How To Build A Successful Consulting Business, Part 1

In today's constantly changing job market more andInterviews, articles written by you or quoting you, or
more well educated people with a wealth ofpublic speaking can make prospects familiar with your
experience are being laid off. Many of them try to findname and the services you provide.But don't spend
other jobs but with little or no success. Because of thistoo much time on PR. Remember, you're in the
many people are deciding to parlay their experienceconsulting business and should be spending your time
and know-how into a small consulting practice.It sounds,on marketing and delivering services to clients. For the
easy, fun and exciting. You would be your own boss,most effective PR, use specialized firms if you can
making all the decisions. You would go wherever youafford it. They're in contact with media for all their
wanted, whenever you choose. You would pick yourclients and can identify the best opportunities for
clients and get paid handsomely for your expertise andyou.Consultants often get so involved in marketing to
interpersonal skills.But being an independent businesspotential clients that they forget to market to their
consultant is more than just being a well-paid businesspeers. If you have an expertise in a specialty needed
advisor. You must also be an entrepreneur. You haveby another consultant's existing client, for example, the
to know how to manage a business, keeping controlother consultant will gladly refer a client to you, if you
over the detailed administrative support systems thathave a reputation for quality performance. That quality
run your office, such as accounting and personnel. Youperformance will make the referring consultant look
also have to know how to market your experiencegood to his or her client.To market to your peers, first
and write winning project proposals, because if youkeep them informed about what you are doing now.
don't sell, you don't survive.A consultant is also aLet them know your current assignments and
project leader. You have to know how to plan, lead,interests. Second, meet with your peers at
and implement complex projects, and often several atprofessional meetings to establish close, personal
the same time. You have to manage fee structures,relationships. Third, impress your peers with your
deadline pressures, and client expectations. You havecompetence rather than your salesmanship. Then,
to know how to respond to conflicts or hostility withinperhaps, they'll do some marketing for you.Once
client organizations.Do you think you have what ityou've identified prospects and scheduled first
takes? Are you still tempted by the idea of eithermeetings with them either in person or by phone, you
leaving your current job or if you're unemployedare now ready to begin selling. The first thing you must
stopping your career search and setting up your owndo is to qualify the prospect. This means you have to
consulting business? If you are then keep reading.Ifdetermine whether you can help them, and whether
you've decided to start your own consulting businessthey will allow you to.In the consulting business it's
the first thing you must do is to decide if you want todifficult to qualify prospects without meeting them
be a generalist or a specialist. For example if yourpersonally. You can establish some prequalification
background has a specific industry focus, then youcriteria. For example, you can decide not to sell to
should become a specialist. If, on the other hand, youcompanies with less than $500,000 in sales, since it isn't
have skills that cover various industries and functions,likely that they can afford you in the first place.But to
then you are probably a generalist. As a generalist, youknow more specifically whether you can help
bring the perspective of different functions acquiredprospects, you need to know exactly what they need.
through your previous job experience.It is usually easierTherefore, to qualify a prospect it is best to meet
to market a specialty rather than general servicesthem personally or at least talk to them by phone. You
because you can be precise about what you will offercannot qualify a prospect by exchanging e-mails.To
the client. The problem with specializing in a specifichelp you better evaluate and identify the needs of the
market is that new consulting jobs in that market canprospect you need to get some important information.
decrease or dry up completely in a hurry. But you mayYou need to know what their business is and what
also find that, over time and with more experience, youtheir role in the business is. You need to know exactly
will be ready to offer your services outside thewhat the problem is and you need to make it clear to
industry you first specialized in, or that you havethem what your background is and how you can solve
expanded the services you offer to clients.Once,their problem.The purpose of the initial meeting or
you've set up the basic financial, personnel, and legalconversation with a prospect is for both of you to get
resources you need to run your business it is time toto know each other. But keep in mind that you are
start marketing your consulting experience. Sellingqualifying the prospect, finding out what he or she
involves meeting and talking to prospects to discussneeds and whether you can help. On the flip side, the
their problems and your qualifications, and thenprospect is qualifying you to determine whether you
proposing your solutions to their problems.Before youhave the experience and resources to help him or her
can begin preparing marketing materials to contactwith problems.Before you can submit a proposal to the
prospects, you have to decide which industry youpotential client, you have to introduce and sell yourself.
want to serve, what type of services you want toIf you don't pass this first step, you will never get the
provide, and who the decision makers are you shouldopportunity to even present a proposal.You might feel
be trying to reach. You also need to find out who willthat your experience and expertise are so valuable
be competing for the same market and what theirthat you shouldn't have to resort to selling. But this
strengths and weaknesses are and most importantly, ifattitude won't get you any clients. When you sell
a marketplace exists for your services.Once you haveyourself, the process must reflect your strategy. For
decided what you will market and to whom, you canexample, if you are going to position yourself as a
begin to choose your marketing techniques. Here aretop-of-the-line consultant you must offer more than the
some for you to consider:* Newsletters or articles. Anbasic services tied to the assignment.When you are
informative newsletter or articles published in industryselling your consulting services to a prospect, it is
periodicals, will make your name known and enhanceessential that you emphasize to the prospect how he
your credibility with prospects. This is an excellentor she will benefit from hiring your services. For
marketing tool to use on the Internet. You should haveexample, you will show them how to save money or
a sign up place on your Web site for prospects to signenhance their growth.Being an independent consultant
up for your free newsletter. And there are some verycan provide you with the freedom, excitement,
good Web sites for publishing articles you write thatfulfillment, and money that you dream about, but only if
can help you get the exposure you need.* Seminars.you set up, and market your business the right way. In
Sponsoring or cosponsoring a seminar also enhancespart two we will cover how to write proposals, protect
your identity and your reputation. If you can afford it,yourself, and solidify you client
pay for the attendance of a targeted group ofrelationships.Copyright© 2005 by Joe Love and
executives. It's an expensive but very successful wayJLM & Associates, Inc. All rights reserved
of obtaining clients from the prospective pool.*worldwide.Joe Love draws on his 25 years of
Referrals. There's nothing like a referral to open aexperience helping both individuals and companies build
prospect's door. People do not refer those they do nottheir businesses, increase profits, and achieve total
respect and esteem to those they know. Referralssuccess. He is the founder and CEO of JLM &
are therefore a convincing testimonial to your qualitiesAssociates, a consulting and training organization,
as a consultant.In addition, with a referral you knowspecializing in personal and business development.
that the prospect is interested in buying, so you'veThrough his seminars and lectures, Joe Love
already got a head start on the selling process. Aaddresses thousands of men and women each year,
referral from a peer to a potential client is valuable. Aincluding the executives and staffs of many of
referral from a prior client to a potential client is evenAmerica's largest corporations, on the subjects of
more valuable.* Public Relations. Public relations isleadership, self-esteem, goals, achievement, and
getting yourself known in the field in which you consult.success psychology.