How to be a Consultant

What is a consultant?

A consultant is an independent contractor who sells professional expertise in a particular area of specialization. A consultant assesses situations, analyzes information, and presents proposals for action. The consultant then performs the proposed work for a fee within an agreed time frame (short-term or long-term).
Depending on the specialization, the consultancy field can be highly competitive. Recent trends in downsizing and restructuring have resulted in increasing numbers of qualified people who have started their own consultancy businesses.

Do you have what it takes?

When you become a consultant, you take the leap from employee to entrepreneur. You are starting a real business which requires a complex blend of:

• Expertise -- your unique skills are your business's products.
• Knowledge in business and management practises including accounting, selling, organizational and time-management skills.
• Self-awareness, inner drive, perseverance, confidence, and the ability and willingness to work independently for long hours, often sacrificing personal time.
• People skills, in order to establish, expand, and sustain client relationships. You must be able to gain a thorough understanding of a client's needs by being sensitive, perceptive, and an attentive listener to what is said and not said during discussions. You must then establish trust by following through on all commitments with exceptional, quality work, in an atmosphere of confidentiality.
  

Who hires consultants?

Business, government, and non-profit organizations hire consultants for their expertise, and to help them identify, analyze, and solve problems. Consultants offer an 'outsiders' unbiased perspective, and allow other employees to carry on with daily business. In general, consultants are hired to:

• Conduct research, analyze and summarize data; predict trends.
• Create or improve designs and processes; recommend changes.
• Evaluate designs and processes, communicate ideas, or motivate employees.
• Identify ways to save money, or to obtain funding or financing.
  

What is the process?

Entry and Contracting-
Setting up the first meeting, exploring the problem, determining the client's expectations, defining your own expectations, and deciding whether you are the right person for the work.

Data Collection and Diagnosis-
Analyzing who will be involved in defining the problem, the methods to be used, the data to be collected, how long the project might take, and assessing the political climate.

Feedback and Decision to Act-
Identifying and working with different forms of resistance, reducing large amounts of information into a manageable number of issues, presenting data comprehensively, and making appropriate decisions on how to proceed.

Implementation and Evaluation-
Being involved as trainer, coach, analyst, trouble-shooter; designing measurement systems to track progress, running meetings, and promoting change.

Proposals    
   
To establish a clear understanding between both parties, consultants prepare written proposals to describe what they can do for particular clients. The proposal is usually written after meeting with the client. In one or two pages, proposals contain sections such as opening statements, disclaimers, work objectives, action steps, responsibilities of each party, time schedules and fees, expected results, and concluding statements. For more information about suggested contents and formats, refer to some of the many books on developing proposals.

Contracts    
   
An accepted proposal leads to a contract, a written agreement which provides a framework within which obligations, rights, and remunerations are clarified. Disclaimers should be clearly stated in all contracts. Contracts may be brief and informal, or lengthy and formal. Many contract books provide samples of contract styles. Consider consulting with a lawyer, especially if a contract is complex, or if you are selling 'advice'. In brief, there are two kinds of contracts:

Letter of Agreement-   A simple contract summarizing the agreement, including the nature of the work, method and time of payment, start and end dates, resource material and personnel supplied by the client. The letter is forwarded for approval and signature.

Formal Contract-   A formal contract is used if the project is complex, if financial costs are high, or if there is a financial commitment to suppliers or sub-contractors.

Fees

Consultancy fees must cover not only the time spent on a project, but also the time needed for marketing and administration, and to pay for things such as equipment, overhead, and insurance. Your fees depend on a number of factors, such as your experience, the current market rate, and the urgency of the project. Do your research -- find out what your competition charges and avoid undercharging. Agencies and clients use price as a screening device for quality consultants. They are unlikely to believe that the best consultant charges minimum fees.

Marketing
       
Marketing can be the key to a consultant's success. The right kind of marketing and the right amount, can develop into a stream of new clients and contracts. In fact, 25% of a consultant's time should be devoted to several marketing methods:

• Scan consultancy opportunities advertised in newspapers and government award publications.
• Register with business directories and government resource lists. Contact agencies, contract officers, human resources personnel, and large consulting firms who are known to receive consulting contracts.
• Network with others and develop a wide range of contacts who are willing to refer clients to you. Keep in touch personally.
• Join professional and trade associations to meet others in your particular area of expertise and to exchange information about your business.
• Develop newsletters, brochures, or flyers to keep your business in view with former and prospective clients. Attach them to proposals, mail them after receiving requests for information, distribute them at seminars or presentations.
• Send specialized mailings to executives who have recently moved into new positions, either within their present organizations or in new companies.
• Write and send news releases or articles of interest to prospective clients.
  Once you have identified prospective clients and potential opportunities, you must then 'sell' your skills to these clients. This in itself is a critical and complex part of a consultancy business. If necessary, seek training in the selling process.
  

Keeping informed        
To be successful and to keep a competitive edge, it is critical to stay on top of  current developments within your area of specialization, business, and industry:

• Subscribe to newspapers, magazines, newsletters, and periodicals; access the Internet, bulletin boards, and databases.
• Join associations, seek leadership positions, offer to make presentations.
• Attend conferences, tradeshows, seminars, and courses.

DISCLAIMER
Information contained in this document is of a general nature only and is not intended to constitute advice for any specific fact situation. Users concerned about the reliability of the information should consult directly with the source, or seek legal counsel.

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