General Consulting

Lead Generator # 4- Newsletters

Newsletters are effective lead generators when you already have a list of  past business contacts. What? You don’t have a list? Well, I guess we need to talk about that real soon. Until then, read on.

Newsletters are a great way to stay in touch, and to remind people you are in business. They are particularly useful when clients need you on an occasional basis. In those cases, you want to be top of mind when the next need arises.

Newsletters can be printed, digital, or both. Most are short, typically 1-4  pages. For printed newsletters, the format is often fixed, while digital newsletters are more flexible. Digital versions,  of course, are cheaper as they have virtually no printing or distribution costs.

As a result, digital newsletters are very popular, and are often used as list bait on blogs and web sites. This can be effective in further developing your list. The key to success is to make sure your newsletter is newsworthy for your readers.

If  you don’t feel up to publishing your own newsletter, prepared ones can be purchased. For example, my accountant sends a newsletter with general business and financial tips. He does not write it, but his name and company information appear on the masthead.

Incidentally, my accountant’s newsletter is printed. I like that, as I can take it with me and read it on the next flight to somewhere. After I’m done, I often pass it along to others. Of course, his name gets passed along as well. No, print media is NOT dead.

Here is my own newsletter story. After about two years in business, we realized we needed a way to keep in touch with our existing clients in a proactive way. So we started a newsletter for our friends, clients, and colleagues. Since this was pre-Internet, the newsletter was printed.

We decided to publish it four times a year. The pleasant surprise was that every time it hit the streets, the phone would  ring with a new job  or two. The newsletter was actually paying for itself! How great is that?

Over twenty years later, we still publish it, but now only twice a year. We eventually went electronic, giving readers the option to receive it by snail mail. The current split is about 50/50, so don’t dismiss printed versions. Although a bit expensive, we feel it is worth it.

We experimented with format, and settled on a formula. That made it easier to write, as we now just  “fill in the blanks.”  We decided on four pages.

Click here  to see archived past copies – great for credibility!

  • Front page – Short introduction, upcoming industry events, and a paragraph or two on some item of interest, often about our services.
  • Pages 2 and 3 – First, a focus article, much like a blog post. Second, brief items of interest such as a book review or perhaps a client question (sanitized of course.) Third, some tidbits (Bullets) and finally, some “engineering humor”.
  • Page 4 Summary of our services, contact information, and a copy of a business card advertisement we run in the technical magazines. As the newsletter is folded, half of page 4 is for addressing.

Finally, you don’t need to wait to try a newsletter. As mentioned other places, I started two newsletters as a Sales Engineer in the big-corporate world. Both were targeted at my customers, who liked them and gave me positive feedback. They also let me work out the kinks for my consulting newsletter.

As an aside, when I offered these newsletters to our corporate marketers, they were rejected. Both cases of NIH (not invented here), I suppose. But that also reinforced my belief that most big company marketers are not entrepreneurs, and often do not fully understand the sales process. One of the reasons I made my JumpToConsulting.

Not to be too harsh, but if you are with a big company, you may want to divest yourself of many of your big company ideas before you make your JumpToConsulting.

Questions or comments?  I’d love to hear from you.

© 2011 – 2016, https:. All rights reserved.

Lead Generator #3 – Blogs

A blog can be an effective way to generate leads, particularly if you enjoy writing and are willing to do so on a regular basis.  A well written blog also enhances your credibility and visibility. But the best reasons for starting is business blog are that you can do so immediately — and even at no cost!

Thanks to services like Blogger and WordPress, you can be on the air within minutes. No need for web designers or Internet hosting when starting out. Sure, as your blog grows, you may want to upscale and have your own URL, but there is no reason that you can not start blogging right now.

Don’t expect immediate results — it takes time to develop a following. While a published magazine article will reach thousands right away, it will much longer to reach that many readers with a new blog. Most successful business bloggers were at it for several years before things really took off. But when they did…

A well written blog, however, often leads to magazine articles (both digital and print) giving you wide exposure. Editors are constantly on the prowl for good content, so your blog is also an on-line portfolio. Don’t be surprised to be invited to contribute to leading magazines. You can even recycle your posts — most editors today no longer insist on original unpublished content.

Here are three examples from right in my own backyard in Arizona:

Escape from Cubicle Nation. Pam Slim started blogging about six years ago. As a new mom and a successful training consultant, she wanted to spend less time on the road, so she decided explore “life coaching.”  It took a while, but her blog led to guest postings and magazine articles. Those eventually led to her best selling book. (Click Here)

StartUp Processionals. Marty Zwilling started blogging about two years ago. As a recent retiree and successful serial entrepreneur, he wanted to share his experience and help others just starting out. In less than two years, his blog led to articles in the Wall Street Journal and Forbes, where he now has a regular column. He just published an excellent book for entrepreneurs. (Click Here.)

EMI-GURU. In addition to JumpToConsulting, two months ago I added a blog to my engineering consulting web site. I then explored mirroring the blog on a leading technical magazine. They added it to their blogroll, but just asked if I would consider being a columnist instead, using the same materials. Honored, I said yes.  (Click Here.)

What about blogs versus web-sites? I recommend both for consultants. While a blog is dynamic,  a web site is static. The latter is important for details like your capabilities, biography, etc.  Thanks to static pages, platforms like WordPress even lets you combine the best of both worlds. For a simple web site, this can work quite well.

As your blog or business grows, you’ll eventually want to consult with a web designer. Good news — the content is not lost. You can always import the contents of your old blog into a new one. We’ll explore web sites in a future post.

So where do I start? There are dozens of  books and blogs with advice on blogging. Here are three I have found particularly useful:

ProBlogger – Darren Rowse blogs from Australia to a worldwide following. He started out blogging about photography, but it grew into a blogging mini-empire. He sells an excellent e-book — 31 Days to Building a Better Blog. About $20.

Art of Non Conformity – Chris Gullibeau shares his blogging experiences in another excellent e-book — 279 Days to Overnight Success. FREE.

Geeks on Tour – Jim and Chris Guld tour the country in their RV helping fellow RVers (mostly retirees) understand and use all the neat stuff on the Internet.  Join them for $39/year and have access to their library of simple video tutorials. They will show you how you can begin blogging with Blogger in under an hour.

So, if you are thinking about making the JumpToConsulting, start thinking about how to use a blog as a marketing tool. Setting one up is easy (and can be free), but you need to feed it good content on a regular basis to make it a success.

See you in the blogoshpere!

© 2011, https:. All rights reserved.

Lead Generator #2 – White Papers

White papers have become the rage in recent years, and for good reason.        They are an excellent way to showcase your expertise and build credibility. A well crafted white paper can quickly establish you as an expert among experts.

So what is a white paper, anyway? In very simple terms, a magazine article you self-publish. White papers strive to position your company as a solution to problems. They typically demonstrate this through case studies, test results, or position statements.

Unlike magazine articles, however, the visibility part is up to you. Most people today post white papers on their web site. It is popular to use white papers as bait for e-mail addresses, as part of a list building strategy. This can be effective, but the white paper must be worthwhile.

Another use for white papers is for sales collateral. They can be included in sales calls or sales responses to build your credibility. They can also be used as handouts at trade shows or conferences. In that case, however, be sure to get the contact information before you give them away.

White papers are not subject to editorial limitations. You control the content, layout, and length.  Here are some comments on each of these parameters:

Content – The material must be useful to your potential client or customers. This can include case studies, test or survey results, top-ten lists, and the like. Make them information rich – not salesy!

An acid test I’ve always applied to any written piece is, “If I never do business with this person, is the information still useful and of value?” If it is just a sales pitch (we’re better than XYZ and here’s why) it is more likely to offend rather than to convince.

In the technical world, white papers are often called application notes.  These have been around for years, and typically show how to design and use a manufacturer’s products. Follow the examples to get similar results — you don’t need to reinvent the wheel.

Layout – This is probably one of the biggest advantages over a magazine article. You can coordinate the look and feel of your white paper with the rest of your collateral – letterhead, brochures, and web site. Spend the time and money to make your white paper look professional.

A professional printer can be a big help here. They can advise on technical issues like paper stock, font, graphics, and more.  (Except for the paper, this advice applies to digital versions, too.)  They may even save you money by making your white paper fit a standard format to eliminate printing waste. We’ve worked with a professional printer for years, and consider them “part of the family.”

A professional copywriter can help, too. If you are not comfortable writing, consider hiring a “white paper specialist” .  On the other hand, if you are comfortable, you might even consider writing white papers as a potential service. We’ve done several white papers for our technical clients over the years.

If you do decide to use outside help, pick a topic or two and make a preliminary outline. Do your homework — don’t just hire someone to “write a white paper.”  That is like hiring an architect to “build a house” without any idea what you want in the first place.

Length – It depends, but 6-12 pages is typical. Longer than a newsletter, but shorter than a booklet. Think of an essay or in-depth magazine article, but without the editorial constraints (article length, number of words,  number of figures, ad space, etc.)

As such, you can add as much detail as is needed to make your point. Just don’t overdo it. You are not trying answer every question imaginable. 

Given the right circumstances, white papers are worth the effort. But always remember — the goals are to educate, enlighten, and establish credibility — not to sell. You are trying to begin a conversation, not to close the deal.

Questions or comments?  Please send me a message via the contact page.

© 2011, https:. All rights reserved.

Establish your credibility — fast

An important sales lesson …

As a brand new sales engineer, I was on my way to meet with meet with an important prospect.  Fresh out of training, I was ready to dazzle and amaze them with all sorts of technical details about our new test system.

Fortunately, I struck up a conversation with my airplane seat mate.  Always curious, I asked him what he did  for a living.  He politely explained that he specialized in financial planning for small business owners, focusing on those with a net worth of  1-10 million dollars.  He had been at it for several years, and was achieving some good success.

He then asked about me, and I explained how I was an engineer that had just gone over to the dark side of sales.  As a newbie, I then asked if he had any advice he could share.

He smiled, and replied, “Establish your credibility — fast. That is what I did with you. Without that, you might have just considered me another peddler.

Wow! Based on that advice, I tried a brief experiment in my sales call.  Rather than jumping right into the technical details, I gave a little personal background on myself.  How I had a BSEE degree, was a registered PE (Professional Engineer), and had spent the last 10 years in design positions. And how this reflected my company’s commitment to serve our customers.

It took less than a minute, but you could feel the change in the room.  I was no longer “just another peddler”, but rather a fellow engineer with credibility.  And yes, I eventually made the sale.

How would you establish your credibility?

© 2011, https:. All rights reserved.

Niche Marketing

Niches are a great strategy for small firms — particularly if you are just starting out. For consultants, the old business bromide “Find a need and fill it” could easily be replaced with “Find a niche and serve it.”

So what is a niche, anyway?  It is simply a narrow market segment. As a small business, you need to target your efforts. This is very important, particularly if you are moving from a larger company or firm. Unlike the big guys, you can’t be everything to everybody.

Niches can be defined several ways, such as specialty, industry, geography, or type of customer. In fact, I like using multidimensional niches to further segment the potential markets. The more you subdivide, the better you can focus your marketing efforts. We’ll look at these subdivisions in more detail in future posts.

Multiple niches are OK – just don’t pick too many starting out. Like using a magnifying glass to start a fire, niches let you concentrate your marketing energy on well defined targets. As the old saying goes, “Do a little — do it well — you’ve done a lot.” You can add or broaden the niches as your business develops.

Here is a personal example from my own engineering consulting business, from when my business partner and I went full time in 1987.

  • The specialty niche we chose was EMI (electromagnetic interference) product design and troubleshooting. We had a lot of experience in this area, and we had determined the demand was there.
  • We targeted two industry niches — military (where we had a lot of experience) and computers (the PC market was exploding then.)
  • Our geographical niche was primarily local.
  • Our customer niche was B2B (business to business.)  We did not pursue B2G (business to government) or B2C (business to consumer.)

We focused our initial marketing efforts where these four niches overlapped. We collaborated with a well respected local test laboratory, and we started a local mini-trade show. We became active in our local professional organization, and we wrote articles for the local trade press. This soon established us as local experts in our specialty niche.

The next step was to expand the niches a bit. We did not stray from our specialty niche, but we  broadened our geographical niche by writing articles for national trade magazines. At the same time, we collaborated with a training organization with a national reach. We also added the medical market, as our local area was rich with medical device manufacturers.

We eventually ended up with a portfolio of niches.

  • For the specialty niche, we still focus on EMI design issues, but in addition to electronic products, the scope now ranges from integrated circuits to systems and facilities.  We added training – aimed at preventing problems, rather than just solving them.
  • The industry niches now include computers, medical, military, industrial, vehicles, facilities, telecomm, and more.
  • The geographical niches now include all of  North America, with occasional projects overseas.
  • The customer niche remains B2B, serving high tech companies.

By maintaining a focus on our niches, we were able to concentrate our marketing efforts without going off in too many directions. We did accept business outside these areas, but only if it made sense. All this did not happen right away, but over the years we have been able to add to our experiences and grow our business.

Niches keep you focused, and let you leverage your marketing. You can quickly become the big fish in the little pond. And after conquering one pond, there is nothing to stop you from going after other ponds.

What niches should YOU consider?

© 2011 – 2013, https:. All rights reserved.

Lead Generator #1 – Write Articles

Writing articles can be a very effective lead generator. Not only do they provide visibility, but they also enhance your credibility. Having written or co-written over 200 technical articles, I’ve found this method to be fast, effective, and even fun. Besides, nothing quite like seeing your name in print to give you a little buzz while impressing potential clients with your expertise.

Incidentally, these ideas apply to both written and electronic magazines. The actual media is secondary. In fact, many magazines now publish in both modes.

Here are three good reasons for considering magazine articles:

(1) Enhances credibility and visibility. In the eyes of potential clients, being published makes you a subject expert. The perception is that you know what you are talking about, and that you have been vetted by the publication. And in the consulting business, perception is reality.

(2) You can start doing this right away. You don’t need to wait until you hang out your shingle — you can even start today when employed. Furthermore, your employer may well be impressed with your initiative and your capabilities.

(3) Builds your collateral. Having even a small library of printed articles is useful when submitting proposals or responding to inquiries. You can simply include a reprint of a relevant article.

As an alternate, make the articles available for download on your web site. You should retain the copyright by giving the magazine publisher first publication rights only,  and retaining the rest for yourself.

Here are ten quick hints for writing magazine articles:

(1) Pick a focus topic. You are not writing the great American novel. Since most magazine articles are between 2000 and 4000 words, you need to pick one topic and focus on it.

Lead off with a short introductory paragraph, and end with a short summary paragraph. Use a conversational tone. If discussing problems, be sure to include some simple solutions.

(2) Start with the trade journals. You have identified a market niche or two, right? So, what do your niche members read? There are thousands of small niche magazines, and all are hungry for well written articles.

Put together a short list of ideas, and call the editor. No, you don’t need fancy query letters for these publications. With luck, you can be in print in 90 days.

(3) Avoid the professional journals. Most of these are platforms for academics seeking tenure — the old “publish or perish” game.

That is not to say they don’t contain useful information, but unless they are being read by your potential clients, don’t waste your time. Besides, it can take a year or more (often along with rewrites) to get published.

(4) Shoot for a series or even a column. Rather than one long article, thinks about three to six articles spread out over a year’s time. A regular column is even better. Both keep your name in front of your potential clients on a regular basis. You can even start to develop a following.

(5) If you make a commitment — KEEP IT! I can not overemphasize this point. Magazine editors are  under the constant pressure of both deadline and space. Being a day late with your material is a disaster, and will earn you the eternal disdain of the editor.

Once you commit, get it done and deliver it early!

(6) Keep it simple and tutorial. Remember, you are not writing to impress your peers, you are writing to attract clients. Keep your ego in check. Assume your reader knows little about your subject but would like to learn a bit more.

Doesn’t that sound like an ideal client?

(7) Report on research results. Done any research or conducted a survey? As long as the material is not proprietary, this can be great fodder for a magazine article. If appropriate, you can spice this up by analyzing trends or making predictions.

(8) Be controversial or contrarian. As the journalists say, “Dog bite man, so what?  Man bites dog, put it on page 1.” Don’t be afraid to break with convention and offer an alternate view. This can be particularly good for business  consultants, where clients are often seeking original thinking and new ideas.

(9) Avoid advertising and self-aggrandizement. If your article sounds like an ad or ego trip, rewrite it. I’ve always applied this acid test — Even if you never do business, will the typical reader think the article was helpful and worthwhile?

(10) Finally, have some fun with it. Think of your readers not as clients, but as friends with whom you would like to share your ideas. I hope you’ve enjoyed my sharing — and it was truly fun to write this little piece.

Here is a partial list of articles done over the years.  This has been one of our most successful marketing methods. 

© 2011 – 2016, https:. All rights reserved.

20 Ways to Attract Clients

Fishing for business…

OK, let’s get started with the question that has most of you chomping at the bit. How do I get clients/customers, anyway?

In simple terms, you need to find customers, and then sell to them.  And if you are just starting out, nobody else is going to do it for you.

Oops! I used the dreaded “S” word — sell. I know, you don’t want to become a peddler — rather, you just want to solve client problems (for a hefty fee, of course.) But if you are going to succeed, you first need customers. As we say in our business, “If you don’t have customers, you don’t have a business.

To use a simple analogy, finding customers is a lot like fishing. First, you need to figure out where the fish are, and what kind of kind of bait to use to attract them. Once you get a fish on the line, you need to figure out how to get it in the boat. And remember, you don’t get to eat the ones that got away!

Attracting the fish can be considered marketing, and getting the fish into the boat can be considered sales. Both are necessary, but as the late Peter Drucker once observed, “The better the marketing, the easier the sales.

For that reason, I always emphasize marketing when discussing consulting practices. The good news is that your marketing efforts need not be expensive or complicated. A few simple, well executed plans can keep your net full.

To continue the fishing analogy, you typically need more than one line in the water. Over the years, we have found there is no magic bullet for finding consulting clients. Rather, a combination of methods is usually needed to keep the leads coming in.

In fact, with multiple lead sources, there is often a multiplying effect. For example, if you get a referral and your prospect has already seen an article you wrote or heard you speak, your success rate can increase drastically.

It all starts with leads! Here are 20 lead generation ideas we have used at one time or another over the years. Unlike “big company” approaches, most require little money but do require time and effort. I suspect we’ll add a few more, so it will likely be 20+ ideas.

Some methods are better suited to starting out (or even before starting), while others are better suited to later stages in your business.  Some focus on writing, while others focus on personal contact.

To start, choose methods with which you are most comfortable — that way, you’ll stick with them. My recommendation is to try several (but not too many), and then refine your approach with time.

We’ll discuss each of these ideas individually in future posts, and we’ll explore how to best apply them under different conditions and for different markets.  I hope these 20 ideas help you start thinking about how to fish for YOUR business.

Got your own lead generators??  Share them here… and please let me know how these work for you!

© 2011 – 2019, https:. All rights reserved.

More Insurance Comments

How I handle my insurance …

This post is a quick continuation of the previous post on insurance, as someone asked how I handle my personal insurance needs.  My philosophy is to self-insure the small losses, and put the premium savings into higher coverage. As such, I carry larger deductibles than most subsidized policies, but still get reasonable rates.

Since I am approaching the right age for Social Security/Medicare, I am currently reviewing all my insurance. I’m not on Medicare yet, but have just started to look into the myriad of supplemental plans and options. Oh, it is great fun being a “boomer.”

Health Insurance Individual policy from a major health carrier for my wife and me, with a major medical rider. We have a moderately high deductible, and we do not carry dental insurance. As such, we self-insure the first several thousand dollars, but may save even more in reduced premiums. When we become eligible for Medicare, we’ll switch with the appropriate supplemental policies.

Life InsuranceTwo term policies. The first is through my professional organization, and the second is a personal policy. Incidentally, the professional organization policy is much cheaper. I elected to have two policies as a backup, in case the professional organization coverage changed.

Disability Insurance Long Term Disability from my professional organization, with reasonable rates due to a six month waiting period. No Short Term Disability policy – I self insure for that.  I recently dropped the disability policy, as I am now eligible for early social security. As such, should I become disabled, I would simple retire early and start collecting  social security.

Liability Insurance — I carry General Business Liability through a broker. The annual cost is reasonable, and often required by clients. I do not carry Errors and Omissions insurance, since there is low potential liability in my particular business. If I felt I needed it, it is available from my professional organization. Finally, on my lawyer’s advice, I do business as a corporation. (You should review your liability concerns with your attorney.)

Other business insurance — I have a rider on my homeowner’s policy that covers computers and other office equipment used in my home, as these are exempt from my standard policy. I also have a blanket umbrella policy on the home/auto policies.

My goal is to self insure the small risks my self, and insure for the larger but less likely risks. If I never personally collect any money from an insurance company, that is fine with me.  Not collecting means I have been lucky enough to avoid some pretty serious problems. (Even life insurance — that is there for my dependents, not me.)

But don’t depend on luck — as a business person, you need to manage risks!

© 2011, https:. All rights reserved.

Insurance Questions

So what is it about insurance (particularly health insurance) that spooks so many people?

After the Four Key Questions (a previous blog post), this is probably number five. The question is usually posed as, “So how do YOU handle insurance?”

For many, this issue is a potential show-stopper from making the Jump to Consulting. It need not be, and the answer is simple. You buy it — it is simply a cost of doing business, just like a computer or a copier. Furthermore, since it is tax deductible, you buy it with pretax dollars just like the big guys do.

Sure, the cost may seem like a lot, particularly if you are currently in a company subsidized plan. But in reality, you are already paying for it as part of your benefits package. Although you don’t see it in your paycheck, your employer certainly sees it as part of your overall compensation. As the old saying goes, “their ain’t no free lunch…”

Although health insurance is usually the main concern, you likely need several other types of insurance, including disability, life, and liability. Here are some comments.

Health Insurance – Even if you are young and healthy, you need health insurance. This is particularly true if you have a family or other dependents. Without health insurance, one accident or a bout of cancer can mean financial ruin. No, I’m not in the insurance business. Just get the insurance — it is the responsible thing to do!

Thanks to the recent government health legislation, medical insurance should be easier to obtain for individuals and small businesses. (This is not a political statement — just my opinion.) I’ve know several people who might be consulting today, were it not for a past medical condition that made them or their family uninsurable. Hopefully, that has now changed.

I suggest a basic, no frills plan, with as high a deductible as you can stand. If you are mathematically inclined, you can figure out the level at which you are no longer paying someone else to handle your money. As a bonus, if you don’t meet the deductible, the money you might have spent on a premium is still in your pocket.

You should consider a major medical rider, although with the new legislation, this may no longer be needed. You should also consult your accountant about tax preferred medical savings plans to see if one makes sense for you.

Life Insurance – If you are young and/or have a family, you also need life insurance. On the other hand, if you are single, retired, and/or the kids are all raised, this may no longer be important. This insurance is not for you — this is for those who depend on your income.

I suggest term insurance, which generally gives you the most bang for the buck. Yes, insurance sales people will emphasize the accruing monetary benefits of whole life plans, but do you want insurance, or do you want a savings plan? Remember, insurance is there to mitigate risks.

Also remember the sales agent is working on commission, and makes more money on a whole life policy. The younger you are, the more affordable and reasonable the term insurance.

Disability Insurance – Like life insurance, you definitely need this if you have others depending on your income. But even if you are single with no dependents, you still may want to consider disability insurance. The real question is, “What are you going to live on if you become incapacitated?”

I suggest a long term disability plan, with a waiting period of six months or more. Like any high deductible,  a longer waiting period reduces policy costs. As far as short term disability, I’ve only carried that when offered by an employer and have never purchased it directly for myself. Set up a rainy day savings account to self insure for the short term risks.

Liability Insurance – If you are dealing with corporate clients, you will likely be required to show proof of general liability insurance. This typically covers risks like slipping on the customer’s icy sidewalk, or driving your car into their lobby. Their goal is for you to have insurance in place to minimize the need for legal action if something bad happens during a consultation.

Depending on your business, you may also need additional specialized liability insurance. Two examples are a physician’s malpractice insurance, or an architect’s error and omissions insurance. These are often available from professional organizations. You should definitely discuss the liabilty issues with your attorney.

Other insurance – You may want to consider other insurance offerings, such as coverage for expensive equipment or business interruptions. Keep in mind that your homeowner’s policy probably does not cover business related issues. Check this out with your insurance agent.

Here are some final thought on insurance. Shop around, as prices will vary. If you belong to a professional organization, they often offer individual plans at group rates.

One way to simplify your insurance needs is to find a good insurance broker. You want someone who specializes in small business insurance, which may or may not rule out your personal home/auto agent. Check with your accountant or attorney for a recommendation, or ask other small business owners. A good insurance broker can be a very valuable ally.

Well, I hope this has helped put insurance in its proper perspective. As I learned from a wise old college professor many years ago, “The goal of insurance is to protect yourself against the big losses, not the small losses. You can cover the small losses, but the big losses can wipe you out.”

Good advice today, too.

© 2011, https:. All rights reserved.

Four key questions…

Whenever someone gets curious about consulting, they usually end up asking one or more of what I call the “four key questions.” 

  • How Do You Get Your Clients?
  • How Do You Set Your Fees?
  • How Do You Decide What To Consult About?
  • How Do I Get Started In Consulting?

1.  How do you get your clients?

This is probably the question most asked, and for good reason. No matter what business you start, you won’t succeed without customers.

The answer, of course, is Sales and Marketing. For many considering consulting, this is a potential show stopper. It may be due to professional pride (I’m not a peddler) or even fear (I can’t stand the rejection.) Either way, you need to get over it if you want to be a successful consultant.

But never fear, I’ll share a bunch ideas that have worked for me (and others too.) Personally, I view the Sales/Marketing challenge as just another problem to be solved, no different from any other consulting challenge. Put in this perspective, it can even make getting customers fun.

A final thought — if you are just starting out, you’ll need to do this yourself. If you decide you can not take on this on, you may want to reconsider consulting.

If you are really set on consulting, you could join an established consulting firm that already has the sales/marketing process in place. But sooner or later, you should learn to master these challenges yourself. Even as an employee, the “rainmakers” are cherished.

2. How do you set your fees?

This is the next question that arises, and there is no simple answer. Always remember, however, as a business you must make eventually make a profit. Otherwise, you might as well stay where you are at, even if that just means going fishing.

We’ll look at several ways to price your services. These can range from hourly/daily rates to project based fees, retainers, etc. To begin with, you’ll need to determine an  hourly/daily rate, based on your comparative worth in the marketplace. This includes your salary, overhead, and profit.  The latter is important, as their is no sense of doing work for the same or less that of an employee.

This is just a starting point, however. Most successful consultants eventually figure out how to get a premium for their services. They may further expand their income opportunities through leveraging, such as classes, books, or other information based products. The current trend is away from hourly rates, and towards project or value-based fees.

Whatever you do, don’t price your services too low. This is a common error made by  brand new consultants, or those consulting on a part time basis. My advice — don’t do it! Frankly, the clients you attract with bargain prices are probably not worth having in the first place.

3.  How do you decide what to consult about?

This question is personal, and a bit tougher. The challenge is to find something the market values, but that you also enjoy. The latter is really important, for there is no sense starting a business around  something you don’t like to do. You also want to look for the chance to leverage your experience, skills, and education.

If you already like what you do, the choices are simple. Maybe you are like me, an engineer who really liked engineering, but who was tired of the big company BS and bureaucracy. Since I already had the technical skills and experience, I just had to work on the business issues. But even here, I had credentials, contacts, and credibility with my future clients.

If you don’t like what you do, it becomes a bit tougher. But don’t overlook a lateral move that let’s you leverage yourself.

An example is a young lawyer I met on an airplane. After getting her law degree, she found she really didn’t like the day to day grind of  being a lawyer. She discovered, however, that she really enjoyed the challenge of jury selection, a task most of her colleagues loathed. She turned this interest into a successful consulting and training firm serving the legal profession. As a lawyer herself, she has instant credibility with her clients.

4.  How could I get started?

This is usually the last question to come up, and often mildly  disguised as “How did YOU get started?” My quick answer is “One step at a time…”

You don’t need to do it all at once. It was nine years from when I began consulting part time until I made the full time Jump to Consulting. During that time, I tried a lot of things that proved useful later on.

For example, as a field sales engineer, I developed and promoted product-focused seminars to bring in leads. Later, I started a couple of  newsletters for my customers, both to keep in touch and also to alert customers of new products. To enhance my credibility, I started writing business and technical articles for industry focused publications.

All of the above were techniques I used later in my consulting practice. But thanks to my previous employers, I had already worked out many of the kinks. Not only that, my employers were happy with my initiative and the results they produced.

One boss even gave me a sterling review for the things I tried (even though not everything worked.) You too can start today in your present job. You can even pretend you are a consultant. Eventually, you will be.

But maybe your time frame is shorter. You’re  suddenly out of a job, and consulting looks attractive. Yes, it can be done, but it is not easy. Those who I’ve observed that went this route had both their services and their potential clients pretty well defined.

Of course, don’t overlook your present or past employers. While they may not be in a position to hire someone full time (do you really want a full time job anyway?), they may welcome the use of your talents on a temporary basis. And if they are cutting back, they may very well need your help just to get the necessary work done.


Don’t fret — this is just the beginning. We’ll address all of these questions in much more detail in subsequent postings.  Until then, keep thinking about these key questions.

© 2011 – 2020, https:. All rights reserved.

The Four “Cs”… Consultants vs coaches vs counselors vs contractors

Consultants come in may flavors… To add to the confusion, not everyone calls them self a consultant — many refer to themselves as coaches, counselors, or contractors.

So what is the difference, anyway? And do the differences really matter?  In a broad sense, all of the above are “consultants,”  providing advice and guidance for a fee. All of the above need suitable clients if their business is to be a success. But the approaches and focus may vary, so here is an attempt to clarify these differences.

Coaches

This category has become very popular in recent years. Examples are life coaches and management coaches. Based on the sports model for coaching, the focus is on people, often at the individual level. The emphasis is on motivation and improvements.

Coaches are often generalists rather than specialists. They rely on their past experiences and strong personal skills to help their clients. The field is easy to enter, as there are no regulatory bodies or prescribed fields of study. In the latter case, however, many of the more well known coaches offer brief training programs, which can also confer a certain level of credibility.

Counselors…

This category has been around for some time. Examples include marriage counselors or drug counselors. Like coaches, the focus is on people. In this case, however, the emphasis if often on changing negative behavior.

Counselors are often specialists, and may rely on specialized training along with experience.  Like coaches, most have strong personal skills. Counselors may be regulated (such as psychologists or psychiatrists) and may require special licensing before offering services to the public.

Consultants

It seems like consultants have been around forever. In fact, it is often referred to as the world’s second oldest profession. Many wags like to point out there is little difference with the world’s oldest profession. After all, both provide services for fees.

But I like to think there is a distinct and important difference. Most consultants focus on identifying/preventing/solving problems or improving the future.  Some are technical specialists (such as engineers or doctors), while others deal are business specialists (such as management consultants.)

Technical specialists are often professionals (doctors, lawyers, engineers, architects, accountants, etc.), and typically deal with specific technical problems or issues.  Most professionals are licensed by state governments, which may require passing a compressive exam, plus demonstrating appropriate education and experience. Typically, you can not offer professional  services to the public without the appropriate licenses.

Business specialists are often have business backgrounds (management, marketing, operations, manufacturing, etc.), and may deal with a wide range of business problems. Unlike technical professionals, business consultants generally do not require any legal credentials.  Many business consultants, however, obtain nonlegal credentials such as certifications from various industry organizations.

Contractors…

Often confused with consultants, most contractors are “rented employees.”  Contractors usually work for a contracting company, who then place them with their customers.  Contracting assignments can run from several days to several years. The contracting company handles the marketing (getting the clients) and administration (insurance, taxes, etc.)  Consultants, however, usually obtain their own clients and handle their own administration.

This is not meant to be disparaging, as I have known many engineering colleagues who have been contractors. In fact, some have switched among being employees, contractors, and consultants at various times in their careers.

So, the common thread in all of these categories? With the exception of contractors, all are in business for themselves. As such, all need to attract clients, set suitable fees, and run the business in a profitable way. The last  point is very important, for if you can’t eventually turn a profit, why do it?

Never forget… this is still about business (even if your practice is small)… not charity!

© 2010 – 2020, https:. All rights reserved.

So just what is a consultant?

Welcome to the inaugural entry in my blog!

Let’s start at the beginning —  just what is a  consultant, anyway? If we asked fifty people this question, we’d probably get fifty or more answers, and they would all be good.

Webster defines a consultant as “an expert who is called on for professional or technical advice or opinions.” This is a traditional view, and encompasses professionals such as doctors, lawyers, accountants, engineers,  architects…

This definition can also include business specialties (often considered staff positions) such as marketing, public relations, human resources, advertising, finance, regulations, operations, and more. These business areas are often the realm of “management consulting” firms.

But our focus here is going to be on small independent consultants, and how to become one.  Small firms often specialize, and operate in one or more niches.  For example:

  • A marketing consultant might specialize in market research, web design/implementation, direct mail or writing white papers.
  • A financial consultant might specialize in estate planning.
  • An engineering consultant might focus on power electronics or analog design.
  • A legal consultant might specialize in bankruptcies, divorces, or taxes.
  • Et cetera…

Independent consultants also often specialize in markets, such as medical, computers, financial, etc. These specializations makes it easier to both establish credibility, and to target potential clients.

As a small firm, it is very difficult to be everything to everyone. If you are thinking about making a Jump to Consulting, you might begin with two simple questions:

  • What special skills and experience can I sell?
  • Who might pay for those skills and experience?

Its OK to have more than one niche  or serve more than one market.  But when you are small, you can’t be everything to everyone.  So it is important to focus so you can concentrate you marketing efforts.  More on that in future  posts…

Finally, remember that consulting is a business! This means providing something of value to a client,  and then getting paid for it.

Unfortunately, the term “consultant” has been bastardized. For example, many sales people refer to themselves as “consultants”, when they are really pitching products or services, not offering unbiased advice.  And since anyone can call themselves a consultant, one may be neither an expert nor a professional in their field.

By the way, there is nothing wrong with being in sales — I spend several years as a Sales Engineer, and have high regard for sales professionals. But if you are selling something other than your own advice and expertise, you are not a consultant in my book.

Another common use of the term is applied to those between jobs. In the engineering world, we often joke that a “consultant” is just an unemployed engineer. In turns out, however, that unemployment often leads to permanent consulting. I’ve known several consultants who went that route, and have become quite successful at it.

What about variations on consultants, such as “coaches” or “counselors?” Yes, I consider them consultants too — often a special breed with special skills that focus on personal improvement.  In a future post, I’ll address what I see as the subtle distinctions in these categories of consulting.

© 2010 – 2011, https:. All rights reserved.

Welcome to Jump to Consulting

Welcome to my blog… This is a blog about how to start, build, and operate a small consulting practice. It is aimed at those who may be considering consulting as a part time or full time venture, although existing consultants may find it useful too.  The goal is to share ideas and experiences, and to help demystify this business.

As the co-founder an engineering consulting firm with over 30 years experience,  I’m often asked about the “inside secrets of consulting.”  Questions come from several directions:

  • Clients (Can we go to lunch? I’ve got some questions…)
  • Colleagues (I’m curious… How did  you do this, anyway?)
  • Travelers (Oh, you’re a consultant?  I’ve been thinking about that. Can I ask a few questions?)
  • Other consultants (Can we compare notes?)

It is always fun to engage in these conversations, and I often learn as much or more than I share.

For the past several years, I’ve been harboring the idea of a book on consulting.  The outline is done, and  I’ve even gathered a big fat file of notes.  But having written or co-written several successful technical books, I’m well aware of how much work this can be.  As a result, I keep putting it off.  There is a saying among authors, “I like not so much to write, as having written.”

Then the blog idea struck. No need to write everything at once, but the ideas can be doled out in pieces. Furthermore, questions and feedback can even improve things. If all goes well, much of this may still end up in a book, as a small legacy of my many years in this game.

The catalyst for the blog idea was a chance meeting with Pam Slim, a fellow Mesa AZ resident, author, and blogger supreme. Pam was on a book tour, promoting her new book, Escape From Cubicle Nation. Her book and her blog are rich with ideas, particularly for those suffering from the “big business blues.”  (Visit her blog atwww.escapefromcubiclenation.com)

Best of all, Pamela has been there, both in big business, and then almost 10 years as a training consultant and subsequently a life coach. If you need to figure out how to escape and what to do next,  I highly recommend her book, web site, and services.  And if you’re wondering how to make the Jump to Consulting, I invite you to ride along here as well.

A SPECIAL WELCOME to “Geeks and Geezers…”

  • If you are a “geek” (aka professional),  click here
  • If you are a “geezer”(aka boomer), click here

But if you are neither, and are just interested in consulting, you are still ALWAYS WELCOME  here!  Thanks for visiting…

© 2010, https:. All rights reserved.