Richard Branson on How to Raise Money When You're Just Starting Out

Q.: G’day Richard. I am a young engineering student with little to no practical experience as an entrepreneur. I think I’ve got a great idea, a ready and capable team, but have little money to pursue commercializing my novel product. I fear that potential investors will not take me seriously because of my age (21) and inexperience. How can I convince seasoned investors to believe in my team and invest in my idea? -- Jordan Gruber, Australia

My friends and I came up with the name “Virgin” one day when we were 15 years old, sitting around in a basement. I was keen on the name “Slipped Disc” for our new music venture, but then one of my friends pointed out that when it came to business, “we’re all virgins; why don’t we call it that?” In our case, inexperience proved to be a huge asset -- if we’d gone with the safer option, I’m not sure that many people would be working out at Slipped Disc Health Clubs or banking at Slipped Disc Money!

Innovation and entrepreneurship thrive on the energy of people who are dipping their toes into the water for the first time. Budding entrepreneurs with fresh outlooks have the freedom to think quite differently, which is tremendously exciting to potential collaborators. However, as you’re finding out, Jordan, translating a new concept into a product can be very daunting.

While you might not yet have the right connections or an “in” with major investors, other people out there do -- experienced businesspeople, in your sector or in others, who were once in your shoes and went on to be successful. These people are potential mentors who can help you on your way.

Mentoring is a subject that is very close to our hearts at Virgin; I myself have benefited from many mentors throughout my life. However, don’t consider mentoring as a quick way to gain useful contacts. A good mentoring relationship is based on more than that -- it’s a way to learn valuable lessons from the mistakes someone else has made.

Additionally, I noticed in your message an emphasis on convincing “seasoned investors” to back your idea. While securing huge sums of money from major business figures might seem like the ideal way to propel a business forward, the reality is that very few ventures win this kind of funding. A better alternative might be an online crowdfunding platform. Websites such as Indiegogo not only have the potential to fund the creation of a prototype to get your business up and running, but they also can result in significant publicity.

Another option is taking out a small business loan. In the U.K. we launched Virgin StartUp, a program that provides loans of up to 25,000 pounds to companies trying to get their ideas off the ground. It is well worth your time to look into similar initiatives in your area, and decide whether a loan is the right step for you. As an added benefit, both crowdfunding and small business loans will mean that you can retain full ownership of your business -- you won’t have to give any equity away to investors.

Here are three steps that can help you discover which approach is best for you:

1. EVALUATE AND RESEARCH.

Always be honest with yourself about your abilities, the work you’ll have to put in to get your company up and running, and the amount of money you’re hoping to raise. Research all the options that are available, and evaluate how they would affect your end goal.

Ask yourself: Is your crowdfunding target realistic? How much of a stake in your business are you willing to give to potential investors?

And if you want to find a mentor who can help give you direction and guidance, make sure you find a suitable one. Find out what they do, whether they’ve mentored others before and which sectors they are interested in.

2. GET ON PEOPLE’S RADAR.

Attend industry events such as seminars and conferences. Talk to as many people as possible, and do not immediately launch into a pitch of your product. Be sure to listen and learn from what people have to say.

Networking doesn’t stop at face-to-face contact, either; interact on social media, join LinkedIn groups and keep the relationships going online. When you do approach potential mentors or investors, or if you launch a crowdfunding campaign, you’ll have a degree of visibility.

In fact, the more proactive you are in building your profile, the more likely it is that potential investors will feel confident enough to put their faith in you -- and their money in your company. Remember that the more relationships you build, the better the chances that your network will put you in touch with the people who can help your business.

3. KEEP AN OPEN MIND.

Remember to be flexible. While winning investment might look like the best option now, don’t discount any other opportunities that come your way. For example, crowdfunding might not have the prestige of an investment from a big-time entrepreneur, but it will connect you directly with future customers, and you will have more control over the process.

Keeping an open mind is especially important when it comes to mentoring. Don’t see mentorship as a quick fix for problems, and do not brush off advice. Consider your connection with a mentor as a long-lasting business relationship that can teach you lessons and reduce the potential for failure. But also remember that, as with anything else, you’ll get out of mentoring what you put in.

Making sure that your potential business is a success is not contingent upon gaining a large investment. Many successful companies -- including Virgin -- started with modest funds. Right now, investors might seem like they are the gatekeepers between you and your dream, but the one person who can make your business succeed is not an investor, or even a mentor. It is you.

From Entrepreneur

What Does Your Style Say About You as an Entrepreneur?

Your professional wardrobe style is like your very own visual business card.  It speaks for you even when you are not speaking. But have you ever really thought about what your wardrobe is saying about you and your brand?   

This is something I like to call “message management.”  It is the art of knowing what image you want to project and then using your style to your professional advantage. The first step is to know what your current wardrobe says about you. Then, you can make strategic changes, taking control of how others perceive you and your business.  

Below are the most common four professional styles and what they convey about you and your brand:

1. The uniformed professional  

Do you wear similar outfits every day? As a woman you may always choose a skirt suit, a shift dress or slacks and sweater.  For men, a strict classic suit and tie look, khaki’s and a blue button down, or even always donning an everyday pocket square could be your "uniform."

As an entrepreneur, your uniform shows commitment, consistency and strong brand awareness. However, even if you are a creature of habit, it is nice to switch things up every once and a while.  You’ll want to show a splash personality by adding surprise layers, colors, accessories and shoes. By doing this you still can show strength of brand but also that you can think outside of the box and take risks from time to time.

2. The quirky and colorful professional 

My personal favorite: the entrepreneur who loves color and pattern and isn’t afraid to use it!  For women, maybe it’s a bright magenta shift dress, a fun purple cardigan, or pops of leopard, floral or graphic prints mixed into blouses, jackets, handbags or shoes.  For men, the quirky can show up as colored checked shirts paired with contrast colored ties, a stand out paisley pocket square or even a surprise color in your socks. (There’s nothing more eye catching than a man in a classic suit with a pop of bright patterned socks.) 

Your strategic impression here shows that you are vibrant, imaginative, energetic, original and approachable.  But wearing too many colors or expressive prints at once can take attention away from YOU, the entrepreneur, and instead give the impression that you don’t take your position seriously. Be sure to limit yourself to one or two hues that pop or a single print as a focal point. Then balance it out with neutral tones and classic slim tailored shapes to keep the look professional yet still aligned with your personal expressive style.

3. The relaxed professional

Offices are getting more casual and relaxed dress codes have become a norm.  Casual styling in the workplace can be seen as approachable, laid back and friendly. But you don’t want to drift into looking sloppy! Too many casual items together makes you look thrown together and not styled with purpose for the workplace.

A great rule of thumb for professional casual is to use the 50/50 rule.  Your outfit should be 50 percent formal and 50 percent casual.  That way you are dressing up your casual items with more professional appropriate pieces.  Master this mix and you’ll look confident, together, serious and approachable all the same time.  It shows that you took the time to think about your outfit and put it together in a creative way: All positive impressions

4. The status-obsessed professional

Is wearing head to toe designer brands your style?  Consistently in Gucci loafers, the newest Hermes belt, the chicest Prada glasses and the biggest Louis Vuitton handbag? Go big or go home, right? This particular style type for entrepreneurs is perfect for working in luxury brands and shows that you understand your market.

The downside? Wearing too many noticeable labels in a single outfit can look like you are trying too hard or trying to garner attention. Be sure to layer your designers. Stick to clean lines, subtle designer items and only one or two labels showing.

From Entrepreneur

4 Ways to Manage People Smarter Than You

Managing people smarter than you--or even people who think they're smarter than you for that matter--is a real challenge. Whether you are running a lean and mean startup, Fortune 500, or Inc. 5000, it's your responsibility to translate employees' intellect, ambition, and confidence into day-to-day progress.

Imagine a scenario where you are paid to oversee a team of more than 1,500 researchers and scientists, most with MD's, all working towards one goal: introduce groundbreaking scientific discoveries. That would even give Mark Zuckerberg a headache.

That's exactly the role of Chris Czura, vice president of scientific affairs at the Feinstein Institute for Medical Research. The institute is considered the crown jewel of the North Shore-LIJ Health System, which is one of the largest in the nation, operating 18 hospitals, with more than 50,000 employees and 7 million patients in its service area.

I connected with Czura, to find out how he gets these brilliant people to functionefficiently and effectively. While he does possess a PhD, he doesn't have an MBA or formal management training. Although he did start out as an auto mechanic, so he has figured out how parts work together.

Here are the four ways he manages people smarter than himself.

1. Have them learn the same language.

Czura says "The common denominator percolating throughout my organization is that we all have a passion for science. Everyone is here for a common purpose and a majority of the leadership team have a background in the field." Czura is able to use the common background to establish a common language everyone can use internally. This creates communal understanding, which reduces communication issues. Then together they can determine how to interpret their findings to the outside world.

2. Focus less on IQ and more on collaborative intelligence.

Czura claims the secret sauce at the Feinstein is collaboration. He explains that all hiring interviews focus on work style and philosophy. He believes people are clearly either collaborative or they aren't. They recruit and retain talent who are fundamentally and intrinsically collaborative and have a strict "no asshole" rule. They even turned away brilliant candidates in the past because of their inability to work well with others.

3. Get them to speak in "we" and not "I."

Czura points out that the team is exalted over the individual. In everything they do they try to incorporate the power of "We." They even host mini symposia bringing together doctors and scientists from completely divergent disciplines where real progress can be made. Czura points out that many scientists, particularly in molecular biology and the life sciences can be anti-social in nature and can stimulate conflict. Czura is creating an open environment where questions and constructive conflict are encouraged.

4. Learn when to get out of the way and when not to.

Czura explains that when dealing with bright minds, it's really important to create situations where smart people ask other smart people challenging questions. To make that effective, you must try and recognize what the person on the other side of the table sees or prioritizes. But after all is said and done, and marching orders are established, Czura says it's his job to get the heck out of the way. Czura says it best: "We want our staff to focus solely on their crafts, and I am the biggest advocate for enabling people to do what they do best. Business and management folks breathing down a scientist's neck has never led to meaningful discovery. It's important to give people the intellectual freedom to figure out solutions on their own volition. I take the responsibility upon myself to advocate for our scientists, make sure they have what they need, and to make those justifications to the business and operational side of the house. It's best that they are only doing what they are uniquely positioned to do."

From Inc. Magazine

The Mentality of a Successful Career

Success is all in your head. If you want to control your ability to have a lucrative, fulfilling career, it’s imperative to control the way you think.

Those who can’t control their emotions and inner monologue never reach their full potential.

The long-term solution to sub-par success, lack, and limitation lies in our ability to turn our inner potential to reality. Among other things, this means not allowing outer circumstances to control our emotions. It means understanding that no amount of money or physical objects creates happiness or cultivates success.

Rather, our recruitment experts have seen that a better career begins with self-improvement; self-improvement starts with a healthy thought process that promotes creativity and spurs action.

Below, you’ll find three strategies to cultivate a mentality conducive to you achieving your goals, thus allowing you to cultivate a career based on leveraging the skills you possess and learning the ones you don’t.

1. Our mental conditions make us who we are.

The more time you waste worrying, fretting and complaining, the worse off you will be.

Just the minute you are aware of thinking a negative thought, immediately change it to a positive. If you start to think of failure, change that thinking to success.

Often, people fail to live up to their potential because their failures are met with despair and they expect their rewards to come to them instead of actively pursuing those goals.

2. Focus on cultivating the right habits.

Nobody but yourself is responsible for your habits. Throughout our career, you’ll develop both productive and destructive practices.

The problem with destructive habits is that they are easy to form yet are hard to live with. Understand that as we become older, habits become more ingrained with whom we are as individuals and, thus more difficult to overcome.

But regardless of our age, our methods and approaches can be altered. In order to overcome undesirable habits, it’s imperative to step back and analyze all of your actions from a neutral perspective.

Determine which ones are preventing you from achieving your goals. After you define those goals, try to understand why you do them.

Finally, make a commitment to overcome these efforts. Every time you don’t give into the temptation to repeat a destructive habit, you strengthen your resolve.

3. If you want to cultivate a mentality of success, it’s important to gain a basic understanding of who you are.

Our self-image, which is the picture of ourselves that we hold in our minds, becomes the key to our lives.

However, many times our beliefs and the way in which we see ourselves are entirely false. Our egos will often trick us into thinking and, thus acting in a way that is not in our best interest.

For instance, if our thought patterns say, “I cannot achieve getting the promotion I want,” we subconsciously create conditions that correspond to these ideas.

We begin to stop negative thought and behavioral patterns when we begin to accept and learn from the past rather than use it as a basis to negatively judge ourselves. The past should serve as a source of learning not self-judgement.

In the End

No one limits us but ourselves. In order to become a success, it’s imperative to avoid becoming the victim of negative ideas. Strive more to please yourself and worry less about pleasing others.

By assuming our own identity, we are bound to make others angry or jealous, but most importantly we make ourselves happier and set up the circumstances conducive to a successful career.

From Entrepreneur

How to start a Consulting Business

The dictionary defines a consultant as "an expert in a particular field who works as an advisor either to a company or to another individual." Sounds pretty vague, doesn't it? But unless you've been in a coma for the past decade, you probably have a good idea what a consultant is.

Businesses certainly understand what consultants are. In 1997 U.S. businesses spent just over $12 billion on consulting. According to Anna Flowers, spokesperson for the Association of Professional Consultants in Irvine, California, the association has recently noticed an increase in calls for information from people who want to get into the business. "The market is opening up for [the consulting-for-businesses] arena," Flowers says.

Melinda P., an independent consultant in Arlington, Virginia, thinks more people are getting into the consulting field because technology has made it easier to do so. "The same technology that has helped me to be successful as a consultant has made it easier for others to do the same," she says.

A consultant's job is to consult. Nothing more, nothing less. It's that simple. There's no magic formula or secret that makes one consultant more successful than another one.

But what separates a good consultant from a bad consultant is a passion and drive for excellence. And--oh yes--a good consultant should be knowledgeable about the subject he or she is consulting in. Thatdoes make a difference.

You see, in this day and age, anyone can be a consultant. All you need to discover is what your particular gift is. For example, are you very comfortable working around computers? Do you keep up with the latest software and hardware information, which seems to be changing almost daily? And are you able to take that knowledge you have gained and turn it into a resource that someone would be willing to pay money for? Then you would have no trouble working as a computer consultant.

Or are you an expert in the fund-raising field? Maybe you have worked for nonprofit agencies in the field of fund-raising, marketing, public relations or sales, and over the years you have discovered how to raise money. As someone who has turned a decade of fund-raising successes into a lucrative consulting business, I can tell you that fund-raising consulting is indeed a growing industry.

Things to Consider Before You Become a Consultant

• What certifications and special licensing will I need? Depending upon your profession, you may need special certification or a special license before you can begin operating as a consultant. For example, fund-raising consultants don't need special certification, although you can become certified through the National Society of Fund Raising Executives. And in some states, you may need to register as a professional fund-raising consultant before starting your business.
• Am I qualified to become a consultant? Before you hang out your shingle and hope that clients begin beating your door down to hire you, make sure you have the qualifications necessary to get the job done. If you want to be a computer consultant, for example, make sure you are up to date in the knowledge department with all the trends and changes in the computer industry.
• Am I organized enough to become a consultant? Do I like to plan my day? Am I an expert when it comes to time management? You should have answered "yes" to all three of those questions!
• Do I like to network? Networking is critical to the success of any type of consultant today. Begin building your network of contacts immediately.
• Have I set long-term and short-term goals? And do they allow for me to become a consultant? If your goals do not match up with the time and energy it takes to open and successfully build a consulting business, then reconsider before making any move in this direction!

Top 20 Consulting Businesses Thriving Today

Although you can be a consultant in just about any field these days, the current top 20 consulting businesses include:

1. Accounting: Accounting is something that every business needs, no matter how large or small. Accounting consultants can help a business with all of its financial needs.

2. Advertising: This type of consultant is normally hired by a business to develop a good strategic advertising campaign.

3. Auditing: From consultants who audit utility bills for small businesses to consultants who handle major work for telecommunications firms, auditing consultants are enjoying the fruits of their labor.

4. Business: Know how to help a business turn a profit? If you have a good business sense, then you'll do well as a business consultant. After computer consulting, people in this field are the next most sought after.

5. Business writing: Everyone knows that most businesspeople have trouble when it comes to writing a report--or even a simple memo. Enter the business writing consultant, and everyone is happy!

6. Career counseling: With more and more people finding themselves victims of a corporate downsizing, career counselors will always be in demand. Career counselors guide their clients into a profession or job that will help them be both happy and productive as an employee.

7. Communications: Communications consultants specialize in helping employees in both large and small businesses better communicate with each other, which ultimately makes the business more efficient and operate smoothly.

8. Computer consulting: From software to hardware, and everything in between, if you know computers, your biggest problem will be not having enough hours in the day to meet your clients' demands!

9. Editorial services: From producing newsletters to corporate annual reports, consultants who are experts in the editorial field will always be appreciated.

10. Executive search/headhunter firms: While this is not for everyone, there are people who enjoy finding talent for employers.

11. Gardening: In the past decade the demand for gardening consultants has blossomed (pun intended) into a $1 million-a-year business. Not only are businesses hiring gardening consultants; so are people who are too busy to take care of their gardens at home.

12. Grantsmanship: Once you learn how to write a grant proposal, you can name your price.

13. Human resources: As long as businesses have people problems (and they always will), consultants in this field will enjoy a never-ending supply of corporate clients, both large and small. (People-problem prevention programs could include teaching employees to get along with others, respect and even violence prevention in the workplace.)

14. Insurance: Everyone needs insurance, and everyone needs an insurance consultant to help them find the best plan and pricing for them.

15. Marketing: Can you help a business write a marketing plan? Or do you have ideas that you feel will help promote a business? If so, why not try your hand as a marketing consultant?

16. Payroll management: Everyone needs to get paid. By using your knowledge and expertise in payroll management, you can provide this service to many businesses, both large and small.

17. Public relations: Getting good press coverage for any organization is a real art. When an organization finds a good PR consultant, they hang on to them for life!

18. Publishing: If you're interested in the publishing field, then learn everything you can and you, too, can be a publishing consultant. A publishing consultant usually helps new ventures when they are ready to launch a new newspaper, magazine, newsletter--and even websites and electronic newsletters.

19. Taxes: With the right marketing and business plan (and a sincere interest in taxes), your career as a tax consultant can be very lucrative. A tax consultant advises businesses on the legal methods to pay the least amount of tax possible.

20. Writing services: Anything related to the written word will always be in demand. Find your specialty in the writing field, and the sky will be the limit!

Target Market

Your idea may be the best one you have ever thought of, but there needs to be a market for your ideas. Someone must be willing and able to pay you for your expert advice.

In other words, who are your potential clients? Will you be marketing your consulting services to large corporations? Or will you offer a specialty that would only be of interest to smaller businesses? Perhaps your services will be sought after by nonprofit organizations. Whatever the case, before you go forward, make sure you spend time preparing both a business plan and a marketing plan. You won't be disappointed with the results--especially when clients begin paying you!

Why an Organization Wants to Hire You

According to a recent survey, here are the top 10 reasons organizations hire consultants:

1. A consultant may be hired because of his or her expertise. This is where it pays to not only be really good in the field you have chosen to consult in, but to have some type of track record that speaks for itself. For example, when I mentioned earlier that I had become an expert as a fund-raising consultant, I knew that every client who hired me was doing so partly on the basis of my track record alone. After all, if you are a nonprofit organization that needs to raise $1 million, it makes sense to hire someone who has already raised millions for other organizations.

2. A consultant may be hired to identify problems. Sometimes employees are too close to a problem inside an organization to identify it. That's when a consultant rides in on his or her white horse to save the day.

3. A consultant may be hired to supplement the staff. Sometimes a business discovers that it can save thousands of dollars a week by hiring consultants when they are needed, rather than hiring full-time employees. Businesses realize they save additional money by not having to pay benefits for consultants they hire. Even though a consultant's fees are generally higher than an employee's salary, over the long haul, it simply makes good economic sense to hire a consultant.

4. A consultant may be hired to act as a catalyst. Let's face it. No one likes change, especially corporate America. But sometimes change is needed, and a consultant may be brought in to "get the ball rolling." In other words, the consultant can do things without worrying about the corporate culture, employee morale or other issues that get in the way when an organization is trying to institute change.

5. A consultant may be hired to provide much-needed objectivity.Who else is more qualified to identify a problem than a consultant? A good consultant provides an objective, fresh viewpoint--without worrying about what people in the organization might think about the results and how they were achieved.

6. A consultant may be hired to teach. These days if you are a computer consultant who can show employees how to master a new program, then your telephone probably hasn't stopped ringing for a while. A consultant may be asked to teach employees any number of different skills. However, a consultant must be willing to keep up with new discoveries in their field of expertise--and be ready to teach new clients what they need to stay competitive.

7. A consultant may be hired to do the "dirty work." Let's face it: No one wants to be the person who has to make cuts in the staff or to eliminate an entire division.

8. A consultant may be hired to bring new life to an organization. If you are good at coming up with new ideas that work, then you won't have any trouble finding clients. At one time or another, most businesses need someone to administer "first aid" to get things rolling again.

9. A consultant may be hired to create a new business. There are consultants who have become experts in this field. Not everyone, though, has the ability to conceive an idea and develop a game plan.

10. A consultant may be hired to influence other people. Do you like to hang out with the rich and famous in your town? If so, you may be hired to do a consulting job simply based on who you know. Although most consultants in this field are working as lobbyists, there has been an increase in the number of people entering the entertainment consulting business.

Location and Employees

Your consulting business will probably not require a large capital investment at first. In fact, if you are able to, you should consider operating out of your home. (Certain deed restrictions and local laws may prohibit you from doing this; check with an attorney before you proceed.)

There are many advantages to having a home office. Among them are:

• Low overhead expenses. You don't have to worry about paying rent or utilities for an office; you will appreciate this feature until you establish a regular client base.
• Flexibility. There is little doubt that operating as a consultant at home gives you a great deal of flexibility. You can set your own hours and take time off as you need it.
• No rush-hour nightmares. For anyone who has had to commute to and from a job during rush hour, this will be a welcome change of pace.
• Your home office space will most likely be tax-deductible. The IRS has relaxed the rules for people who work at home, but check with your account or income tax preparer to see if you qualify for this deduction.

Employees

When you first open the doors to your consulting practice, you may be able to handle all the operations by yourself. But as your consulting business begins to grow, you may need help handling administrative details or help completing the actual consulting assignments.

You need to make some important decisions. For example, do you have the time it will take to make labels and insert your brochure into 1,000 envelopes? Can you afford to spend time doing administrative tasks when you could be using that time effectively marketing your services--and signing up new clients?

There are many options when it comes time to decide if you need help with your paperwork. For example, a quick look through the Yellow Pages will reveal a number of small secretarial support firms. The rates will depend on a variety of factors, including how large or small an organization it is and what types of services it provides.

While it will pay you to shop around for these types of services, don't select a secretarial service just because it happens to have the lowest prices in town. Instead, ask for references, preferably from other consultants who have used their services, or from small-business owners. A good, reliable support service is worth the price in the long run.

There will come a time, however, when you may find it more cost-effective to hire someone to work in the office with you. Hiring a good administrative support person can sometimes mean the difference between success and failure--between obtaining more clients or constantly losing clients. There are some benefits to having someone in the office with you. Among them are:

• You save time and money. By having someone concentrate on the more routine tasks (opening the mail, filing, answering phones, etc.) you can focus all your efforts on recruiting new clients. Think about this: Would you want to lose a $500-a-day client because you were too cheap to hire someone to stuff your brochures into envelopes?
• You don't worry about being out of the office. If you are a one-person operation, it's hard to be out on the road marketing your services if you're worried about clients calling--and only getting your answering machine.
• You have someone to offer another perspective. Sometimes it can be pretty lonely trying to do everything yourself. Having someone around the office during the day who can offer another perspective can be worthwhile.

Income and Billing

Now that you have made the decision to open your consulting business, you need to get serious about how much money you will charge your clients. If you charge too little, you won't succeed in business. If you charge too much, you won't get any clients. So how do you find that middle ground that seems fair to everyone involved? One way to help you decide how much to charge is to find out what the competition's rates are. A simple telephone call, asking for their brochure and rates, should do the trick. Then set your rates so that you are competitive with everyone else in the community.

Before setting your fees, make sure you have listed all of your expenses. There is nothing worse than setting your rates, having your client pay you on time and then finding out you failed to include several expenses that materialized. This brings up an important point to remember in every job you take from a client: Include a "miscellaneous" line item in your fee proposal. But don't pad the miscellaneous figure to make additional income.

Most clients will understand that in every project, there will no doubt be additional expenses. Just be sure everyone knows upfront an approximate figure for those expenses.

Before you set your rates, find out what other consultants in your community are charging for their services. Sometimes a simple telephone call to another consultant's office asking what their fees are will give you the answers you need. Or you may have to have a friend call and ask for their brochure, or any additional information they can collect regarding fees and pricing. If you live in a small town and there are no other consultants in your field, then rejoice and be glad, but set your fees at a reasonable level!

When setting your rates, you have several options, including hourly rates, project fees and working on a retainer basis. Let's examine each one closely.

Hourly Fees

You need to tread carefully when setting hourly fees, because two things could happen: A) Your hourly rate is so high that no one could ever afford you (therefore no client will ever knock on your door). B) Your hourly rate is so low that no one will take you seriously.

Keep one important rule in mind when establishing your fee, no matter which structure you decide on: The more money people pay for a product or service, the more they expect to get for their money. In other words, if a client agrees to your hourly rate of $400, then you had better give $400 worth of service to that client every hour you work for them.

Some clients prefer to be billed on an hourly basis, while others hate the idea of paying someone what they perceive to be too much per hour. Those clients usually prefer to pay per project.

Project Rates

When working on a project rate basis, a consultant normally gets a fixed amount of money for a predetermined period of time. A few of my fund-raising clients actually preferred to be charged this way, so it wasn't unusual for me to charge $36,000 for a one-year project in which I consulted them on how they could raise money. Because of the amount of money involved, most agencies preferred to be billed on a monthly basis. This worked out fine until I realized that many agencies were late paying their monthly bills.

Because of this, I decided that all future clients who wished to be billed on a monthly basis would pay the first-month fee and the last-month fee at the signing of the contract, which meant that if the agreed-upon amount of the project was $36,000, to be paid on a monthly basis, I received a check in the amount of $6,000 before I began any work ($3,000 for the first month's fee and $3,000 for the last month's fee).

Retainer Basis

Working on a retainer basis gives you a set monthly fee in which you agree to be available for work for an agreed-upon number of hours for your client. While in the ideal world you would have a dozen or so clients who hire you and pay you a hefty sum each month (and never actually call you except for a few hours here and there), don't get your hopes up. Most companies that hire a consultant on a retainer basis have a clause in their contract that prohibits you from working for their competitors.

Working and getting paid in this method certainly has its advantages. You are guaranteed income each month, and when you are starting out in your consulting business, cash flow can be a problem. Some consultants actually offer a percentage reduction in their fees if a client will agree to pay a monthly retainer fee. The average income when a consultant is paid on a retainer basis is $3,500 per month.

Marketing

If your consulting business has no clients, then you have no consulting business. But you must remember that selling your consulting services is not the same as selling a car or a house. In the case of the car or the house, the customer is probably already in the market for one or both of those products. Your job, then, becomes harder, because you are marketing your services to people who may not even be aware that they need those services.

There are a variety of methods you need to become both familiar and comfortable with in order to begin attracting and keeping clients. Let's look at some of the more conventional ones that are being used by many consultants today.

Brochure Basics

There are five issues your brochure should address. They are:

1. It should clearly convey what your services are.
2. It should tell customers why you are the best.
3. It should give a few reasons why you should be hired.
4. It should include some brief biographical information.
5. It should include some information about who your other clients are.

That's it. Keep it simple, but do it right. Remember, your brochure represents you in the marketplace, so make sure you polish it before you send it into action. Your entire consulting career depends on it!

Cold Calling

You must do whatever it takes to make cold-calling work and make it easier for yourself. There are a few tricks you can use to make cold-calling a little easier for you:

• Prepare a script ahead of time. Spell out word for word what you expect to say when you get someone on the telephone. Remember, though, that your goal is to get a face-to-face interview and, eventually, a new client. So before you end up stumbling over your sales presentation (either in person or over the telephone), write your script and practice it again and again.
• Be creative in your efforts to reach the decision maker. Most times you will encounter a secretary or administrative assistant who has years of experience turning away cold callers like yourself. But don't give up! Don't let any obstacle stand in your way! To avoid being screened by the secretary, try calling before she is on the job. Yes, you may have to call before 8 a.m. or after 5 p.m., but at these times, chances are the decision maker you are trying to reach will answer their own telephone.
• Limit your cold calls to just several days each month. And look forward to those days, making sure you put your best effort into the process. That way, not only will it become easier to make those cold calls, but you will find yourself actually looking forward to making them!

Advertising

The limits you place on advertising your consulting services will be directly tied to your advertising budget. If you are lucky enough to have a very healthy advertising budget, remember that you don't have to spend the money on ads just because you have it to spend. Advertising can be very expensive. Jeffery B., a Harrisburg, Pennsylvania, consultant, advertises in his association's publication. "They publish what is called the Green Book, which is a directory of research and marketing consulting businesses around the country. It has helped me generate new business," he says.

Other consultants, such as Merrily S. in Newark, Delaware, depend on word-of-mouth. "The best form of advertising [for my business] has been word-of-mouth and recommendations from other people," she says.

Depending upon the type of services you offer, it may be necessary to advertise in specialized trade journals or magazines. For example, as a fund-raising consultant, I have placed ads in such publications as The Chronicle of Philanthropy, Non-Profit Times and Fund Raising Weekly.

Before you spend any money, start looking through professional journals and newspapers relative to the fields you specialize in. Take some time and examine ads that have been placed by other consultants, and then carefully determine how effective you think their ads may be. Then design one that suits you best.

Newsletters

Whatever your consulting field is you should have more than enough information to produce a newsletter as a means of attracting potential clients. If you don't have the time, or don't feel comfortable self-publishing your own newsletter, hire a local freelance writer and graphic designer to do the job for you. Again, you don't have to make it an expensive, four-color, glossy publication. The simpler you keep it, the better. A good newsletter will sell itself based on the content rather than the splashy design.

Start collecting newsletters that are being published in your consulting field. If you think there are none being published, or if you think there are only a few in your field, guess again. A quick visit to the library will reveal several newsletter directories--Oxbridge Directory of Newsletters(Oxbridge Communications) and Hudson's Newsletter Directory (The Newsletter ClearingHouse)--which list, by subject, newsletters that are published not only in the United States, but in other countries. Take some time and write for sample copies before you design and write the first issue of your own newsletter. You'll be surprised at the quality of the newsletters that are being produced today.

Newsletters are an effective means of communication and, in my opinion, represent the best advertising media for a consultant to sell his or her services. Think about it the next time you receive a newsletter in the mail. Did you put it aside to read it later? And why did you do that? Probably because you wanted to make sure you weren't missing any important news or information.

But what about that brochure you received in the mail the same day? Did you put it aside to read later? Or did it go directly into the trashcan? Think about this before you spend big bucks on a glitzy brochure that may not even be read.

Public Speaking

Public speaking is another excellent way to recruit new clients and to earn a reputation for excellence in your community. Unless you live in a town so small it doesn't have a chamber of commerce or a Lion's Club, Rotary Club or other similar service organization, you can begin offering your services as a speaker for luncheons, dinners or any other special occasion.

In addition to using the telephone directory, see if anyone has published a directory of service organizations in your community. You can visit the library and ask at the reference desk. Go through and make a list of organizations that hold monthly meetings and therefore may use guest speakers. Contact each group and offer your public speaking services.

Ask for Referrals

This often-overlooked method of finding new clients is such an easy marketing tool (which is why it's usually not thought of), you'll kick yourself for not thinking of it yourself. When you have finished your consulting assignment and your client is in seventh heaven (and is no doubt singing your praises), that is an excellent time to ask for a referral!Simply send a note or a short letter asking for the names of any colleagues, friends or business associates they feel might be good prospects for your consulting services. Ask their permission to mention their name when you write to the people whose names they pass on to you. Sometimes all it takes is having a mutual friend or respected business associate to get the potential client's attention.

From Entrepreneur

The 3 Worst Phrases a Leader Can Utter When Trying to Coach the Team

Coaching is an inherent aspect of leadership that, done well, is of immense benefit but, done poorly, can turn problems into crisis. Whether you are managing a large organization with hundreds of employees or an the CEO of startup trying to inspire a small team, you must never underestimate the power of the words we use during “coaching” opportunities.

The last thing leaders can afford to do is disconnect themselves from their team-members when there is an opportunity for improvement. To gain the most benefit from coaching opportunities usually requires little more than adding simple re-phrasing techniques to your “conversation toolbox.” Here are three default phrases that can become relationship dis-connectors and alternative approaches that inspire your team.

“WHY DIDN’T YOU…?”

Nobody wants to listen to a leader who kicks off a meeting with “why didn’t you…”. Many managers and leaders will use this phrase without considering the effect on the team members or realizing it will cause a disconnection of focus.

Starting with “why didn’t you?” puts the focus on the excuse or rationalization of the past situation and what the present consequences are going to be when the better focus is improving the employee’s condition and self-realization for future success. Plus, these conversations become redundant for the leader, since encouraging excuses instead of improvement means you will have them frequently!

Instead of being the broken record of saying, “Why didn’t you…?” use the phrase “What will help you better achieve this next time?” After they state whatever they need to happen, make sure you get a confirmation statement by asking, “So if you had _____________, then this result will happen?” That will allow everyone to understand the root cause of the issue.

If this situation reoccurs after checking in, (or if the request in the previous question doesn’t carry any weight), then you want to test the priority level of the result for this employee. Test the importance of the result to the person by simply asking, “How important is this result to you and your career?” By phrasing it this way, the employee will realize they need to make some changes. If they don't, it will become evident that you need to make some changes in either connecting the results to the big picture or, unhappily, to your personnel!

“You should have…”

Another sentence that will have your team members check out from listening to you is the “time machine” approach where the leader says “you should have.” We are addressing mistakes, so that they don’t happen again and the team member learns from them. Instead of going for the “you should have approach” use a crystal ball.

Coaching the person through how they would approach the situation differently in the future is the better device. The key is to not give them the answer. Many leaders know enough to substitute “you should have” with “next time you should…” This is a step better but not the best answer for helping your team members change their behavior.

Instead ask, “if this situation happens again, how would you handle it differently?” This way they are engaged in the dialogue and need to think. If they state the correct way to handle it in the future, they are going to feel more confident and likely to do it because it was “their idea.” If their response is still wrong, then it allows you to educate them on other options. Regardless, they are thinking and learning versus checking out of the conversation because it started with “you should have.”

“Do you understand?”

People don’t want to admit when they don’t understand. They don’t want you to think they aren’t capable or smart enough to comprehend what’s going on. This is especially true with an employee speaking to a manager who they are trying to impress. They might not have the confidence to say they do not understand or to ask you to re-explain it. This may also be the case if you are a sales professional explaining a service to a potential client.

A more altruistic stance is to simply check in with your clients or employees by taking a ”time out” after important presentations or task initiations to make sure you are both on the same page. This is a good opportunity for the leader to offer up another way to educate the employee or client.

“Am I making sense or would it be helpful if I lay it out in another way?”

“Am I explaining this clearly or do you want me to review a few sections again?”

Don’t assume your team members understand the task or why the task is important the first time they hear it.

These simple changes in your leadership conversations can help you to better connect and grow your team members or relationships with your clients.

From Entrepreneur

The 3 Secrets to Building Successful Third-Party Partnerships

Partnerships can be very useful to a startup. With the right company, you can expand your sales pipeline, gain access to otherwise cost-prohibitive infrastructure and generally minimize your risk in pursuing growth. However, the reality is that most business partnerships fail for one reason or another. For those interested in beating the odds with a successful partnership, I offer below a few best practices that should help when teaming up with another company.

1. Invest time in researching the right partner.

The best way to find the right partner is through research. Once you have a sense of what external assets would be most useful to your business, you can begin building your list of prospects with whom to partner. But your research should not begin and end with what your business needs. Rather, as part of your research, you should spend just as much time exploring which of those prospects could benefit from a partnership with your business. For a successful partnership to work both parties must find value. So be sure not to neglect this crucial latter element of your partnership research efforts.

2. Designate internal champions.

Having the right corporate partner is critical, but it is not enough. No corporate partnership can work unless each partner has its own internal champion dedicated to making the relationship thrive. The right champions should have knowledge of the reasons behind the partnership and the desired outcomes, access to the stakeholders and resources necessary to support collaboration, full commitment to the success of the effort and accountability for results. With the right champion in place you send a clear message to your new outside partner and your team that you take the relationship seriously. This will vastly improve the odds that your partnership will work as hoped.

3. DEVELOP AND STICK TO A STRUCTURED PLAN.

Once you have the right partner and the right internal champion, your partnership is primed for success. However, there is one last vital requirement to keep in mind. In short, you need a structured execution plan. Before you begin cross-selling products or seconding staff, you should take the time to work through a detailed roadmap for the partnership. As a starting point, you should clearly identify the short- and long-term objectives of both parties, establishing a clear series of individual and collective milestones as well a framework for measuring the success of the efforts. Once that is done, you should document specifically who is responsible for contributing what resources and when and who is accountable for those commitments. Finally, you must have a regular meeting schedule for the internal champions or a broader group to discuss the progress of the partnership. These meetings should have clear agendas that are circulated ahead of time, and they should address the agreed-upon milestones as well as who has or has not fulfilled their responsibilities. Without a structured communication plan and routine assessment of the efforts of both parties, your partnership may be painfully short-lived.

There are many variables in business that determine success and finding the right external partner cannot guarantee that your startup will experience accelerated growth or even float. However, with a partner that derives as much value as it provides, a capable and committed champion on each side and a detailed plan, you can certainly increase the odds that your new partnership has a positive impact on your business.

From Entrepreneur