March 2004
Question
I am transitioning from a full-time corporate training and development position. I would like to explore the possibility of providing training services on a contract basis. I don't need benefits and my schedule and ability to travel are flexible. How can I determine whether I can generate sufficient activity and income?
Answer
First, determine how much you need to live on. Second, determine how many billable days you think you will be able to generate. Divide the first number by the second number. The answer is how much you will need to charge per day. Next determine who your clients might be and whether they will pay this rate for the services you will offer.
Question
My question is determining and negotiating fees. I tend to under price my services. What are your suggestions?
Answer
Well stop it! If you know you under price your services why do you continue to do it? My suggestion is (and always will be): Put a price on your head (by the hour, by the day, by the project) and then STICK WITH IT! You are not only hurting your bank account by shifting prices, but your reputation may also be in jeopardy if you are offering different prices to different clients. They will find out sooner or later.
Question
I began fundraising and grant writing for small groups on a freelance basis and some as a volunteer. I enjoyed it so much I decided to start my own company. I would like to build a firm where I can higher a staff. What advice can you give in securing financing?
Answer
First I recommend that you have at least six months of required living expense in the bank already. Borrow as little as possible. If you need start up financing, you could always obtain a loan from your bank. You will need a business plan. You could also check with the Small Business Administration. Or try these creative ideas.
- Obtain a loan on the equity in your house.
- Borrow against your life insurance policy.
- Obtain a line of credit from your bank.
- Sell something, such as a boat or motor home.
- Ask a friend or colleague to sponsor you.
- Spend less, e.g., forego your vacation this year.
Question
I am a seasoned, PhD school administrator (l9 yrs. I am very motivated and interested to begin consultancy work (part-time) and market my skills (training, evaluation, program development, conflict resolution, cause/effect diagnosis, team building, data analysis, applied brain learning). What is my first step?and I was laid off in September 2002. I worked as a Training Specialist for 3 1/2 years; I have a master in Adult Education/HRD and I would like to continue in the Training and Development field. I am interested in becoming a Training Consultant, but I do not know where to begin. Please give me some direction.
Answer
Let me respond to both of you at the same time. This column has been in existence for well over a year. Look back through this column and read the responses to others in your same situation. Start with question 2 in March 2003.