Comments on: 7 tips for setting up a consultancy business.

By: John Coxon

John Coxon — Sun, 24 Jan 2010 11:41:42 +0000

Haven’t had opp to read your posted article Sarah, in meantime here is my pricing formula

Projected businesses expenses + allowance for taxation + desired personal wages + profit margin divided by 75% of total billable hours = minimum hourly rate

Look at current market rates and price work at greater than minimum hourly rate, at level market will pay. You can always negotiate a fee down but you rarely get to negotiate it higher.

Notice I have suggested seperate amounts for personal wages and profit. They are not one and the same. Set an hourly rate designed to pay you what you are worth as wages and make a profit on top off that. Remember you are operating a business, it must be profitable and you reduce your profit if you take your wages from the nett earnings.

By: Sarah Stewart

Sarah Stewart — Sat, 23 Jan 2010 21:01:23 +0000

Very slightly off topic: here’s a great article about how to price your consultancy services:

http://www.managementconsultingnews.com/interviews/Mills_Interview.php#

What advice would you guys give about charging for services?

By: Sarah Stewart

Sarah Stewart — Sat, 23 Jan 2010 18:47:52 +0000

Thanks, John – appreciate the info.

Rhys: would love a chat some time on Skype – let me know a time that suits you.

I have been having a chat with a friend in Brisbane who is setting up a midwifery consultancy & told her to pop along to this post.

By: John Coxon

John Coxon — Wed, 20 Jan 2010 21:25:47 +0000

good point sarah, it took many years for me to work that out (I’m a tad slow at times!) and the help of a couple of business coaches to focus me on the important stuff. Now that I have a defined service offering, you might call it a Unique Selling Perspective, I have been able to tailor all my selling and marketing activities to that offering.

I can recommend a good business coach for anyone trying to establish their own consultancy. His name is John Groark, based in Sydney, he works with consultants specifically to help them establish their consultancy. Does most his work by phone or skype. Comes from a big consultancy background and brings that perspective to his discussion, very helpful. Helped me to establish my underlying methodology and the underpinning theory/evidence amongst other things. John’s email is John Groarke [jegmc1@gmail.com]or you can find his details on my LinkedIn page http://au.linkedin.com/in/johncoxon

By: Sarah Stewart

Sarah Stewart — Tue, 19 Jan 2010 19:18:36 +0000

I also think you need to be quite clear what your remit is. I think one of the problems I am having with getting going with my consultancy business is that I am still not 100% sure what it is I am able to consult on and how to go about advertising my services…who to contact…this is what is taking my time at the moment, clarifying exactly what/who I am.

By: rhysatwork

rhysatwork — Fri, 15 Jan 2010 13:34:10 +0000

John your comments ring true. Offering a discount to clients is a slippery slope that one should not be too hasty to get on. Also being a consultantdoes not mean you should not hire consultants to help you out. If you are no good at something get someone in who can do it better.

By: John Coxon

John Coxon — Fri, 15 Jan 2010 05:18:32 +0000

I agree with all the above comments and would like to add a couple of others; (1) your consultancy is a business, operate it as a business. If you don’t know how, attend a course. (2) don’t be fooled into believing your purpose is to help others; your real purpose is to market how your clients will benefit from your help – the more time and money you invest in marketing the more likely you are to succeed. You cannot help a client if they don’t know what you do, what’s in it for them, how to find you and why should they believe you?(3) charge as if you are an expert, because you are. Even in the early days when you are starving you will be tempted to discount. DON’T, it takes many years to build that client up to the full rate from a discounted rate – better to chase the clients that want to pay you what you are worth. Better to get part time work than discount your services. (4) have underpinning methodology and research to your services, it helps to establish credibility.

By: rhysatwork

rhysatwork — Fri, 15 Jan 2010 03:51:57 +0000

Sarah, you should register your domain NOW. Before someone else does. You get a free domain name when you register for hosting with Just Host (that link is an affilliate link). It is dirt cheap and you could have a Wordpress blog (or a heap of other content management systems) in less than an hour. Once you are there you can set up a resume or something similar lke an e-portfolio. Don't wait to register your domain name!!!

By: Melanie

Melanie — Fri, 15 Jan 2010 03:30:06 +0000

Thanks Rhys – good tips.

Sarah, I am in the same boat. Although I have a business name (in the process of registration), domain name and logo. I had a graphic designer friend do my logo for me – email me if you want the details melanie.worrall@gmail.com

By: Talia

Talia — Fri, 15 Jan 2010 03:15:55 +0000

I totally agree with all of this. Particulary share. I’ve always made our teaching material available to everyone (when we used slideshare) and I’ve got lots of positive comments from other educators, thanking us for making the material available.

Sharing information is powerful. Definitely something to be encouraged!!