Posted by Maria Dimitrova

[Mike's (editor's) note: I spent many years as a consultant. Below is advice for the types of consultants who have to work for multiple clients simultaneously. This doesn't have to be the case, and it wasn't mine. I might get round to putting down what I loved about consulting in a few days to add a different perspective for engineers who tend to consult for a single client for extended periods]

Read this if: You are considering becoming a consultant or you’ve recently become one

Gain: A job you are passionate about, more freedom, independence  and control over your time and solid income when you become a recognized authority in your field

Cost: Patience and perseverance to build a network of clients and consultants who will give you referrals. Constant improvement to maintain your competitive edge and reputation. Some investments in courses and seminars.

The job of a consultant has many pros: you are your own boss, you manage your own time and the most rewarding part of it is that you help other people solve their problems.  The feeling of owning the expertise and the abilities to find a solution is incredible. It’s a great power, and usually much better paid than permanent employment. Remember, no matter what job you are in you are never more than a few weeks from the street. Permanent employment is an illusion.

Carefully consider whether you have the necessary mindset, skills and huge motivation to do it, otherwise the odds are you’ll see the challenges as obstacles and you’ll quickly get tired. If you are the kind of person who thrives on educating and helping others, loves being in control of things and perceives the efforts of finding new clients as a source of inspiration, then you are likely to succeed.

What skills are required?

• You need to be an expert in your field - at least as good as the permanent staff you will work alongside. The most reliable way to get new clients is by word of mouth so doing an excellent job is the most effective form of advertising. You’ll constantly need to update your skills.
• Marketing skills. Even if you’re very good at your job, you have to make yourself known. Finding clients means selling your main product – you. Some people are born with this knack. Others will benefit from books and seminars on the topic.
• Communication skills. Consulting is all about communication – how to express your ideas, how to build a network with other consultants and deal with tough people or rejection. Learn how to be a diplomat and never be on the wrong side of an argument. The consultant is the easiest person to fire.
• Organizational skills. The job of a consultant includes a lot of administration apart from the actual work on projects. Also, depending on how much initial capital you have, it might be necessary to be your own secretary, at least in the beginning.
• Business management skills. Entering into the consultancy business is like any other business. It’s good if you have a plan for obtaining work and setting your rate. Set goals, measure results.
• Be aware of how you can save on taxes, which are the easiest cost to cut with a 100% profit margin!

The required personal characteristics and mindset

* Self-confidence. Believing in yourself is crucial when persuading potential clients to believe in you

* The main motivation  should come from enjoying the process of problem-solving and helping other people

* Perseverance – Some consultants have shared that in the beginning they spent about 12 hours cold-calling or driving for several hours just to see a potential client face-to-face as this type of communication is the most efficient

* Not taking rejection personally. Jeff Rose, a certified financial consultant says:

“This business is a tough business, especially in the beginning. I can’t even remember how many times I was rejected in my first year. Thousands of times I’m sure. After being in the business for over 8 years I still get rejected. What I learned along the way is that for every “no” you receive, you’re that much closer to a “yes”. You just have to keep asking and make more connections. Don’t take rejection personally. I’ve had many people say “no” in the beginning only to become clients one year, and sometimes, 2+ years after the first rejection. Keep at it!”

Is it for you ?

If after looking at these lists of requirements and doing some research on the subject, you’re still uncertain whether this job is for you, talk with consultants ( get in touch with them in professional forums)  about the pros and cons of this profession and the ups and downs they have experienced.

Matt Bacak, an Internet Marketing Legend, advises that that the aspiring entrepreneur begin a transitioning phase to becoming a consultant. Making a simple business card and offering consulting services in the evenings or on their days off will give the entrepreneur the ability to begin promoting their new service and branding themselves as a consultant in the relevant field. This will also provide the  aspiring entrepreneur with some real-life experiences connected with the job.

Most often what’s drawing people back from leaving a dead-end job and starting their own business is plain fear of the unknown. When you do as much research as possible in advance, this fear will considerably diminish. You can predict to some extent your chances of success by doing market research to see how many people in your area will be willing to pay for your services. However, at some point you have to take the plunge.

Michael Zipursky, a renowned consultant who has advised businesses throughout North America and Asia in over 23 industries says it’s never too late. If you are passionate about the consulting business or any other business, then it’s worth any minute spent making efforts to turn it into reality. His advice is to be in control of your life and not follow the herd: “If you ever find yourself in a situation that you’re unhappy with don’t settle for the comfort of the status quo.”

So let’s take a look at some other valuable pieces of advice on how to become a successful consultant:

Main principles for becoming a successful consultant

The financial advisors Jeff Rose, Russ Thornton and Brian Plain share the principles they follow when working with clients:

* Be persistent, not pushy. It is important to follow up: phone call, e-mail, hand written note.  Just make sure that when you do follow up it’s not too often. You have to wait until people are ready to act, but you still want to make sure that they think of you when the time is right.

* Listen. Be an educator and share your knowledge. A successful advisor talks WITH clients, not AT clients.

* Be a caring educator. It’s not necessary for a consultant to teach clients everything they know, but it’s important clients to have a thorough understanding of their choices and the possible outcomes of each decision they may make.

* Genuinely Care for the clients. This attitude will play a vital role for your success because it will strengthen and maintain your motivation which leads to a better performance and ultimately your clients will appreciate this. Creating  long-term consulting relationship with clients rather than one-shot projects is the factor that makes the difference between a really successful consultant and someone who is just getting by. Russ says:

“There are very few certainties in life.  And there are perhaps even fewer in the financial services world.  But I sleep comfortably at night knowing that I’m doing work I love and working hard to take the best possible care of my clients.  I consider my clients part of my extended family and do my best to treat them as such.  Sure there will be problems and obstacles that inevitably pop up along the way, and there’s only so much I can do to minimize these, but I am comforted by the knowledge that there is no one else out there that could care about my clients as much as I do.”

* Treat others the way you would like to be treated. If a client calls you while you are on the phone, make sure you call them back as soon as possible.  People hate having to wait on someone to call them back so don’t make your clients wait. Always do what’s right for your client. This will often mean giving up short term financial gain but in the long term this attitude will pay off.

* Take advantage of the window of opportunity every time it opens. Finding new clients requires planning certain strategies to do it but sometimes unexpected opportunities to make new contacts will show up and you’d better act than regret it later. Michael Zipursky gives an example how he ended the silence in an elevator by making small talk and the other person turned out to be the president of a large import/export business. They exchanged business cards and later ended up working together.

* Follow the principle “One goal a day”. Set one goal for yourself each day. This goal needs to be important. Something that actually moves your business forward. It can be writing an article and submitting it to a publication, getting a press release out, writing and sending out a promotion for your services, and so on. Try to do it early in the morning before your mind becomes cluttered with things that come up during the day.

Marketing and publicity

The easiest way to make your name known is paid advertising but if you haven’t got enough money to invest in it, there are some other effective marketing and publicity methods.

• Cold-calling
• Sending emails
• Blogs
• Websites
• Social media
• Lunch meetings
• Presentations
• Teaching classes at colleges and adult education schools
• Writing books, brochures, articles for publication online and offline
• Press releases
• Networking – even competitors find a way to cooperate when they have mutual interest. Many consulting businesses will have more work than they can handle and as they want their clients to be well treated, they make referrals to other consultants who are recognized authorities in this field. Make sure you become one of them.

For more ideas on publicity and marketing techniques: http://www.consulting-business.com/38-marketing-methods-to-jumpstart-your-consulting-business.html

Consultants advise that you choose 2-4 of these techniques and implement them efficiently because overstretching yourself by using too many may not give the best results.

Pricing

There are different ways to learn how much is acceptable to charge clients for the service you’ll be offering:

• Act as a potential buyer of consulting services
• Ask companies which have used such services how much they have been charged
• Ask other consultants who are not your direct competitors because they are located in a distant area
• Get an initial idea how much you will need to charge to make the kind of income you want and to be sure you are on the right track with the Consulting Fees Calculator:

http://www.consulting-business.com/calculating-your-consulting-fee-rate.html

Possible risks

If you decide to go back to being an employee, it might take longer time to find a job as it’s likely that companies will prefer to hire someone who is a “company man” rather than someone who has worked by their own rules for a long period of time. Consultant, David Johnson shares about the decreased list of employment choices: http://www.imagineeringezine.com/e-zine/practice-2.html

The definition of success

Some consultants earn a fortune but this is not the only or obligatory condition to see yourself as successful. Doing something they are passionate about may be the main criteria for some people to feel successful. Financial advisor Jeff Rose is an example of a consultant who finds the pure essence of his job extremely rewarding. See what he says about consulting and success and decide for yourself what criteria you’ll apply to determine the dimensions of a successful consultancy business:

Further reading:

Leave the Job You Hate

Life is a Constant Negotiation – Do it Successfully

Basic Skills Not Taught at School

Starting Your Own Business – Difficult but Not Impossible

Don’t Let Email Eat Your Precious Time

Save Your Business a Fortune with Cloud Computing

Sources:

http://www.scribd.com/doc/19647442/The-Fast-Start-Guide-to-Becoming-a-Highly-Paid-Independent-Consultant

http://www.GiantsAwakening.com

http://EzineArticles.com/2165476

http://www.articlegeek.com/business/career_employment_articles/howtoleavedeadendjob.htm

http://www.consultantjournal.com/how-to-become-a-consultant

http://newlifenetwork.co.uk/become-a-consultant-employed-independent-contract-or-freelance-c87.html

http://www.entrepreneur.com/article/41384-1

http://www.imagineeringezine.com/e-zine/practice-2.html

http://successfulconsultanttraining.com/home/special-invitation

http://www.goodfinancialcents.com/how-to-become-a-successful-financial-advisor/