How’s your year going?

1 Mar, 2010 12:17 am

It’s March 1st. We’re starting the third month of 2010. How’s your business year going? Sure, you may not have a business year-end that reflects the usual calendar, but it’s helpful to do a check in.

What are you doing well at? 

What are you struggling with?

For me, I’m doing much better at tackling self care. On the flipside, I’m struggling with some short-term health care issues. But they’re becoming much more manageable and I can already see a huge difference. Self care has been an important part of resetting things. Learning to enjoy little things, like the taste of a raisin or the smell and warmth of a cup of coffee has become an important part of my day. By taking time during the day to recognize those little pleasures and the goodness they bring to my life, I’ve really grown. At the same time, business continues to boom. I can’t keep up with it all, but I’ve decided that’s okay. I’m focusing on what I love and what’s important to me. For me, this is a great opportunity to change the way I run my business and my life.

How about you?

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What is a consultant?

24 Feb, 2010 12:21 am

What is a consultant? The idea of consulting can be confusing. Sure, you’ve met a few "consultants," but, in actuality, what is a consultant? What does it mean to be a consultant? And, better yet, how can you become a consultant?

What is a consultant?

Consultants are independent contractors who are paid hourly, per day, or per project. But rather than get bogged down in figuring out who is and who is not a consultant, let’s talk about how you could become a consultant.

When you think of consultants, you may think of seasoned PhDs billing hundreds of dollars per hour. Yes, there are many consultants who fall into this group. However, what you may not know is that there are thousands of consultants who are just like you–many of whom are stay-at-home parents.

Remember, in order to become a consultant, you don’t have to be the world’s foremost expert; you simply need to know more than your client knows. That way, you’re offering your client your expertise and knowledge, which he or she compensates you for in the form of a high hourly rate.

Now that you know the answer to the question, "What is a consultant," perhaps you are Interested in becoming a consultant yourself–even as a side job to pay off debt, to build your resume, or just to have more disposable income.

Who knows. Perhaps the next time someone asks, "What is a consultant?" you can answer, "Good question. Seeing as how I am a consultant myself, let me explain it to you."

Need help determining the most lucrative and successful ways to start a consulting business? Consider the Discover Your Inner Consultant course. Or just want to find out how much consultants make? Dive into Consulting Fees.

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Sample consulting estimate

22 Feb, 2010 12:12 am

Sample consulting estimates are hard to come by. New consultants often have little experience with setting consulting fee rates or they aren’t sure what to include in a project estimate. Setting your rate and accurately estimating what is involved in a project are crucial to consultant success. As a result, I’ve decided to include this sample consulting estimate to help new consultants.

Let’s start with the easy part. Similar to my sample consulting invoice, include the basics:

ESTIMATE
Name / Company Name
Address
Phone
Fax
Email
Web
US Federal Tax Payer ID (Business Number in Canada)

Date
Estimate number

CLIENT’S DETAILS
Contact
Company Name
Phone
Email

Next comes the most important part: what to include and exclude from your project estimate.

Billing by the hour

Billing by the hour is relatively straightforward once you understand how much to charge. For example, in your estimate you could state that Project XYZ may take approximately 100 hours and you’ll be billing hourly for your work.

If billing by the hour, most clients would like to see a maximum number of hours outlined in the estimate. For example, " Project XYZ will be billed hourly at a rate of $80 per hour up to a maximum of 200 hours."

Per project estimates

Many experienced consultants bill by the project, and, for the most part, I do too. Most clients prefer per-project rates because they know what to expect.

For example, in your estimate you could state that Project XYZ will cost $3100, plus applicable taxes. If it’s a large project, it may be helpful to both you and the client to break down the project cost into sub-sections so that the client can see how you’ve arrived at the total cost.

When billing per project, it is crucial that you outline what is and what is not included in the project. When possible, be sure to outline the project parameters in the estimate or in the contract (yes, you need a contract!).

If, as an IT consultant, your estimate and contract simply state, "I will fix your computer for $1000," this project is open to interpretation, which can lead to problems.

To you, the consultant,  "fixing" the computer may mean diagnosing a problem and recommending a solution. However, to the client "fixing" the computer may mean diagnosing the problem, recommending a solution and providing all of the required hardware or software required to implement the solution. This dispute over who is paying for the hardware or software could have been avoided by a clear estimate and contract.

Detailed estimates and contracts are one of the simplest ways to avoid miscommunication about what is and is not included in the project. Take the time to write detailed estimates and contracts. Not only will they increase your perceived professionalism, but they will protect you and your consulting business.

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