Continuing from where we stopped last week on the subject of how to take advantage of the opportunities in the consultancy industry.
Project Rates – When working on a project rate basis, a consultant normally gets a fixed amount of money for a predetermined period of time. A few of the fund-raising clients actually preferred to be charged this way, so it is not unusual to charge $36,000 for a one-year project in which consultation would be done on how money could be raised.
Because of the amount of money involved, most agencies preferred to be billed on a monthly basis. This works out fine too, unless the agencies are late on paying their monthly bills. In which case a decision should be made that all future clients who wished to be billed on a monthly basis should pay the first-month fee and the last-month fee at the signing of the contract, which meant that if the agreed-upon amount of the project was $36,000, to be paid on a monthly basis, a check in the amount of $6,000 should be issued before any work begins ($3,000 for the first month’s fee and $3,000 for the last month’s fee).
Retainer basis – Working on a retainer basis gives you a set monthly fee in which you agree to be available for work for an agreed-upon number of hours for your client. While in the ideal world you would have a dozen or so clients who hire you and pay you a hefty sum each month (and never actually call you except for a few hours here and there), don’t get your hopes up. Most companies that hire a consultant on a retainer basis have a clause in their contract that prohibits you from working for their competitors.
Working and getting paid in this method certainly has its advantages. You are guaranteed income each month, and when you are starting out in your consulting business, cash flow can be a problem. Some consultants actually offer a percentage reduction in their fees if a client will agree to pay a monthly retainer fee. The average income when a consultant is paid on a retainer basis is 150,000 Naira per month or its dollar equivalent.
Marketing – If your consulting business has no clients, then you have no consulting business. But you must remember that selling your consulting services is not the same as selling a car or a house. In the case of the car or the house, the customer is probably already in the market for one or both of those products. Your job, then, becomes harder, because you are marketing your services to people who may not even be aware that they need those services.
There are a variety of methods you need to become both familiar and comfortable with in order to begin attracting and keeping clients. Let’s look at some of the more conventional ones that are being used by many consultants today.
Brochure basics – There are five issues your brochure should address. They are:
It should clearly convey what your services are. It should tell customers why you are the best. It should give a few reasons why you should be hired. It should include some brief biographical information. It should include some information about who your other clients are.
That is it. Keep it simple, but do it right. Remember, your brochure represents you in the marketplace, so make sure you polish it before you send it into action. Your entire consulting career depends on it.
We would continue with this article next week as we discuss further the subject of how to take advantage of opportunities in the consultancy industry. Send me an SMS/WhatsApp message or Call for more details and training opportunities.
Nwaodu Lawrence Chukwuemeka
