Daily fees for a  consultant -- I was at my entrepreneurs' group meeting recently, when another consultant mentioned that they typically bill $1500 to $2000 per day. Someone else piped up and said they'd just hired a consultant for much more than that. Several people turned to me and asked if those were typical daily fees for a consultant.

Well, it depends. A freelance poetry editor probably doesn't make as much as a financial services industry wealth management consultant. Rates vary from industry to industry and by market to market. And some people need to bill for preparation they do in advance of being hired by the day, whereas others start the meter much earlier. Still, I go over some strategies for setting your rates in my Consulting Fees Guide, if you're looking for specific ways to set daily fees for a consultant.

A second job may beat investing in the stock market. Yup, you heard me right. Let's say you pick up a side job at $8 an hour and you work eight hours a week. By the end of a year, you'll have earned $3328 from your second job. Now compare that to the stock market.

ROI from a second job

If you invested $66,000 and got a consistent rate of return of five percent, you'd match the returns from that second job. You might be in a better tax situation, but let's not consider that for a moment. If you don't have a magic way to put $66,000 in your pocket right this moment, a second job may be the best option you have for increasing your cash flow.

Second jobs add up

And what if you find a second job that pays more? For example, when I started consulting more than 10 years ago, I was able to get jobs for $35 an hour. Most entry-level folks I know are making around $50 now. But let's just use $35 for our calculations. Let's say you pick up eight hours of consulting work at $35 an hour every two weeks. That's $7280 a year and you may be able to write most of it off, depending on your home office expenses.

I'm not saying you should give up on the markets. Heck, I've got money in the markets. But a second job, especially a high paying one like a consulting business, may deliver great financial returns, depending on your unique situation.

Related to second jobs

• Ideas and tips for second jobs
• Christmas jobs
• Discover Your Inner Consultant
• Discover Your Inner Entrepreneur (for moms)
• Getting out of debt

Pricing your consulting fees by the project can help you connect with potential customers. Many customers like to know that there's a cap on what they'll be spending. Do you like taking your car to a mechanic and not having a clue whether it's going to be $100 or $1000 until you go to pick up the car? Of course not!

By pricing your fees by the project, you can help reassure potential customers. And this can help them get ready to buy, because you've reversed some of the risk. Of course, figuring out how to price by the project takes some strategy. (I go into this in my Consulting Fees Guide.)

New Yorkers depend on second jobs to help them pay the bills, according to research from Siena College. About 34% of NYC residents rely on second jobs and overtime.

New Yorkers aren't alone. Here in Vancouver -- one of the most expensive cities in the world -- most of the people I know have held second jobs at some time or another. Most of my friends with regular day jobs also do consulting on the side.

What's it like where you live?

Related to second jobs

• Seconds jobs and recession proofing your life
• Side jobs - 10 ways to get ahead
• Ideas and tips for second jobs

Via TGDaily, here's a list of Barack Obama's top five technology promises. Throughout the campaign, I was intrigued by how the Obama team used the ideals of Facebook technology to rally the troops. Or, rather, Obama's team delegated the power to the troops, enabling the troops to build the cause. Many people have talked about Obama's Facebook presence, but I was more intrigued by his friendship with Chris Hughes, one of Facebook's founders. Hughes left the social media company to join the Obama campaign team and helped foster social marketing strategies in both offline and online ways.

Incidentally, if you're on Facebook, consider joining the Consultant Journal page.

How to set fees for independent contract work -- I've had a flurry of requests for information on this topic. With the way the economy is right now, many people are interested in figuring out how to price their contract work. If you're one of them, take a look at my post on setting consulting fee rates or, for something more in depth, check out my Consulting Fees Guide. Month after month, those are the most popular pages on this site, so I know many of you are keen to figure out your rates.

Do you have any general questions about setting rates?

Just a quick nod to our US readers, who are in the midst of their presidential election. No matter what your politics, get out there and make use of democracy. Without people, democracy is just a word. Exercise your right to vote. Many people in this world don't have the right to vote.

Holiday cards can help market your business. But they involve a lot of paper and postage. Many small businesses have turned to digital options to help cut costs and waste. Still, an email may not have the same impact as a paper card. Here's how some businesses mitigate the effects of boring email greetings:

1. Hire a graphic designer. If you're planning to send a lot of cards, you might want to invest in the services of a graphic designer. A designer can create an HTML or PDF-based greeting card -- or even a webpage.
2. Send text emails, but direct people to a web-based page with graphics or even music.
3. Record a video greeting and make the link available via email.
4. Put together your own graphical email greeting -- or hire a student to help.
5. Email your clients individually and note that you'll be donating your usual holiday card costs to a charity. (Then make the donation!)

Related

• Cheap Christmas cards

Happy Hallowe'en! Enjoy! But, tomorrow is November 1st. So start getting ready with those holiday cards. if you want personalized holiday cards or discount Christmas cards, you need to get moving. Holiday cards are a great way to remind clients you're still alive -- and to thank the clients who keep you going. So, party tonight, but get those cards tomorrow!

Related to holiday cards and greeting cards

Business holiday cards - mail 'em now

Several great things happened to me yesterday. I'll share a few of those things with you now.

My graphic designer delivered new covers for Discover Your Inner Consultant and Consulting Fees: A Guide for Independent Consultants. I think these new graphics do a much better job of conveying the content you'll receive. I'm working on imbedding the graphics into the actual PDFs now.

I also received a parcel yesterday. My sample print copy of Consulting Fees came in the mail. I'm really impressed with the print copy. Now that I have the new covers, I'm going to work on establishing print versions of my materials.

Finally, I'm getting ready to launch a new course called Become a Consultant: How to Make the Leap. Many of you have asked me for help in getting your consulting businesses off the ground. I hope to soon have a full course available, just to help you with this process. In the meantime, take a look around the blog -- I've got 1,100 posts now.

Thanks for your oingoing support. I'm thrilled to be able to help so many other people with their consulting dreams.

Well, it's just about Hallowe'en...a time for spooky things, tricks, ghost, goblins and all that jazz. What spooky things could happen in the world of independent consulting?

For me, the scariest thing would be having no network. Consulting is very much a people business and it really helps to have a strong network of friends, colleagues and prospects. In fact, most of my work comes through referrals.

What would scare you?

Related

• Building a business network for introverts

New to consulting or not, many people have a hard time thinking of themselves as experts. "Expert" sounds so serious. But, really, to be an expert, you just need to know more than someone else.

Think about it. Many of us have family or friends we call on when our computers are on the fritz -- and some of us are those family or friends! For the most part, these people aren't world class computer tech support experts. They're simply people who can help us out of a jam. They're people who know more than we do. (Except when it's my family calling me, in which case I'm the expert., apparently.)

To be a consultant, you need to position yourself as an expert. If you haven't already, sign up for my Become a Consultant newsletter and get a free list of ways to jumpstart your expert status. See the top right of this page.

Working with a mentor can help you move ahead in your business and personal lives. Via Enrichr, here are five tips for choosing a mentor.

I thought it was gutsy to say that sometimes you need to pay for access to a mentor:

Pay for your mentors. If you have the resources there are many more accomplished people willing to mentor you for the right price. Choosing your mentor doesn’t mean the mentor has to benefit you altruistically. The best fit is a relationship where both find the relationship advantageous.

It's true -- sometimes you do need to pay for access to a mentor. Although I'm one of the most frugal people around, I have been known to pay for access to coaches and other professionals. And, really, when you take a course, you're doing the same thing.

What tips would you give for choosing a mentor?

Related to mentors:

• The value of mentors

Do you have a mentor? Greats like Richard Branson, David Beckham, Mozart and Oliver Stone have drawn from the influence of mentors. By working with a mentor, you can tap into the proven experience, network and knowledge of someone established in your field.

If you don't have a mentor, try approaching someone whose work you admire. In most cases, the potential mentor will be flattered. Even if they're too busy to take you on, they may be able to point you in the direction of another potential mentor.

Over the course of my career, I've worked with several mentors. Along the way, I've also mentored several people. I get a lot of satisfaction out of helping other people along -- and in helping give back to the community that helped me get going.

Do you have a mentor?

Christmas jobs -- whether you're self-employed or working for someone else, it's not unusual to pick up a seasonal job over the holidays. But, if a "Christmas job" is on your holiday wishlist, start looking now. The best jobs go fast and, with the current economy, employers may be a bit choosier than we've seen in recent years.

Why get a Christmas job?

Many people opt for seasonal jobs, since they get discounts. Still others want to soften the blow of holiday bills or pay down existing debts. I know many consultants who pick up second jobs as a way of managing fluctuations in earnings, since there tends to be a bit less consulting work in the last couple of weeks of December, at least here in my part of the world.

Succeeding as a consultant becomes easier when you know a lot of people. Those people can become clients, provide testimonials and references, and give referrals. But how do you build up a strong network? Here's an easy, sure-fire way to meet 400 people a year.

Go to one event per week. Spend two hours at the event. Every 15 minutes, have a real conversation with someone new. By the end of the year, you'll have met 400 people.

Of course, to include those people in your sphere of influence, you need to connect in a meaningful way. That means you have to do more than just "work the room". You need to learn a little about the people you meet -- and you need to follow up. And following up means more than just sending a boilerplate email. You should work at sending an email that addresses some of the topics you discussed -- or that includes information that can help them. Above all else, avoid making a sales pitch, unless you were invited to do so.

Related:

• Building a business network for introverts

You're invited to join the Consultant Journal Facebook page. I've set up a page on Facebook, since it will provide a chance for members of this community to connect. I frequently use Facebook for networking and I've done business with people in that same network. It's been a valuable tool for me and so I'm trying out a Consultant Journal page to see how that goes.

Via Youtube, I found this quirky video on the top 5 big hairy mistakes in online, home-based business.

Note the comment about the mistake of being trapped in "getting ready to get ready". Although I believe that, if you fail to plan, you plan to fail, there comes a point where you just need to get out there and start your business. Spending unreasonable amounts of time in planning and thinking about your business won't get your business going. You have to take action.

People are more likely to follow advice from expensive consultants, according to a post forwarded to me by Tony.

It makes sense. People who charge higher fees are simply perceived as "better". When I was starting out, I thought it made sense to charge the bargain rate of $35 an hour for my consulting. I soon realized that this made me look junior. In fact, the higher I've raised my fees, the more clients I've landed. (Granted, I do have to follow up on the promise of those higher fees, in order to keep people coming back. It wouldn't be very efficient to build one-time relationships.)

Related:

• Consulting Fees Guide

It's not December, but I'm already thinking about business holiday cards. Whether you celebrate holidays during December or not, sending an annual greeting card can help market your business. Here's why -- business holiday cards will help:

1. Generate goodwill. It's a great way to greet your clients, vendors and other contacts in a non-salesy way.
2. Brand your business. By including your logo, slogan and business name, you reinforce your brand.
3. Market your services. Send holiday cards to "dead" clients and perhaps revive your business. After the holidays last year, I got a request for a quote -- and my client specifically mentioned that the card reminded him it was time to start working on marketing plans for the New Year.
4. Offer gratitude. With a holiday card, you can say "thanks" for help, business or other positive points.
5. Break through the noise. Whereas a direct mail campaign may or may not be read, most prospects and clients will open a holiday greeting card.

Investigate business holiday cards now and you'll beat the rush. By starting today, you'll have enough time to order personalized cards -- they're not very expensive anymore.

Related to business holiday cards

• Discount business holiday cards
• Personalized business holiday cards

Via SHEOBlog, I found this list of five ways to get the most from your mentor. I love that Jen encourages people to challenge their mentors. If you find yourself in the occasional position to challenge your mentor, it shows your mind is working!

I've had a number of mentors over the years. Sometimes, it makes sense to follow all of your mentor's recommendations. Other times, it makes sense to give feedback. That's because mentoring is a relationship, not a dictatorship.

Congratulations to Callie, who won the postcard printing giveaway. Hope you have a good time using up your 500 postcards!

I wish I had the opportunity to give postcards to everyone who entered. It sounds like many of you have some great ideas for promoting your businesses. If you need more ideas, see my past articles on marketing and lead generation.

My postcard giveaway ends tonight at 10 pm Pacific. You've still got a few hours to enter. Via Uprinting.com, I'll be awarding one lucky person 500 self-printed postcards. It's pretty simple -- just post a comment explaining how you would use the postcards. I'll be making a random draw and announcing the winner later tonight. You don't have to be fancy in your explanation of how you plan to use the cards, but it makes it a little more interesting.  Details here.

Closing deals is a basic sales skill. If you are having problems closing a deal you need to figure out why. Then you need to pinpoint the problem and fix it.

For example, if you have a tendency to speak in a monotone or speak too fast, you may be undermining your own effectiveness. So, practicing a better "sales voice" could prove helpful as skill in communicative ability is often closely associated with closing a deal.

Verbal delivery is just one example. You may have different things you need to look at. They key is to discover the flaws and work on improving them. 

If you are having difficultly determining your flaws,you might ask a trusted friend or colleague. You might need to role play to do this. If your friend is honest and trustworthy, they've constructively point out your errors. They may even be able to give you some pointers.

Of course, in order to do this you need to be open to criticism. Being overly defensive will eliminate the ability to improve. Instead, be open-minded about your flaws and seek to correct them.

Related to closing a deal

• Basic selling skills
• Sales skills

Yesterday, I announced a postcard giveaway, sponsored by UPrinting.com. I've received a few entries so far. Remember: you only have till 10 pm tomorrow to enter. It's a random draw, so everyone has a chance at winning, no matter how you plan to use the postcards. If you live in the US or Canada and you win, you'll receive free shipping.

Details here.

Closing a deal is critical to success in sales and business. If you are not closing deals then you will not be generating revenue! So take a little time to learn the basic sales skill of closing a deal.

First, make sure the person who is being pitched clearly understands your service. If the client is not sure about what he or she is buying they probably will not purchase. This is why you need to paint a clear picture of the service. Asking the buyer if there are any questions or concerns can eliminate this problem. Of course, clearly and concisely answering the buyer's questions helps, too.

Stress the value of the product. Explain the benefits the service provides. If the customer feels that the product meets their specific needs then they will be more inclined to purchase. After all, if the product is not fulfilling a need ,what value is it?

Be enthusiastic and positive. If you are not enthusiastic, the client certainly won't be either! Getting a client enthused is a surefire way of closing a deal.

Also, you need to weed out people who do not have an actual interest in purchasing. Some people will go through the sales cycle, but never make a purchase. But you can identify these potential clients. Ask for an alternate phone number or an email in case you need to get a hold of them. If they "hem and haw", move on.

Of course, that's not all you need to do to close a sale. But the above tips should help you get started.

Related to closing a deal

• Basic selling skills
• List of all sales skills articles

 

The online printing company UPrinting.com has offered to sponsor a special contest for Consultant Journal readers. They're offering 500 free 4x6" postcards to one lucky reader.

The winner of the postcard printing contest can choose any of Uprinting.com's stocks, including the eco-friendly 13pt recycled cover stock, 14pt gloss cover or 14pt matte cover. Shipping is included if you live in the United States or Canada -- if you're elsewhere, you'll need to pay for shipping.

If you'd like to enter to win, simply reply to this post with a story telling me how you'll use the postcards if you win. Be sure to put your email address in the designated space, so that I can get in touch with you. I'll be choosing one lucky winner via random draw.

The contest closes at 10 pm Pacific on Wednesday, October 8th, 2008. Void where prohibited. I'll forward the winner's details to UPrinting -- they'll be handling the logistics of the prize.

Update: this contest is now closed. Congratulations, Callie.

This is a guest post from Laura-Jane Koers. She's been writing a series on becoming a freelance writer.

Finding Bigger and Better Contracts

With a number of freelance writing gigs under my belt, I was on a quest to land bigger and better contracts.

I applied for a number of projects, and the learning curve was steep.

What Works and What Doesn't

I quickly learned what works and what doesn't. For me, honesty is key. I don't pretend that I'm something that I'm not. I'm relatively new to this business, and I'm not afraid to admit it. In fact, I highlight the benefits by bringing clients' attention to my fresh ideas and enthusiasm.

I've also realized that freelance writing can be a competitive business. I'm competing with thousands of people from around the globe! So If I'm not qualified or well-suited for an advertised position, I move on. I focus my time and efforts on jobs that I know I'll be great at. I've learned that I have desirable skills that people will pay for. I know where my skills lie, and I seek out clients that are looking for these skills.

I achieve the best results when applying for jobs that truly interest me. And if a client advertises for a funny and creative writer, I do my best to be funny and creative in my response. I take risks that don't always pay off--but when they do, the success is that much sweeter.

I also seek out like-minded clients. When I'm reading a blog or online magazine for fun in my free time, I often come across businesses that could benefit from my skills. I've been using using 21st-century cold-calling techniques: cold-emailing. I've been amazed at the positive responses I've had. I've discovered that often business-owners are desperately looking for help but they don't know where to start.

Looking Back

I started out with a few small writing jobs that came from connections in my social network. Since then, I've landed the majority of my positions through online job postings. These days, I'm focusing on my existing contracts and on seeking out clients that I really want to work with.

Now that I've got my foot in the contracting door, I've had businesses come to me for advice. I've had phone calls where I've been asked point blank, “How much would you charge for this project?” and I've had to scramble to come up with the right number. I've got a lot of projects on the go. And, come to think of it, I've achieved my goal of becoming a freelance writer. Excuse me while I have my very own wow moment...

There's still room to grow. But for now I'm happy to bask in the fact that I took a risk to follow my dream of writing for a living, and the risk has paid off.

Laura-Jane Koers is a freelance writer currently living on Prince Edward Island, in Canada. She blogs about farm life at  www.whimfield.com. To find out more about Laura-Jane's current writing endeavours, visit  www.laura-jane.com.

On Fridays, I usually offer up a top five list. Well, today I'd just like to give you one thing: one good reason for becoming a consultant.

This afternoon, I'm taking my kids to a neighbour's birthday party. Yup. It's Friday and I'm going to be eating cake, wearing a party hat and playing games with my kids and their friends. And I won't be skipping out of work or taking precious holiday time to do it. Heck, for the morning, I'm planning to play with my kids, too.

And I'll let you in on a little secret: I do this all the time.

Sure, I sometimes work odd hours, but I do so on my own terms. And the reward is that I can spend time with my kids when I want.

When I didn't have kids, I spent this time going for walks, shopping, meeting friends, studying, doing hobbies and so on. That's the beauty of being your own boss. As long as you're accountable for the decisions you make, your time is your own.

Picking up a second job or side job -- or starting a side business -- can be a good way to recession-proof your life. Via NPR, here's a list of ways to help yourself weather the storm of a recession. They didn't specifically mention second jobs and side businesses (such as consulting), but I've talked before about how second jobs can help you get ahead. There are tons of reasons to have a second job, especially when the economy is looking a bit shaky. (Or incredibly shaky.) I've given examples of side jobs, but I have to admit that consulting is one of my favourite ways to generate extra money. I don't know of any other side jobs that pay as well. Do you?

Ever feel like you’ve got the weight of the world on your shoulders? Sometimes, consultants feel like they’re carrying a heavy load. After all, if you’re in business for yourself, you may be trying to do everything from sales to accounting. But there’s a secret formula that can help you.

It involves a little math. I won’t apologize for that. But you don’t really have to understand the math to get the point. A guy named Metcalfe worked out this law. You just need to get the idea -- not the math.

The secret formula involves relationships. If you’re an independent consultant and the only person in your business, you have no relationships. There’s just you.

But, if you start making connections with other people, you’ll tap into the exponential power of relationships.

Let’s say you make a connection with 12 other people. You could meet these people at a personal party, a business networking event, a tradeshow, a course, a conference, a coffee shop – anywhere, really. It doesn’t take much to meet one new person a month. And, over the course of a year, you introduce each of those people to each of the other people.

You plus 12 other people. How many relationships is that?

78.

What? How did you go from yourself and nine other people to 78 relationships? How did meeting 12 other people and introducing them to one another expand your relationship power to 78? That’s almost eight times as many people as you met!

Well – you can skip this part, if you don’t like math, but the formula is n*(n-1)/2 = relationships.

You’re n.

In our case, there are a total of 13 people. You plus the other 12. And so 13*(13-1)/2=78.

So, from lonely you, we’ve grown to 78 relationships.

But what if you met two new people every month for a year AND introduced each of those people to the others by the end of the year? So, over the course of a year, you meet and introduce 24 people. So we’ve got 25 people in the equation.

By the end of the year, you’ll have built 300 relationships.

Wow.

And that’s assuming that none of those people introduce you to anyone outside that small network.

In my next post, I’ll look at what power you gain from the people those 24 other people know.

(If you don't want to miss the post, click to subscribe to the RSS feed.)

Related

• Consulting Fees: A Guide for Independent Consultants
• Discover Your Inner Consultant
• Discover Your Inner Entrepreneur (for moms)

Startups...consulting tends to be a fairly low risk business endeavour, but sometimes it paves the way for other opportunities. According to this list of five reasons to create your own start up, an article from the Social Science Research Network says that:

...entrepreneurs who succeeded in a prior venture (i.e., started a company that went public) have a 30% chance of succeeding in their next venture. By contrast, first-time entrepreneurs have only an 18% chance of succeeding and entrepreneurs who previously failed have a 20% chance of succeeding.

So, although most consulting businesses won't lead you to a $1 billion business sale, the process of starting your own company may help you build a foundation for future success. I realize the quote above references entrepreneurs who take their companies public, but the lesson is the same. Building a business -- even a small independent consulting business -- teaches you core business management concepts. That's because independent consultants need to wear many hats -- marketer, sales executive, administrator, accountant and so on.

What has starting a consulting business helped you learn?

Related

• Why become a consultant?
• Discover Your Inner Consultant

I recently got bids from subcontractors. One of the subcontractors noted that, if I wanted to use PayPal for payments, I'd need to pay an additional five percent. Five percent of the contract! Yikes!

For a $100 contract, that would be $5. For a $500 contract, that's $25. You get the idea. Ouch.

But that's not the thing that stuck out for me. It's that applying a PayPal charge violates PayPal's user agreement:
4.7 No Surcharges. You agree that you will not impose a surcharge or any other fee for accepting PayPal as a payment method.

Even though the potential subcontractor had the best bid, I decided not to hire her. It's up to her to take on the cost of doing business. And she obviously doesn't read contracts very closely.

This is a guest post by Laura-Jane Koers, who recently leaped into the world of freelance writing. See her series on becoming a freelance writer.

Once I confessed to the world that I wanted to become a freelance writer, the world responded. (Well, my world responded, anyway!)

 

My family and friends helped connect me with a number of writing contacts. And I'm thankful that I had the courage to ask for my friends' support and help.

 

Still, I couldn't rely solely on good recommendations; I had to stand on my own. So I drafted emails, made phone calls, and wrote proposals. And then I drafted more emails, made more phone calls, and wrote more proposals!

 

Landing My First Contracts

 

After a number of maybes and thank-you-buts (and even more no-answers-at-all), it finally happened. My connections led me to a contract writing position for a large online site. Then, a suggestion from a friend led me to sign on as a contributing writer for an online magazine.

 

With a few contracts in my growing portfolio, my confidence grew in leaps and bounds. I felt ready to hit the big leagues.

 

Getting Serious About Becoming a Consultant

 

I started scouring the internet for freelance job postings, and I found some great active websites.

 

I also pushed myself to network in my local community. I contacted my Chamber of Commerce because they can be great places to connect with business owners in a social but business-friendly forum.

 

I also pushed my boundaries when it came to networking. For example, a freelance journalist in my local area invited me to join a book club. Being a homebody, my initial reaction was to gracefully decline. But then I got to thinking that perhaps I needed to push myself to network with like-minded people. Book club, there I went, and the networking in my local community began!

 

Once I started networking and getting serious about applying for contract jobs, I knew it was only a matter of time before I started to see real results.

Stay tuned for part 4 next week. Laura-Jane Koers is a freelance writer currently living at Whimfield Farm on Prince Edward Island, Canada. She blogs about farm life at  www.whimfield.com. To find out more about Laura-Jane's current writing endeavours, visit  www.laura-jane.com.

You want to sign a contract?! Why on earth do we need to sign a contract? Can't we just do this on a handshake? Can't I trust you?

Well, you could but both parties are leaving themselves wide open for potential hassles that a signed and agreed upon contract would eliminate. If you feel nervous asking your clients to sign a contract, consider these points:

1. Contracts provide a description of responsibilities. Rather than suffer through the confusion of wondering what each party's responsibilities are, you're better to have everything in writing. This will help avoid confusion or disagreement.
2. Contracts bind parties to their duties. It is incredibly disruptive if one party attempts to back out of an agreement. A contract will bind the parties to the previously defined description of duties eliminating this problem.
3. Contracts can establish a time frame for duties. If you need work performed and performed within a certain time frame a contract binds the party to that time frame. As a consultant, you might want to require the other party to provide adequate and timely access to key personnel, for example.
   
4. Contracts can secure payment. No one likes to be stiffed for work performed and a binding contract provides a written legal document establishing an agreement to be paid for services rendered.
5. Contracts provide recourse when the relationship falters. If the relationship between the contracted parties deteriorates, a contract outlines the previously agreed upon steps required for dissolving the relationship without punitive measures.   
   

Now, doesn't that sound better than dealing with the chaos that can erupt when a handshake deal falls apart? Stick with a contractual agreement -- it can eliminate a lot of hassles.

(Note: I'm not a lawyer and this isn't legal advice in any way, shape or form. If you're looking for a lawyer or a contract, I recommend USLegalForms.

Those of you who've been following my newsletter (subscribe above right) know that 2008 has been all about expanding my comfort zone. I'm doing all sorts of things that I wouldn't normally do. Well, as part of that, I'm taking part in the Run for the Cure on October 5th. Proceeds go to the breast cancer foundation. Last year, on that weekend, I was recovering from a C-section and celebrating the birth of my second son. I've made a lot of changes this year and have had one of the best years in my business, too.

I invite you to sponsor me in Run for the Cure. No amount is too small! If you've been looking for a way to give back to Consultant Journal, this would be a great gesture. Canadian donations of more than $20 receive a tax receipt. But for the rest of you -- and most of you come from outside Canada -- this is a great way to help cure breast cancer. Thanks for your support -- through reading this site and through your donations.

I've featured three pieces by Laura-Jane Koers, the young woman who's taken a huge leap into the world of freelance writing and rural home renovation. She's working hard at expanding her comfort zone and she recently landed a one-time spot on CBC Radio's Definitely Not the Opera. Hurrah for Laura-Jane! You can listen to her story at 5:38 on the DNTO podcast.

Becoming a freelance writer -- here's part 2 in a series on becoming a freelance writer by Laura-Jane Koers. My hard drive failure delayed publication. Since we last heard from Laura-Jane, she's been in the recording studio for CBC Radio! That's Canada's public broadcaster. Laura-Jane will appear on Definitely Not the Opera this Saturday at 1 pm Eastern. Wow. Talk about seeing your dreams come true!

After committing to becoming a freelance writer, I wasn't sure where to start.

Enthusiastic,  I wrote a few sample articles. I obtained a few contract templates and revamped them to suit my needs. I created a professional website to showcase my portfolio. Yes, getting organized was simple. But getting my first paid writing contract wasn't quite as easy.

Here at Consultant Journal, Andréa has written about how she became a consultant. She started with one contract, and soon found herself moonlighting as a marketing consultant until she had enough contracts to transition to full-time consulting. As she writes, “You don't have to take on the world. You can do it one step at a time.”

One Step at a Time

Andréa's motto served as my inspiration. Rather than feel overwhelmed with the big picture, I focused on landing my first small contract. Be it a magazine article or writing online content, I wouldn't rest until I had a contract in place!

In my research, I came across an online bidding site that allows writers to compete for writing projects. So I bid on numerous small projects--with no success. And when I happened upon an online writers' forum that chastised bidding sites as “hideouts for nervous writers who are too afraid to put themselves out there in the real world”, I felt embarrassed. Reading that opinion felt like it was written specifically for me. Of course I was afraid to put myself “out there”--who isn't when they're just starting out in a new career?

Coming Out

And so I vowed to unmask myself in “the real world”. No longer lurking anonymously, I started coming out of my shell. Taking a courageous deep breath, I let friends and contacts know that I was embarking on a new career path.

And, wouldn't you know it, my friends and family supported me. A friend of a friend was an editor for an online magazine and offered to help me get started. My aunt's boss was looking to hire a writer on contract. My neighbour's sister worked at a newspaper. And on it went.

Once I'd yelled “I want to be a writer!” from the rooftops, I felt that it couldn't help but come true (with a lot of hard work and a little luck, of course)!

See part 3 on becoming a freelance writer. Laura-Jane Koers is a freelance writer currently living at Whimfield Farm on Prince Edward Island, Canada. She blogs about farm life at  www.whimfield.com. To find out more about Laura-Jane's current writing endeavours, visit  www.laura-jane.com.

Via ezinearticles, here's a list of the top 5 reasons unconventional business cards work.

One of the best business cards I've ever seen was for a software company that based its technology on mathematics related to cubes. When you pressed down on the sides of the business card, the die cuts helped the paper fold into a cube. This reinforced the idea and gave people a reason to hang on to the card, perhaps to show their friends. In fact, I only recycled the card a few weeks ago, even though I met with their marketing department around 2002.

Related to business cards

• Business cards -- should you create your own?
• Top 5 business card mistakes

Perhaps you avoid using a contract because you believe that a person's word is more valuable than any piece of paper. Well, perhaps that works for you. But what if you want to get out of a deal and you've only got a verbal contract? How would you defend yourself, if the client sued to get you to deliver?

Despite all best intentions, sometimes consultants and clients have a hard time working together. For example, if a consultant is repeatedly ignored or challenged on advice, the consultant and the client may not be meant for each other. If the differences can't be worked out, then it may be wise to dissolve the professional union. Trying to salvage a faulty relationship can be time consuming and costly. 

But how do you get out of a contract? It's not as complicated as you might think. Your written contract should outline the process for terminating it. Depending on where you live, you may be able to dissolve a contract simply by having both parties agree -- that's called mutual dissolution. The two parties agree to go their separate ways and render the contract void. Where most people err, though, is that they agree to dissolutions orally. Instead, it would be best to have something in writing, proving both parties have agreed to dissolve the contract. This can avoid any potential challenges to the dissolution that may arise at a later date.

(By the way, I'm not a lawyer and this is not legal advice.)

Related to contracts

• How a little mistake cost one consultant $2875
• Where to buy contract templates (and legal forms)
• What you need to know about contracts

If you consult, freelance, do work for hire or otherwise provide services, you should be using a contract.

Why use a contract

There are many reasons for two parties to enter into a professional services contract. The main reason would be to establish rules and parameters. Without a professional services contract, a venture might descend into disorganization or confusion. To avoid this, a professional services contract clearly defines all aspects of the work to be performed. Of course, the contract needs to be comprehensive in order to be effective.

What to include in a contract

• A contract should include all the necessary information required for the performance of the services. This includes the names of all parties involved and duties to be performed. For example, a contract for cleaning an apartment could detail what specifically needs to be cleaned as well as what does not. This will avoid any confusion as to what specific services are to be provided.Also, the time frame for the completion of services should be detailed. This includes a commencement date and a time frame for completion. This ensures that the job is properly performed within a reasonable time frame. When the timeframe for completion is open ended the job itself may end up dragging on indefinitely. This can often undermine the quality of the job which is not desirable.

• And, of course, the actual fee that will be paid should be defined along with the specific terms of payment. Detailing the time frame payment will be provided is helpful as well. Clearly, the person providing the services wants to be paid for the work performed. When payment issues are in dispute it is not uncommon for people walk off a job. That would obviously be a disastrous situation. Plus, even if payment issues are straightened out, bad will among the parties may remain. This can undermine the performance of the job and is not beneficial.
• But, sometimes despite all the best efforts of both parties things just don't work out. So, when the relationship falters, it may make more sense to terminate the contract. When two parties can not work together, despite communication attempts, it doesn't make sense to continue the relationship. So, a services contract should also include criteria for dissolving the relationship if needed. Heck, you might want an escape clause like that, just in case you get sick or end up in the hospital.
  

A clear professional services contract explains all the job and relationship, leaving no room for error. It gets rid of ambiguity and makes it easier for people to understand roles and responsibilities.

Later this week, I'll be talking about what you can do if you want out of a contract.

(By the way, I'm not a lawyer and this is not legal advice.)

Related to contracts

• How a little mistake cost one consultant $2875
• Where to buy contract templates (and legal forms)

I usually post a top five list on Fridays. Well, I've been very busy with a hard drive crash that took place last weekend. My poor Acer laptop finally kicked it. The hard drive died. And it took a little piece of me with it!

Well, it's not so bad. I back up my hard drive on a fairly regular basis. And I was able to pull my Outlook file off the hard drive before it died.

I've lost data before. It's awful. It's not a life trauma, but it isn't exactly fun either.

Five reasons to back up your hard drive

1. Losing data may disrupt your work.
2. Trying to crack a dead hard drive can be expensive or time consuming.
3. Losing access to your calendar and email may make you look bad in front of clients.
4. Stressing over everything is not productive.
5. Shopping for a new system takes enough time -- trying to make up for all the work you lost would be even worse.

How often do you check your email? A lot?

Stop checking your email every time a message comes in. Start scheduling time to read and respond to email.

Frittering away 15 or 30 minutes several times a day can put you behind schedule. And, most of the time, reading and writing email is non-billable work. So you're spending time on something that doesn't even make you money.

Resolve to only check email at key points of the day, or if you're waiting for a specific message. And, if you must write and read email throughout the day, at least build it into your quotes for clients -- or focus on email messages that make you money. Messages that result in lead generation or sales help you make money. But, again, do you need to read and respond all day?

Becoming a freelance writer -- I'm sharing this guest post by Laura-Jane Koers, who previously wrote about leaping out of your comfort zone. In addition to leaving the West Coast to remodel a house on Prince Edward Island, Laura-Jane has decided to become a consultant and freelance writer. Here's part one of her story about the transition.

Becoming a Freelance Writer: Embarking on a New Career as a Consultant

I had a normal childhood in most respects. But while my friends had television and Nintendo, my parents armed me with a worn library card and a well-stocked bookshelf. So perhaps it's no surprise that I've always been driven to become a writer.

Choosing a Career Path

Plagued with self-doubt, I tried to ignore my inclination toward making a career out of writing. I did my best to quell that little voice that whispered, “You must write”.

Instead, I went to university and studied political science. After graduation, I worked in a number of offices, all the while telling that little voice to keep its opinion to itself.

But after a decade of non-fulfilling work, I began to question my career choice. Why had I spent ten years ignoring the inner voice that hissed, “You should be writing”? If my life had suddenly come to an end, would I have regretted spending years achieving my boss' goals instead of my own?

Scared to Take Risks

If a friend had told me that she felt a strong desire to change careers, I would have told her to jump in head-first. I'd have cheered, “Go for it! You can do it!” But when it came to my own career, I was oblivious to the fact that I'd been ignoring my own goals while encouraging others to try theirs. 

Why was I scared to try writing as a career? What was I afraid of? Becoming a writer had been my dream ever since I could remember. I was afraid that if I tried to achieve my dream, I might realize that I wasn't as skilled a writer as I thought I was. What if I gave writing everything I had, and I failed miserably? Oh, the humanity!

But then I asked myself what was worse, trying to achieve one's dream and failing, or not trying at all? At least if I tried my hand at professional writing, I had a chance at success. If I didn't try, my failure was certain.

Taking the Plunge

So there I was. I'd convinced my inner fears that everything would be all right no matter what happened.

I could ignore my inner calling no longer. I owed it to the little voice, and I owed it to myself. But what I didn't know was how to get started.

See part 2 and part 3.. Laura-Jane Koers is a freelance writer currently living on Prince Edward Island, in Canada. She blogs about farm life at  www.whimfield.com. To find out more about Laura-Jane's current writing endeavours, visit  www.laura-jane.com.

Have you ever stopped to think about how your consulting fees affect your earnings? A while ago, I asked "How often do you increase your rates?" I mentioned that, if you increased your fees by 5% a year for 10 years, you could go from $50 an hour to $81.

How does that affect your annual earnings? Let's say you were billing 20 hours a week for 48 weeks a year. So you started at $48,000 a year. And you increased your rate at 5% a year. Now you'd be earning $77,000 a year -- for working the same number of hours.

And what if you'd increased your rate 6% a year? Now you'd be earning about $86,000 a year. (And you would have enjoyed thousands in increased earnings over the years.)

Have you been afraid to raise your consulting fees? Stop leaving money on the table!

Related

• Consulting Fees Guide

Via Lifehack, here's a list of reasons you're procrastinating. I spent some time thinking about this one:

The inability to make decisions also contributes to procrastination.

I don't have trouble making decisions. (Although, if you've ever seen me order from a menu at a restaurant, you might think otherwise.) But I do sometimes have trouble trying to get things "right". So, over the years, I've learned to build in opportunities to refine the work I do. I'd rather get it done and make improvements than never finish. I think my strategy comes from starting as a freelance writer. If I'd learned to get every word right in my head before setting out to draft something, I never would have got anywhere. Instead, I just sit down and start writing. Likewise, when I'm doing a consulting project, I spend 10% of my time planning and then I just dive in. Of course, I make sure to revise things before I hand off the final report.

How do you deal with procrastination?

Several times a day, I chat with friends, family and partners via instant messenger services. I sometimes even chat with clients. But, as a general rule, I don't give my IM account info to clients.

Instant messaging makes you seem within a client's arm reach. Whereas they have no idea what you're doing when you don't immediately answer a call or email, instant messaging services make you look like you're *right there*. And that's a little too close for comfort when I'm juggling multiple clients and trying to get work done.

Still, for my best and most trusted clients, I make exceptions. These are the people who've been working with me for years and who've shown an ability to respect my time and privacy. They're the clients for whom I'd wake up in the middle of the night and go help them jumpstart their car. In other words, they're much more like close friends than clients now.

How about you? Do you instant message with clients? If so, do you "go offline" to avoid interruptions at certain times?

By request, I've created a Consultant Journal store at Cafepress. I've started off with a simple consulting joke and the Consultant Journal logo. If you have other ideas, let me know. I try to respond to readers whenever possible. (That's where the idea for the store came from.)

As much as you enjoy the business of your regular clients you still need to pick up new clients in order for your business to grow and remain stable. But, acquiring new customers can sometimes prove difficult. This is why a few deliberate steps need to be taken in order to boost new clientele.

1. Use freebies and giveaways to stimulate interest. Offering free samples of reports or articles (even via the mail) can provide customers with a taste of what you offer. This can lead to picking up new customers who may have otherwise passed on your services.
2. Use business cards. Never underestimate the value of leaving tried and true business cards anywhere you can, including shops, malls, stores, etc. Sooner or later, someone who is looking for exactly what you are offering will come across your card.
3. Research the market. Figure out what the current marketplace is interested in or else you will never pick up new customers. Always stay up to date on market trends so you can promote your business from a position of power.
4. Use innovative internet marketing. A website is great but a website with multimedia components such as podcasts, PowerPoint presentations and videocasts can really be an eye catcher. So, make your site high tech in order to appeal to more people.
5. Set up a display at a trade show. Yes, this may seem like a huge and expensive undertaking but it has its benefits. You can meet a significant number of new potential customers, look more credible to people in the industry, and keep an ear to the ground for inside info about your industry. Besides, some tradeshows can be affordable -- shop around for small fairs and exhibitions.
   

New clients will help your business grow, so do your best to find, attract and hook them!

The new website for Consultant Journal is *almost* here. We're still tweaking the design. I wasn't happy with what we had. Once I realized the design was a sunk cost, it was easier to let it go. So I'll be keeping some elements of the original mock up, but also bringing in some of the clean look of the existing site.

That being said -- do you want categories? From my analysis of the website, it looks like almost no one uses them. Less than one percent of visitors click them. So, unless you say otherwise, I'm going to get rid of categories. Speak now or forever use the search bar.

The new website for Consultant Journal is *almost* here. We're still tweaking the design. I wasn't happy with what we had. Once I realized the design was a sunk cost, it was easier to let it go. So I'll be keeping some elements of the original mock up, but also bringing in some of the clean look of the existing site.

That being said -- do you want categories? From my analysis of the website, it looks like almost no one uses them. Less than one percent of visitors click them. So, unless you say otherwise, I'm going to get rid of categories. Speak now or forever use the search bar.

In my part of the world, it's back to school time. Next week, school starts up and I'll breathe a sigh of relief as the streets of my beloved downtown empty of tourists. Finally, I'll be able to easily wander Robson Street (which has the 5th most expensive retail rents in the world) and the ever outstanding Stanley Park...without needing to weed my way through tourists and students. I'll hang out at Starbucks Corner, although I far prefer to get my latte at Caffe Artigiano down the road. I'll go shopping in the middle of the day, soak up the fall atmosphere (including the rain) and meet friends for, well, coffee -- this being Vancouver and all.

But, in many ways, September brings a change in my consulting work. Summers are always a little slower. I take vacation, my clients take vacation, my clients' partners take vacation...everyone takes it easy. I often pursue special summer projects, rather than spending all my time working "in" my business. Summer is a great time for me to look at building up my business, so that I can go like gangbusters in the fall.

So September reminds me of "back to school".

1. People come back from vacation. I get lots of "hello" and "how've you been?" messages and...of course...requests for coffee.
   
2. Companies start thinking about how they're going to ramp up during the fall. Everyone looks forward to the new "term".
3. Networking groups start up again. I'm already looking forward to a new season of hors d'oeuvres. 
4. In the marketing world, companies start panicking about October and November tradeshows and so my email inbox fills up with inquiries.
5. People start talking about the courses they're going to attend. Heck, if that doesn't sound like back to school, what does?

Thank you all for the comments you make here on Consultant Journal. It's great when we get a discussion going and your comments add value for other people reading the site.

However, as this site has become more popular, I've seen an increase in comments that fall somewhere between obvious spam and genuine content. I feel compelled to address this.

Comments are welcome

• Got questions? Feel free to post on the site. Chances are that someone will chime in with hep.
• Disagree with me? Comment away! Alternate viewpoints are more than appreciated.
• Agree with me? Think I should win the Pulitzer Prize for blogging? Heck, make twice as many comments!
• Like to hear yourself talk? Hey, it's no different than me running this blog. Comment at will!

Comment approval

• If you make comments that have no relevance to the post, the comments will not be approved.
• If you stuff the name box with keywords, your comments will not be approved.
• If you sign off with your product name only, your comments will not be approved.
• If you blatantly promote your wares or those of a client and do not tie them into the post in a meaningful way, your comments will not be approved.

That being said, I don't mind if you use a name that helps identify you and your business. "Andrea the Marketing Consultant", "Andrea >> Consultant Journal", "Andrea from Become a Consultant Blog" and so on work just fine for me.

Of course, I always reserve the right to delete, approve or anonymize comments. And comments are the views of those who visit the site -- they are not my words or necessarily even close to my opinions.

Setting SMART goals can help you grow your business. Although I've been setting goals for years, I only recently learned about SMART goals. (Granted, the system I was using before was pretty similar.) My friend Melanie recently helped me outline some SMART goals for my business.

SMART goals are:

• Specific - who, what, when, where, why?
  
• Measurable - what gets measured gets done, right?
  
• Attainable - pick goals that are achievable, given your abilities and constraints
  
• Realistic - you must truly believe it can be accomplished
  
• Timely - set a date for meeting the goal
  

In an upcoming post, I'll discuss some ideas for setting SMART goals for your consulting business.

(Want to make sure you see that post? Subscribe to my RSSfeed.)

Via the Law Consulting Blog, here's a great template letter for finding speaking opportunities.

Speaking can help make you look credible to an audience. You can also tell potential clients that you've made presentations to people in Industry X or from Trade Association Y. It helps you build your brand.

I've done a lot of public speaking over the years -- everything from appearing for Careers Day at a high school to lecturing at university.

Do you speak in public?

From time to time, some of you ask how you can best support this site. I appreciate your interest. Of course, this site is chiefly a labor of love and I've made both the Consultant Journal newsletter and hundreds of articles available for free.

I do earn money from the ads on Consultant Journal. That has allowed me to invest in building the site, upgrading web servers, pay for hosting and build new online tools.

Really, to support this site, all you need to do is just keep visiting, taking part and telling your friends. But, because some of you want to know what else you can do, I've put together some ideas. The key thing is to get the word out about this site. More people means a richer and more diverse community, with more comments and more participation. It also means more advertising, which means I'll be able to invest more in this site.

1. Read articles on the site. After all, that's why Consultant Journal is here.
   
2. Forward your favorite posts to your friends. Invite other people to visit.
3. Make comments. Comments help build community.
4. Subscribe to the newsletter. (See top right of page.) The more the merrier!
   
5. Write a guest post. If your post is accepted, you'll receive a link back to your site and my gratitude. It's a great way to generate new traffic for your own site, build up your credibility or simply contribute to the Consultant Journal community.
6. Link to my site, if you have a website or a blog. It's a great way to bring new people to this site.
   
7. Ask your friends to link to my site. If you don't have your own site or blog or you're just really enthusiastic, ask your friends to consider linking to my articles. It will help bring more people to Consultant Journal.
8. Mention my site on Facebook, forums, Twitter, blogs or other online tools.
9. Make a purchase through our Consultant Journal Amazon store. (Although that site defaults to a list of books, you can purchase anything else you like. Consultant Journal receives a very small commission.)
10. Click on ads that genuinely interest you. Please don't click on ads as a way of giving me a tip. Advertisers don't like fake clicks and they won't keep advertising if their campaigns fail. That being said, if you do see ads that really and truly intrigue you, support the advertisers.
11. Send me free product samples for review. I can't guarantee a positive review -- that would compromise the site's integrity. But I am willing to take a look at what you have to offer.
12. Advertise on this site. If you've got a product or service that would interest Consultant Journal readers, advertise on this site.
13. Buy one of my guides:

• Discover Your Inner Consultant
• Consulting Fees: A Guide for Independent Consultants
• Discover Your Inner Entrepreneur for Moms

Thank you all for your support so far. Whether it's a kind word, a link, a comment, a successful advertising campaign or a purchase, your support is truly appreciated.

When you go to Starbucks and order a latte, what are you really paying for? Milk, sugar, espresso and a cup? No way! You're participating in the Starbucks experience.

As you hit the door, you smell the aroma of coffee. You're in a perfect coffee-toned world, where soft jazz and comfy chairs await. In placing your order, you get to put your personal stamp on your beverage of choice. You wait by the end of the counter for a drink served up to your specs. In short, when you go to Starbucks, you're claiming 15 minutes for you, your wants and your way of being.

Take that Starbucks experience and apply it to your consulting. Stop producing products. Start providing experiences:

• Business consultants offer strategies for improving revenues, cutting costs and increasing customer retention -- not reports
• Graphic designers help clients project professional images in sync with their target markets -- not logos, brochures or websites
• Personal trainers help clients meet personal fitness goals -- not workouts
• IT c onsultants help automate business processes to free up time for value-added business activities -- not tech support or system implementation
• Personal chefs provide healthy meal planning solutions for busy families -- not prepared meals

What experiences do you provide for your clients? This is homework. Reply with your answer -- and, if you like, a description of your business and your website (if applicable) -- and I'll feature you in an upcoming post.

 

I'm no longer giving away The Bootstrapper's Bible with newsletter subscriptions. As of right now, you'll receive Six Tips for Jumpstarting Your Expert Status when you sign up for the Consultant Journal newsletter. (See top right.)

Why the change? I really believe that most of you will see more value from help with growing your reputation as an expert. After all, consultants are "experts".

If you already subscribe to the newsletter, you'll be receiving these tips in this month's newsletter. You don't need to sign up again.

Related:

• Bootstrapper's Bible giveaway ends soon