Presented by: Alan Landers President FirstStep Talent Strategies

1. Presented by: Alan Landers President FirstStep Talent Strategies

2. Alan Landers President, FirstStep Talent Strategies • 30 years experience in OD, L&D, and HR • 14 years heading OD consulting firm • 21 years consulting internally or externally • VP of Training for a Fortune 250 • VP of Performance Management • VP of Marketing • Clients include: Microsoft, Dun & Bradstreet, AT&T, Texas Insturments, General Motors, Hewlett-Packard and many more • University partners include: University of San Diego, Auburn, Southern Methodist, Michigan State, Washington State, San Diego State, among others Your Facilitator

3. Topics • Getting Started • Building a Practice • Marketing • Competing • Developing Products • Pricing Agenda

5. Getting Started What Most People Do • Print business cards • Create a web page • Tell friends • Contact former employers • Wonder what happened

6. Get a Good Start 20 Things to do up front Set aside cash Research health insurance Understand ups and downs Establish a support network Get healthy Get organized Develop your sales skills Define the scope of your practice Decide how to position your practice Identify your competitive advantage Create a marketing plan Promote yourself and establish your credibility Follow up after 1-on-1 meetings Network effectively Put together a portfolio Learn how to write a proposal Price your services Develop a line of products Stay at the cutting edge Build strategic alliances

7. What Consultants Do 1. Market and Brand their practice 4 5 3 6 2. Sales and Negotiations 2 7 3. Develop Products 1 8 4. Network 9 5. Research 10 6. Administrivia 7. Publish 8. Create Systems and Processes 9. Strategic Planning 10. Professional Development And by the way – they also consult

8. Business Models Types and Sizes Tier III:The Movers & Shakers: firms with 10 or more consultants and a substantial brand Tier II:The Boutique: comprised of 2 to 5 people who have a formal or informal partnership or collegial arrangement Tier IV:The Big Boys: with thousands of consultants who dominate the market Tier I:The Entrepreneur: a sole proprietor who is the only employee

10. Define Your Service Clients are interested in... What’s hot? What’s coming? What’s new? What hurts? What helps? What’s essential? Not what can you do!

11. Add Value 11 Ways to Add Value to an Organization Increase customer satisfaction, retention, sales Expand products, services, markets, channels Improve employee performance, engagement, skills Improve productivity, streamline processes, restructure Improve quality, safety, environmental issues Reduce costs, errors, wastage, minimizing downtime Improve planning, strategies, competitiveness Improve leadership depth & breadth Improve technology, systems, analytics Add Expertise Coaching, mentoring, advising

12. Adding Value by Transferring Knowledge & Skills Make it part of the contract Make someone responsible Create a transition plan/schedule Involve different groups and individuals Some of the work early and most of the work later Meet regularly to discuss progress Capture learnings and make them available Adding Value

13. FindYour Niche Keenly Interested Given what you know and can do, who would be interested in it? Why? Socio-demographics: Age, Gender, Profession, Experience, Skill-level, etc. What industries would find your services and products beneficial? Why? Consider: pressures they are experiencing, pain points, trends, legislation, the economy, workforce issues, geo-demographics, etc. What about the competition? How entrenched are they? How do you compare? What is your advantage? How difficult would it be to penetrate that niche? Once you find your niche, be sure your marketing materials use words that will resonate within it.

15. Market Like Mad Marketing Options • Press Releases • Image Management • Pro Bono Work • Websites • Publishing or Being Quoted • Newsletters • Speaking Engagements • Professional Associations • Testimonials • Referrals • Networking • Broadcast Media

16. Words That Sell

17. BuildCredibility Getting Published: Quick and Easy Most Difficult to Easiest: Write a best selling book Co-author a book Write an article for a journal Write an article for a magazine Write an article for a website Write a letter to the editor Write an article for your website Write a newsletter Participate in blogs

18. Network Face-to-Face Share and Learn • With Potential Clients • Host a networking event • Conduct a free seminar or workshop • Provide a free demonstration of a product and give away a sample • Host an expert round-table discussion • Raffle your services at a charity event • With Peers • Join the Board of Directors • Volunteer on Committees • Attend meetings regularly • Participate in conferences and EXPOs • Seek help (information) • Become a mentor • Contribute to newsletters

19. Factors Impacting Client Satisfaction • Trust • Understand the client’s business • Understand the client’s specific needs • Senior level management experience • Contract specificity • Clearly defineddeliverables and key success factors • Thorough front-end assessments • Custom-tailored solutions • Involvement in implementation and ablility to lead change efforts • Project management skills • Direct, timely, clear communication • Gratitude Satisify Clients

20. Measure Performance Examples

22. CompetitorAnalysis Why analyze the competition? To identify openings that allow you to standout and attain competitive advantage

23. Analyze the Competition What You Should Know • Their niche or target market • The needs they address • How they add value • Their differentiation strategies • Their core products and services • Their fee structure • How long they’ve been in business • How their business is doing • Their size and growth trends • Their strategic alliances • How they are perceived (brand) • Their possible weaknesses The Competition

24. Competitive Advantage 10Sources Competitive Advantage Unique or special knowledge, skills, experience Proprietary intellectual property Proprietary or superior technology, systems, or processes Advanced, efficient, and flexible distribution channels Ability to enhance and/or create of new resources and capabilities for clients quickly Incomparable products or services tailored to a specific market niche Strategic alliances that provide any of the above Competitors’ weaknesses (real or perceived) Established brand or affiliation with one Being at the right place at the right time

26. Income Limitations PROBLEM YOU ONLY MAKE MONEY WHEN YOU ARE ACTIVELY CONSULTING OR TRAINING BEST PRACTICE FIND WAYS TO GENERATE INCOME WHEN YOU AREN’T WORKING!

27. Products What are this company’s products? Guangzhou Jindi Tin & Hardware Company

28. Consultant Products

29. Product Lines 15 Ways to Leverage Your Expertise

31. What are the options? Flat Rate for Entire Project including Expenses Flat Rate plus Expenses Hourly Rate Daily Rate Onsite/Offsite Rate Contingency Rate Retainer Outsourced Fee Types

32. Hourly Consulting Rates - Examples Rates for Senior Practitioners • Computer Tech Support: $100 -$145 • Training & Facilitation: $90 - $150 • IT Consultant: $200 - $500 • Proprietary Training: $200 - $400 • New Product Consulting: $200 - $500 • Strategy Consulting/Facilitation: $300 - $500 • OD or Restructuring: $300 - $500 • Mentoring/Coaching Executives: $300 - $500 • Coaching Managers: $200 -$250 • HR & Benefits: $200 - $400 Sample Hourly Rates Austin K. Pryor (www.tenonline.org, Oct. 2001)

33. What it’s really like early • You will probably charge around $1,500 a day • You may work 50 days a year, after a slow start • 50 x $1,500 = $75,000 gross annual income • You’ll have to deduct expenses • $75,000 - $60,000 = $15,000 net • You take a $200 per day salary • 50 x 200 = $10,000 Labor costs • Leaving a $5,000 annual profit • 6.6% of Gross Realistic Income Figures

34. IncreasingIncome Five Choices 1. Increase # Billable Days More marketing, No vacations 2. Lower Labor Costs Lower income expectations 3. Reduce Expenses Difficult to go below $60K 4. Reduce Profit Margin 5%-10% instead of 15%-25% 5. Sell Products or Certifcations

35. Pros and Cons Arguments For Know client’s limitations Pro bono work Valid business reason Helping a former client Underbid the competition Arguments Against Difficult to charge more Becomes a habit Undervalued mindset Price vs valued service Clients’ perspectives Discounting Fees I seldom do it... there are other options

36. Options to Discounting 1. Do it entirely for free Write it off as a marketing expense 2. Share the expense across clients 2 or 3 clients share the cost of an event 3. Use a menu approach Pick and choose what they want 4. Break it up Conduct the intervention in phases Discount parts, not all Don’t charge for the easy stuff Include disposables in the contract Include items you can eliminate

37. Thank You