Practical Tips for Self-Employed Consultants and Solopreneurs
Advice and Insight
Everyone knows that consulting services can be hard to sell because it’s often perceived as expensive and too theoretical. To combat this bias, demystify your process. Using work samples and deliverables to show prospects how you do what you do will go a long way toward eliminating their skepticism.
Read MoreThe best time to raise your billing rate is on the cusp of something new — a new year, new project, new client. With the new year just around the corner, now is an excellent time to inform your clients. This article offers explains how to raise your rate, as well as some sample language …
Read MoreThe easiest time to raise your rate is on the cusp of something new — a new year, a new project, a new client. With the new year just a few weeks away, now may be the perfect time. This article offers ideas of how to do this, as well as some sample language to use when notifying your clients.
Read MoreThis month the PICA community has been focusing on sharpening our consulting skills so we’re reprising one of our founder’s most popular LinkedIn articles. First published January 2015, it’s just as relevant today as it was then. We’ve also expanded the original list of qualities from 19 to an even 20, and updated a few other things based the LinkedIn comments. Here’s to a your success!
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Let’s face it, not all consultants are created equal. Some can seemingly do anything with grace, style, and ease while others struggle to make anything happen. Over the last 20 years I’ve interacted with probably a thousand management consultants, from local independent practitioners to global “big four” advisors. Some are rock stars and some never will be, regardless of their education or what consulting firm they work for.
In a nutshell, a consulting rock star is someone who loves helping clients succeed, does whatever it takes to do so, keeps their word, effectively manages expectations, and produces A-quality work. They make the right things happen. They are smart, professional yet personable, excellent listeners with self-confidence, and…
Read MoreGenerally, the more experience you have as an independent consultant, the more likely you should move from billing by the hour to a fixed fee. At some point you’ll master your specialty and work much more efficiently than others. This means to earn what your services are truly worth, you’ll have to keep raising your hourly rates. But at some point, you’ll reach an invisible rate ceiling when clients think you’re too expensive, even if it takes you half the time to do the work.
When you reach this point, it’s time to start thinking about billing for your services by the project instead of by the hour or day. The idea is to price the project as if you’re going to do it from scratch, even though you know you’re going to adapt plans and materials from prior projects. By doing so, you’ll boost your income per hour.
Here’s an example…
Read MoreThe easiest time to raise your rate is on the cusp of something new — a new year, a new project, a new client. With the new year just a few weeks away, now might be the time. This article offers ideas of how to do this, as well as some sample language to use when notifying your clients.
Read MoreRecently I helped a consultant land a $420,000 consulting contract. That’s not a typo. It’s an 11-month project for one consultant: $320k in consulting fees and another $100k for travel expenses. I’ve excluded my company’s agency fee in these numbers; the actual budget was a bit larger.
Clearly this was a big win for the consultant. The client was pleased too since a global consulting firm working with his company quoted $660,000 for the same project. (See my related article, “Quote Your Rate with Confidence.”)
A project this big doesn’t just fall out of the sky. Why did the client contact me for help? The short answer: business development. The long answer: diligent business development that built a relationship over time. Rather than any one particular thing I did, it was simple actions over the course of five years. Those actions cultivated a trusting relationship with the client and, as a result, he was comfortable reaching out to me for help.
Read MoreWith the rise of the free agent nation and gig economy, there’s rampant confusion around the terms contractor, consultant, and independent contractor. If you are a self-employed consultant, you don’t want to be a contractor but do want to be an independent contractor. This article explains why.
Read MoreMost consultants I know struggle with business development, and it’s a top concern among those thinking about going independent. “I don’t know how to build a pipeline of leads” or “I’m not good at sales” are common refrains.
Most of us never had sales training so this concern is understandable, but reframing how we think about business development can turn concern into action. Read any definition of business development and you won’t find the word sales.
A shift in perspective can make a significant difference in how you approach something. For example, before you go parasailing the first time you might think, “I’m excited to try this!” or “Oh my god, I’m going to die!” You’ll have a lot more fun if you approach it with an “I’m excited” attitude instead of “I’m scared.”
Read MoreEveryone wants to work smarter, but when you’re self-employed finding time to work on your business, not just in it, is hard. You’re already so busy doing client work, where’s the time to make improvement? It’s even harder to step back and evaluate what you’re doing, not just how you’re doing it. Working smarter is about doing the right things, not just doing tasks more efficiently.
But how do you know if you’re doing the right things? And what does “working smarter” really mean? Most businesses measure growth rate, client retention, revenue, and profit margin. However, as an independent consultant one thing is even more important—your own satisfaction and fulfillment, or literally your “internal rate of return.” You went out on your own for a reason—how is it working out?
Below are two simple exercises to help you assess your internal rate of return and point you to working smarter. It’s best to do one or both either while you’re on vacation or just back from one, after you’ve cleared your brain a bit and caught your breath. Another option is to use your morning run or commute to think about these questions—no music, just listen to your thoughts.
Read MoreLet’s face it, consulting often gets a bad rap. It’s perceived as nebulous, too theoretical, too touchy-feely. Plus, it's expensive. To combat this bias, use work samples and deliverables to show prospective clients how you do what you do. Demystify your process. This goes a long way toward removing uncertainty and skepticism.
For 10 years as an independent change strategy consultant, I used this tactic to win several projects. Many clients don’t understand the difference between change management work and the more complex change strategy work. Most know that communications and training are involved but don’t understand how to achieve the buy-in of cross-functional stakeholders in a way tailored to their situation.
Read MoreIf you describe yourself as both a consultant and coach, this article is for you. There’s a lot of grey area and overlap between the two. Many self-employed professionals go to market as both. For example:
Usually there’s nothing wrong with this. Nearly all consultants I know consider themselves coaches to some extent because they often have to get a client to do something, to say something a certain way, or to see something they may not want to acknowledge. Sometimes the consultant has to “hold up a mirror” to a senior leader and point out a disruptive behavior that’s hampering the project’s success.
But consultants are not executive coaches. There is a fundamental difference in how each approaches their work. Being conscious of which approach is required is critical to a successful engagement.
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This is where we post our latest content on how to be your best as a self-employed consultant. Nearly all articles are written by PICA’s Chief Advocate, Liz Steblay, based on her 25 years in consulting.
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