First, I apologize for the length of this. I hope you find it valuable.
Yes, you can build a good consultancy on a shoestring. In fact, I wouldn?t recommend it any other way.
As a background:
I have personally built a consultancy that went from $100,000-$700,000 in consultant fees in 12 months. Later, I have built between $8,500 ? $12,000 in personal consulting fees in three different cities (once as an experiment) in about 8 weeks each time.
My book, The IT Career Builder?s Toolkit includes a consulting chapter and other related material, plus a CD with sample proposals, contracts, and sales material. I just signed the contracts with Cisco Press on my next book, The Technology Consultant?s Toolkit ? which will be released between November of this year and January of next year.
I currently consult as an independent out of my house, print business cards of my own printer when needed, and have no slick flyers or do any paid advertising. But I am still able to earn a six-figure income consulting ? year-after-year and, on average, less than 40 hours per week.
I say all this to let you know that I know something about what you want to do and that it definitely can be done on your terms ? part-time and on a shoestring. I am not indicating that you will earn 6 figures on those terms but you can start consulting that way.
On your mark, get set?.
Define what you want your business to look like. If you idea is part-time and supplement what I have going, you need to carefully define what that looks like ? for your sanity and for your client?s as well.
For instance: If you are not available during the regular work hours, what services are you offering that are non-critical and will not have to be addressed between 9-5 for instance? When and how will they contact you? Etc.
This is how I started in the early ?90s. Part-time and very clearly defined that I was not available during normal business hours.
Whatever that business looks like, define it. It doesn?t mean you cannot alter it. The definition is not a restriction but a guide. It helps you determine what makes a good client and what makes a bad one.
That brings us to the next point. What does your ideal client look like? Small business, mid-sized, residential. I focus on businesses that have between 25-200 employees. I look for growing companies that have at least an appearance of affluence (I do like being paid).
Once again, this is not mean to necessarily restrict you. It is meant to provide focus. Should you get referred into a company that is larger or smaller than your ideal client ? and it is a good project ? take it. The focus helps you define your market, focus your sales & marketing efforts, and become an expert in that niche. I choose company size demographic as a better niche than a particular industry ? although I have experience in health insurance and legal.
Next, a gut-check. Building a consultancy is as much about salesmanship as it is about good solutions. You will need both. You will have to see something that I hope you believe is a valuable commodity ? yourself.
How do you build a book of clients fast?
Not through random flyers and not through high-priced advertising. I strongly advocate a direct, door-to-door introduction to businesses in a logical geographic location. Either close to home or close to work. I used to go out at lunch twice a week and canvas the area around my employer. I had a short one-page description of my services and I targeted small businesses. It also explained that I was available on evenings and weekends.
Drop off the information, get a name of who you can follow up with, and then in 2 days, follow up.
As far as your material, I abandoned using flyers or resumes years ago. I use case-studies on past solutions. Here is what is important. You can write case-studies about work you have done for your employer. Even if you don?t feel comfortable using their name, you can mention basic industry and solutions developed.
Once you land a client or two, ask for referrals ? and do it a lot. Continue to ask for referrals.
Last piece?
Don?t apologize for price: Price is an only an issue in the absence of value. If you provide value only work for those people who recognize it and value it as well. Clients who don?t end up being dissastisfied in general and take valuable time away from those who will pay you.
Bill regularly. Cash-flow is always an issue with a newer company. Also, negotiate very aggressive terms. These include pre-payment on set projects and due on receipt or 10 day terms.
There are some companies who will tell you that they don?t do anything other than net 30. I?ve worked for Northrop Grumman, Primerica, several large law-firms and insurance companies, and 100% of my clients pay NET 10 or less. I explain that I am too small to fund their float. Here is why.
If I start working on May 5th. I work for 20 days and then bill for it. They get it on June 1st. They process the payment on July 1st. I get my check on July 5th. May 5th to July 5th. Ouch!!!
Hire an expert for your taxes. They should be someone who understands part-time businesses and home-office deductions. This is critical and one of the greatest mistakes I made. Ask this person for advice on organizing your records. Since they do this all the time, they may have great tips on this as well as taxes.
Don?t buy equipment you don?t need or that is not valuable. I have a 3 year old Toshiba laptop, an HP Laserjet 4 printer, an HP color printer from Costco, and basic office supplies. I am about to buy a new laptop ? not highest end but good. The laptop I am using has generated a decent sum of money.
I don?t even own a PDA.
Don?t confuse busy with productive. Don?t confuse being smart with being effective. In both cases, you want the latter: productive & effective.
Always dress up on first meetings and introductions. You can get more comfortable latter based on the client?s environment. However, business casual is as casual as I will go ? unless I am there on a weekend or I have been called in short-notice while around town.
Never joke inappropriately, even if your client does. Never make off-color or sexual innuendos at a client-site ? even if your client or an employee does.
Don?t be afraid to answer I don?t know but I?ll get back to you. Just don?t answer that for everything.
I know I?m forgetting something but that should get you started.
Oh, last thing. Enjoy it! Don?t ever complain about being too busy or things being hectic. Complaining takes energy and sounds trite.
I highly recommend you go to the library and get the book, The Personal Efficiency Program: How to Get Organized to Do More Work in Less Time. I just picked it up at the library and while I have read other books on time management, he has some great tips on focus and doing what is important.
Uh, I?ll stop now.
Matthew Moran
The IT Career Builder?s Toolkit
http://www.cbtoolkit.com