Discussion on:

Boost your IT consulting business with your friends' help

How have personal relationships helped or
hindered your consulting engagements?

I have a question about your contract. I have a small IT consulting business (literally small just ME!) and up till now my advertising has been word of mouth (e.g. friends or contacts talking to other potential contacts). Most of the time its just as you said as far as the interview part. "can you do xyz within this time frame" or "can you help do this for my business". But what stifles me is the "paperwork" that needed in these types of situations. I generally charge an hourly fee or I'll quote for a particular job a flat rate just depending on the amount of work needed. So i guess my question is how or what to word in the contract because business is starting to pick up and I'd like to have a 'canned' contract I can print or email to a potential client. Any suggestions you would be greatly appreciated.

Patrick

It's a good idea to have a standard contract
ready. With mine, I just plug in the
client's name, adjust the rate if needed, and
I'm done.

That's a great idea for a future article,
Patrick.

Of course, what you want to agree to is your
business, and you should always discuss it
with a lawyer.

For getting something ready for a lawyer or use if you don't have the time for a lawyer to vet a contract form, I would recommend checking a local outlet for an office supply store.

Staples, up here at least, has several different sets of basic legal forms, including contracts for general work. These "generic" contracts are not perfect, but they are a good starter and a lawyer can much more easily make them ironclad than just a listing of what you want it to cover.
Here in Canada, they are legal documents, and binding in a court case. The cheapest ones are about $10, which is a disk with 2 files, an MS word teemplate and a .txt template.

Check Techrepublic. They have a couple of downloads with contracts (if I remember correctly including a memorandum of agreement). As with the Staples versions referenced previously, these are templates and you'll need to tweak them to meet your own needs.

I'd also suggest investing a couple of bucks into having a lawyer review the contract. Some of the clauses may not be legal in your jurisdiction. Best of luck!

Glen Ford
http://www.trainingnow.ca

I looked over the TR downloads, and none of
them seem very tight to me.

He said "There's two and only two reasons to have a contract. The first is to give the two of you a basis to negotiate an agreement on. The second is in case the agreement breaks down."

Glen

... to only need them for the first case so
far (touches wood).

I have successful account relationships for over 10 years with a few companies and they JUST DO NOT REFER, for what reason I know not. Maybe they feel afraid they will lose my service or something like that, but they remain happy, content and always renew my contracts with them without issue BUT JUST SIT ON THEIR BUTTS. My problem is how to diplomatically MOVE THEM to DO SOMETHING.

If they won't refer you (usually because it's too much work but sometimes because of company rules) try getting a testimonial.

First ... write the testimonial you would like them to give you. Then ask them for a testimonial (written referral). If the response is "Write it up and I'll sign it", you can then hand them your prepared testimonial which they can copy onto their own letterhead.

Store the original away, then, use the bits you wanted (you did write it that way didn't you), in all your marketing contacts (letters, brochures etc.).

If you get a really good line (or better still several quotables) add it as a tag-line to your corporate signature. With modern word processing you can cycle through these testimonial sigs with every letter etc.

If they won't write a testimonial ask if you can use their name on a client list.

If a client is happy with you they will often let you do one out of the three.

One thing, be prepared for the answer they are not allowed to endorse suppliers with a solution (for example quoting without the company name). Better still, sit down, brainstorm all the possible objections, and document the objection and solution. Then after you've asked add any new objections and figure out a response.

Then get out and ask.

You won't get all but you will get some and that's a good start.

Glen Ford
http://www.trainingnow.ca
(who's hoping this made sense because he's so sick right now he can't be sure!)

Good advice on testimonials. My experience
is that most good clients will gladly give
them -- although I have had a couple of them
ask me half jokingly, "now you're not going
to get so much business that you forget about
us, are you?"

I have a nice collection of those on my linkedin.com profile. What I need are marketing venues, references to their colleagues, business gatherings. A seminar for area dentists, for example, that I can present at. If they hear of a bad situation somewhere, recommend me to fix it. Direct support.

Business networking groups are a big help of course.

... your clients to actively market for you.

If you ask them to do something specific,
they may go along with it. But if you want
them to think of it all by themselves, I'm
afraid you'll be disappointed to find that
they aren't always thinking about you.

And NO I do not expect tons of leads from them, but after a few years I would expect some nudge from somebody. I am thining of those instances where they hear (as they must occasionally do) of another company having issues so they can recommend me. And once a year would be nice. They CANNOT live that much in a fishbowl ya know.

Maybe they value your services so highly that they want to prevent potential competitors from benefiting from your expertise.

... it isn't in their interest to send you
business. What do they get from it? As
apotheon said, only a distraction of your
attention. Maybe you could offer them a
finder's fee? Two free hours of consulting
for every referral that results in an
engaagement?

Actually, it may well be in their best interests. If you have more business, you stay in business, which means they get to keep availing themselves of your expertise. People have a tendency to imagine everything's a competition somehow, and act accordingly -- which can be counterproductive for their interests, because often cooperation is more productive.

So . . . I wouldn't say it necessarily isn't in their interests to help a consultant they like get more business. I might, however, say that they think that's the case, and will act accordingly.

It's kind of a subtle difference, but an important difference nonetheless.