Getting Started in Consulting

Introduction

Have you ever dreamed of being your own boss, working from home, and using your expertise to help others? If so, consulting might be the perfect career path for you. In his book "Getting Started in Consulting," Alan Weiss provides a comprehensive guide for aspiring consultants, offering valuable insights and practical advice on how to establish and grow a successful consulting business.

Many people are drawn to consulting for its potential to offer freedom, flexibility, and lucrative opportunities. However, the road to success in this field is not always smooth. Many aspiring consultants fail to get their businesses off the ground due to common pitfalls and mistakes. Weiss's book aims to help readers avoid these obstacles and set themselves up for success from the start.

Throughout this summary, we'll explore the key ideas and strategies presented in "Getting Started in Consulting." From planning and financial preparation to marketing and client relationships, we'll cover the essential steps you need to take to launch and grow your consulting business. Whether you're just starting to consider consulting as a career or you're ready to take the plunge, this summary will provide you with valuable insights to guide your journey.

Making a Strong Start: Planning and Preparation

Financial Preparation

One of the most crucial aspects of starting a consulting business is ensuring you have enough financial resources to support yourself during the initial stages. Weiss emphasizes that it typically takes six to twelve months for a new consultancy to get up and running, and during this time, financial rewards may be minimal.

To prepare for this challenging period, Weiss recommends the following steps:

1. Reduce your monthly expenses as much as possible.
2. Calculate how much money you'll need to support yourself for a full year.
3. Establish a fund to cover your expenses during this period.

Possible sources for this fund include:

• Home equity
• Personal savings
• Credit lines
• Family support

By having this financial cushion in place, you'll be able to focus on building your business without the stress of immediate financial pressure.

Time Management and Prioritization

As you embark on your consulting journey, effective time management becomes crucial. Weiss suggests a simple but powerful approach to prioritization:

1. Make a comprehensive list of all tasks, both professional and personal.
2. Complete each task when you're in the best mood or position to do so.

This method allows you to tackle your to-do list more efficiently and effectively.

Another key strategy for managing your time is delegation. Identify tasks that are time-consuming or require skills you lack, and consider passing them on to someone you trust. This approach frees up your time to focus on the core aspects of your consulting business.

Setting Up Your Workspace

Choosing the right workspace is an important decision that can impact your productivity and professional image. Weiss outlines three main options for consultants:

1. Home Office

   • Pros: Cost-effective, convenient
   • Cons: Requires dedicated space, potential for distractions
   • Ideal if you have a quiet, closed-off area with enough room for office equipment

2. Shared Working Space

   • Pros: Access to professional services (receptionist, copying, faxing), networking opportunities
   • Cons: Monthly fees, limited by facility hours
   • Costs can range from $300 to over $2,000 per month

3. Formal Office

   • Pros: Most professional option, dedicated workspace
   • Cons: Expensive, may be unnecessary for new consultants
   • Consider this option only if you can definitely afford it or once your business is well-established

Regardless of which option you choose, Weiss emphasizes the importance of having the right equipment to run your business efficiently. Essential tools include:

• Computer
• Two-line phone
• Fax machine
• Copier
• Voicemail
• Postage scale

While these items represent an initial investment of $1,250 to $2,000, they are crucial for maintaining a professional operation.

Legal and Organizational Considerations

Tax Planning

Understanding the tax implications of your consulting business is essential for financial success. Weiss recommends consulting with a professional to determine the best tax structure for your company. However, he provides some general advice:

1. Consider defining your company as an S corporation, which allows you to avoid paying corporate tax and instead be taxed on your income from the business.

2. Take advantage of tax deductions for business expenses, such as:

   • Medical bills
   • Director's fees and meetings
   • Home-office expenses
   • Memberships and subscriptions

Remember that you can always change your corporate structure as your business grows and your needs evolve.

Building Professional Relationships

Establishing strong relationships with key professionals and service providers is crucial for your consulting business. Weiss highlights two important relationships to cultivate:

1. Banking Relationship

   • Find a bank with an officer familiar with your business type
   • Develop a personal relationship to expedite problem-solving and queries

2. Other Professional Services

   • Build relationships with professionals who can support your business, such as:
     • Graphic designers
     • Insurance providers
     • Regular suppliers

To find reliable professionals, consider reaching out to relevant trade associations for recommendations.

Marketing and Client Attraction

Developing Marketing Materials

To attract clients, you need to create a strong marketing presence. Weiss recommends preparing a basic press kit that includes:

1. Expected results for clients
2. A brief biography highlighting relevant successes and references
3. An outline of your area of expertise

Invest in high-quality stationery and business cards to present a professional image.

Networking and Pro Bono Work

Networking is a crucial aspect of marketing for consultants. Weiss suggests seeking out opportunities to connect with influencers in your target market:

• Attend media events to meet publishers who might feature your articles
• Participate in industry conferences to network with influential players
• Consider pro bono work for non-profit organizations to build your reputation and expand your network

Pro bono work can be particularly effective in generating word-of-mouth recommendations and establishing your credibility in the field.

Branding and Online Presence

In today's digital age, having a strong online presence is essential for consultants. Weiss recommends:

1. Creating a "credibility website" that showcases your professionalism and expertise

   • Include a clear photo of yourself
   • Provide a concise explanation of your services and their benefits
   • Avoid cluttering the site with promotions or special offers

2. Utilizing social media to build brand awareness

   • Limit social media time to 90 minutes per day
   • Focus on providing value and establishing your expertise rather than direct selling

Traditional Media and Speaking Engagements

While online marketing is important, don't neglect traditional media and in-person opportunities:

• Seek opportunities to publish articles in industry magazines
• Pursue interviews on podcasts or radio shows
• Offer to give presentations at local organizations like the Rotary Club, Chamber of Commerce, or civic groups

These activities help establish you as an expert in your field and increase your visibility to potential clients.

Closing Deals and Setting Fees

Proposal Strategies

When presenting proposals to potential clients, Weiss offers several key strategies:

1. Provide multiple options and extras in your service offerings to increase profit potential.

2. If a client doesn't immediately accept, remain patient and persistent:

   • Schedule in-person meetings quickly when requested
   • Prepare thoroughly by researching the client's business and needs
   • Stay flexible during negotiations, but only accept fee reductions that correspond to reduced service value

3. Follow up consistently:

   • Call once a day for three days if there's no response
   • Send a letter after a week
   • Send a final letter after two weeks, noting that the proposal is valid for only 30 days

4. If a proposal is rejected, maintain a professional attitude:

   • Ask to stay in contact
   • Offer informal assistance occasionally
   • Remember that the same client might accept a future proposal

Fee Structure

One of the most critical aspects of consulting success is setting appropriate fees. Weiss strongly advises against common pitfalls:

1. Don't charge based on hours worked

   • Instead, set fees based on your expertise and the value you provide
   • This approach allows you to charge more and frees you from the temptation to work longer hours unnecessarily

2. Avoid contingency-based fees

   • Never agree to payment based solely on project completion or satisfaction
   • This protects you from factors outside your control, such as a client's poor implementation of your advice

3. Set clear, upfront fees

   • This provides clarity for clients and eliminates surprises
   • It also reinforces the value of your expertise rather than your time

Building Strong Client Relationships

To ensure long-term success, Weiss emphasizes the importance of maintaining strong personal relationships with clients:

• Stay in regular contact
• Offer additional advice and support
• Focus on building trust and demonstrating ongoing value

These efforts can lead to repeat business and valuable referrals.

Growing Your Consulting Business

Evaluating Success

Weiss suggests that it takes about three years to truly evaluate the success of your consulting business. Key indicators of success include:

• Receiving more business through passive marketing (word-of-mouth) than active solicitation
• Having about 75% of your business come from returning clients
• Being able to take at least two weeks of vacation per year
• Not requiring constant attention to run your practice
• Having the ability to reject clients without threatening your income or reputation

Expansion Strategies

Once your business is established, consider these growth strategies:

1. Hiring employees

   • Only hire if they increase your productivity enough to justify their cost
   • Avoid hiring for ego reasons or to create a large staff unnecessarily

2. Maintain successful marketing approaches

   • Don't second-guess strategies that have worked well for you

3. Diversify your services

   • Consider offering additional services or expanding into related areas of expertise

Personal and Professional Development

As your business grows, Weiss encourages consultants to focus on personal growth and fulfillment:

1. Mentoring and teaching

   • Share your experience with younger professionals
   • This can be personally rewarding and help establish you as a thought leader

2. Choosing meaningful projects

   • As demand for your services increases, select projects that align with your interests and values
   • Focus on work that helps you develop as a person and professional

3. Continuous learning

   • Stay updated on industry trends and best practices
   • Invest in your own education and skill development

Final Thoughts

"Getting Started in Consulting" provides a comprehensive roadmap for aspiring consultants to build successful and fulfilling businesses. By following Weiss's advice on financial preparation, marketing, client relationships, and business growth, you can avoid common pitfalls and set yourself up for long-term success in the consulting world.

Key takeaways from the book include:

1. Proper financial and time management are crucial for a strong start.
2. Effective marketing involves a mix of online presence, networking, and traditional media.
3. Setting appropriate fees based on value rather than time is essential for profitability.
4. Building strong client relationships leads to repeat business and referrals.
5. Continuous personal and professional development is key to long-term success and satisfaction.

Remember that building a successful consulting business takes time, effort, and patience. By implementing the strategies outlined in this book and staying committed to your goals, you can create a thriving consultancy that not only provides financial rewards but also allows you to do fulfilling work and make a meaningful impact in your chosen field.

As you embark on your consulting journey, keep in mind that success is not just about financial gain. It's about creating a business that aligns with your values, leverages your expertise, and allows you to continually grow and evolve as a professional. With the right mindset, preparation, and strategies, you can build a consulting career that is both rewarding and sustainable for years to come.