July 2004
Question
I'm interested in recruiting a highly experienced senior instructional designer with excellent development skills, familiarity with current technology, and some management background. Which recruiting method do you think is likely to provide the most select, qualified group of candidates? Local papers, trade periodicals, online, headhunters? And why would you recommend this resource?
Answer
If you have the money to hire a headhunter, go for it. Quite honestly, I believe your most success will come from networking. Call people you trust inside your industry as well as other consultants. Outline your needs. If they do not have anyone in mind, ask them who they recommend you call. I guarantee that in less than 10 well placed phone calls you will have at least two or three potential candidates. Are you aware that almost 70 percent of all jobs are filled through networking? Headhunting is simply an expensive form of networking.
Also, consider posting in the ASTD Job Bank. It provides a highly targeted audience of training and performance professionals! - ASTD
Question
I would like to know actual business procedures (the actual "how-to") of becoming an independent contractor/consultant. I am recently unemployed, and have been approached by a company that does "contract only" training that would like me to become an Independent Contractor (1099 employee). I have never done this, but I see only benefits for myself to do this. How do I become a Consultant?
Answer
What a great opportunity for you! As always, I recommend three books to get started. I call them the three “B” books because the authors’ names all begin with the letter B: Geoff Bellman’s The Consultant’s Calling for the philosophical perspective; Peter Block’s Flawless Consulting for the best consulting process; and Elaine Biech’s The Business of Consulting for establishing and running your business.
Question
What is the fee structure for developing a training program, supplemental materials and train-the-trainer program, which the client organization will then own?and I am preparing a proposal to write a training program and workbook for a new cashiering system for some 300 retail department store cashiers. I approximate the time to develop about 80 hours. I'm not sure what I should charge for this service?
Answer
I assume that both of you are independent consultants and that you have set a fee schedule. Designing a training program or materials is generally charged at the same (or slightly lower) rate. Perhaps the question here is that you do not know how long it might take. Your clients are not going to want to pay you by the hour with an open-ended contract—that would not be prudent on their part. That means you will need to estimate the number of hours or days it will take to develop the materials and multiply it by your rate. Then offer your client a price for the entire project, or price it by phases.
You will most likely follow the ADDIE model of Instructional Systems Design (ISD), Analysis, Design, Development, Implementation and Evaluation. Therefore, be sure to include time for everything that occurs in each of the five steps: the needs analysis, designing the program, developing the materials, developing instructor materials (role play cards, job aids, quiz and answer keys, props, etc.), developing instructor manuals (for a train-the-trainer), developing audio visual support (PowerPoint slides, overhead transparencies, videos, etc.) and any special requests by your clients. Remember to include time to meet your clients, time for rewrites, and time to implement a pilot session.
Next consider how familiar you are with the topic and how much research you will need to complete. Consider how you will handle the charges for additional work after the evaluation. I usually include any modifications in my original price for the project. The price tag to design a two day session could range anywhere from $25,000 to $250,000. It depends on the bells and whistles your client requests, how well you know the topic, how many changes you anticipate, and dozens of other things. Clients are usually willing to pay for the design because an independent consultant can complete the design much faster—for many reasons that I will not go into here—than an in-house training department. Good luck to both of you! Design is my favorite part of consulting.
Question
I'm starting a small consulting business and need help deciding if the best structure for my fledgling business is a sole proprietorship, an LLC, or other. Is there a way to get good information short of contacting an attorney?
Answer
Generally a small consulting practice is wise to start as an LLC or a Subchapter-S Corporation. However, I am not an attorney, and even if you are not ready to speak with an attorney now, I highly recommend that you do so eventually. In the meantime, ask your accountant for initial advice.
