Critical Elements of Successful Solo Consulting

Introduction

Consulting and the art of giving advice has been around since the beginning of time. One aspect which makes the business of consulting unique is that it can be accomplished as part of a company or pursued as an individual. For purposes of this research, the art of accounting will be examined from the perspective of an individual contractor with the topics of attracting clients, building trust, crafting proposals, and commanding fees being analyzed in relation to models and concepts which have been tried and proven across the field.

Each of the elements presented above are critical to the success of the individual consultant, as well as to consulting firms. As Laffler & Shipp (n.d.) tells us, consultants must also keep in mind the ever changing global market and the impact of technology: The age of the Internet is changing the way many companies do business - and the type of consultant they need. The consultants of tomorrow will require different skills than the consultants of today and yesterday. Today's consultant may just as likely have graduated with an MBA degree as with a technical degree. As hired advisers to a company, a consultant often tackles a wide variety of business and technical problems and provides solutions for their clients. In many cases a consultant chooses this path as an attractive alternative career option after toiling in industry for a number of years (para, 1).

Other factors which must also be considered in building a successful consulting practice are ensuring the consultant has taken appropriate training and business preparation classes, has a well thought out business plan, has considered marketing materials, positioning and image, and has chosen an area of service and expertise.

Attracting Clients

Doherty (2017) puts forth that there are five main considerations to make in order to ensure consultants attract appropriate and profitable clients. These considerations are to be willing to teach everything you know via blog posts, videos, etc; connect with industry friends and build a network; use tools which are available such as sites like GetCredo.com; be willing to niche yourself down to get hyper-focused clients; and always be willing to hustle to sign your first clients, which will allow you to grow your business and attract bigger ones. Contrary to popular belief, consulting is not a get rich scheme, and it takes time and dedication.

Along with the above, a good amount of consideration must also be given to who you want to have as clients. This is important because if you can not identify your client base, a consultant will not be able to focus their marketing appropriately. A difficult piece of this is ensuring that the consultant is focused. Just like in other businesses, a consultant can not be everything to everyone. A niche must be found and specialized in.

After being established, the stream of clients a consultant will come across may seem endless, but where to begin? When starting, consultants have a number of platforms to use such as webinars, small events, social media, newsletters, paid advertising, public engagements, and even cold calling. Although all of the above mentioned techniques may not be right for every consultant, the willingness to use the tools available to promote themselves and their business is essential to getting the business off the ground.

Building Trust

Now that a client is “in the wings,” the next piece is to ensure that there is trust. “Whether we’re talking about sales or simply service delivery, one of the biggest keys to success in consulting is about the relationships we build with our clients and prospective clients. And just like in our personal lives, the only way to build a strong and productive relationship is by developing trust” (Sauder, 2017). Just as in our personal lives, trust is the underlying factor in all of our business relationships and it takes time to create and sustain.

If there is a connection between an entity the consultant knows and the potential client, this is a good start as there can be a transfer of trust between the parties. Just like when a friend introduces you to a new person they trust, your initial instinct is that the person has been vetted.

Perhaps you decide to spend time with this new person, and over time a trusting relationship is built. One of the most significant mistakes consultants make is not taking the time to build relationships of trust with their clients. Once trust has been established, crafting proposals, offering advice, and commanding fees becomes a natural and unobtrusive part of the job.

However, if trust does not exist, crafting proposals, offering advice, and commanding fees can become nearly insurmountable and lead to lost business. This brings up the question of how one goes about building trust with clients prior to being clients? Rast (2017) lays out a simple plan for other consultants to follow - raise our awareness of other people’s time, personal schedule, and needs. This concept translates to:

● Promptly returning phone calls.

● Promptly replying to emails and thoroughly addressing all points raised.

● Log on to a scheduled call 2 minutes in advance of start time.

● Hold fast to estimated call end times, or (near scheduled end time) inquire if attendees are free to keep going (para. 2).

Another major element in building trust is being willing to adapt to what the client needs, as opposed to trying to force them to adapt to your schedule or work style. Along with this, the consultant must be willing to establish appropriate methods of communication as well as be willing to not only hear what the client has to say, but listen to them as well. This can be accomplished through setting and following through on expectations and delivering results in adherence to the established time-tables.

Crafting Proposals

Many times, building trust will occur in conjunction with the crafting of the consulting proposal. During this phase, the consultant must remember that a proposal has one purpose, convince the client to purchase your skills. In crafting a proposal, there are a multitude of areas which can be considered, but six rise to the top: be able to appraise what the client needs; offer deliverable outcomes, metrics, and value; offer options for the client to choose from for your services; have a clear time-table of completion; state who is accountable for what during the process; and lastly, make accepting the proposal easy for the client.

First and foremost, to show the client that you are not wasting their time, a consultant must be able to show that the relationship which has been cultivated to this point was not for nothing. As McHale (2017) puts it, this is where the consultant takes the time to write down the exact business problems the client is trying to solve and by the time the client is done reading this section, they should know that you (as their consultant) understands the current state of their business and how to improve it. Being articulate in the issues the business faces is essential in being able to get the opportunity to help solve them.

Once being able to demonstrate that you understand the needs of the business comes the time to put forth the deliverable, outcomes, metrics, and value which you will provide. In essence, what is the tangible product that will be delivered through hiring the consultant, including laying out the benefits the business will receive, needs to be defined. The consultant must be able to provide measurable and observable results which will bring added value to the company.

At this point, the proposal will usually contain the price of service and this is where many consultants make a major mistake. Never should just one option for services be given. If a single service or price is offered, then the client has only one option: to choose yes or no. A good option at this point is to put forth three to four options that the client can pursue without actual pricing.

Along with options, ensure to provide a clear timeline of the work and when it will be completed along with who is responsible for each phase. Which brings the closing of the deal, “Whatever service you use make it easy for someone wanting to give you money to accept the proposal and give you money to work. If you aren’t set up with an online tool, just send them a copy of the proposal via FedEx with a prepaid return envelope they can just drop the acceptance in. Don’t kill the sale right at the end when you should be sipping champagne” (Mchale, 2017, p.8).

As Weiss (2011) directs aspiring consultants, consulting proposals can vary a great deal, and range from formal contracts to informal letters of agreement. However, all must be based upon previously-established conceptual agreements, and all provide a single fee for the project The generally accepted framework for many proposals will following a simple format of having a Situation Appraisal, Objectives, Value, Metrics, Timing, Projects are finite Outcomes, Accountability, Credentials Terms and Conditions, and Acceptance sections.

Commanding a Fee

Once the client has gotten a choice in mind, pricing can be presented for all options and it will be much more likely the client will stick with their initial choice, even if it may be more expensive than other options available. This can be an area which can be difficult to navigate for many consultants as it is easy to over or under value the services provided. Crane (2006) is quick to point out that many consultants new to the business tend to undercharge for their services.

The first issue to consider is the manner in which the consultant wants to be paid. The answer will determine how cash flows into your consulting firm and allow for other decisions to be made. Also, be sure to do research and charge a fee that is in line with your experience and field of choice. For example, a well established consulting firm with 500 employees may be able to charge upwards of $500 per hour, an amateur consultant who is working with their first client may be better served to look at a rate of $100 an hour. Yet, one fact remains the same in both cases, be sure to give the client what they pay for.

According to consultingjournal.com (2006) there tend to be at least seven fee options to

choose from:

1. Doubling/tripling your hourly wage

2. Using a daily rate for consulting

3. Setting consultant fees by the project

4. Setting consulting fees based on performance

5. Setting consultant fees strategically using real-life data

6. Charging what everyone else charges

7. Moving to Solution-based Fees

Coming up with a consulting fee for the first time may seem ominous; however, once a consultant is able to create a strategy in which they believe, setting the fee will become easier. Some helpful hints will be to “revisit your decision from time to time, taking into account your experience, client feedback and even your competitors’ activities” (consultingjournal.com, 2006).

Conclusion

In closing, as with any business pursuit, consulting has a large amount of factors to be considered. This becomes especially true when looking at going into the solo consulting business. The first hurdle is to understand that there is not “quick” success to be found. Becoming an expert in the field you wish to consult in and then establishing relationships of trust is essential to finding a sustainable path of positive return. In the end, knowing yourself will lead you to being able to know your client. As Weiss (2013) said in an interview, “you can’t help others until you help yourself.” Being perceptive to your needs as well as what the client is will serve the solo consultant well.

References

Consultingjournal.com (2006). Becoming a consultant: Consulting fee rates. Retrieved from http://consultantjournal.com/blog/setting-consulting-fee-rates

Crane, M. (2006). How to set your consulting fees. Retrieved from https://www.forbes.com /2006/11/06/bostonconsulting-marsh-mckinsey-ent-fin-cx_mc_1106pricing.html#1326efd86781

Doherty, J. (2017). How to get consulting clients. Retrieved from https://www.johnfdoherty.com/clients/

Laffler, K., & Shipp, C. (n.d.). Consulting: Critical success factors. Retrieved from https://www.lexjansen.com/wuss/2007/ManagementCareersProfDvlpmt/MGM_Lafler_Consulting.pdf

Mchale, C. (2017). Crafting a successful proposal. Retrieved from https://curtismchale.ca/2016/01/19/crafting-a-successful-proposal/

Rast, H. (2017). Seven ways to build trust with your clients. Retrieved from http://soloprpro.com/7-ways-to-build-trust-with-your-clients/

Sauder, L. (2017). Developing trust with the client. Retrieved from http://www.cpsradio.com/show/developing-trust-with-client/

Weiss, A. (2013). Alan weiss consulting interview: Part 1. Retrieved from https://www.consultingsuccess.com/alan-weiss-consulting-interview-part-1

Weiss, A. (2011). The consulting bible: Everything you need to know to create and expand a seven-figure consulting practice. Hoboken, New Jersey; Wiley and Sons, Inc.