Yearly Archives: 2011
Resource Review – Rainmaking Conversations
For this month’s resource review, I’ve selected Rainmaking Conversations by Mike Schultz and John Doerr. This brand new book describes a sales approach based on their proven RAIN sales model. Well written, this book should be on every consultant’s bookshelf (after reading it, of course.)
The authors are co-founders of the Rain Group, a sales training and sales performance improvement company. Their customers include professional service firms and other companies that sell complex products and services (technology, pharma, medical devices, etc.)
As such, they certainly understand the unique challenges of selling intangibles like consulting. They also co-authored Professional Services Marketing, which nicely complements Rainmaking Conversations.
Incidentally, if you are brand new to consulting, rainmakers are those who generate new business. In large firms, a few rainmakers often bring in most of the business for everyone to work on. In a small practice, however, everyone needs to be a rainmaker!
This book uses their RAIN model that shows you how to:
- Build trust right from the first contact (R – Rapport)
- Uncover both problems and dreams (A – Afflictions/Aspirations)
- Make the economic case for purchase (I – Impact)
- Paint a vivid word picture for the future (N – New reality)
The book emphasizes sales conversations, not manipulation. In short, selling consulting should NOT be like selling a used car — but rather like talking to a friend or colleague. When placed in that context, selling consulting services can even become enjoyable. (It is for me…)
In addition to the books, the Rain Group has a strong on-line presence. They host a couple of free blogs and a fee based membership web site . The latter offers numerous reports, white papers, webinars, podcasts, and other useful resources. The current annual fee is $299, and is well worth it.
The Rain Group also offers a two day seminar based on the RAIN sales model. Last year, they turned their popular seminar into an on-line class, complete with forums and monthly workshops. If you like the book, you may want to consider their on-line program for even more depth.
One caveat for geeks – the book focuses on business consulting rather than technical consulting. As such, RFPs (Requests For Proposals) are not covered. RFPs are often mandatory for technical consultants (like engineers and architects) who deal with government agencies (local, state, and federal.) Certainly not a show stopper — the rest of the material is excellent.
I recently met Mike Schultz (loved the bald head), and have been a RainToday member for a year. I also took their on-line selling class and enjoyed it. After 23 years of consulting and 10 years in high tech sales and marketing, I still picked up some useful ideas.
The books and other services by the Rain Group are highly recommended.
Rainmaking Conversations by Mike Schultz & John Doerr
John Wiley & Sons, 2011 – ISBN-978-0-470-92223-1
RainToday.com – RainMaker Blog – Rain Selling Blog
© 2011, https:. All rights reserved.
Everything you touch turns to gold…
Looks can be deceiving…
My business partner and I were cruising the show floor at a professional symposium, when one of the younger members of our technical community stopped us and asked, “How do you guys do it, anyway? Everything you touch turns to gold…”
We both looked at each other, and grinned. I said, “Do you want to tell him, or should I?” And then we both proceeded to explain that, in fact, many things we had tried over the years had NOT worked.
Or as I summed it up, “You’ve never seen all the dead bodies. We killed them quick, and then buried them. Occasionally we were able to nurse one back to life…”
Here are three examples, and the lessons learned:
- Although we have a successful training business as part of our consulting practice, it took us several times to get it right. And even then, we’ve had to readjust.
- Lesson learned — if you thinks the idea has merit, change it as needed.
- After five years in business, just when we thought we had it all figured out, our primary market tanked and the business stopped — dead cold. It was panic time, but then we diversified into several other markets.
- Lesson learned — don’t put all your eggs in one basket.
- In the late 1990s, we joined the dot.com frenzy with an on-line web portal. We had visions of big advertising bucks that never materialized. It also was a huge time and money suck. We finally sold it to a magazine where it fit much better than with a consulting practice.
- Lesson learned — Some businesses just don’t belong together.
With over thirty years of working together, we’ve had a few other misadventures, too. No, not everything we have tried has succeeded — that is the nature of business.
As the old Kenny Rogers song goes, “You got to know when to hold them, and know when to fold them… ”
But even with the disasters, consulting game is still great fun!
© 2011 – 2021, https:. All rights reserved.
Lead Generator # 5 – Professional Organizations
Professional organizations offer a ready made network of friendly potential clients. The secret is to be an active participant, not just a passive member. As an added bonus, these organizations can help dispel the loneliness that often accompanies consulting, particularly for solos.
Most technical professions (medicine, law, accounting, engineering) have well established organizations. They may be national, or even international. They often host national symposiums where you can meet professional leaders, as well as the ever important vendors.
Don’t overlook the latter. While vendors may not be prospective clients,they can be very effective recommenders. Thus, it is usually in your best interest to cultivate contacts among the vendors serving your profession. Finally, as salespeople, most are friendly and gregarious — I’ve always enjoyed time spent with vendors.
Professional organizations exist for general business, too. Many focus on specific disciplines (sales, marketing, purchasing, etc.) Like the technical professionals, they often host national symposiums with presentations by business thought leaders.
While one can become active at the national level in either type of organization, your immediate efforts may be better spent at the local level. The reason — less politics, and more direct contact with actual potential clients. This is particularly helpful if you are targeting a geographical area, such as your own backyard.
We’ve had very good results with this strategy. Here are two examples:
- When we started out, we volunteered to edit a regional newsletter for our professional organization when the position vacated. As it was a bit of work, the local leaders were happy to have some new volunteers.
- In addition to editing the newsletter, one of us needed to attend monthly board meetings. What a great way to network! When our local power utility had a serious interference problem, one of the board members immediately recommended us. Why? To her, we were a known and trusted consulting firm.
- When I moved to Phoenix, the local professional chapter had been inactive for many years. A colleague and I decided to reactivate it, and hosted a couple of meetings at a Mexican restaurant –always popular in Arizona. We were soon joined by a third “conspirator”, and the chapter was off and running.
- We are still active many years later. Not only has this affiliation resulted in several significant projects over the years, but I also made several new friends through our common technical interests.
The best part of all this is that you can begin doing this today. Furthermore, your employer will not be threatened or upset, but will likely be delighted by your initiative. And even if you never make the JumpToConsulting, the professional contacts you make through your professional organization will only help your career.
Finally, you’ll be doing some good. As my father always said, “Cast your bread upon the waters…” To receive, you first must give.
PS – Posts may be sparse over the next month, due both to business and a medical issue with a hand that needs to heal. Hope to pick up the pace again in May.
© 2011 – 2020, https:. All rights reserved.
Integrity matters…
Roger Boisjoly, P.E. – Truthteller
This success story is a shining example for all consultants — not just engineers. Roger is best known for trying to stop the Challenger Space Shuttle Launch in January 1986 due to his concerns about faulty O-rings in the rocket boosters. Although often referred to as a whistleblower, Roger prefers the term Truthteller.
Roger never intended to become a consultant. As a mechanical engineer, he enjoyed working in the aerospace industry for 25 years, and probably would have spent his entire career doing what he loved.
But all that changed the day Challenger exploded!
At the time, Roger worked for Morton Thiokol, the manufacturer of the solid state rocket boosters on the Space Shuttle program. In July 1985, Roger wrote a memo to his managers warning of a faulty design that could result in a catastrophe. Due to program concerns, Roger’s warning was ignored. So were subsequent warnings.
Roger’s memo was based on an investigation that revealed failures in the O-rings used to seal sections of the rocket boosters. These failures were aggravated by low temperatures. Further investigations resulted in a warning not to launch at temperatures under 53 degrees.
With overnight temperatures of 30 degrees for the Challenger launch, Roger and his engineering colleagues tried to stop the flight. They almost succeeded, but were subsequently overruled by management. As a result, seven crew members lost their lives in a fiery explosion 73 seconds after liftoff.
A presidential investigation followed the disaster, and Roger was called as a witness. His testimony exposed the truth about senior management’s failure to heed warnings from him and his colleagues. Warnings about it not being safe to launch in freezing temperatures that would result in a disaster.
That testimony ended his career with the Space Shuttle program. Retaliation was swift and brutal. Roger lost his position and was blackballed from the industry. He paid a stiff price for simply telling the truth.
But Roger survived, and became a consultant. He passed his Professional Engineering (PE) exams 29 years out of college. Now licensed to practice engineering as an independent consultant, he started his own forensic business. That business gradually evolved into speaking engagements as he traveled nationally and internationally to lecture about Professionalism, Organizational Behavior and Ethics.
Roger is considered a hero in the engineering community. For his honesty and integrity, in 1988 he was awarded the Prize for Scientific Freedom and Responsibility by the American Association for the Advancement for Science. He has received numerous other honors as well.
Roger retired from full time speaking requiring air travel in 2005, but still keeps semi-active driving to southern California several time a year to speak to selected managers about his experiences.
Integrity matters… Thank you, Roger, for yours.
Edit – It is with regret I report that Roger recently passed away. RIP, Truth-teller.
© 2011 – 2012, https:. All rights reserved.
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.
A forensic consultant ramps up fast…
Gene K. Baxter, Ph.D., P.E. – Baxter Engineering
I met Gene a dozen years ago through a professional group in Phoenix. A mechanical engineer, Gene specializes in forensic consulting (accident investigations, product failures, etc.) Typical clients are attorneys or insurance companies that need a professional to investigate and assist in legal proceedings and, if it goes to trial, to act as an expert witness.
Gene had started a local professional group, the Forensic Group, composed of a range of forensic experts — engineers, accountants, nurses, and more. Since I had done some forensic work myself, he invited me to join and attend their monthly meetings.
Although curious about the Forensic Group, I was even more curious how Gene got into this particular business. His story was most fascinating.
It was Friday, February 12, 1993, and Gene was suddenly out of work. Intrigued by both consulting and forensics for some time, he hung out his shingle as a Forensic Consulting Engineer two days later — Valentine’s Day, February 14, 1993.
The good news is that Gene had very solid credentials — a Ph.D. in Mechanical Engineering, and a Professional Engineer’s (PE) license. The bad news is that he had no prior experience in forensic work, although he had experience as a consulting engineer while employed by GE.
So what to do? Gene went to the law library at a nearby state university, picked up some law magazines, and reviewed the consultant ads in the back of those magazines. He then called several of the consultants to see how they got started in their business.
One of these forensic engineers was Roger Boisjoly, who you may recognize as the Whistleblower (Roger’s term is Truthteller) prior to the Challenger Space Shuttle Disaster in 1986. It turns out that Roger lived only a few miles from Gene, so they got together for lunch. (Roger’s story is so interesting we’ll cover it in a subsequent post.)
Soon after the lunch with Roger, Gene contacted another local forensic engineer, and had lunch with him, too. Both engineers were very gracious in sharing ideas and encouragement. They did not see Gene as a competitor, but as a potential colleague.
Gene thought likewise. Since he enjoyed meeting both, he suggested a third lunch with all three of them. One of them brought along a fourth friend who did forensic accounting. Over lunch, they decided to meet once a month to discuss their mutual interest in forensics, and thus, the Forensic Group was born.
Gene’s first consulting job came from this network. A few months after their first meeting, Roger asked if Gene was interested in a job related to a hospital HVAC (heating, ventilating & air conditioning) system. Thanks to that referral and the help from his group, Gene’s business was off and running.
Over the years, Gene has received several referrals from this network. Likewise, Gene has steered many jobs to others in the network when they were better qualified to handle the job. It has been mutually beneficial for everyone.
Gene pursued other avenues too — always a good strategy. There is no “silver bullet” when marketing a consulting practice. As one example, Gene started calling insurance companies to see if there was any interest in his services.
Although it took a number of phone calls, Gene hit pay dirt with one automobile insurer. They retained Gene to review rear end collisions. He became their “low-speed rear-end” expert, which resulted in dozens of consultations for this client alone.
By end of the year, Gene was making almost as much as he had as an employee. While not usually the case for a startup, it shows what diligence and determination can accomplish. That, and the help of some newfound friends.
Although semi-retired, Gene is still active, and the group he formed still meets monthly. If you are interested, you can visit Gene’s web site at www.forensicgroup.com. You can find Gene’s information there, too.
A quick disclaimer. I no longer pursue forensic work, but I’ll discuss forensic consulting in a future post. As Gene says, it can be both intellectually and financially rewarding.
Do you have a success story to share? If so, please send it in.
© 2011 – 2015, https:. All rights reserved.
Two cures… success or death!
This happened soon after I went off on my own. Cruising along at 30,000 feet on my way to consulting job, I was catching up on my reading.
In addition to technical materials, I’ve always tried balance my reading with business materials. Even though I’m an engineer, I’m also a business person. You know, profit & loss, sales & marketing, and all that stuff.
The business article I was reading was about the itch that drives entrepreneurs to start and run small businesses. And then the big quote hit me, as the author bluntly stated, “There are only two known cures for entrepreneur’s itch — success, or death.” It seems that once you catch the bug, you can’t get rid of it.
In a way, I felt relieved. After all, my venture into my own business hadn’t killed me. But I could really appreciate the drive that keeps one going. I had tried once before and failed, but regrouped, and this time it looked successful. Later on, it took my business partner and me four iterations to get the training side of our business right.
So be warned — once smitten, there is no cure. The itch will succumb only to success — or death.
Wishing you success, and a long and happy life!
© 2011 – 2015, 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.
Why building a business is like building a house…
My parents built and remodeled several houses. Not to make money, but to build a better life. And, I suspect, because they thoroughly enjoyed doing it. When one project was done, it was usually time to start another.
Often, my brother and I were pressed into involuntary servitude. We pounded nails. We poured concrete. We tore down a barn. We put on a roof. We learned how to plumb and wire and plaster. And much more.
Looking back, I now realize what great lessons we learned at a tender age. You see, my brother and I now each have our own small business. THANKS, Mom and Dad!
Thirty+ years ago, my business partner and I started building a consulting firm. We were a couple of young engineers with a dream of going off on our own. Incidentally, my business partner’s father was a carpenter. Hmmm…
It was nine years from the start until the day we “moved in” and became full time consultants. We could have done it in less, but we took our time. We plotted and planned, we marketed and built a customer base, and we stashed away as much money as we could. We pounded a lot of nails.
When “moving day” finally arrived (October 1987), the stock market crashed. That was almost like having a fire. But we survived, and the business did not burn down. Better yet, we now had our own place to do business — in our own way, too.
Building a business is a lot like building a house. You start with a vision. You draw up some plans. You gather materials. Then the real work begins — you dig the hole, lay the foundation, frame the walls, and much more.
It all takes time. Eventually you get there, but not overnight. There are days when all you do is pound nails or cut wood. But you persist. After the walls go up, you add the roof, and finally the doors and windows. You finish the outside, and seal the place up.
Even then, you are still not ready to move in. Now you have all the inside to do — insulation, wiring, plumbing, painting, trim, and more. You wonder, will it ever end? Is all this effort really worth it?
By the way, this is where many fledgling business owners quit. Frustrated. Out of energy and/or out of money. Sadly, they walk away with the house only partly built.
But hang in there — you are just about there. With a final bit of persistence, “moving day” finally arrives. And then you wake up one morning, and realize that you really ARE there. You have customers and cash flow. Congratulations — you’ve built a business!
A closing comment. I’m once again building a new place with this blog. A little retirement cabin, perhaps. A place where I can sit on the porch, sip lemonade, and share the lessons I’ve learned. I hope you find them useful.
In the meantime, as long as you’re here — can you hand me that hammer?
© 2011, https:. All rights reserved.
Resource Review – Million Dollar Consulting
For this month’s resource review, I’ve selected Million Dollar Consulting by Dr. Alan Weiss. Having now written 32 books on the subject, Alan Weiss is no doubt a guru on consulting. Anyone considering consulting should read what he has to say.
His materials are based on his own experiences of starting and running an international management and organizational development firm. As the book title implies, he has consistently produced over over $1 million/year in revenues. Although his background is in management consulting, his sound advice applies to all types of consulting.
The book contains an abundance of ideas. The focus is on helping existing consultants take their practice to the next level, but he includes advice for beginners too. Be sure and get the latest version (2009), as he has a added new and pertinent information.
In recent years, he started several mentoring programs, such as his Consulting College and other workshops and seminars. Most appear to be aimed at established consultants, so they may not be of immediate interest to those contemplating a Jump To Consulting. The book, however, is an excellent place to start.
I’ve not met Alan Weiss, but I have read several of his books and have followed his blog for the past year. I just recently subscribed to his weekly Friday Wrap series of podcasts and videocasts. Like a good Dutch Uncle, his style can be blunt. I find his ideas useful and thought provoking.
Million Dollar Consulting by Dr. Alan Weiss.
McGraw Hill, 2009 – ISBN-10:0071622101
www.summitconsulting.com & www.contrarianconsulting.com
© 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.
Shenson on Consulting, by Howard Shenson
For my second resource review, I’ve selected Shenson on Consulting by the late Howard L. Shenson. For over 20 years (mid-1970s to mid-1990s) Howard Shenson wrote books, published newsletters, and conducted seminars that focused on beginning consultants. Before he suddenly passed away in 1994, he was known as the “consultant’s consultant.”
Howard’s materials were based on his experiences with his own individual and group consulting practices. His background was in marketing, and as a result, he was very strong in that area. He was also very pragmatic.
Instead of big company techniques like advertising, Howard emphasized methods that at the time were non-traditional — seminars, newsletters, trade journal articles, etc. He focused on niche markets, almost always a good strategy for small businesses.
I first met Howard at a consulting seminar he held in Minneapolis in 1978. At that time, I was just starting to explore consulting. His short seminar reshaped my thinking, and started me on my journey. I consider him my original consulting mentor.
I’ve used many of his ideas with good success. Even though it may be dated, I feel anything written by Howard Shenson is still worth reading today.
Shenson on Consulting, by Howard L. Shenson. Published by Wiley, 1994. ISBN 0-471-00925-3. (No web site.)
© 2011, 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.
- Write magazine articles
- Develop white papers
- Write a book
- Start a blog
- Start a newsletter/ezine
- Become a speaker
- Teach a class
- Support professional organizations
- Attend trade shows
- Start you own trade show
- Develop a web site
- Present seminars/webinars
- Referrals & Testimonials
- List in directories
- Network- Social Media & More
- Collaborate
- Use agents and reps
- Advertise
- Cold call/warm call
- Gimmicks
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.
Karl the Engineer
A retired engineer does the math…
Every time I tell Karl’s story, it bring me joy. My engineering colleagues always love it, too. You see, when some big company bureaucrats (BCBs) tried to stick it to Karl, he struck back and won.
Karl didn’t intend to consult. Nearing retirement, he alerted his company that it was time to find or develop a replacement. His expertise was soon going out the door, and he planned to do a lot of fishing. Of course, BCBs dragged their feet, and one day, Karl retired. As planned, he went fishing.
After about three months, however, Karl was getting bored. Not only was he fished out, but he had made all the household repairs he had put off for so many years. Winter was on the way, and he wasn’t sure what to do next.
About that time, BCBs realized they needed Karl’s help. So they called him, and offered him a part time contract. But there was one small catch. Since he received a pension, any contracting fees would reduce his pension by $1 for each $2 in fees. Well, as Karl put it, “You didn’t need to be an engineer to do the math.” He politely refused their offer.
But since he already had his PE (Professional Engineer) license, he decided to form a one man consulting firm. He incorporated, and then asked the BCBs if “consultants” subject to the same pension cuts. “Well, no” they replied. So he quickly said, “Fine, we can do business. And here are my rates.” The rates were about four times what they originally offered him as a contractor.
It turns out they needed Karl — badly. They swallowed hard, and brought Karl in as a consultant. He enjoyed it so much, he started consulting for other local firms too. When I met Karl, he was actually starting to wind down. A professional colleague, he became a friend who graciously shared advice and even sent referrals our way.
After hearing the story, it finally explained his aging Cadillac. I’d always been curious, since Karl just didn’t seem like a Cadillac person. Well, he needed a new car anyway, so he took his first consulting proceeds and bought a Cadillac. He told me he did it for the BCBs — whenever he came to consult, they got to watch him drive up in that Cadillac!
Karl finally did retire, but he had greatly enhanced his retirement funds. He and his wife traveled around the country in a motor home , plus they made several trips to Europe. All this, plus the Cadillac, courtesy of his unintended consulting business.
Do you have a success story to share? Please send it in…
© 2011 – 2018, 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 Insurance — Two 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.
Words count… and have consequences…
OK, I promised an occasional rant — here is my first…
Less that a week ago, and less than 100 miles away in Tucson, AZ, a crazed gunman tried to assassinate a US Congresswoman. He failed, but he did kill six other innocent bystanders, including a beautiful nine year old girl. (As a grandpa, I can hardly even bear to think about the this.)
When asked, Pima county Sheriff Clarence Dupnik (a well respected lawman) offered his professional opinion that the political rhetoric and vitriol from certain radio and television commentators may have been a contributor. Not as fact, but as opinion. He bluntly stated as only a gruff old sheriff can, “Yes… words count, and they have consequences.”
Sheriff Dupnik behaved as any good consultant should. Rather than sugar coat things, he called it like he saw it. As a professional in law enforcement for over 50 years, his opinion certainly has credence.
As a professional engineering consultant, I sometimes must offer an unfavorable opinion. I often joke that I must tell a client “Your baby is ugly.” I also joke that when doing so, one must be careful in how you phrase things. After all, words count.
The reaction to those criticized was not unexpected. Rather than accept or address the criticism, they immediately lashed out and attacked the sheriff — but not the problem.
Argumentum ad hominem, if I remember my freshman philosophy class — attack the man. (Yes, some engineers take philosophy classes.) It is one of the oldest of debate fallacies, yet favored by the most manipulative — and believed by the most gullible.
A word of warning. Expect the same when you offer an unpopular opinion. Those under fire will criticize you, your family, your upbringing, and more. You are seen as attacking their ego, and perhaps even their livelihood. Like cornered rats, they may well fight back.
But like Sheriff Dupnik, be polite and stand your ground. As a professional, your opinion counts for much more than those of the self-serving. And remember, “Words count… and they have consequences.”
My sincere condolences to the bereaved – Daryl – Mesa, AZ
© 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.
