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August 2006 

Question

I am entering into a 2-3 year relationship with a corporation. There are two of us dedicated to this project that will involve training, consulting, retreats, meetings, etc. When you work with a company like this, do you charge a fee upfront, e.g., a retainer fee?

Answer

I never change an upfront fee, but I do expect clients to pay within 30 days of billing. You don't say why you are considering an upfront fee. If it is because you are unable to handle the cash flow, you may wish to bill twice monthly. I suggest if this is the case that you bite the bullet as opposed to looking like a poor funds manager. A retainer is used if the number of work days is predictable and you would charge the same fee every monthly. I think you may be using the word "retainer" differently. I do have a couple of cautions for you. Be careful that the two of you do not hold lots of days and then the client doesn't use them. Clients may be over-zealous early on. Therefore in your proposal I would suggest a minimum amount of time to schedule (60 days isn't too much given that you will need to complete prep for many) and a cancellation clause--just in case. Clarify in your proposal how much each event will cost and then bill for the events as they occur.

Question

I would like to get into consulting. What do you see as the most important skills required of a consultant?

Answer

The following are the results from a survey conducted by the Independent Consultant's Association of its membership. Presented in order:

  • Knows how to diagnose any problem, structure or organization methodically.
  • Is constantly learning and growing.
  • Never misses a deadline.
  • Can prepare a compelling report with clear, helpful graphics.
  • Knows how to tap the right and left sides of the brain...logical/creative.
  • Loves the client/prospect and becomes a true friend.
  • Understands how to use leverage for clients as well as in his/her practice.
  • Is technologically competent.
  • Knows how to run and participate in meetings with equal effectiveness.
  • Knows what's going on in the world and is generally well read.
  • Writes powerfully, logically, and enthusiastically.
  • Knows how to give credit without losing it.

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