Kristie Lorette - How to Open & Operate a Financially Successful Consulting Business
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Companies, organizations, or individuals hire consultants to provide advice to themselves or to clients for a fee to help solve a particular problem or provide certification within the area of their expertise. A recent survey by the Association of Management Consulting Firms found entry-level consultants earn an average of $65,000 annually while senior partners earn an average of more than $300,000 (including bonuses and profit sharing). Self-employed business consultants may earn $35 to $400 per hour depending on their market. A majority of consultants have gained their expertise from previous employment. There are as many consultants as there are areas of expertise; one thing they all have in common is that they are well paid. The business of consulting is growing rapidly. According to the Bureau of Labor Statistics, consulting in particular business and IT consulting are becoming one of the fastest growing business segments in the U.S. economy. There has never been a better time to start your consulting business and get ahead of the competition. This new book is a comprehensive and detailed study of the business side of providing consulting services. If you enjoy meeting people, having a home-based business, traveling, problem solving, and using your expertise, this may be the perfect business for you. Keep in mind it looks easy, but as with any business, looks can be deceiving. To avoid the pitfalls, use this complete manual to arm yourself with everything you need including sample business forms, agreements and contracts; worksheets and checklists for planning, starting, and running day-to-day operations; and dozens of other valuable, timesaving tools of the trade that every entrepreneur should have. Here is the manual you need to cash in on this highly profitable segment of the service industry. While providing detailed instruction, examples, and case studies, the author leads you through establishing your office, learning how to draw up a winning business plan (The companion CD-ROM has the actual business plan you can use in MS Word), and provides dozens of forms you will need in your business. You will learn basic cost control systems, the best sales and marketing techniques, and pricing formulas. This book will teach you how to hire and keep a qualified professional staff (if you even need one), to use subcontractors, to deploy word of mouth marketing to get new clients, to use the power of the Internet, to network, get referrals, evaluate consulting opportunities, do your own sales planning, have great customer service, get reimbursed for expenses, proposals, and sales presentations, track competitors, do your own accounting, be certified as professional consultant, increase client satisfaction, develop valuable contacts and resources (including the top professional associations for consultants and magazines), compile monthly profit and loss statements, and prepare taxes. You will be provided IRS requirements, and even get help to set up your computer systems to save time and money.
The companion CD-ROM is not available for download with this electronic version of the book but it may be obtained separately by contacting Atlantic Publishing Group at sales@atlantic-pub.com.
Note: CD-ROM/DVD and other supplementary materials are not included.
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How to Open & Operate a Financially Successful
CONSULTING BUSINESS
By Kristie Lorette
Foreword by Janet Crenshaw Smith, cofounder and president, Ivy Planning Group
How to Open & Operate a Financially Successful Consulting Business
Copyright 2011 Atlantic Publishing Group, Inc.
1405 SW 6th Avenue Ocala, Florida 34471
Phone 800-814-1132 Fax 352-622-1875
Web site:
SAN Number: 268-1250
No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without the prior written permission of the Publisher. Requests to the Publisher for permission should be sent to Atlantic Publishing Group, Inc., 1405 SW 6th Avenue, Ocala, Florida 34471.
Library of Congress Cataloging-in-Publication Data
Lorette, Kristie, 1975-
How to open & operate a financially successful consulting business : with companion CD-ROM / by Kristie Lorette.
p. cm.
Includes bibliographical references and index.
ISBN-13: 978-1-60138-016-6 (alk. paper)
ISBN-10: 1-60138-016-X (alk. paper)
1. Business consultants. 2. New business enterprises. 3. Small business--Management. I. Title. II. Title: How to open and operate a financially successful consulting business.
HD69.C6L57 2010
001--dc22
2008032590
All trademarks, trade names, or logos mentioned or used are the property of their respective owners and are used only to directly describe the products being provided. Every effort has been made to properly capitalize, punctuate, identify, and attribute trademarks and trade names to their respective owners, including the use of and wherever possible and practical. Atlantic Publishing Group, Inc. is not a partner, affiliate, or licensee with the holders of said trademarks.
LIMIT OF LIABILITY/DISCLAIMER OF WARRANTY: The publisher and the author make no representations or warranties with respect to the accuracy or completeness of the contents of this work and specifically disclaim all warranties, including without limitation warranties of fitness for a particular purpose. No warranty may be created or extended by sales or promotional materials. The advice and strategies contained herein may not be suitable for every situation. This work is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional services. If professional assistance is required, the services of a competent professional should be sought. Neither the publisher nor the author shall be liable for damages arising herefrom. The fact that an organization or Web site is referred to in this work as a citation and/or a potential source of further information does not mean that the author or the publisher endorses the information the organization or Web site may provide or recommendations it may make. Further, readers should be aware that Internet Web sites listed in this work may have changed or disappeared between when this work was written and when it is read.
A few years back we lost our beloved pet dog Bear, who was not only our best and dearest friend but also the Vice President of Sunshine here at Atlantic Publishing. He did not receive a salary but worked tirelessly 24 hours a day to please his parents.
Bear was a rescue dog who turned around and showered myself, my wife, Sherri, his grandparents Jean, Bob, and Nancy, and every person and animal he met (well, maybe not rabbits) with friendship and love. He made a lot of people smile every day.
We wanted you to know a portion of the profits of this book will be donated in Bears memory to local animal shelters, parks, conservation organizations, and other individuals and nonprofit organizations in need of assistance.
Douglas and Sherri Brown
PS: We have since adopted two more rescue dogs: first Scout, and the following year, Ginger. They were both mixed golden retrievers who needed a home.
Want to help animals and the world? Here are a dozen easy suggestions you and your family can implement today:
- Adopt and rescue a pet from a local shelter.
- Support local and no-kill animal shelters.
- Plant a tree to honor someone you love.
- Be a developer put up some birdhouses.
- Buy live, potted Christmas trees and replant them.
- Make sure you spend time with your animals each day.
- Save natural resources by recycling and buying recycled products.
- Drink tap water, or filter your own water at home.
- Whenever possible, limit your use of or do not use pesticides.
- If you eat seafood, make sustainable choices.
- Support your local farmers market.
- Get outside. Visit a park, volunteer, walk your dog, or ride your bike.
Five years ago, Atlantic Publishing signed the Green Press Initiative. These guidelines promote environmentally friendly practices, such as using recycled stock and vegetable-based inks, avoiding waste, choosing energy-efficient resources, and promoting a no-pulping policy. We now use 100-percent recycled stock on all our books. The results: in one year, switching to post-consumer recycled stock saved 24 mature trees, 5,000 gallons of water, the equivalent of the total energy used for one home in a year, and the equivalent of the greenhouse gases from one car driven for a year.
Dedication
To my Boo Boo, who always makes me strive for the bigger and better things life has to offer and who is always there to share it with me.
I love you.
Foreword
S o, you think you want to start a consulting firm? Begin by reading this book. How to Open & Operate a Financially Successful Consulting Business provides the practical advice you need to launch, manage, and grow a consulting firm. And beyond that, Kristie Lorette challenges you to answer some important questions. Take time to ask yourself the tough questions that she poses in chapters 1 and 2. For example, are you passionate about problem solving? The best consultants find genuine delight in solving their clients problems. They are naturally curious. Even during their down time, they find they must resist the urge to solve even their friends problems. Is that you? Consider also, are you someone people trust and respect? Many people may listen to your advice and counsel when it is free, but do you have the skills and reputation that will drive people to pay for your advice? A good consultant asks his or her client, Have I earned the right to return next week?
How to Open & Operate a Financially Successful Consulting Business provides a logical framework to build your business plan. It offers considerations, guidelines for operating a success services business, insightful case studies, and even marketing tips and tactics.
When I started Ivy Planning Group with my husband and cousin more than 19 years ago, we had big dreams. But the journey from startup to multi-million dollar firm did not come without its challenges. We had excellent credentials, corporate-tested skills, and the entrepreneurial bug. But we did not have a resource like this. Kristie Lorette has assembled the considerations, guidelines, and tips all in one place the rest is up to you.
Janet Crenshaw Smith
Janet Crenshaw Smith is cofounder and pres ident of Ivy Planning Group (Ivy), a 19-year-old management consulting and training company that specializes in diversity, strategy, and change management. Ivy is recognized as one of the Top 50 Diversity-owned companies by DiversityBusiness.com; it was a Black Enterprise Magazine Emerging Company of the Year Finalist; and it received the Working Woman magazine Entrepreneurial Excellence Award. Minority Business & Professionals Network, Inc. named Smith one of Fifty Influential Minorities in Business. Profiles in Diversity Journal featured Smith in its Women of Initiative issue naming her one of 47 Women Worth Watching.
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