How to Make It Big as a Consultant

William A. Cohen, PH.D. is a business professor, speaker, and President of the Institute of Leader Arts, as well as the author of numerous books, including A Class with Drucker (978-08144-0919-0).

• CONTENTS Preface: The World’s Foremost Consultant and His Impact on This Book Drucker’s Consulting—How Consultants Get Started—My Initial Ignorance about Consulting—An Academic Course in Consulting— The Information in This Book 1 The Business of Consulting What Is Consulting?—How Big Is the Consulting Industry?—Types of Consulting Firms—Why Does Anyone Need a Consultant?— Signals Indicating the Need for a Consultant—How Do Potential Clients Analyze Consultants for Hire?—What Makes an Outstanding Consultant?—How Much Money Can You Make as a Consultant?— How Do People Become Consultants?—Summing Up 2 How to Get Clients: Direct Marketing Methods Direct Methods of Marketing—Direct Mail—Cold Calls—Direct Response Space Advertising—Directory Listings—Yellow Pages Listings—Approaching Former Employers—Brochures—Designing Your Brochure—Summing Up 3 How to Get Clients: Indirect Marketing Methods The Basic Indirect Methods—Speaking before Groups—Sending out Newsletters—Joining Professional Associations—Joining Social Organizations—Writing Articles—Writing a Book—Writing Letters to the Editor—Teaching a Course—Giving Seminars—Distributing Publicity Releases—Exchanging Information with Noncompeting Consultants—Summing Up 4 Marketing Consultant Services to the Public Sector The Government Requires All Sorts of Consulting Services— Consulting for the Government—How Do You Get on the Government Bandwagon?—Federal and State Bidding Portals— Small Business Administration—The Buying Process—The Importance of Preproposal Marketing—The Marketing Sequence for Government Consulting—Locating Potential Clients—Screening— Visiting and Making the Initial Presentation—Maintaining Contact and Gathering Intelligence—Preparing the Proposal—Negotiating the Contract—Summing Up 5 Making the Initial Interview a Success Looking and Acting Like a Professional—How to Build Empathy with Your Potential Client—Seven Essential Questions—Taking Notes—Holding off on Giving Advice—Interpreting Body Language—Making Use of Listening Techniques—Identifying Emotions from Facial Expressions—What to Do When the Interview Is Over—The Company Audit—Identification of Facial Expressions in Figure 5-1—Summing Up 6 How to Write a Proposal Why a Written Proposal Is Necessary—How to Write a Good Proposal—The Structure of a Letter Proposal—Opening— Background—Objectives—Study Methods—Potential Problems— Data Flow Charts and Product Development Schedules—The Finished Product—Cost and Payment Information—Converting a Proposal Into a Contract—Summing Up 7 Pricing Your Services Price Strategies and Some Other Considerations—Three Price Strategies—Other Considerations—Investigate the Marketplace— 01-HMBC-FM-2 3/4/09 2:32 PM Page viii Methods of Billing—Daily or Hourly Billing—Working on Retainer—Performance Billing—Fixed-Price Billing—Disclosing the Fee—Summing Up 8 What You Must Know About Consulting Contracts Why a Contract is Necessary—Developing Your Own Contract— If Your Client Has a Standard Contract—Methods of Incurring a Contractual Obligation—Formal Contracts—Letter Contracts— Order Agreements—Purchase Orders—Verbal Contracts—Types of Contracts—The Fixed-Price Contract—The Cost Contract—The Performance Contract—The Incentive Contract—Elements of a Contract—A Sample Contract—Summing Up 9 Planning and Scheduling the Consulting Project The Project Development Schedule—Developing a PERT Chart— Events and Activities—Earliest Expected Date—Latest Allowable Date—Slack—The Usefulness of PERT—Summing Up 10 Negotiating with Your Client Six Steps in Contract Negotiation, as Seen by Uncle Sam— Appreciating the Goals and Objectives of the Counterparty— Preparation:The Key to All Contract Negotiations—Be Wary of Telephone Negotiations—The Negotiation Plan—Negotiation Gamesmanship—Making the Other Party Appear Unreasonable— Placing the Other Party on the Defensive—Blaming a Third Party— The Good-guy, Bad-guy Technique—Giving up on Straw Issues— The Walkout—The Recess—The Time Squeeze—More Negotiation Tactics—Some General Negotiating Hints—Summing Up 11 How to Easily Solve Your Client’s Problems Peter Drucker’s Method of Solving Problems with His Ignorance— Defining the Central Problem—Listing Relevant Factors— Listing Alternative Courses of Action—Discussing and Analyzing the Alternatives—Listing Your Conclusions—Making Recommendations—The Charles Benson Problem: A Case Study— The Charles Benson Problem—Solution to the Charles Benson Problem—The Central Problem—The Relevant Factors— Alternative Courses of Action—Discussion and Analysis— Conclusions—Recommendations—Psychological Techniques for Problem Solving—Why the Subconscious Mind Can Help You— How to Help Your Subconscious Solve Your Consulting Problems— Summing Up 12 How to Research The Two Basic Kinds of Research—Sources of Secondary Research—The Library: Still a Good Bet as a Starting Point— Examples of Simple Primary Research—More Complex Research Problems, and How to Do Them—Personal Interview Surveys— Mail Surveys—Telephone Surveys—Electronic Surveys—You Can Research Anything—Summing Up 13 The Importance of Ethics in Consulting Business Ethics: Sometimes Not Clear-cut—Ethics versus Jobs: The Lockheed Case—The Ethics of Marketing Research—What Washington Researchers Discovered by Surveying Their Seminar Attendees—An Executive Recruiting Story—A Japanese View of Duty—Ethics and the Law are Not the Same thing—Typical Problems Pertaining to Ethics in Consulting—The Institute of Management Consultants (IMC) Code of Ethics—Summing Up 14 Making Professional Presentations Objectives of Presentations—Five Keys to a Successful Presentation—Professionalism—Enthusiasm—Organization— Practice— Visual Aids—Overcoming Stage Fright—Answering Questions—Summing Up 15 How the Computer Has Changed Consulting Proposals and Desktop Publishing—Need Overhead Transparencies? No Problem!—Managing Your Practice—Direct Marketing— Correcting Your Writing—Naming Products and Services—Making Forecasts and Plans—Evaluating Potential Employees—Marketing Research—Voice-Activated Word Processing Is Here!—Scanning Documents and Photographs into Your Presentations—Instant Communication—Some Reading Suggestions—Summing Up 16 The Internet and Consulting What Is the Internet?—What Do You Need To Get Online?— Preloaded Connection, Browser, and Portal Services—Internet Connections—Researching on the Internet—How to Use Search Engines—Evaluating and Using Your Results—Marketing on the Internet—The World Wide Web—Once You Have Your Site Developed,Then What?—Selecting an ISP—Selecting a Name— Why Not a Cybermall?—How Should You Market on the World Wide Web?—Publicity:The Number One Secret for Marketing on the Web—Using Banners—Cyberlinks—Giving Information Away—Why Not an E-mail Newsletter?—Books on Internet Marketing—Summing Up 17 How to Run Your Consulting Business Selecting the Legal Structure for Your Consulting Firm—The Sole Proprietorship—The Partnership—The Corporation—Other Legal Necessities—Obtaining a Business License—The Resale Permit— Fictitious Name Registration—Clients’ Use of Credit Cards— Stationery and Business Cards—Insurance and Personal Liability— Keeping Overhead Low—The Telephone—Fax Machines— Anticipating Expenses—Necessary Records and Their Maintenance—Tax Obligations—Income Taxes—Excise Taxes— Unemployment Taxes—State and Local Taxes—Minimizing Tax Paperwork—Sources of Additional Information—Summing Up 18 Developing Strategies for Your Client Why My Recommended Approach to Strategy is Different— Principles, Resources, and Situational Variables—Example: Attacking a Market Leader’s Top Product—How Lever Bros. Did It— Integrating the Principles—Looking at Resources—Lever Bros.’ Secret Weapon—Enter the Great Depression—The Launch—Apply the Principles Scientifically—Summing Up 19 How to Lead Consulting Teams Why Teams Work—How Should You Lead a Team of Consultants?— Recognizing Team Stages—Stage 1: Getting Organized—Stage 2: Getting Together—Stage 3: Fighting It Out—Stage 4: Getting the Job Done—Summing Up 20 Personal Consulting: Counseling and Coaching What Exactly Is Coaching?—Different Kinds of Coaching—How Coaching Got Started—How is Coaching Done?—Learning to Be a Coach—Coaching Fees—Marketing Coaching Services— Summing Up Epilogue Appendix A References Useful to Consultants Appendix B Sample Consultant’s Brochure Appendix C The Consultant’s Questionnaire and Audit Appendix D Associations of Consultants Index