Thursday, October 8, 2009

How to Market Your Consulting Business For Free

If you’re like most consultants you are a one-man-band operating on a shoe string budget. You don’t have thousands of dollars to spend on marketing and advertisements. At the same time, the market looks a bit gloomy and you need to keep finding new clients.

This article will show you a step-by-step process to launch or grow your consulting business on a strict budget. In fact, the tips in this article will not cost you a thing!

Let’s face it, sometimes its good to have limited resources. Not having money to waste on marketing efforts that generate no return helps you focus on areas that will create results. To start, let’s get down to the basics of marketing your consulting business.

Step 1: Determine Your Target Market.
I know this sounds elementary, but you must understand the importance of choosing a target market. Many consultants don’t want to focus, for fear of missing out on prospects. Don’t fool yourself into thinking you have an unlimited number of prospects. Focusing on a specific market will show your prospects that you have expertise and concentration in their area. This will make you more valuable and in return, close more deals. Remember to choose this market based off of your previous experience and education.

Step 2: Create a Strong Message and Hook.
Once you have determined your target market, you need a strong message to reach your prospects. You can’t just market that you are the best consultant in their industry. They will not believe you. Instead, you need a solid message that will show your value. This message needs to include:

  • identify the problem they have
  • your solution
  • the benefits of your solution
  • why you are unique
  • proof (examples, testimonials, case studies)

Next, you need a short version of this message called a “hook”. Instead of saying “I’m a marketing consultant.” You could say: “I help local retailers market their stores using the latest technology to increase sales.”

With a strong message and hook, you will be able to attract more interest. Once you have them asking to learn more, you can move onto why you are unique and provide examples of your successful projects.

Step 3: Position Yourself as an Expert.
Have you ever known a consultant who has projects come to them? Ever wonder why these consultants got these deals (which always seem to be at a high rate with a blue chip client)? It’s because they were perceived as experts in their field. How did they get there? They got there by doing a few simple tasks.

· Speak – Find associations and conferences associated with your target market. These groups are always looking for good, informative speakers. Take time every few months and speak at one of these engagements. You will be perceived as an expert and make a ton of contacts.

· Write Articles – Many trade publications accept articles from consultants. Write a few helpful articles (not sales pitches) that address some of the rising concerns in your target market. Yes, you will be providing free information. But that’s ok! This is proving your expertise in the industry. At the end of the article provide your contact information. You’d be surprised at the prospects that will contact you.

· Create a Blog or eNewsletter – Another way to build your network is to create a following. With technology you can start doing this in a matter of minutes. To start, post a blog or send an eNewsletter every week or two that has helpful information. These can usually be shorter than your articles and help provide ideas for future publications. If the information you provide is helpful people will begin forwarding your tips on to their colleagues and your network will begin to grow.

Using these steps you will begin to generate a following. Because of this your client list will grow and so will your hourly rate!

If you start your marketing plan by focusing on the basics, you will become more successful than you ever imagined!

To learn more about how to work from home or to learn how to start consulting with free tips visit our site http://www.howtostartconsulting.com

Thursday, August 27, 2009

How to Choose a Name for Your Consulting Business

Is a name important? Absolutely! The more your name communicates to your prospected customers, the less effort you must exert to explain it. Your name should contain real words or a combination of words over fabricated words. Beware of geographical names such as “Chicago Marketing Consultants” unless you never want to do work in another city. If you have any thoughts of growing outside your niche, you should think of a name that is broad enough to accommodate your growth.

To start, brainstorm business names by using words that explain your expertise and problem solving. Write these words down and also list their synonyms. Start creating a list of business names based off of these words. Ensure the names are easy to pronounce. If your primary means of advertising will be in directories (telephone, organization, etc.) consider names that start with letters close to the beginning of the alphabet.

Review the list over a few days and narrow it down to your favorite 5-10. Search your local government agencies to see if these names are already taken. Once you have your final selections you need to get some outside advice. You can ask your significant other, friends, and family for help, but they are not your target market. Have people, or potential customers, in your market look at the names and provide you feedback.

For more information about how to start consulting and helpful tips to improve your business, visit our website at www.HowToStartConsulting.com.

Wednesday, August 19, 2009

How to Set Your Consulting Fees

Before you close your first consulting customer you need to know how much to charge. Now this number does not need to be set in stone, but you must have a ballpark to work from.

There are many sources out there that have tricky formulas to determine consulting fees. However, I like to keep things simple. You should be able to determine your hourly rate by looking at two things.

1. What is the hourly rate someone would make doing this full time? Multiply that by a factor of 2-3.

2. What are other consultants in the industry charging for these services?

Most consultants charge 2 to 3 times the hourly rate of a full time position. So, if someone would get paid $75,000 a year to do what you would be doing, the math would look something like this:

$75,000 salary + $15,000 benefits = $90,000 Yearly Cost

50 Weeks a Year (less 2 for vacation) * 40 Hours a Week = 2,000 Hours a Year

$90,000 / 2,000 = $45 per Hour as an Employee

$45 * 2 = $90 $45 * 3 = $135

Based on these calculations, your consulting fee for this type of work should be between $90 and $135 respectively. Now, compare these numbers to other consultants in the industry. How do they match up? Based on these two factors you should be able to determine a ballpark for your fees.

You may see other resources that recommend basing your hourly rate off of things such as expenses, working days, bad debt, and other outside factors. I do not recommend going down that path. The above formula is easy to explain and back up.

If a potential customer questions you about your hourly rate you can simply state:

"Mr./Mrs. Smith, my hourly rate is simple. If you had to hire someone to do this position it would cost you close to $90,000 a year and you would have to manage them. Yes I am charging 2-3 times what their hourly rate would be, but you don't have to pay me all year or worry about my benefits. Plus, I am 10% cheaper than other consultants in the industry."

If you based your hourly rate off of working days, expenses, bad debt, and other factors, you would not be able to answer the same question as easy. Remember 'KISS' - Keep It Simple Stupid

For more information about how to start consulting and helpful tips to improve your business, visit our website at www.HowToStartConsulting.com.

Friday, August 14, 2009

Make Your Business Sound More Professional - Setup a Toll Free Number

How Do You Answer These Questions?
  • Are your customers currently reaching you by your cell or home phone?

  • Are you listing your personal phone numbers on your business cards, marketing material, and website?
  • Do some potential customers not call you because your phone number is not toll free and shows your business is local?

  • Are you spending hundreds or thousands of dollars each month on your PBX / Phone System?

If you answered 'yes' to any of the above, you need to catch up with the times. Hosted PBX (phone systems) have improved over the years making it easier and cheaper to implement for your business.

So what is a hosted phone system?
Hosted phone systems combine a toll-free or local number with advanced call management, call routing/extensions, voicemail, and sometimes fax capabilities over the Internet. Previously systems similar to these would costs thousands of dollars in setup and maintenance. Now, you can setup and manage your own phone system for less than $20 per month.

Why should my business have a 800 number / hosted phone system?
First, every business should have a 800 number. It shows your business maintains a professional reputation, and allows customers to call without worrying about long distance charges. It also helps track calls and limits the exposure of your personal numbers (cell & home). Having a 800 number on your business cards, website, and marketing material does not limit you to a specific region. It shows your businesses' reach is, or can be, international.

In combination to your 800 number you should implement a hosted phone system. A hosted phone system will allow you to:
  • Setup a welcome greeting for incoming callers.
  • Create extensions for employees or departments.
  • Forward calls to private numbers (cell, home, etc.).
  • Setup voicemail and call forwarding rules.
  • Control and screen incoming calls.
  • Analyze call volume and history through reporting tools.
Some hosted systems now even combine faxing tools to send/receive faxes without needing a physical machine and phone line.

How Do You Get Started?
It's easy, and most companies offer free trials! Some of the industry leaders are:
Each of the above systems can host your system and help you configure your settings. These systems will keep your overhead and monthly expenses low. Most are below $50 a month and can be setup on a month-to-month contact so you are not locked in.

For more information about how to start consulting and helpful tips to improve your business, visit our website at www.HowToStartConsulting.com.

Friday, August 7, 2009

An Easy Way for Consultants to Track Time

If you're like most busy consultants you have multiple projects, deadlines, and priorities every day. Your priorities switch every hour with phone calls, emails, meetings, and conference calls. So, how do you track your time? If you are still using Excel, Notepad, or even a pen and paper, you need to get up to speed with technology!

Now there are many different time tracking software available on the market. Some of the top products are:
However, I've always used QuickBooks to manage my business finances. The largest pain of QuickBooks was entering in my time each week on multiple invoices, different billable rates, and different line items. All of this pain is gone since I started using QuickBook's Time Tracker.

The reason I want to highlight QuickBook's Time Tracker is the usability and integration. Some other time tracking systems do not integrate well with other accounting packages. Plus, QuickBooks is a quick, inexpensive, and easy to use software for consultants.

So what makes QuickBook's Time Tracker so great?

Usability - The beauty of QuickBook's Time Tracker is not the web interface. Although the web tool makes it fast and easy to input time, but most time tracking systems have those. The great thing is about QuickBook's Time Tracker is their Gadget for Windows Vista users. The Gadget allows you to quickly track time, work descriptions, and associate them with different projects you are working on. And the best part, it's simple to use. All you have to do is select the customer/project you are working on, start the timer, and click submit when you are finished.

Now there are many other Time Tracking systems that make it easy to input your time, so why is this one so special? .... Because it INTEGRATES!

Integration - Because this Time Tracker plugs into Quickbooks you no longer have to copy and paste your time into invoices! That's right, when you enter your time from either the web, or Vista gadget it is automatically pulled into your customer's invoices (once approved by you of course). This has saved me hours of work. which results in more time that can be productive/billable.

If you use QuickBooks in your consulting practice you should look into QuickBook's Time Tracking system. In fact, you can try it for 30 days free and see if you like it. You learn more by following the link below:

http://quickbooks.intuit.com/product/add-ons/time-tracking-software.jsp

For more information about how to start consulting and helpful tips to improve your practice, visit our website at www.HowToStartConsulting.com.

Thursday, July 23, 2009

How to Get Started on LinkedIn

How to Get Started on LinkedIn

There are a lot of blogs and information out there about the top ways to use LinkedIn. You can even find ways to optimize your LinkedIn page just like a website. Many people are spending a lot of time and resources focused on Facebook and Twitter. But what about LinkedIn? For most business professionals, the one social network that would provide real (bottom line) results is LinkedIn.

For those of you who do not know, LinkedIn is a social network for professionals. According to LinkedIn, "Over 40 million professionals use LinkedIn to exchange information, ideas and opportunities". Where Facebook is used to see what your friends and family are up to, LinkedIn is for seeing what your company, competitors, industry leaders, colleagues, and prospects are doing.


How to Register and Begin Using LinkedIn
Creating an account at LinkedIn is simple. The below steps will walk you through signing up and getting started.
  1. Visit http://www.linkedin.com/

  2. Complete the form titled "Join LinedIn Today" with your First Name, Last Name, Email, and Create a Password.

  3. Complete your geographical location and employment status. This will let people search for you and help you find others to connect with.

  4. Check your mailbox for a confirmation email. Follow the link in the email to let LinkedIn confirm your email address.

  5. You can now sign in to LinkedIn!

OK now what? Well, just like other social networks, you need to build out your profile! Once logged into LinkedIn use the navigation on the left side to view your profile. From your profile page you can add employment history, your education, a photo, and other contact information. Imagine your profile as a virtual resume, but without a limit on page length. Include as much information as you can. This will help people find you.

Start Getting Connected With Others on LinkedIn
Once you have a profile on LinkedIn you need to start creating "connections". Connections are the LinkedIn version of Facebook's "friends". The quickest way to get connections is to import your contact list. In the left navigation select "Contacts" - "Import Contacts". This will check to see if any of your current contacts are already on LinkedIn. You can also use the search bar at the top of the page to find people too.

Find Groups & Give Back
What is the largest value from LinkedIn? LinkedIn Groups. LinkedIn Groups are ways for people with similar interests to collaborate around topics and discussions. Groups can include professional associations, alumni organizations, and work groups.

To find groups that your interested in, click on "Groups" in the left navigation. From there you can search for groups in your area, interests, or topics of choice. Once you join a group you can post topics, discussions, news articles, jobs, and more. Remember to always give back information and feedback in the groups you join. This will increase your value to the group and help you gain more connections.

Dedicate Time & Stay Up to Date
Moving forward you always want to spend a little bit of time each day or week keeping up with your LinkedIn activities. Imagine your LinkedIn account as a train; it will start off slow but will begin to gain momentum and speed.

Good Luck!

For more help on LinkedIn you can use their help section at: http://linkedin.custhelp.com/.