 – Collaborate…

“No Man is an Island…” beings a poem by John Donne. Written almost 400 years ago, it is still true today. True in life, and true in your own consulting practice.

In this post, we’ll look at leveraging your business by collaborating with others. We’ll examine several facets of collaboration — marketing (lead generation), production (joint projects), or a combination of both. We’ve done all three over the years with success.

-Marketing Use joint efforts to promote your businesses. These can be simple, like cross referrals on web sites or guest blog posts. They can be more sophisticated, like forming a group to provide cross marketing. An example of the latter is the Forensic Group, a local engineering group in Arizona who help each other as expert witnesses.

-ProductionCall in colleagues for help. Maybe you get the huge job, but can’t handle all of it or don’t have all the necessary expertise. A common example is the remodeling contractor. While the contractor may do much of the work, he/she calls in preferred plumbers, electricians, or concrete finishers to take care of special tasks.

-Combo marketing & productionThink temporary  partnerships. That means the relationships don’t need to last forever, but they do need to benefit all parties involved. These are often complimentary businesses, but can even include friendly competitors.

Here are several examples of successful collaborations for us:

  • Teamed with TUV Product Service (a local test lab) on a mini-trade show. Started in 1986, the annual Minnesota EMC Event is now 26 years old. It was our fist collaboration, and gave both firms great visibility in our local MN market.
  • Teamed with Tektronix (a large test equipment manufacturer) on public training seminars. Started in 1993, this successful partnership is now 20 years old. This gave both firms national visibility in our specialty.
  • Teamed with EDN (a major engineering magazine) on a 100 page design guide. Not only did we write all the content, but we helped solicit the advertisers. As a result, it was highly successful for the publisher. And with over 130,000 copies, it gave us worldwide visibility and credibility. The guide eventually became a book, which we now sell on our website and hand out in our classes.
  • Teamed with a consulting colleague on a specialty web portal. This turned out to be a poor fit for our consulting businesses, but it was good fit for a magazine publisher who subsequently purchased it. For the publisher, it was a make or buy decision, and we had already done the heavy lifting.
  • Most recently teamed with the Applied Technology Institute on a specialty class. ATI specializes in technical training programs for the military/aerospace market. We tailored an existing in-house class for their market, plus they promote our existing public classes. Definitely a win-win for both firms.

Don’t want to mislead you — all of the above involved substantial efforts. Yet they have all paid off rather nicely. As with most marketing efforts, be prepared to a lot of work.

Here are some additional do’s and don’ts on collaboration:

  • DO seek a win-win-win – You must benefit, your partner(s) must benefit, and your clients/customers must benefit. The benefits need not be purely financial. Increased visibility alone may justify collaboration, particularly when you are starting out.
  • DO get something in writing – We prefer a memo of understanding. You don’t need a formal contract (which may mean lawyers), but you do need to document the relationship and expectations This is particularly true if money is involved — who does what, costs, and profit splits.
  • DON’T call up and ask for overflow  business – This is begging, not collaboration. We occasionally get these calls, and frankly find them rather annoying. Bring something to the party first.

Finally, collaboration allows small firms to leverage their strengths and multiply the results. Just make sure there are benefits for everybody!

PS – Fellow Arizona blogger Pam Slim (Escape From Cubicle Nation) offers a nice on-line class on collaboration. Check it out here.

© 2013 – 2020, https:. All rights reserved.

Should you guarantee results???

That question was recently posted at Consulting Success, a useful blog for aspiring and practicing consultants.

While Michael Zipursky recommends offering a guarantee, I don’t fully agree. YES for products. but NO for professional services. Here is my partial reply:

As consulting engineers, we do not guarantee our results. Lawyers do not guarantee you will win the trial, and doctors do not guarantee you will get well. We do, however, promise to provide our best professional advice.

For us, it is about setting expectations, and being brutally honest about it. Like a doctor, we can not to assume client’s “disease” — all we can do is try to help. If a potential client can not accept that, then we’re both better off not doing business in the first place.

Finally, we do offer a “no questions asked” guarantee for our software and printed materials. But not so for our time and advice.

Over the years, we have had a few potential clients “insist” on a guarantee. (Often the lawyers trying to shift the risk to us.)  When we explain our policy, most agree and we do business. Those that don’t agree, we turn down.

Incidentally, prospective clients who ask for a guarantee raise a flag with us. It suggests they are either a bit naive about electronic product design, have unrealistic expectations, or are on shaky financial ground. It is just good business to resolve such issues prior to providing consulting help.

A quick example. A prospective client once asked us to guarantee they would pass a government required test. A marketing shell, they had outsourced both the design and manufacturing overseas. As such, we would have no control over the implementation of any recommendations we made. We quickly passed on that one — a potential nightmare!

The bottom line – we do NOT guarantee results for our consultations, but we DO guarantee our products. After 26 years in full-time practice, that policy works for us.

P.S. If you have not visited Consulting Success (formerly Business Consulting Buzz), I recommend doing so. Although it focuses on management consulting  rather than technical consulting, I find it useful and interesting.

© 2013, https:. All rights reserved.

Rating your clients…

Do you treat all clients the same? That question was posed recently on Succeed, a small business forum on LinkedIn. Always ready to share my opinions, here is the answer I posted there.

Like so many have said already, we strive to treat all our clients with respect. But in reality, some clients are better than others.

So, we divide our clients into three categories: A, B, and C.

Everybody starts out on the “A- list”, regardless of income potential. Size doesn’t matter. We’ve had small clients turn into large clients and/or great referral sources.

— Those who pay promptly and are pleasant stay on the A-list.

–Those who pay late drop to the B-list.

–Those who pay REALLY late or are difficult in other ways drop to the C-list.

Since much of our business is repeat business, it helps us prioritize our responses. Most of our clients are a sincere pleasure to work with. As for very few who are not — well, life is too short to put up with them.

Some further clarification. Just because they look like a good client does not make them one. Over the years, we’ve had to move a couple of well known companies to the C-List. Usually the problem lies with the bean-counters, not our direct clients.  But getting paid on time is important – and it shows appreciation and respect for your work!

Take care of your GOOD clients — and they will take care of you!

© 2013, https:. All rights reserved.

On “firing” clients…

Here is a reply I posted over at RainToday.com on an article by Michael W. McLaughlin titled “Should You Really Take On That Client?”

In my 30+ years as a consulting engineer, I’ve had to “fire” a couple of clients. Like you, I apply the “life is too short” rule to put up with deadbeats or bullies.

The first firing was actually a long term client who kept delaying payments. Although I enjoyed working with them, it was frustrating getting paid, so I eventually dropped them. Not long after, they went bankrupt, stiffing many vendors for thousands of dollars. Fortunately, I was not among those who suffered a loss.

The second firing was a short term client who apparently had anger issues. A VP of engineering, he bullied his employees. When he swore at me over the phone because he did not like my approach to his problem, I simply suggested he find another consultant. Ironically, the proposed solution would have worked – I had solved that problem before.

However, most of my clients have been great to work with, and a few have even turned into long-term friends.  It is tough to turn down business, but sometimes it is the best course of action.

The bottom line – not every client is the right client. Mr. McLaughlin’s article covers seven things to consider before taking on a project.

© 2013 – 2019, https:. All rights reserved.

Questions from a CPA trying to break free…

This question was posted recently on LinkedIn. Can’t help myself … I just had to jump in… marketing a consulting practice is a favorite topic!

I am a CPA who would like to would like to own my own CPA firm, but clients have been hard to come by.  Any ideas on a proven marketing program?

Here is my reply:

Yours is the first question asked when people find out I’m an independent consulting engineer. But after 30+ years in business, I’ve concluded there is no “magic bullet” or “proven marketing program.”

But don’t despair – you can do it as many have before you. It just takes time and effort.

One big advantage you have is a professional license, in an area where almost everyone can use your help. The big questions are WHO do you go after, and HOW how do you reach them?

The key is to focus. You need both strategies and tactics.

STRATEGIES — Try to define your ideal market(s), subdividing into niches. For example:

  • Business (B2B) or personal (B2C)?
  • Local or nationwide?
  • Special services like tax, audit, financial planning, estate planning, or???
  • What about specialty markets, like accounting for medical practices, or??? (Heard of one accountant who specialized in homeowner associations, and owned his local market – now that is a clever niche.)

TACTICS – Its all about credibility and visibility. That can be done through:

  • Speaking (such as local professional groups)
  • Writing (focused tutorial articles or white papers)
  • Teaching (adult education,seminars, webinars)
  • Networking (LinkedIn of course, along with cultivating live contacts.)

It won’t happen overnight, but it is worth it. Pick a couple and start working on them.

Incidentally, many of these can be done while you are still employed. We spent several years “laying pipe” before breaking free in 1987. Even though the market crashed (the very first day in business!) we still survived thanks to those previous efforts.

So it is doable, but it takes work. Is it worth it? I certainly think so – no regrets here!

Several other replied, but here is my favorite, from Carl Harrington, another tax accountant. Great nuts and bolts advice – my favorite kind.  These ideas apply to other disciplines too.

Couple of brief comments based upon my myopic view.

1. People don’t want to pay CPA’s to do the tax work because they didn’t want to pay the taxes in the first place.

2. Many people don’t understand the limited FAT privilege. The people who need you the most (in trouble) can’t hire you or share with you as you are not privileged. I would target every tax attorney in town and offer assistance, to come and meet the client at their office as part of their virtual staff or under a kovel letter. I would do this for free, or else you are not helping to facilitate their employing you.

3. You have a great chapter 9 going on in Detroit, probably with enough accounting and audit work for 30 CPA’s. Have you scoped it out yet? Why not? That work is not only huge, it would be fun too. They are re-negotiating thousands of contracts…..

4. Start volunteering with VITA, Start volunteering with public law firms who do things for indigent people. Soon your reputation will precede you. Go to small business meetings, become a volunteer for SCORE and other similar organizations. Teach classes on tax and accounting. Teach areas of taxation for attorneys, CPAs and EAs.

5. Shadow the local CPA; EA; TAX ATTORNEY meetings. Look for office space opportunities (a) to find what’s out there, (b) as a pretext to meeting new people.

6. Get the tax prep software (demos) and become familiar. Take free training from Drake etc. Get all your computers organized to go into business and clone everything so that you will have backup.

You will have a lot to do, and you will be able to open the CPA office “naturally” as you become so in demand that it is the greater of your choices.

Get busy and sustainedly busy before you launch.

Lot of work to do this……no time to slack off…….but you will be in demand…..

Of course, I invited Max and the others following the discussion to visit us here.

If you are one of those readers, welcome.  If not, you are also welcome!

© 2013, https:. All rights reserved.