January 2007

Question:

I would love to get into consulting. I have heard you say in a conference presentation that one way is to obtain experience as an employee in one of the national or local consulting firms. Where can I begin my search? I am able to move anywhere in the country.

Answer:

First, remember to use your network. Let people know what you want to do. Next, check the web for job listings. Here’s a quick rundown of several sites. Check www.WetFeet.com, the site lists consulting jobs by state, company, city, and even pay. Jobs can be sorted by categories as well. The day I checked 3000 consulting jobs had been posted in the previous 30 days. Other sites for consultants include www.Top-Consultant.com , www.consultingmag.com, and www.amcf.org. At least four sites, www.TheLadders.com, www.Netshare.com, www.6FigureJobs.com, and www.ExecuNet.com  post only jobs with annual base salaries of $100,000 or more. You may have to pay a monthly membership fee to access some of the data. Although the last four do not focus on consulting, a fair number of consulting jobs are posted there because of the high salaries.

Question:

How many clients does the average consultant have?

Answer:

I don't know if there is an “average” consultant. It depends on a lot of things: How long your typical engagement lasts; what percent of face time or billable time you have with the client during the engagement; how many days per month you intend to work; and how much you are charging. All of these create a formula for the number of clients one has.

When I first started as a training consultant, I conducted one or two day training sessions and had about 20 or 30 different clients at any one time. I was constantly in a frenzied state! I changed my marketing strategy to seek longer projects with fewer clients and plan for a year at a time. I find this easier to manage.

I currently have nine clients. I work with one of my clients every week onsite. I work with another once every month. I coach one almost every other day. Two are periodic, but at least every other month and when they are it is intense work for at least five days. The other four are different levels at different times. These clients will change throughout the year. One or two projects will end and then a new client will come on board, or a client from five years ago will call with a project. That number seems about right for me.

Take care that you do not end up in a position with only one client or two clients. A change in the economic climate or the industry or even a change in leadership could end a project abruptly. The average (if there is such a thing) consultant will work with five to ten clients at a time. This allows for the gentle shifting of the client tide as one moves out another moves in.

Keep in mind that this also means that while you are serving your five to ten clients, you are also marketing so that you have clients ready to move in to the empty spots where you completed one of your projects.

Question:

How soon should I open a bank account for my consulting business?

Answer:

You should begin keeping your business finances separate from your personal funds immediately. And the easiest way to do that is to open a bank account for your consulting practice. Even if you are a sole proprietorship, having a separate commercial bank account adds substance to your enterprise—and makes it easier for you and your accountant to sort things out at tax time.