General Consulting

Lead Generator #17 – Sales Agents & Reps

Using a sales agent sounds like the ideal method for those who don’t like sales and marketing. Just pay someone else to do it, right?.

Unfortunately, nobody cares for your business like you do, so I do NOT recommend this as a primary source of business. To be blunt, if you are not ready and willing to market and sell, you are not ready to start a consulting practice!

But done correctly, agents and reps can generate incremental business. It has worked for us, and we are even included on one manufacturing rep’s line card. We are also listed in a training catalog. While neither is a major source of business, it is still good business and much appreciated.

Here are some comments on dealing with sales agents and reps, based on my 25 years as a full-time consultant — 7 years as a field sales engineer — and 2 years managing independent sales reps.

  • Synergy – Look for someone already in your market niches. For example, both our rep and our training firm serve the same business niches we do. They are already in front of the right people, so it is easy for them to offer our services as an add-on.
  • Share of mind – Good sales people are busy. Keep in contact — out of sight, out of mind — but don’t overdo it. An occassional e-mail or phone call will suffice. If/when the opportunity arises, offer to buy them lunch or dinner (or even a beer.)
  • Support – Good sales people value their time. It is a precious resource. Make it easy for them — provide materials, answer questions, and follow up right away. And don’t be bossy — rather, ask what they need and how you can help them.
  • Payment – Good sales people are motivated by money. Don’t expect things for free. We pay commissions as follows:
    –10% on a lead. We follow up, close the business, do the work, and bill the client.
    — 20% on a purchase order. We do the work and bill the client.
    — 30% on paid business. We do  the work, then and get paid for it.
    Our payments are based on fees only, but not expenses. They get paid when we get paid. And we mail their check out right away — no delays.
  • Agreements – You need an agreement or memo of understanding that spells out terms and responsibilities. Keep  it short, but it must be signed by both parties.

So how do you find a suitable sales person? Network and cultivate contacts.

A good place to start is trade shows. Ask companies in your market place who they use. This is particularly useful if you are targeting a specific locality. Most people will share this, as long as you are not seen as a potential competitor.

Another good place is professional organizations. That is how we met our manufacturer’s rep, along with several clients. Local  chapters are particularly effective — they are like watering holes where everybody regularly meets to quench their business thirsts.

What kind of sales person are you looking for? Briefly, here are four classes of sales personnel:

  • Reps – Also known as manufacturer’s representatives. These are often small independent sales organizations who focus on both a business niche and a geographical niche. They usually operate on full commission, do not carry products for sale, and are paid upon sales/delivery. We are on the “line card” of one rep who serves our business niche.
  • Resellers – Like reps, there are often smaller firms that specialize in marketing services to specific business niches. One example is firms who match-make expert witnesses with law firms. Another is training catalogs, a method we use. Like a rep, both make their money upon the sale.  (Unfortunately, there are charlatans who want advance payment — my advice — don’t do it.)
  • Distributors – These are usually larger organizations, but may also focus on business niches. They usually carry products for sale, and may offer ancillary services. The latter is where you may fit as a consultant, particularly if you serve a special niche. We’ve done business this way.
  • Field sales – These are full time company employees, and likely can not represent you, but may provide contacts as they have a lot of visibility into their territories. I was a field sales engineer (Intel & Tektronix) for seven years, and often passed along leads to consultants as a courtesy (no fees.). In return, they advised me of potential sales opportunities.

Don’t overlook other professionals or similar businesses. Depending on the business, fees may or not be the norm. If no fees are involved, do your best to return the courtesy. Don’t take without giving back.

Finally, avoid conflicts of interest. As Registered Professional Engineers (PE), we do NOT pay fees to non-sales organizations, nor do we accept fees for referrals. Neither are allowed by our rules of professional ethics.

We do pass leads and recommendations along as appropriate, and we make sure our clients understand that no money changes hands. Keeps it clean and simple.

Hope his has given you some ideas on how you might use existing sales organizations. But you still need to do the bulk of the sales and marketing yourselves — at least if you want to stay in business!

© 2013, https:. All rights reserved.

Consulting as a Side Hustle…

Thinking about consulting, but not ready to go full time? Then consider consulting as a side hustle. You will learn a lot, and it will be much easier if/when you make your full-time JumpToConsulting.

First heard this phrase back in 2010 from fellow Arizona blogger Pam Slim at Escape From Cubicle Nation. I’ve sung her praises before, and will continue to do so. Unlike too many Internet bloggers/marketers, Pam is the real thing —  genuine, caring, and full of great advice and insights on starting ANY business.

But enough of the accolades. When I heard the term, it immediately resonated — for that is exactly how I got started in consulting over 30 years ago. Not ready to jump in full time, the part time route was a great way to test the waters to see if I would even like consulting in the first place.

The side hustle also brought in some extra bucks. With two kids at the time, any extra moolah was welcome. It even provided a tax shelter of sorts, by investing profits in some new fangled personal computers. (Have we come a  long way from that first Apple II…)

But most important, the side hustle provided a place to try ideas. Some worked, and some didn’t. The biggest disaster was a foray into computer seminars — but I learned an important lesson about barriers to entry. The biggest success was learning how to market consulting —  different from most traditional businesses.

So what was the original side hustle? We began teaching adult evening electronics classes at a vocational school (now part of the University of Minnesota system.)  My business partner had just started, and recruited me when another instructor had to drop our at the last minute.

Although I never taught before, it sounded like an interesting challenge. The challenge turned out bigger than expected, but I survived (as did my first students.) Actually, we all learned together, and my class reviews were positive.

That following spring, the school asked for help in organizing their evening electronics curriculum (a bit of a mess.) Recognizing an opportunity, we submitted a proposal. We had just  recently attained our PE (Professional Engineer) licenses, so we felt a nominal fee was warranted. We called ourselves Kimmel Gerke Associates.

The school jumped at it. When the dust all cleared, we probably earned a few dollars an hour. But we had tasted blood, and we had our first job under our belts.

We did many subsequent projects for the school (at improved rates). These included developing/presenting on-site training for several local companies (anybody remember BASIC?) The capstone was winning a state grant to develop a multi-year program on printed circuit board design, which was a nice chunk of change.

Other consulting projects began to emerge too. We were approached by a local county medical society to help them select a computer system. A small manufacturer asked us to develop a marketing white paper. Our side hustle was starting to generate some serious side income.

So why didn’t we break free? Well, actually I did — for three months. It took that long to realize I still needed to learn a LOT more about consulting, and I also needed to have a LOT more money in the bank.

Back to the corporate world I went, sadder but wiser — and also more determined that ever to make my own JumpToConsulting. It finally happened several years later, but it might never have happened without the original side hustle.

What about YOUR side hustle? Here are some things to consider:

  • Do you enjoy it? No sense doing it if it isn’t fun. After all, it is YOUR hustle.
  • Can you make money at it? The  bottom line.  But if your are not sure, a side hustle can be a good way to test a market without risking everything.
  • Any conflicts of interest? This is both an ethical issue, and a practical issue. Not a good idea to risk you day job over a side hustle. Keep it legal too.

Make a list of possibilities. A good place to start is Pam Slim’s original post, “What’s Your Side Hustle?” Be creative, and add your own ideas – even if the seem esoteric. Who knew there was a market for a couple of Electromagnetic Interference engineers?

Finally, give some thought to WHO your potential clients are, and HOW you would reach them.  This is called marketing — the linchpin of small consulting practices. No clients — no business.

Hustle on!

© 2013, https:. All rights reserved.

Lead Generator # 16 – Referrals & Testimonials…

No doubt about it, referrals are a leading source of leads for established consultants. But how do you get leads and testimonials when just starting out? Simple… ask for them!

Yes, I know that asking for something scares a lot of people. What if they reject you? Don’t worry — most people won’t. If they know you and like you (and your work), they will be happy to help.  Who doesn’t like passing along a favorite doctor, accountant, mechanic, or even a restaurant?

And if they do turn you down? So what – just move on. Incidentally, this often happens if you deal with sensitive issues. But you still may be able to get a passive referral.

The secret is to make it as easy as possible for others to help you. In this post we’ll look at several avenues — active referrals, testimonials, passive referrals, and references.

Active referrals –  You’ve just finished a project for a client, and they are pleased. This is the ideal time to simply ask “Do you know anybody else that might benefit from my services?  If so, can you share their name?”

Next, follow up with a short letter to the referral. I prefer this to an e-mail (which can end up in the spam folder anyway) or a phone call (which can be intrusive.) Mention the referral source, briefly introduce yourself, and include your brochure and business card. Invite them to visit your web site.

You don’t have a brochure? See my post on collateral. A simple three fold brochure is ideal — keep it simple. You don’t have a web site? Well, what are you waiting for?

About a week later, follow up with a brief phone call to verify receipt. Don’t push. If you have a newsletter, ask if you can add them to your mail list (the polite thing to do.)

This may not lead to immediate business (and probably won’t), but it does plant a seed for future business. And it only takes a few minutes, and the courage to simply ask.

Once in a while, though, you’ll get some immediate work. So keep at it — particularly if you are just starting out.

Testimonials – This is a variation on referrals that can be very effective. In this case, you ask if your client would be willing to endorse you on your web site.

You need to do the leg work. Write up a two or three paragraph summary of the project, and what was accomplished. Be specific. Did you solve a vexing problem? Did you increase sales or reduce costs?

Make it simple for the client – don’t ask them to write the summary – it will likely never happen. But do have the client review and approve the testimonial prior to publication. No embarrassments that way. Ask for a personal comment or two.

In some cases, the client may be uneasy with a live testimonial (complete with their name & company.) The fact that they have used a consultant may be sensitive. We run into this in our engineering practice, and often sign nondisclosure agreements promising to keep the consultation private.

The alternate is a anonymous testimonial. You write this, but keep it general so nobody can identify the client. However, try first for a live testimonial — much more effective.

Passive Referrals – Similar to active clients, these are non-clients who can still refer business. These include friends, business/professional colleagues, vendors, and more.

If you haven’t done so, you need to develop your networks. It is important to keep  in touch with these contacts. We’ve found our newsletter to be very effective.

We also spend time with the vendors at conferences, and support them whenever we can. Sales people are an excellent source of leads, as they are in the marketplace every day.

Should you pay for referrals? It depends (see my recent post on Referral Fees.) To avoid conflicts of interest, we do not pay (nor accept) referral fees from clients or colleagues.

We do pay fees to bona-fide sales/marketing companies. These include a manufacturer’s rep (we are on their line card) and with training firm (we are in their catalog.)  All other referrals are exchanged on a courtesy basis.

Incidentally, most of our engineering business now comes from passive referrals, along with former clients and students. But we’ve been at this full time for over 25 years – one of the few benefits of getting older 🙂

References – The  most generic, a list of references can be effective. But if you are just starting out, you may not much of a list. As your business develops, however, you’ll want to include a list of references.

Many consultants include a list of client names (thinking the more names, the more impressive.) If you do this, make sure you have everybody’s permission first. Many companies are very sensitive about their names appearing in your marketing materials. You don’t want to hear from anybody’s legal department.

My recommendation – don’t use client names. Instead, use a project list. Most prospective clients don’t really care who you have worked for — they care what you can do for them — and what you have done in the past.

A project list does this, and protects client confidentiality. It also sends a subtle message that new clients will be treated the same way. Here is our project list.

What if somebody wants a live reference? We will provide them, but only after first contacting the prospective reference. To keep it simple, we usually provide two names.

When starting out, you may need to have some names ready to go. After all, you are still an unknown. This will diminish as you become established.

In closing, referrals and testimonials are very effective… and should be an integral part of marketing  your practice and generating new leads. Keep at it, as referrals become even more effective over time!

© 2013 – 2016, https:. All rights reserved.

Consulting as a Path to Financial Independence – Part II…

In my last post, I discussed how consulting eventually led me to Financial Independence. The primary focus was prior to making my JumpToConsulting. In this post, I’ll elaborate on things done at and after my break for freedom.

First, I put away a startup stash. This is key, as there is nothing worse than having to give up too soon because you’ve run out of money. In my case, I had enough for six months with no revenue, or a year with half revenue.

Although I was pretty sure I’d make it this time (after a false start a few years earlier), a safety net still made sense. That also made Mrs. JTC more comfortable, although she was behind me right from the start. Plus as an engineer, it is always good to have a Plan B.

As it turned out, we never really needed to dig into the startup stash. Thanks to all the plans and a couple of startup contracts, we ran in the black right from the start. And although I stepped out first, my business partner was able to join me in a few months.

Next, we watched our income/outgo like a couple of hawks. No fancy offices – we both used spare bedrooms in our homes. No fancy cars either. Neither were really necessary, as most of our business was on-site, and often out of town.

Each month we would review both our bookings and our billings. The latter is really important for cash flow. Unfortunately, clients often delay paying (particularly their smaller vendors), so you need to stay on top of your receivables.

We did spend money on necessities, such as collateral (business cards, brochures, etc.) but even then we did not overspend. No fancy multicolor brochures — just two colors (blue and gray) on gray stock. We did hire a graphics artist for a logo and typesetting, and it all turned out very professional looking.

After two years, we set up retirement accounts. By that time, we knew we were going to make it, and the income was more predictable. Our accountant suggested Keogh plans, which let us put away up to 25% of our income in tax deferred accounts.

To even out the personal cash flow, we both drew modest salaries – about 80% of our previous corporate salaries. This forced us to be frugal, and helped maintain a cushion in the business account for slow months. It also assured that the Keogh funds would be available at year end.

Any additional profits were distributed as a bonus. Since we were a Subchapter S corporation, these were not “retained earnings” so we paid taxes on the bonus. These funds were put into our regular savings/investments.

At our accountant’s advice, we eventually hired a “fee only” financial advisor. Good thing we did — when the market went sour, he minimized our losses. That lets us focus on making money, while he manages it. Like us, he is a professional who knows his stuff and does his job well. We consider it money well spent.

A word of caution! You need to discuss these issues with financial professionals – your accountant, attorney, and financial advisor (if you have one.) The laws are constantly changing, and unless you are a financial professional yourself, you need their advice. The last thing you need is to tangle with the IRS.

Finally, we didn’t win the lottery — our incomes were comparable with corporate salaries for engineers, plus a reasonable profit for our risk. It was the combination of regular savings in the tax deferred retirement plan plus self-enforced frugality that eventually led to Financial Independence.

You can do it too, and you don’t need to be a consultant. But you do need to exercise some financial discipline and planning. Trust me, it is worth it! Good luck…

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

Consulting as Path to Financial Independence…

Since it is the Fourth of July, a rant on independence seemed appropriate. After all, it was my overwhelming desire for Occupational Independence that got me into consulting in the first place.

When I started my consulting practice, I was NOT Financially Independent (FI) — which I define as being able to quit one’s job and live off one’s investments. That came later. But the consulting practice put me on the path to FI.

There are two ways to achieve FI save/invest more, and spend less. When your investment proceeds equal or exceed your cost of living — viola — you have become FI.

That doesn’t necessarily mean you quit working — but it does man you no longer need to do so. It happened to me after a few years in my own business. One day, reviewing my finances, I realized I was there. Trust me, it is a great feeling!

With a wife, two kids, and a mortgage I had been locked into a job like so many others. As an engineer, the job was good and paid well. But having grown up less than affluent (my dad died when I was a teenager) I had learned to be frugal. For somewhat similar reasons, so had my wife.

No, we were not paupers. We lived in nice houses, but they were always less expensive — and ostentatious — than many of our peers. We drove decent cars, but most were used — and we drove them into the ground.

We took fun vacations, but many were with a used tent camper — no  expensive ski trips or cruises for us. (We did go to Hawaii and Disneyland a couple of times — on free frequent flyer tickets.)

We remodeled, repaired, gardened, and generally had a good time. Because education was important to us, we sent both kids to college, where they graduated debt free. Savings, scholarships, part time jobs, and state universities all helped there.

We did stash other money away. At first, it was not enough to become fully independent. But it was enough to make my own JumpToConsulting in 1987. I figured the start-up stash would last six months with no income, and a year or more with any business at all.

As it turned out, the stash was more than enough. As an aside, I had tried this once before, without enough stashed away. After three months, I threw in the towel and went back to work at a regular job. The second time, however, I was better prepared (and wiser for having tried the first time.) More details here.

Starting any business (consulting or otherwise) does focus you financially. Resources are scarce, and you can’t squander them. You carefully evaluate purchases, and you make tradeoffs. You do NOT waste money!

Incidentally, Warren Buffet did the same thing — even as a child he often traded spending a dollar today for ten dollars in the future. I guess he has done OK.

On a smaller scale, Mr. Money Mustache (a fellow engineer) retired at age 30 by following the same practices. Actually, he didn’t really retire —  he now just does what he wants to when he wants to, but with no financial  worries.

Hop over to his blog to learn more– lot’s of good practical advice backed up with engineering data and mathematical “rules of thumb.”

  • I particularly like his Rule of 752 — save a dollar a week today, and in ten years you will have $752. For monthly expenses, use 173.
  • Another rule – save 50% of your income — and retire in 17 years. Better yet, save 75% and retire in 7 years, which is what MMM did. Yes, it is doable – you just need to do it. (Kind of like dieting… down 20# here in the last six weeks… perhaps a future post?)

Finally, consulting is just one of many paths to achieve FI. By being financially prudent, living beneath your means, and stashing away as much as you can, you too can become Financially Independent.

Happy Independence Day! Start today, and you’ll get there a day sooner than if you wait until tomorrow!

P.S. See more details in the next post – Financial Independence – Part II .

© 2013 – 2018, https:. All rights reserved.

A question on workshops…

Here is a question from Cheryl at the Business Consulting Buzz group:

Has anyone had luck at using workshops as a sales tool?

I am considering this in my area at no charge to increase my client base. Has anyone been successful doing this? If so, what have you found to be the best time of day for larger attendance?

Does anyone think this is a really bad idea?

And here is my comment:

Cheryl — I think workshops and seminars are a great idea! They have been a major marketing tool in our engineering consulting practice for the past 25 years.

I agree with Bob Richard regarding conferences — always good to have a sponsor. We started with free workshops (1-3 hours typical), primarily at technical conferences. This provides a ready audience of highly qualified prospects (both interested in the topic, AND able to get money to go to a conference in the first place.)

Later, some of these grew into paid offerings, although we still do the freebies. In fact, the paid seminars now generate a significant part of our revenues. Over the years, we morphed from a pure consulting firm into a consulting/training firm.

Along with conferences, don’t overlook talks/workshops for local organizations (monthly chapter meetings, etc.) Just make sure you are talking to the right people with the right topic.

Two final final bits of advice:
— Keep is simple. You are not trying to impress your peers, but rather you are trying to reach those who need your help. Think tutorials.
— Don’t sell. Nothing turns people off quicker than a sales pitch. Deliver useful information. The acid test for us is “Even if we never do business, has this session been helpful?”

More details right here at JumpToConsulting – just check the archives under Marketing.

© 2013, https:. All rights reserved.

Question on Referral Fees…

Should you pay referral fees? That question was recently posted at LinkedIn on the Business Consulting Buzz group:

Referral Fees for Independent Consultants?

Interested in your opinions: As an independent Consultant, would you be willing to pay and/or receive referral fees?

Here is my reply:

As consulting engineers, we are concerned that referral fees might be perceived as conflicts of interest. As such, we do not accept (nor pay) any fees from the vendors serving our technical community.

When asked for vendor recommendations, we give clients at least two. If asked for our preference, we will share that with an explanation. Our vendors understand that no fee is expected, but we hope that the courtesy of a recommendation will be reciprocated.

We do, however, pay a referral fee to marketing partners for consulting business. These currently include a manufacturer’s rep (we are on their line card), and a training firm (we are in their catalog.) We also have agreement letters in place.

The percentages vary from 10 to 30% of the fee, depending on the effort. 10% is for a qualified lead that we pursue/close; 20% for a purchase order; and 30% for collecting the payment and sending us a check for our share. We pay referrals only when we get paid, and only on the fee (not expenses, as we do not mark up client expenses.)

Also, we don’t partner with consulting colleagues. We tried sub-contracting for a while, but it was more hassle than it was worth. When appropriate, we simply pass along leads with no strings attached. We make sure our clients understand that no money changes hands on referrals, and that we are out of the loop. In other words, we passed along a name — please make your own business decisions.

Hope this helps. Feel free to contact me. Been at this consulting gig 30+ years, happy to share, and still learning…

If you are on LinkedIn, you may want to join this group. If you are not on LinkedIn, what are you waiting for?  LinkedIn is where the professionals hang out.

© 2013, https:. All rights reserved.

Question on fees…

As a follow up to an earlier post on LLCs, reader C asked about fees. Here is my response:

Hi Daryl,

Thanks for the advice on LLCs…

Another quick question — how do you go about setting up your fees?

C

Hi C,

Glad my advice helped. Still remember the questions I had many years ago and how others helped me.

Ah, fees. The number two question I hear, after “How do I get clients?”

I plan to do some detailed posts on fees, but here are some quick comments:

– Three popular methods are hourly/daily, project based, or value based. Starting out, you’ll likely use a combination of hourly/daily and project based fees.

– You will need to establish an hourly rate for internal use. It is also helpful when someone just wants a few hours of your time. For longer term projects, you want to move into project based fees.

Most people want to know a project estimate, not your internal billing rate. Think like a remodeler — how much will it cost to redo my bathroom? Not, how much do you charge by the hour?

– Incidentally, value based fees are great if/when you can get them. I think they are better suited for management consultants, where you can charge based on anticipated ROI.

This is a bit harder for technical consultants, which is where you would seem to fit. In those cases, most people want a solution to a specific problem, and want an idea of the overall project cost.

– Back to the hourly rate. You fee should include your salary, overhead, and a profit.

For a very quick estimate, take your existing salary and multiply by 2. Then add a profit of 20% — after all, you are in business and entitled to a profit. These numbers are typical of many businesses today, and should put you in the ballpark.

As such, this is what it would cost a client if they hired you outright (except you get the profit…) These figures can be refined, of course, but are a good place to start.

So, if your salary is $100,000/year, figure $240,000. Divide that by 261 days, and you have a daily rate of  $920/day or $115/hour. This is a MINIMUM — if you work for less than this, you might as well stay employed.

Even if you are part time, you should shoot for this as a minimum, as the market already shows you are worth this to an employer. You can use this rate to estimate project costs.

– Another method is to ask others in your business area. Most consultants will share that info if they don’t see you as a threat. You can also often get that info through professional organiztions.

Once you get a range, shoot for the 1/2 to upper 2/3 point when starting out. You want to be neither too cheap nor too expensive.

Whatever you do, do NOT lower your rates to buy business. A client that buys solely on cost is NOT a good client, and often more trouble than they are worth. (Incidentally, that is a little experience speaking there.)

– If you can charge more, then by all means do so. You do need to charge a premium for short term projects, as your down time and marketing costs are higher.

For example, we do a lot of short term (week or less) projects, so we charge about double what long term consulting or contract engineers charge.

We also charge a premium above that for training projects. Occasionally I’ll get a pushback, but I point out that we “hit the ground running.”

– If you are bidding projects, you need to spell out very specifically what IS covered and what IS NOT covered. You can always do extra work, but only for an extra fee.

Along that line, if someone wants to negotiate, NEVER reduce the fee without reducing the scope. Sometimes people are just fishing around (particularly if you are new,) so hold your ground.

If they do agree to a lower scope, that is fine — maybe they truly don’t have the funds to do everything they wanted to do in the first place.

Anyway, hope this helps. Looks like I have the makings of another blog post here 🙂

Best Wishes,

Daryl

Thanks for the response and all the great information. I’ve got a lot to think about and get prepared.

C

My pleasure.  Stick with it – I’m sure you will do well.   — Daryl

P.S. To my blog followers:

–If you have a quick questions, please drop me an email – which may get answered in a future post (disguised of course.) NO CHARGE for brief questions – they make great post fodder! Plus I simply enjoy hearing from my readers.

–If you want in-depth personal help, I’ve decided to add individual “telephone advising” for a nominal fee. See the new Services page.

–As an alternate to the above, I’ll also soon be including a FREE monthly group call-in session. (Watch my blog – still setting that up.)

© 2013, https:. All rights reserved.

Blog Post #100… What next???

Can’t believe we just hit 100 blog posts! Who would have thought there were a hundred things to say about starting and building a small consulting practice?

Well, after two years, there are still plenty of ideas to share and explore. In fact, my original list of possible posts has actually grown.

As soon as the Lead Generation series is done, we’ll begin a series on selling your services — something that seems to scare a lot of people. But is no big deal, as I learned in ten years as a sales engineer working with my technical colleagues.

We’ll also explore fee setting, the number two question I hear after “How do you get your clients, anyway?” We’ll address start up issues too.

Been musing over a few other ideas on where to go with this blog. So check out the new page titled Services.

Some free, some for a nominal fee. Not trying to make a fortune, but any revenues we get will help pay the expenses for running the site, along with adding some new features down the road.

Here is a quick overview:

  • If you have a quick question and are not in a hurry for an answer, drop me an e-mail. If time allows, I’ll give you a personal answer. If not, I’ll at least sanitize it and answer in a future post. FREE
  • Or, join me for a monthly teleconference. Still working on the details, but watch my blog.  Also FREE. (Borrowed this idea from Pam Slim at Escape From Cubicle Nation. Fellow Arizonan Pam was an inspiration for this blog. )
  • Watch the blog for on-line classes. Initially will be done as a series of webinars. Two are already prepared. May add discussion sessions and forums for subsequent offerings. INTERESTED? Please let me know.
  • The book. Still a goal, but not sure it is the best use of time for now. The blog and on-line classes might help more people in a shorter time frame. Don’t need it for the ego boost — have already written or co-written several technical books, plus hundreds of articles.  So the book deadline is now TBD.

Caution – if you are receiving my blog  by RSS subscription, please change to an e-mail subscription. Google will be dropping RSS in July 2013, so the future is uncertain. As always, our e-mail lists are PRIVATE, and will not be shared, rented, or sold.

Finally, a big THANK YOU to my readers! Several have commented privately, and I appreciate hearing  from you. A comment or short e-mail always gives me a boost and the incentive to keep going.  If nothing else, it is proof I’m not just babbling to myself.

And now that the house remodeling is finally done, on to the next 100 posts!

© 2013, https:. All rights reserved.

Questions from a reader on LLCs…

Here is the synopsis of a recent e-mail exchange from a JTC candidate that you may find of interest.

I’ve edited it and sanitized it (personal information is left out), but I’m sure C will recognize herself.

Hi Daryl,

I came to your website from Mister Money Mustache, and I’ve decided to throw my hat in the circle and JumpToConsulting.

I currently work for XXX and intend to do the consulting on the side.  We are planning to follow the MMM path and retire in 5 years, so I decided I wanted to try and make the stash bigger.

I’ve already picked the company name. I am currently working on the website and need to register my trade name.

I’ve received different advice regarding setting up as a sole practitioner or as an LLC. Can you share some advice?

Finally, would you put LLC on your business cards?

C

Hello C,

Congratulations on your decision to make your own JumpToConsulting! It sounds like it is a good fit with your with your retirement plans too.

By the way, I am a big MMM fan myself. (Hey, he’s another engineer who broke free…)

Here are some comments:

Recommend the LLC over a sole practitioner. From a marketing perspective, I think it lends more credibility — it shows you are serious. It may also provide some legal protection, but you should talk to an attorney for clarification.

Recommend using an attorney to do the paperwork. Yes, you can do it yourself, but to me it is worth a few hundred bucks to know it has been done right.

– Ask around to find an attorney who specializes in small businesses. I prefer small firms (one or two lawyers) as they generally cost less and are more personal. Plus, I just like dealing with small practices. I also do the same thing with accounting, and have used a two person CPA firm for many years.

However, if you are just testing the waters, the sole practitioner may be OK for now. We did that for nine years as part time consultants, but incorporated as a Subchapter S corp when we we went full time in 1987. (LLCs were not popular then, so the Sub S made the most sense.) If you change later, however, you may need to update printed materials (letterhead, cards, brochures, etc.) to reflect the LLC status.

Regarding LLC on your business cards, my understanding is that if you are an LLC (or any other type of corp) you should put that on your business cards. Check with your attorney, but I believe that gives notice to your clients that you are incorporated. I’d do it anyway as it enhances your marketing image.

Really like your company name! Yes, you want to register it. You may want to trademark it too. We trademarked EMIGURU which is our website and which we use in our advertising. Glad we did, as it gave us leverage when a cyber-squatter picked up the .net and .org extensions and then used them in a competitive way. Because of the trademark, we were able to stop that. However, it cost us about $2K to resolve the issue.

– So, when you register your domain, pick up the .net and .org extensions, in addition to .com. You might want to pick up others, too, but those are the most common.

It sounds like you have identified your initial market place – needs, geography, type of business, etc. This is good, as it lets you focus your marketing efforts. But be ready to make changes as you move into those markets as you learn more.

— The markets will guide you. Try not to spread yourself too thin, though, or go in too many directions. “Do a little, do it well — you’ve done a lot.”

-One more piece of advice. Since you will be consulting part time, be particularly careful to avoid conflicts of interest. You don’t want to jeopardize your day job. And keep a low profile — petty jealousies can arise (the voice of experience speaking.)

Finally, I applaud your decisions, both the MMM-path and the JTC-path. I’ve followed both paths for many years, and they have paid off for me.

Thanks for reading my blog, and best wishes in your new adventures!

-Daryl

Have your own quick question? Drop me an email (just use the Contact form)  and perhaps you’ll be featured in a blog post too.

© 2013, https:. All rights reserved.

Lead Generator #15 – Networking…

Consulting isn’t just about expertise — it is also about relationships. What better way to build those relationships than through networking?

Networking isn’t just for consultants. It is something you should do regardless of your career. As the old saying goes, “It’s not what you know, but who you know.” True for finding new jobs… and for finding new clients.

Networking can seem painful. Many consultants are introverts — we’re thinkers and planners. We like to deal with problems and ideas, not necessarily with people. Leave that for the sales and marketing types, right?

But if you are a solo practitioner, it is up to you (and you alone) to get the business. You first need to GET the projects before you can DO the projects. That means YOU are the now sales and marketing department.

As an aside, I often advise my engineering colleagues (among the most introverted and distrustful of sales and marketing) to treat getting the business as just another challenging problem to be solved. Looking at it that way, it can even be fun. It is for me.

So how do you network? Strategically. Go where your potential clients are. Think about the niches you serve. This is not about “speed dating” or collecting business cards. Rather, you need to focus — use a rifle, not a shotgun.

And don’t overlook recommenders — others serving your markets. These include professionals (attorneys, lawyers, bankers), media (magazine editors and newspaper reporters), and yes, sales people (reps, distributors, etc.)  Some of my best business leads over the years have come from these sources.

Here are some ways to network strategically:

–Professional organizations… If you are a professional and not already a member — join today!  Participate — don’t just attend meetings. If you business is local, get involved at the local chapter level. If you business is national, get involved at the national level.  If both, well, get involved at both levels.

Volunteer to speak. Short talks and tutorial sessions provide great exposure, and help your colleagues at the same time. Special committees are good too.  We’ve done both, and it has paid off well. Plus, we’ve made a lot of good friends along the way.

One caveat — pick and choose you efforts with care, as volunteer organizations can suck up time like crazy. Don’t spread yourself too thin — you still need to make a living.

–Symposiums… Many professional organizations have annual trade shows. You should attend these too. These are an excellent opportunity to meet the movers and shakers in your industry, which include influencers like journalists and marketers.

Skip the academic sessions, and head for the tutorials. Better yet – volunteer to present – this puts you in front of potential clients. And spend time on the show floor talking to the sales/marketing folks. You’ll learn about new products/services, and often new opportunities as well.

–Trade & Civic organizations… Think about places your clients and potential clients hang out to network. Then plug into those networks, at least on an occasional basis.

For example, if you are an accountant serving a local business market, consider joining local Rotary or Lions clubs. If you are an accountant serving a special niche such as HOAs (home owners associations), consider joining the local or national HOA group. (Yes, such groups exist.)

–Social media... Thanks to the Internet, social media offers many opportunities to expand your networks at very low cost. One caveat — do not rely solely on social media — the personal touch is still crucial.

The big four today are LinkedIn, FaceBook, Twitter, and Google+.  My experience suggests that LinkedIn is preferred for B2B, while FaceBook shines with B2C. Done right, Twitter can be effective for both. Just joined Google+ so I have no opinions on it yet.

The key is to be where your potential clients are at. Once again — watch your time. If you are not careful, these can be addictive and can become tremendous time sucks.

Finally, don’t expect immediate results — networking is for the long term and will eventually pay off.  As a plaque in my office says, “In the pond when you least expect it, a fish will appear.” But you need to have your line in the water…

People buy from those they know, like, and trust. Networking works!

© 2013, https:. All rights reserved.

Marketing is key for both authors and consultants…

As part of my commitment to get off my butt and write my book on consulting, I attended the Indie Author Publishing Conference this weekend in Phoenix. Over 120 authors and prospective authors heard from several panels of experts that included book editors, agents, publishers, legal experts, and more.

The focus was on the business end of writing. Lots of nuts and bolts stuff – how to pitch your book to agents and editors, published vs. self published, digital books, copyright issues, and much more. Learned a LOT about the ins and outs of the book business. In fact, I’ll never look at a book the same again.

A crucial message repeated throughout the conference — marketing is key! You can write the best book in the world, but without marketing it won’t go far.

As one presenter said, “Writing is an craft — publishing is a business.” It struck me that consulting and writing are similar. If you want to make a living at either, you must first treat them as businesses.

That doesn’t mean you don’t deliver quality. It was reiterated many times — you still need to write good stuff. So it is with consulting — you still need to deliver good results.

Incidentally, it is OK to write or consult as a hobby. Many do this in retirement, or as a pleasant diversion during the working years. We moonlighted for almost ten years before going full time as consultants, and enjoyed it. Even made a few bucks along the way.

But if you want to make a living at writing or consulting, you must focus on the business end of things. And the most important aspect of both businesses is the marketing! Without clients or readers, you won’t make any money.

Here were several insights gleaned on the book business:

Publishers don’t market. They print and distribute. Any marketing they provide usually ends within the first 30 days of release. After that, it is up to YOU to promote your book.

Publishers like to see a platform. If you have a blog with 100,000 new visits per month, you can get published pretty fast. Ditto 100,000 (legitimate) follower on Facebook or Twitter. Do you have an existing fan base?  Don’t worry — even a smaller following helps.

Publishers like credibility. Have you written a book? How did it do? What about magazine articles or columns? Are you known in your market?

Publishers (particularly smaller ones) serve niches. For example, we were told that books on southwest gardening often do well in Arizona. Niche marketing works! (In this case, geography and topic.)

Publishers (particularly the larger ones) often work solely with agents. You may need the connections and guidance these specialized consultants provide.

Publishers reject a lot of stuff. Even really good stuff. So don’t give up — at least right away. But be sure you have a quality product.

Finally, it also struck me that there are many consulting opportunities in the publishing business. A prime example is the the husband and wife team of Arielle Eckstut and David Sterry. They founded and run The Book Doctors, a consultancy that helps aspiring writers get published.

Both are published authors (7 for Arielle and 12 for David), plus Arielle is an agent with a respected New York book agency. They presented a session on “How to Pitch a Book” followed by the Pitchapalooza at the end of the day. Good people!

So this weekend I learned about book publishing, and that writing and consulting have a lot in common. Marketing is key for both. Now, back to the book!

P.S. Special thanks to my favorite book store – Changing Hands in Tempe AZ – the sponsor of the conference.

© 2013, https:. All rights reserved.

Lead Generator #14 – Directories

Directories should be a part of every consultant’s marketing strategies. The secret is to be listed in the right directories – those used by potential clients. So give some thought to where you might look to find someone like yourself.

Most directories provide search capabilities (expertise, location…), so consider your search categories. If you don’t see a good match, contact the directory owner and suggest a new category. This is particularly important if you serve a narrow niche.

Directories alone, however, are not enough. They are just a starting point, so you need to have other pieces in place. A web site is ideal, since most directories allow only minimal information.  Be sure to include your web address and e-mail in the listing.

Don’t have a web site? Set one up — even if it is a single page. Nowadays, a phone number is not enough — most people want to check you out before initiating contact.

The good news is that many directories are inexpensive or free. So where are these directories, and how do you get listed? Here are several options:

  • Professional organizations – Good for visibility with professional colleagues, which often lead to referrals. Most have on-line directories, although some still offer printed directories. Often free, but may include a nominal annual charge.
  • Trade magazines – Good for visibility with potential nationwide clients. Most have on-line directories, and some include printed directories as part of annual Buyer’s Guides. Often free, but for a nominal charge you can often enhance your listing. If offered, I recommend doing so.
  • Civic/business organizations – A good choice if your clientele is primarily local, such as legal, accounting, architecture, etc. Examples are Chambers of Commerce, Business Round Tables, etc. You may want to participate in the organization for even more visibility.
  • Technical answering services – For years, we’ve belonged to Intota (formerly Teltech),  an organization that connects businesses with peer recommended experts. Over 10,000 experts in the science, engineering, medicine, regulations, and business. Free for consultants, and you even get paid to answer simple questions (which often lead to longer consultations.)

Finally, directories are best used in conjunction with other lead generation methods, such as web sites, professional activities,  articles, presentations, etc. In fact, our experience has shown that multiple methods multiply your success.

© 2013, https:. All rights reserved.

Resource Review – The Likeable Expert Gazette…

Recently ran across this web site and newsletter, and wanted to share it here. In addition to being a useful resource, it is also a delightful success story.

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.

Following his own advice, he has published over 275 issues of “The Likeable Expert Gazette,” a weekly E-Newsletter with over 7000 subscribers around the world. Just added my name to his list, and really enjoy his musings. Light, refreshing, and easy to digest. (Gee, I sound like a food critic.) Nutritional, too.

Michael has a BA in Psychology, an MBA, and a past career as a columnist and humorist before going independent twelve years ago. He started about age 40 (boomers take note) and is still going strong. Best of all, he is as bald as a billiard ball, which always sits well with me. Hair is way overrated…

His services range from writing newsletters to helping with marketing. He does this through books, webinars, and individual consulting. If you sign up for his newsletter, he’ll even send you a link to his free E-Book, “It Sure Beats Working – 29 Quirky Stories and Practical Business Lessons for The First Time, Mid-Life Solo Professional.” Loved it!

I’ve not met Michael Katz, but hope to at some point in the future. It is a real pleasure to recommend him to those of you considering your own JumpToConsulting.

The Likeable Expert Gazettete, by Michael Katzwww.BluePenguinDevelopment.com 


More Blue Penguin references here:


 

© 2013 – 2022, https:. All rights reserved.

Lead Generator #13 – Cold/warm calls…

Not my favorite approach, but when times are desperate…

I’m with luminaries like Alan Weiss, Howard Shenson, and Perry Marshal on this method. Much better to have potential clients call you, rather than the other way around. As Shenson once said, your marketing goal should be have clients clamoring for you.

Think about it. As a professional, does you doctor call you to see if you want to buy a penicillin shot today? Does your lawyer call you to see if you want to buy a will today? No, they create both the credibility and visibility so you will first call them.

But there are times when cold calling can help. If you are just starting out, for example, you could (and should) call everyone you know to announce your new business. You can ask if they know anyone who might need your services. Just don’t push your services on them — if interested, they will let you know.

One important suggestion. Don’t rely on e-mails alone for the initial contact. Most of us get a hundred or more cold-call e-mails every day, and we are all good at zapping them to the delete folder. That is, if the spam filters don’t catch them first.

Consider a personal letter. No, snail mail is not dead, and a well written personal letter will stand out. Use it to break the ice, and then follow up with a personal phone call. I think you will be pleased with the results from this two step process.

Pick a number – say 20 per week – and work your way through your list. It is said that most of us know around 200 people. Make 4 calls per day, and in ten weeks you’ve personally contacted all of them. If lucky, you may even have snagged a project.

But don’t stop there. If you publish a newsletter, ask to add them on your list. You’re not publishing a newsletter? Well, time is a wasting. Consider a short e-mail letter. Now that you’ve made the personal contact, the e-mail follow up is fine and very inexpensive. You want to keep in touch.

Technically, the cold calls above are really warm calls.
Since you already know the person, you have a reason to call. But what about complete strangers?

This is where targeted cold calls can work. For example, you just read that the XYZ company just won a contract where your area of expertise could help. Get on the phone and find out who would be a good contact. Check out your contacts on LinkedIn too.

When you find the right person, give them a call or send a letter. But do your research first.  Don’t waste their time “exploring what keeps them up a night” or other similar nonsense.  Rather, offer some ideas or examples of how you have helped others. After all, that is what consultants do.

Here are two examples of cold/warm calling..
.

The first is Dr. Gary Blank, a fellow consulting engineer. He tells a great story of how he quickly transitioned from corporate employment to full employment as a consulting engineer.

When told of an impending job change, he decided it was time to hang out his consulting shingle. Highly motivated, but not sure where to start, he sent out personal letters to everyone he knew.  Within a month he landed his first project.

Dr. Blank shared that story many times with prospective consulting engineers through his activities with the IEEE (Institute of Electrical and Electronics Engineers) Consulting Engineers Network. As a result of his hard work and visibility, he was recently elected the President of IEEE-USA, a capstone to his fulfilling career.

The second is Your Truly. Thirty five years ago as a young sales engineer, I tried a similar approach with some success. Involved with the launch of a new design system, I scoured the want ads (remember those?) for companies seeking design engineers who might use our system.

It only took a few minutes of searching every week, followed up by a short letter with a brochure, and later a phone call. Although not my main source of leads, it did result in a couple of sales. Not only that, my boss even commended me in my next review.

Finally, most people shy away from cold calls. But highly targeted cold calls work, with both acquaintances and strangers. They work best when you first warm them up, and they can be very effective when you start out.

© 2013, https:. All rights reserved.

Starting a consulting practice is easy…

The tough part is making it a success.

Recently ran across a blog post on business startups. The author suggested consulting, since it was so easy that anybody could do it. Of course, the author had never started and run a full time consulting practice himself. Go figure.

So, time for a short rant…

But the author is right. You can start a consulting practice right this instant. Just call yourself a consultant, order some business cards, and you’re in business. The telephone should start ringing any minute, right?

It really is that simple. Except it isn’t.

Unfortunately, this is a common misperception, particularly by those with lots of credentials (letters that can be put after their name.)  Having already achieved some career success and prestige, they assume the rest of the world will immediately recognize their expertise and abilities.

It is the mousetrap syndrome. You know, “Build a better mousetrap and the world will beat a path to your door.” Wonder who cooked up that piece of fiction?

No, it doesn’t work that way. You need customers. Furthermore, you need customers who are willing to pay you, too. For solutions. Not ivory tower lectures or esoteric theories, but real world solutions to their real world concerns.

So how do you get those customers? You market. You sell. You peddle your butt off. Hmmm, not so simple anymore.

Maybe, like any business venture, it takes some plotting, planning, and old fashioned hard work. Sorry, THIS blogger is not offering any magic miracles today.

At the fundamental level, all businesses have three components:

  • Products or services to sell
  • Customers or clients who will buy those products and services.
  • A way to connect the parties (aka a marketplace.)

Really, that’s it. Congratulations, you’ve just earned your One-Minute MBA.

Now let’s dig a little deeper, using the old reporter’s method of 5W/H – what, who, why, where, when, and how.

  • WHAT do you have to sell? As a consultant, it is your expertise and advice. So what do you have that others might want and be willing to pay for? What are you really good at, AND that has value in the marketplace?
  • WHO might buy your expertise? Ah, now you are starting to identify your market or markets. Can you identify niches? i.e. – business/consumer, local/national, demographic, etc.
  • WHY would they buy your services? Do they have problems to solve? Or prevent? Do they have dreams to pursue?
  • WHERE do your customers hang out? Can you identify groups or organizations do they belong to? Media they read – magazines, newspapers, web? Do they use social media?
  • WHEN do they buy? Short or long sales cycle? Seasonal? Impulse?
  • HOW do you reach them? Having answered the 5W questions, you may already have a good idea HOW to start. But starting is not enough — you need plan, and then you need to execute the plan, over and over. Wash, rinse, REPEAT.

Ride along here and I’ll do my best to help you understand and address these questions. Ultimately, however, the specific answers will be yours. Incidentally, I’ve been at it this game for over 30 years, and I still ask these questions myself.

Thus ends the rant.

Yes, it IS easy to START a consulting practice, and anybody can do it. The real question is can you BUILD and MAINTAIN a successful consulting practice? It takes time and effort. Just like anything else worthwhile in life.

Happy New Year! Is 2013 the year you make your JumpToConsulting?

P.S. Signup for our newsletter. In 2013, we plan a regular mailing with recent posts and other relevant information.  Don’t worry about spam — our list is PRIVATE.

© 2013, https:. All rights reserved.

2012 Annual Review…

Another year has gone by, and once again it is time to reflect.

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

Once again, I’ll review three categories:

But first, a quick overview…

The Jump-to-Consulting project is now two 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 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 in the consulting business.

HIGH-LIGHTS in 2012…

Jump-to-Consulting – The blog is up to 80+ posts. Had hoped to hit 100 posts, but got slowed down with a midyear household move. Still, proved to myself 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 the occasional feedback shows it has helped several make their own JumpToConsulting. So don’t be bashful — your questions and feedback mean a lot, and they do inspire me to keep going. Thanks!

Did two live presentations based on the blog – Consulting for Geeks at DesignCon2012 (San Jose CA) in February, and the Start Your Business Workshop (Chandler AZ) in March. Both were well received, which has me thinking about more in 2013.

EMI-GURU – Celebrated 25 years in full time consulting! Sure don’t know where the time went, but as the saying goes, “Time flies when you’re having fun.” It has been a great adventure, and I would do it again in a heartbeat.

Now have a second partner for our training business. It is a good fit, as they complement (and do NOT conflict) our original long time partner. Done right, partnerships can work well. We’ll look at this topic in a future post.

Did a live tutorial at the IEEE EMC Symposium in Pittsburgh, and published several blog articles at EE Times. A little bit of giving back to the engineering community.

Personal – Moved! Downsized from a house to a patio home. No outside maintenance – gave up the yard and pool for a spot on a pond. Now watch the ducks, fish, and turtles at play from our patio. Best enjoyed with a libation in hand as the sun sets.

Stuck with the workout routine. This is the fourth year, and not being a jock, I’m proud to say I’m still at it. Feel better after each workout, and realize this is very important at this stage in life.

LOW-LIGHTS in 2012…

Jump-to-Consulting – Still no book. Not as many blog posts as hoped, but given the move and other projects, have kept a fairly steady pace.

EMI-GURU – Business still down. Probably a combination of the economy, and the lack of aggressive marketing. If it were a few years ago, I’d be beating the drum pretty loud. After all, continual marketing is crucial for any consulting practice.

But at this stage, I’m content with the business levels. There are a couple of interesting projects on the horizon. The spring classes were down, but the fall classes were decent.

Personal – Not completely settled in the new place. Even though we got rid of a lot of stuff, still have boxes to through. But we’re starting to see the light at the end of the proverbial tunnel. Life is becoming more simple. (Per Thoreau…Simplify, simplify…)

LOOKING FORWARD to 2012…

Jump-to-Consulting – Start the damn book! With close to 100 blog posts, there is now plenty of material to draw from — the plan all along. Considering an on-line class, along with some personal mentoring. Nominal fees will be involved to offset the costs of running the site.

EMI-GURU – Focus on the technical classes, an area 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 passively pursue consulting opportunities.

Personal – Spend time with the grandchildren, along with reading, writing, and just “goofing off.”  Got a few home projects in the works, too.

Wishing you all the best in 2013! And thanks for reading my blog.

© 2012, https:. All rights reserved.

Lead Generator #12 – Seminars & Workshops

If you like teaching (Lead Generator #11), you may consider developing and presenting your own materials.

Due to the considerable start up efforts, however, I don’t recommend this for brand new consultants. Other marketing methods usually provide faster results with less work and money. This is an excellent method to consider, however, after you become established.

We started offering our own seminars at about five years as full time consultants. By that time, we had established ourselves, and were ready to expand the business. Had we tried much earlier, I’m not sure we would have been successful.

It has worked out well. Since 1992, we’ve trained over 10,000 students in our engineering specialty through a combination of public and in-house classes.

The training business nicely  complements the consulting business. Many students become clients, and many clients bring us in to train their colleagues.

But our success was not immediate. We experimented with both content and promotion. After several iterations and a few setbacks, we finally got it right.

So don’t be disappointed if your success is not immediate — one reason why I don’t recommend this as an initial marketing method.

Content

Most training seminars today run ½ to 5 days, with 1-2 days very typical. Longer than a webinar, but shorter than a class. Unlike classes, most seminars are done in a single session — a short cram course where students can focus on the subject alone.

We have found that shorter is better — a major concern is often time away from the office, not the not the dollar cost of the seminar.

Thus, the content needs to be focused and precise.  Most of our seminars range between ½ and 3 days, with 2 days being the most popular for our topics.

The content should also be tutorial. Like writing articles or white papers, your goal is to transfer knowledge, not to impress your peers. Think “How to Tell Time” –-NOT “An In-depth History of Clock Making.”

Thanks to the Internet, there is a trend to offer seminars/workshops on line in one hour chunks. In those cases, it starts to look like a traditional class. Another trend is to record seminars on audio or a DVD.  Like traditional seminars, a lot of effort is still required.

Development

The development time can vary widely, depending on how well you know your material.  Maybe you taught classes or wrote a book based on your expertise, so you already have plenty of content and ideas. But there is still a LOT of work to get to a finished product.

Rest assured, it will take much more time than you thought. And plan on spending more time editing and polishing than on developing the content in the first place.

We’ve seen various rules of thumb over the years. For technical training, we assume  5-10 hours of development per hour of class time. That means a ½ day workshop could take a week from start to finish, and a two day class can easily take up to a month.

Promotion

The next big hurdle is the promotion. Typical techniques include direct mail, e-mail, advertising, and more. No, it is not enough to build that better mousetrap — you need to promote it too!

As part of your promotion, you also need a plan for registration and payment. There are a number of on-line services that can help here. There are also plug-ins for your web site. We’ve used both methods with good success.

One way to ease the efforts is to find a sponsor. The good news is that the sponsor handles all the promo/registration details. The bad news is that you end up splitting the proceeds.

In some cases, you get nothing except the exposure. This is typical for trade shows.

We’ve partnered several times. Our most successful is a 20 year partnership with an electronics  manufacturer. They have been a joy to work with. We recently partnered with a training firm that specializes in military/defense systems, which complements and does NOT compete with our main partnership.

Going alone is the most challenging. If you do so, expect to spend some serious time and money on this. (See barriers to entry.) It can be done, but going alone is NOT recommended for new consultants.

Fulfillment

The final hurdle is the fulfillment. In addition to the presentation, you need to prepare materials and handouts.

If going alone, you’ll need a venue. Will you use a hotel? What about meals and refreshments? What about A/V? Don’t assume anything, and double check everything.

Most of this work needs to be done well in advance, and often involves financial commitments and risks. Be prepared for nonrefundable deposits and guarantees. We’ve had a few failures that cost us thousands of dollars. Try to minimize your risks.

In closing, seminars and workshops can be effective marketing tools. They can also nicely augment your consulting business. But the hurdles are there, so proceed with caution, particularly when just starting out. Don’t fret –there will be plenty of opportunities after you are established.

More examples and information on our seminars at www.emiguru.com. 

© 2012 – 2016, https:. All rights reserved.

Giving Free Advice… Yes or No?

To share, or not to share – that is the question. (With my apologies to William Shakespeare.)

Two schools of thought. One says YES, the other NO. (You say tom-A-to, I say tom-AH-to.) Who is right? Well, it depends — on you and your overall objectives.

  • NO to free advice. As Abraham Lincoln said, “A lawyer’s time and advice are his stock in trade.” Many lawyers today still follow this advice. Thus, the often annoying “six minute” charge for a phone call.
  • YES to free advice. As Desert Pete said, ” You’ve got to give of yourself, before you’re worthy to receive… Leave the bottle full for others. Thank you kindly, Desert Pete.” Click here for the Kingston Trio version.

Maybe because I live in Arizona, I prefer Desert Pete. It also better fits my business model. Most of my engineering consultations range from a 1-10 days or more. Thus, charging someone for a quick answer isn’t worth the effort to track the time, prepare an invoice, etc.

Not only that, is can be seen as “nickel and dimeing.” I’m not pursuing five minute jobs — I’m after five day jobs (or more.) So I just chalk up the free advice to marketing.

If my advice helps, I’ll be considered when the customer has a bigger job. That customer is also more likely to pass my name along to others.

Thus, at Kimmel Gerke Associates it has long been our business policy NOT to charge for short phone call inquiries. We’ve always encouraged our class attendees (10,000+) to call/e-mail us with quick questions. Ditto consulting clients.

To date, no one has abused that policy. Well, I did have one. After answering several questions, I finally suggested he needed to get someone on site to dig into his problem. That in itself was good advice, as I had already run out the string on simple solutions. The calls stopped, but apparently he was not going to spend money anyway.

If it looks like it might take more than a few minutes (research, design reviews, written memos) we’ll provide a budgetary estimate. We also guarantee we won’t exceed the estimate without prior approval. This protects both parties. If the scope increases, we’re not stuck with a fixed fee. At the same time, there are no surprises for the client.

This policy might not work for everyone. For example, if you are an accountant or a lawyer, your short answer may be very valuable. And, it may have taken you years of study and experience to get to the point where you can quickly answer the question.

In that case, charging for short questions makes sense. Here are some options to consider:

  • Flat fee for questions. ($75-100  for up to 15 minutes or so.) You make a few $$$, and still serve your client. Charge it to their credit card, which eliminates the paperwork. Most companies now prefer to pay small amounts by credit card.
  • We belong to a technical answering service that operates this way. Their clients sign up for the service, and when we (as an expert) get a call, we get paid to respond. We don’t make a lot, but it does provide occasional beer money.
  • Offer a retainer. Popular with lawyers and business consultants. For a fixed amount per month, you agree to be available to answer questions. You may need to bound this (up to 4 hours per month — phone calls only — no onsite work — no writing reports — etc.)  Get paid in advance, and don’t refund unused time.
  • Prepaid coupons for short blocks of time. Once again, charge a premium, get paid in advance, and set an expiration date — perhaps a year. This seems to be quite popular in the personal coaching business.

A closing anecdote. A few years after we started, I ran across a reference to our company on a forum. When asked for a consulting recommendation, the responder said, “Call Kimmel Gerke Associates. Not only are they good at what they do, but they are easy to work with. And they won’t nickel and dime you…”

It was then I realized our policies were working — you simply can not buy that type of advertising. Sharing quick advice is right for us, and we still do so today.

The consulting business is one of relationships, not just expertise. Clients buy services from those they know, like, and trust. Be that person!

© 2012, https:. All rights reserved.

A Tale of Two Bank Accounts…

Two bank accounts — financial and experience…

Can’t remember where I first heard this story, so I can’t credit the original author. But I found the idea so compelling I wanted to share my version here.

Once upon a time, there were two consultants, John and Bob. Both had unique expertise of value to clients. Both started out at the same time, both served the same markets, and both were well compensated.

As an expert in his field, John was rigorous in sticking to his niche. Essentially, he sold the same advice over and over. Within a year, his saw his business slipping, and within two years, he was out of business.

Also an expert, Bob was always stretching himself. He saw each consultation as not only a provider of income, but also a provider of new experience. Within a year, his business was on the increase, and within two years he was doing very well — not only in his original niche, but in several other related areas.

Bob lived happily ever after, while John did not. Not all fairy tales have happy endings.

Why did John fail while Bob succeeded? Well, John was only concerned about filling his financial bank account, while Bob was also concerned with his experience bank account. The bottom line in consulting — you need to make deposits in BOTH accounts.

The experience bank account is often referred to as intellectual property, or simply IP. But IP is dynamic, not static, and must continually be updated and refreshed. After all, clients want fresh ideas and solutions, not the old worn out stuff.

So, keep you eyes on both accounts — financial and experience. Don’t be afraid to stretch yourself — just don’t overreach into areas for which you have NO qualifications. And be prepared to invest some time to become competent in new areas to expand your practice.

So what have you done recently to add to YOUR experience account?

© 2012, https:. All rights reserved.