September 10th, 2010
The Labor Day weekend typically marks the end of summer vacations and the beginning of the fall work schedule. Generally most schools are back in session and most companies are ramping back up with meetings and projects. This year, though, it seems that things are lagging an extra week. Here it is Friday and there seems to be a lull in the general marketplace.
As a consultant weeks like this can be a blessing in disguise. On a personal note I took the opportunity the slower paced week presented and refocused on some lagging projects while making an operational plan for the next 3 months. The time was also used to reconnect with some potential clients who were on the fence pre-summer to at least get their minds back on business.
So the question is, “are you back to work yet”? If not it is time to get refocused because next week should be a busy one. Happy post Labor Day Friday…
Tags: consulting business
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September 7th, 2010
In a follow up to the August 31 blog post covering negative feelings towards management consultants at Boeing, here, we came across this “The Atlantic” article titled About My Job: The Management Consultant. The author addresses the major complaint against management consultants by delving down to the heart of the matter.
The complaint against management consultants is that they do nothing that a company can not do themselves already. The author argues that companies too often are busy with the day to day and ignore the big picture or taking of risks. It is up to the management consultant, as an outsider, to step in and make the big bold suggestions. For this they make the big bucks.
Tags: consultant
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August 31st, 2010
Boeing is currently under the gun with continued delays and reschedules on their much anticipated new jetliner. With the heat on the leadership team they have turned to an outside management consulting firm to offer serious recommendations for change. In this op-ed piece from The Seattle Times author Jon Talton discusses his opinion on the impact of management consultants on the workforce and why he believes the move foretells negative outcomes for folks working within the company.
From a 30,000 foot view this story should stand as an example of things to come as the economy continues along a flat growth pattern. More management consultants will be called in to other struggling firms with the resultant heat of public opinion directed at the consultants. Follow the Boeing saga closely and pay attention to places where you, as a consultant, can better manage the inevitable firestorms that will arise from your work.
Tags: perspective
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August 25th, 2010
One of the biggest, and most unpleasant, surprises to face the newly self-employed is the higher level of taxation that often comes with that self-employed status. When you are working for someone else, your employer shoulders a great deal of the tax burden that accrues from keeping you on the payroll. But when you leave the nine to five world and strike out on your own, that tax burden falls completely on your shoulders, and if you do not budget your money carefully you could end up short of cash when tax time rolls around. While there are many specific tips for starting a consulting business, all too few of those tips center on the unpopular subject of taxes.
That is why it is so critical for new consultants, and all self-employed individuals for that matter, to budget carefully for the taxes they expect to owe. Putting aside one third of every dollar you make as a consultant may sound excessive, but in fact it is just good business practice. Every time you receive a payment from a client, immediately put aside one third of that payment in a special savings account you will use to pay your taxes. Try to find a quality money market account so you can at least earn some interest for setting that money aside.
As a new consultant you might also be required to make quarterly income tax payments, instead of paying your taxes once a year like you did when you were working for someone else. The best way to determine if you will have to file these quarterly tax returns is to check with your certified public accountant. He or she can analyze your own situation and determine if you meet the criteria for quarterly filing. Financial professionals are often the best source of specific tips for starting a consulting business and running that business effectively, so do not overlook the expert advice your CPA can provide.
You can also run the numbers yourself during the year by purchasing a tax preparation software package designed for small business use. This will make it easier to prepare your taxes and determine how much you are likely to owe the IRS at the end of the tax filing season.
As a small business owner, you do have the ability to make the tax bite a little less painful. There are a number of excellent retirement plans designed specifically for self-employed individuals like consultants, and the contribution limits on those plans are quite generous. While in the beginning you will probably need every penny your business brings in, once the business gets going and the money starts rolling in, you can minimize your taxes and maximize your tax savings by putting money in a qualified retirement plan for your consulting business. Among the most important specific tips for starting a consulting business are the tips that help you spend less on taxes and more on growing your business and securing your financial future.
It goes without saying that few among us enjoy paying taxes, and it is certainly true that the tax burden often falls disproportionately on the self-employed. But it is also true that with the right tax planning and preparation, you can reduce the tax bite and help your new consulting business thrive.
Tags: consultant, topic ideas
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August 23rd, 2010
A job as a consultant can be a very rewarding one, both personally and financially, but the position is not right for everyone. It takes some very specific talents and skills to be a successful consultant, and in order to be successful at it you need to first assess your own skills, both in the technical arena and in the business world. In order to be a consultant, you need to be an expert in your field, but you also need to be a skillful business person, an accomplished salesperson and a strategic planner as well.
One of the most important things to consider when you want to be a consultant is what type of business you are most comfortable with. In many cases you will want to start a consulting business that focuses on the area where you have been working all those years. After all, that is where you are most comfortable, and that is where most of your expertise lies. It will be much easier to be a consultant in an industry with which you are already intimately familiar than to try to learn a brand new industry from the ground up.
But if you have experience in more than one area, it can be a bit more confusing when you want to be a consultant and strike out on your own. Do you focus on the area you know best, or do you spread yourself around to more than one field of endeavor? In the end, only you can answer that question, since you are the best judge of your own experience and expertise.
The bad news is that being a consultant requires more than mere technical know how and expertise. In order to be a consultant and a successful business owner, you need to develop a level of expertise and business savvy that can be difficult to develop while you are still working for someone else. To make the transition from employee to self-employed business owner easier, you might want to schedule a few business classes when you can. Even if the business classes you choose do not specifically teach you how to be a consultant, the strategies you learn in class can help you when it is time to deal with taxes, budgeting and other business necessities.
Another thing that can really help you be a consultant is to learn the ropes from someone who has been there and done that. You might want to get started by joining your local Chamber of Commerce or other business organization and seeking out a mentor who has worked in the consulting field. Business organizations often include retired business people who are happy to take on mentors and teach them not only how to be a consultant but how to run a successful business as well.
Tags: consultant, development, expertise, perspective
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August 19th, 2010
We are starting the count down to Confab 2010. With summer quickly coming to a close it is time to point out that we are about to pass the two months to go barrier. Get your registrations in and make plans to join your fellow consultants in Reno. We have a great lineup on tap for a fun and profitable weekend of networking and learning.
Tags: session
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August 16th, 2010
Read any reputable business publication and it seems that ominous signs abound. Fear indexs are up and confidence is down, baby boomers are retiring enmasse, and China is taking over. In the end what does all this mean for management consultants like us? Opportunity is the simplest answer.
With chaos comes confusion and from this confusion consultants are asked to analyze a company and provide actionable (or specific) plans for improvement. With all the doom and gloom in the air it may be a great opportunity for aggressive consultants to court potential clients while enhancing current relationships. The sky might be falling in the macro environment but for the micro environment, impacting consultants, opportunities do abound.
As summer nears an end and last ditch vacations are enjoyed take a few moments to clean up your consulting tool-kits and refine your goals for the fall season. With October just around the corner what steps are you taking to prepare for new clients and, more importantly, what do you plan to accomplish at Confab 2010?
Tags: consulting business
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August 10th, 2010
A recent article on the San Francisco Chronicle highlights the expected growth in consulting fields and specifically singles out management consulting as one of the big five for growth. With the changing landscape of the employment sector and turn over of top management, due to aging, management consulting indeed will be a hot sector for growth.
“It’s not easy to run a corporation, which is why jobs in management will see a growth of about 24% by 2018. Management consultants comprise the largest part of the consulting industry in general but expect the competition to be stiff in this sector.” Read more here
Tags: consultant
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July 30th, 2010
The days when education and learning ended when you were handed your college degree are long over. These days, the most successful business people are those who constantly learn and grow, and failing to keep up with the latest advances in the industry can leave you further and further behind. As a management consultant, you simply cannot afford to stand still – in order to be successful you need to be constantly learning, growing and adapting. That is why consultant education is such a valuable tool for consultants across all industries and experience levels.
The benefits of consultant education are many and varied, from greater clout with a given client to foreknowledge of tax law changes and regulations that can affect your business and your bottom line. By seeking out the best opportunities in consultant education, you can enhance the value of your business, and your bottom line.
Bring More Value to Your Clients
One of the most significant benefits of consultant education is the increase value it can bring to your clients. As a management consultant, your clients rely on you to be up to date on everything from changes in tax law to new regulations that could affect their industry and the economy as a whole. By taking advantage of consultant education opportunities, you will be able to give every client the quality they deserve. Providing top notch service to your clients is what consulting is all about, and the better service you can provide the more successful your business will be.
Networking Opportunities
With so many consulting opportunities arising from word of mouth and networking, it is vital for consultants to grow their contact lists whenever they can. Attending a consultant education class is an excellent way to meet people from across many different industries and business niches, and that can be good for your network and your bottom line.
Get the Licenses and Certifications You Need
In some industries having an industry license or certification is a good idea, while in other industries that licensure and certification is a basic requirement for working as a consultant. With the right consultant education program you can get the licenses and certifications you need to get started in your field, or to make yourself more valuable to your clients. Businesses are always on the lookout for experts who can help them grow your businesses. Becoming the go to expert in your chosen field will set you apart from the competition and help your business grow.
Tax Law Changes and Regulations
The tax code and list of industry regulations is not getting any shorter, and it can be hard for management consultants and others to keep up with the changes without some sort of formal consultant education program. From laws that will impact your biggest clients to regulations that will affect your own operations, you need to know where the changes are and what their effects will be. Choosing a quality consultant education program will allow you to get ready for those changes years before they take effect, giving you a heads up and helping you and your business adapt.
With the right consultant education program, you can enjoy all of these benefits and much more. In fact, the advantages you derive from a system of ongoing consultant education can more than pay for the cost of that education.
Tags: development
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July 28th, 2010
There is no doubt that attending a consulting conference is a great way to grow your business, expand your professional network and learn about the new challenges and opportunities facing your chosen field. But with only so much time and money to go around, it is important to choose the consulting conference that will provide the biggest bang for your limited bucks.
That means examining the literature carefully to make sure the offerings at the conference are truly worth your time, and your money. Not every consultant conference will make the grade, and it pays to have a discerning eye and a skeptical attitude when evaluating the various offerings. There are a number of things you should look for when evaluating each consultant conference you are considering. By looking at each of these factors critically, you can make sure you spend your money where it will have the greatest impact.
Industry Experts and the Consultant Conference
One of the chief benefits of attending a consultant conference is the opportunity to hear from recognized experts in your field of specialty. The presence of industry experts can easily set one consultant conference ahead of its competition, and the lack of such experts can doom a consultant conference to failure.
When evaluating the program materials, take a good look at the bios of each expert who will be giving a speech or making a presentation. Are the experts currently working in their chosen fields, or have they long since retired? Are they recognized as true experts in their field by their peers, or only by the organizers of the consultant conference? The answers to these questions will help you evaluate your choices and make a good decision.
Networking Opportunities at the Consultant Conference
No matter what your niche, networking is an essential part of being a consultant, You can never know too many people, and it can be difficult to predict ahead of time which contacts will result in new business. Growing your network is one of the most effective ways to grow your business, and choosing a consultant conference with plenty of networking opportunities is vitally important.
When evaluating a particular consultant conference, be sure to look at the schedule for possible networking opportunities. Social lunches, mixers and other events are the perfect venues for meeting others in your field, finding industry experts and gathering new contacts.
Professional Management
The management of the consultant conference can make all the difference in the world, so it is important to look at the reputation, and the experience, of the conference organizers. These days it is easy enough to check the reputation of a particular company, so take a few minutes to see what others have to say about their experiences at the last consultant conference hosted by the company. A long list of complaints can be a big red flag, while a list of stellar reviews can reassure you that you have found the best consultant conference for your needs.
Consultant Conference Keynote Speakers
Last but certainly not least, look for exciting and informative keynote speakers as you shop around for the best consultant conference to attend. The presence of dynamic and accomplished industry leaders is important for any successful consultant conference. Look for people who have excelled in the world of business, or in the competitive world of consulting, and make your consultant conference plans accordingly.
Tags: consultant
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