Starting a consulting business

Copyright 2005 Cheryl DowningGOING IT ALONE: Starting a Professional Consulting BusinessSilicon Valley Engineering CouncilApril 30, 2005Cheryl Downing408-257-1049cheryl@cheryldowning.comhttp://www.cheryldowning.comCopyright 2005 Cheryl DowningLaunching Your BusinessDetermine your entrepreneurial personality–SBA self-test “Do you have what it takes?”Write a business planSet up your business operations–Example: business licenses, accounting, taxes, loans, certifications, minority/veteran programsMarketing -Promoting your businessSales -Propose, negotiate & closeContinue to grow your skills (business management, leadership & technical) on an ongoing basisCopyright 2005 Cheryl DowningWrite a Business PlanDescription –What services will you offer?Marketing:–Who is your customer?–How might your services benefit them?–How will you connect with them?–What obstacles might impact your success, e.g. approved vendor list, certification requirements, budget cycles, industry sales cycles?Competition: –Who is your competition?–What are their strengths & weaknesses?–Determine your competitive advantage/value propositionFinancialsCopyright 2005 Cheryl DowningMarketing -Promoting Your BusinessInform, don’t sell–Treat prospect like you would like to be treatedCapitalize on your strengths in marketing material–Examples: quantifiable results, awards, testimonials, high profile connections (companies/people/training)Determine ways to gain visibility–Examples: referrals (from past connections), presentations, white papers, business networking (in-person & virtual), industry-related volunteering, cold calls, mailingsBuild alliances, especially if sales is not a strength–Examples: partnerships (informal & formal), subcontract through larger consulting organizationsCopyright 2005 Cheryl DowningSales -Propose, Negotiate & CloseProposal writing–Gather pertinent info about your prospect–Emphasize benefits from prospect’s perspectiveNegotiation preparation–Prioritize key points for you & (expected for) prospect –Clarify what points are non-negotiable (time, cost or quality) to you & prospect, i.e. deal breakersAddress the prospect’s concerns directlyIf there is not a fit, move on to the next prospectCopyright 2005 Cheryl DowningStartup Resources (Free or Low-Cost)AskNow.org –California reference librariansThe FTC (Federal Tech. Ctr.) -www.TheFTC.orgSBA -www.sba.gov–Silicon Valley -www.ecenteronline.orgSBDC -www.sba.gov/sbdc/sbdcp.html–Silicon Valley office -www.siliconvalley-sbdc.org–Tech. Assistance Program –www.sbdctap.com SCORE -www.score.org–Silicon Valley office -www.svscore.orgSmall Business Innovation Research & Tech. Transfer Programs (SBIR/STTR) -www.sba.gov/sbir/Copyright 2005 Cheryl DowningMinority/Women/Veteran Resource ExamplesDisadvantaged 8(a) -www.sba.gov/8abd/National Minority Supplier Development Council -www.nmsdc.orgMWBE.com -Minority & Women Owned Business Resource National Women’s Business Center -www.womensbusinesscenter.orgWomenBiz.gov -www.womenbiz.govWomen's Business Enterprise National Council -www.wbenc.orgVeterans -Office of Veterans Business Development -www.sba.gov/vets/Copyright 2005 Cheryl DowningLaunching Your Business -Book ExamplesAccidental Entrepreneur by Susan Urquhart-BrownArt of the Startby Guy KawaskiThe Consultant's Calling: Bringing Who You Are to What You Do, New & Revised by Geoffrey BellmanThe Consultant's Quick Start Guide: An Action Plan for Your First Year in Business by Elaine BiechIf You're Clueless about Starting Your Own Business by Seth Godin Getting Started in Consultingby Alan WeissCopyright 2005 Cheryl DowningBusiness Operations -Book Examples Keeping the Books: Basic Record Keeping and Accounting by Linda PinsonSmall Business Start-Up Kit for California by Peri Pakroo, J.D. (Nolo Press)Working for Yourself: Law and Taxes for Independent Contractors, Freelancers & Consultantsby Stephen Fishman (Nolo Press)Copyright 2005 Cheryl DowningBusiness (& Marketing) Plan -Book ExamplesAnatomy of a Business Plan by Linda Pinson The Business of Consulting by Elaine BiechThe Consultant's Manual by Thomas GreenbaumThe Contract and Fee-Setting Guide for Consultants and Professionalsby Howard L. ShensonHow to Succeed as an Independent Consultant by Herman Holtz Market Planning Guide by David BangsThe One Page Business Planby Jim HoranValue-Based Feesby Alan WeissWhat to Charge: Pricing Strategies for Freelancers and Consultantsby Laurie LewisCopyright 2005 Cheryl DowningPromotion –Book ExamplesFlawless Consulting: A Guide to Getting Your Expertise Used by Peter BlockGet Clients Nowby C.J. HaydenGuerrilla Marketing for Consultants by Jay Conrad Levinson, Michael W. McLaughlin How to Acquire Clients by Alan Weiss How to Establish a Unique Brand in the Consulting Profession by Alan Weiss How to Make It Big As a Consultant by William Cohen Million Dollar Consulting by Alan Weiss The Ultimate Consultantby Alan WeissCopyright 2005 Cheryl DowningPromotion –Industry Association ExamplesAssociation event listings (for learning/presentations): Craigslist.org; WorkIt.com Associations on the Net, Internet Public Library, Univ. of Michigan -(www.ipl.org/div/aon/)Engineering Societies in Silicon Valley -www.svec.org/members.html Institute of Management Consultants (IMC) -www.imcnorcal.org; www.imcusa.orgProfessional & Technical Consultants Assn, (PATCA) -www.patca.orgSocial Networks -LinkedIn.com, Ryze.comCopyright 2005 Cheryl DowningProposal Writing –Book & Website ExamplesThe Consultant's Guide to Proposal Writing by Herman HoltzHandbook For Writing Proposals by L. Sue Baugh, Robert HamperHow To Write A Proposal That's Accepted Every Time by Alan WeissHow to Write Reports and Proposals by Janis ChanPersuasive Business Proposals by Tom SantProposal Writing by William Pfeiffer, Charles Keller Strategic Proposals by Robert KantinSuccessful Proposal Strategies for Small Businessby Robert FreyProposal Writing & Gov’t. Contracting –www.proposalwriter.comCopyright 2005 Cheryl DowningNegotiation/Sales –Book ExamplesThe Complete Guide to Consulting Contractsby Herman HoltzThe Consultant’s Proposal, Fee And Contract Problem-Solverby Ron TepperGetting Ready to Negotiate –The Getting to Yes Workbookby Roger Fisher & Danny ErtelNew Strategic Sellingby Stephen Heiman & Diane SanchezNew Conceptual Sellingby Robert Miller, Stephen Heiman & Tad TulejaYou Can Negotiate Anythingby Herb Cohen