GOING IT ALONE: Starting a Professional Consulting Business
Silicon Valley Engineering Council April 30, 2005
Cheryl Downing 408-257-1049 cheryl@cheryldowning.com http://www.cheryldowning.com
Copyright 2005 Cheryl Downing
Launching 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 basis
Copyright 2005 Cheryl Downing
Write 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 Copyright 2005 Cheryl Downing Financials
Marketing - 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 Copyright 2005 Cheryl Downing organizations
Sales - 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 prospect
Copyright 2005 Cheryl Downing
Startup 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 Downing
Minority/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 Copyright 2005 Cheryl Downing - www.sba.gov/vets/
Launching Your Business - Book Examples
Accidental Entrepreneur by Susan Urquhart-Brown Art of the Start by 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 Consulting by Alan Weiss
Copyright 2005 Cheryl Downing
Business 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 & Consultants by Stephen Fishman (Nolo Press)
Copyright 2005 Cheryl Downing
Business (& 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 Professionals by Howard L. Shenson How to Succeed as an Independent Consultant by Herman Holtz Market Planning Guide by David Bangs The One Page Business Plan by Jim Horan Value-Based Fees by Alan Weiss What to Charge: Pricing Strategies for Freelancers and Consultants by Laurie Lewis
Copyright 2005 Cheryl Downing
Promotion – Book Examples
Flawless Consulting: A Guide to Getting Your Expertise Used by Peter Block Get Clients Now by 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 Copyright The Ultimate Consultant by Alan Weiss 2005 Cheryl Downing
Promotion – 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.com
Copyright 2005 Cheryl Downing
Proposal 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 Business by Robert Frey Proposal Writing & Gov’t. Contracting – www.proposalwriter.com Copyright 2005 Cheryl Downing
Negotiation/Sales – Book Examples
The Complete Guide to Consulting Contracts by Herman Holtz The Consultant’s Proposal, Fee And Contract Problem-Solver by Ron Tepper Getting Ready to Negotiate – The Getting to Yes Workbook by Roger Fisher & Danny Ertel New Strategic Selling by Stephen Heiman & Diane Sanchez New Conceptual Selling by Robert Miller, Stephen Heiman & Tad Tuleja You Can Negotiate Anything by Herb Cohen
Copyright 2005 Cheryl Downing