Grow software consulting business

An hourly rate is a flat rate, paid for each hour you work. You must track your hours using this approach, and clients will likely have questions if the work you do takes much longer than you estimated. A project rate offers clients an all-inclusive price based on the scope of work on a project-by-project basis. You take the risk that the work will take longer than anticipated. Project rates can work well if it takes you less time to complete the project but can create friction with changes to work scope and adjust the project rate to reflect scope changes.

A retainer is a fixed sum of money a client will pay you per month, week, or day. For more information about setting your fees, check out this online mini-course by Consulting Journal. Build an online presence.

As we explained previously :. This is especially true for new small businesses and startups trying to compete in an increasingly noisy world. Start by ensuring that your website design truly embodies your consulting brand. Visitors should understand who you are and what your brand is about as soon as they arrive.

Here are some suggestions:. Besides serving as a brand ambassador, your business website is also an excellent venue for showing off your consulting success stories to a broad audience. Consider sharing testimonials and case studies from past satisfied clients. You may even want to incorporate an online store into your website to sell your books or proprietary consulting tools more on that below.

You can overcome that obstacle too. I remember doing this for a consultant and because I helped him create this brand image for him, he was able to book himself a solid list of clients in a matter of a few months. Step 12 Create a sales plan. Your sales plan will be the difference between success and failure.

This second explanation of what you do should be intriguing and dynamic. And it should help people tell others about your consulting business. After all, the best sales channel for most consulting businesses is word of mouth referrals.

No matter how excellent your services are, clients and potential clients will always have reservations — after all, their money is on the line. For example, how do you answer questions about your track record as a consultant? So, brainstorm as many possible objections as you can think of. Then practice putting those concerns to rest. You may even want to bring in an employee or a contractor to round out your sales team. Successful consulting practices build a sales pipeline, including an outside sales team that you hire on a retainer basis or commission.

Client proposals are your chance to show how you can help your client solve their problems. And be sure you show how you and the client will be able to measure the results. Passive income can be handy for bolstering your bottom line and an important safety net for lean seasons.

So, here are a few things to consider if you decide to supplement your consulting income by selling online. Most template-based web design services offer some form of e-commerce functionality. And some, like Shopify , are built specifically for e-commerce. But, think carefully before you decide to use a template-based service like Shopify. Remember how important your unique branding is? The templates on those e-commerce sites are available for every other new consulting brand to use, as well.

As we mentioned previously ,. Just like your logo, your web design should start with your personal brand. Self-hosted open-source e-commerce services allow you to use your own uniquely branded website with its e-commerce functionality. Not only can you use your original web design, but they also scale quickly alongside your business as it grows. Step 13 Spread the word. Marketing your business is the only way to ensure that you have a steady flow of clients and potential clients.

It's time to focus on getting the word out about your fantastic new consulting services to your target market. One of the most effective ways to build a reputation in the consulting field and gain clients is to share your expertise with as many people as possible. John Jantsch marketing consultant, small business marketing speaker, and bestselling author suggests :. A central part of your prospecting should be aimed at getting in front of groups with your message….

Networking at industry events attended by your clients may also serve you well. Those potential word-of-mouth referrals will help drive new consulting leads. And, also look for opportunities to attend events focused on the consulting industry. You may find that networking with others in the consulting field helps you build connections to new business sources and new clients. Whenever you make personal appearances be sure to carry business cards and brochures if attendees want to learn more about your services and include a phone number and other important contact information on your business card.

The experts at Entrepreneur recommend that consultants include the following information in any marketing brochure. You may consider writing an ebook about your particular field of expertise. And, blogging is another effective content marketing strategy. But, do be sure to offer valuable information from your unique perspective.

Blogging and ebooks are great ways to establish authority especially in. As we previously explained ,. Social media … enables you to build a social rapport with current customers, while building low-pressure relationships with future buyers.

Maintaining at a minimum a Twitter, Facebook, and LinkedIn presence will help you build an audience of devotees. Make it easy for visitors to see what your consulting services are all about by posting tips and observations and sharing any articles that you may have written.

Establish yourself as a subject matter expert and build relationships with current and future clients by maintaining an interactive presence. Consider using a social media management tool like Buffer to schedule all of your social media posts ahead of time.

This will allow you to build your day around your clients instead of your social media posting schedule. And consider micro-influencers who can help you in the early days. Aligning your brand with others who target your audience can help build credibility and growth.

They can be your most valuable marketing resource. Step 14 How to find partners or investors. One of the biggest challenges for every new business is saving enough capital to sustain and grow the business. In a perfect world, we could all fund our business ventures without any outside help. But, the truth is that most people can't do it alone. As with any aspect of your business, start by giving the matter some serious thought.

Here are a few questions to get you started:. Partner and investor relationships can come in a multitude of forms. Are you simply looking for someone to invest capital? Or are you looking for leads, someone to split costs with, or exposure and success-by-association with an established brand? Only you know what is most useful for your business. Pick the business partner you think makes the most sense.

But, you should know what your goals are before meeting with any potential partner or investor. Crowdfunding sites like Kickstarter and Indigogo offer the opportunity to raise money from a crowd of strangers. These fundraising projects are easy to set up and allow you to raise cash without granting any investor or partner any influence over your consulting business.

You will, however, need to follow through on any promises made to your backers. As we previously pointed out ,. Reports have shown a consistent increase in crowdfunded investments since the great recession in If you want a true business partnership, crowdfunding may not be the choice for you. But each business, including consulting business, is unique.

Angel investors and venture capitalists provide a more traditional route to raise funds for your new consulting business. Maister was a former Harvard Business School professor and consultant; Managing the Professional Service Firm was written as a series of articles over the course of the 80s — the majority of which were published in American Lawyer. The first two chapters lay out the underlying principles of a professional service business.

The rest of the book examines the second and third-order implications of those principles — and form the basis of a highly effective agency management style. Professional service firms must be managed differently from industrial and mass-consumer businesses. This is due to two reasons. First, professional service firms perform highly customised work. This makes the application of product management or manufacturing principles a bad fit for them.

Second, professional service firms require a healthy component of face-to-face client interaction. My thesis is that an understanding of underlying business models leads to better career decisions. The words of the mission may differ but the meaning is essentially same.

The archetypical professional service firm consist of three levels. This is true for law firms associate, junior partner, senior partner , management consultancies junior consultant, manager, vice president , investment bankers analyst, associate, vice president, director — though analysts don't really count and so on.

The client work is determined by the market, but the mix of project types is up to the firm. Maister writes:. But none of this is true. So what do you need? A compelling offer that provides value A well-populated niche of potential clients A repeatable system for attracting clients A rewired mentality Want to know how to start a consulting business?

Successful Consultants Have A Compelling Value Proposition One of the most important lessons anyone can learn in business is how to create value. So how do we create value as consultants?

This is how the global economy ticks. And people will happily pay you for this for one of three reasons: They have been unsuccessful in getting there on their own.

They want to get there faster. They want guidance from someone who has been there, done that. If your 1 goal for the next year was to lose 50 pounds, who would you rather have helping you? We want the specialist. Successful consulting businesses target a specific niche. What mountain are you going to climb? To answer that, you need to answer three questions: What industries do you already know?

What skills do you already have? Overlapping your answers to these three questions is how we discover your niche. What industries do you already know? Got the market and ask them. Start by reading the top ten blogs in your niche. Tools like BuzzSumo can help you locate these blogs. Look for the most popular posts on those blogs. What topics do they cover? What questions are they answering? Now go to the comments section.

What are people saying? What are they arguing about? Now go to Amazon. Buy them. Read them. What are they talking about? Why are they popular? Now find out who the top ten influencers are in your niche. What are they saying? What are they doing that drives the most engagement? The market only cares about its own needs and desires. If you want to succeed in business, find out what the market wants and give it to them. Now we need to go out, present our offer to potential clients, and close deals.

They have no clue where their next client will come from. They feel like they are on a rollercoaster, never knowing when to expect feast or famine. Even in the good season, there is a constant worry about sustaining the business. What does this mean? What if I want to make even more? Remember what we discussed earlier? You have your current state and your desired state.

You stop fighting against yourself. You stop fighting against your business. You stop fighting against the market. And suddenly, everything becomes much more efficient and even feels easier than it did before.

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