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How to Find Consulting Clients

chrisachard.com

81–90 of 97 posts

Re: How to Find Consulting Clients

#81

I started a consulting business doing CRM work on nights and weekend about five years back that’s now running close to $100k/mo. It all started from a former colleague who’d moved onto a new role and asked me to help them set up their CRM. This colleague talked to their friends, I started mentioning it in casual conversation and more referrals started pouring in. This process of working nights and weekends meant I co…

Is this business just you, or do you have employees now?

If it's just you, how are you billing? If you're working on a day rate, 100k/mo is something like 5k/day, which seems high but not absurd. Or do you have retainers or something where you can essentially bill for access rather than time spent?

Re: How to Find Consulting Clients

#82

Earlier quoted context omitted.

I strongly disagree. Nobody hires somebody to tell them what to do, ever. "Consulting" is always ultimately a euphemism for just contracting or freelancing. It's a figment of the imagination of McKinseyites and other people in suits who don't like to think of themselves as excel monkeys or powerpoint monkeys in the same vain as there are code monkeys.

> Nobody hires somebody to tell them what to do, ever. Uh, that's literally what my clients hire me to do. I don't do any of the work for them - I analyze the current situation, and give them a checklist of what to do in order to solve their problems. I don't do the work.

I think that is literally what you think your clients hire you to do.

I've seen things that look like this on the surface play out numerous times, and at a deeper level it always turns out that what's going on is something different.

Example. SURFACE: Startup CEO hires consultants to tell him the next product line for his company. WHAT'S HAPPENING: CEO sends consultants off to do surveys, competitive intelligence, spreadsheets with made-up numbers, literature reviews, etc etc to build a case for what the next product should be. Also provides the slightest of hints that product X is something they should be looking into amongst other things (just a suggestion of course). Whenever consultants make recommendations that advance the agenda of company getting into product line X, recommendations are followed. For all other recommendations, CEO sends consultants off to do more surveys, more competitive intelligence, more spreadsheets with made-up numbers. BENEATH THE SURFACE: CEO woke up one morning, having decided to do product X. Needs to make it look like something other than his sheer whim. Hires some excel-monkeys to create a trail of documents, meetings, scribbles on whiteboards etc. Decided to outsource the excel-monkey work because he didn't want to distract his actual employees from doing the work that actually needs to get done to keep the company going.

Other example. SURFACE: Network incident response division in major international telco corporation hires consultants to determine the prioritization function for network incidents. WHAT'S HAPPENING: The network is rotting away. Every day, more incidents get created than the company has resources to address. There's a hiring, spending, and capex freeze, so there is no way to get the resources that are needed. On regular intervals, mid-level managers get shouted at by top-level bosses about why on earth they didn't give priority to fixing that one network incident that resulted in Tom Cruise being without a signal when golfing last weekend that resulted in a lot of press attention and ultimately even an enquiry from the regulator. Whenever that happens, mid-level managers change the prioritization function, to try to appease top-level managers. They have already done this 3 times this year. Then they have a great idea: Let's hire some consultants to determine the prioritization function. BENEATH THE SURFACE: They know that the whole endeavor is futile and doomed to failure. No matter how they prioritize incidents, the network will keep getting worse, and angry tweets from Tom Cruise about the shitty network will become an inevitable element of the brand. The outside consultants were hired as scapegoats. Next time the mid-level managers get shouted at by top-level bosses, instead of saying "Sorry, but we will really really get it right next time" they can say "I am just as shocked as you are! I told you we shouldn't have hired those moron consultants! But us mid-level managers, we will still be getting our bonuses this year, right? Because, ever since these consultants have been here, we ourselves, didn't screw up. Not even once!".

...I hope you see where I'm going with this.

Actual opportunities to make actual meaningful decisions are the rarest of things in business. You chance into one only rarely in your carreer. And when you have one, you don't ever give it away. No one does that.

Re: How to Find Consulting Clients

#83
post #81

I started a consulting business doing CRM work on nights and weekend about five years back that’s now running close to $100k/mo. It all started from a former colleague who’d moved onto a new role and asked me to help them set up their CRM. This colleague talked to their friends, I started mentioning it in casual conversation and more referrals started pouring in. This process of working nights and weekends meant I co…

Is this business just you, or do you have employees now? If it's just you, how are you billing? If you're working on a day rate, 100k/mo is something like 5k/day, which seems high but not absurd. Or do you have retainers or something where you can essentially bill for access rather than time spent?

I've got a team now...growing. We do have both retainers and hourly rates

Re: How to Find Consulting Clients

#84
post #59
post #42

Earlier quoted context omitted.

> 2. Focus on smaller to mid-size companies (large corporations likely have the tech team and contractors to cover almost of their needs) Another aspect of this is that large corporations have pretty byzantine processes for hiring/vetting vendors. A freelancer acting as a sole proprietor or single-member llc raises risk factors with being classified as an employee, and will likely have to get routed through a third-p…

If a decision-maker at a large corp wants to work with you, they'll find a way to cut through the red tape. When I consulted for a multi-national telecom company, the "paperwork" was easier to go through than for some startups. I filled out one form, sent my W-9, and configured auto-invoices to go to a designated email address. As the scope grew and my invoices reached a certain number, they asked me to fill out one…

In general, the above poster is correct. I'm glad you had an easy time though.

Re: How to Find Consulting Clients

#85
post #9

Earlier quoted context omitted.

Do be careful. Becoming overly dependent on upstream "feeders" is what killed my company. It is a balance. Turning down work is dangerous, and the generally opposite of why you're in business. But giving other firms too much leverage will kill you just as dead as insufficient work. I started getting nervous when one company was over 50% of our income, but there was disagreement about urgency and what exactly to do ab…

I my experience, at least for an individual, I think saying no is exactly the opposite of dangerous. I’ve been contracting exclusively for 10 years and said yes about 6 times and no dozens or hundreds of times. As long as you say no frankly, with a reason, and offer some names of people who can help, people are happy with you and will more often than not ask again in the future. Saying no, especially for bad fit, is…

Oh, absolutely, I couldn't agree more.

I guess I should add, this was in the 2000s. We started the company in the aftermath of the dot.com crash. Getting work was a major challenge, and turning down anything felt like asking to be made homeless. It is a very different market now.

Re: How to Find Consulting Clients

#86

Earlier quoted context omitted.

> Nobody hires somebody to tell them what to do, ever. Uh, that's literally what my clients hire me to do. I don't do any of the work for them - I analyze the current situation, and give them a checklist of what to do in order to solve their problems. I don't do the work.

I think that is literally what you think your clients hire you to do. I've seen things that look like this on the surface play out numerous times, and at a deeper level it always turns out that what's going on is something different. Example. SURFACE: Startup CEO hires consultants to tell him the next product line for his company. WHAT'S HAPPENING: CEO sends consultants off to do surveys, competitive intelligence, sp…

To add to your first example... New product fails miserably in the market. CEO blames consultants for the failure, retains his job and gets his next bonus as scheduled. Rinse, repeat.

Re: How to Find Consulting Clients

#87
post #59
post #42

Earlier quoted context omitted.

> 2. Focus on smaller to mid-size companies (large corporations likely have the tech team and contractors to cover almost of their needs) Another aspect of this is that large corporations have pretty byzantine processes for hiring/vetting vendors. A freelancer acting as a sole proprietor or single-member llc raises risk factors with being classified as an employee, and will likely have to get routed through a third-p…

If a decision-maker at a large corp wants to work with you, they'll find a way to cut through the red tape. When I consulted for a multi-national telecom company, the "paperwork" was easier to go through than for some startups. I filled out one form, sent my W-9, and configured auto-invoices to go to a designated email address. As the scope grew and my invoices reached a certain number, they asked me to fill out one…

As you said, every capable manager learns how to work the system for when the situation warrants it.

I currently work (as an employee) for a marketing agency doing analytics consulting work, and we're frequently used as a backdoor to get around internal controls, be it hiring specific subcontractors or unapproved technology. Because the SOW that allowed for (and specified) that passthrough cost gets approved by their legal team, it's an unofficial way for many of our clients to both stay within the lines while simultaneously bypassing internal roadblocks. A particular favorite example of mine was helping a client swap out their janky WAF with Cloudflare, and using Cloudflare Workers to do some magic header rewriting to solve a longstanding issue of theirs. It solved a business-impacting issue that had been plaguing the marketing team, and the client's networking team was super excited to work with me on it as they'd been wanting kick the tires of Cloudflare but couldn't ever get it pushed through.

That said, the situation I mentioned in the above comment is typically the official process at many Big Corps (at least in the US, where the contractor vs. employee classification is a very big deal[1]). Some Big Corps are less risk averse, and virtually every Big Corp has tribal knowledge among the management on how to get things done when they need to. But you can generally avoid the issue entirely by focusing prospecting efforts downmarket at smaller enterprises.

[1] https://www.reuters.com/article/businesspropicks-us-findlaw-...

Re: How to Find Consulting Clients

#88
Curious anybody use Facebook or google ads to find freelance or consulting clients? I'm finally building up some cash stores after a summer drought, but I'm working 70 hour weeks at $25/hour, trying to finish up the 25/hour gig as my other client is $40 and I'd like to get back up to my normal rates of $60-70/hour.

I've been doing laravel/fullstack since 2013 and vue since 2016. I also know basic devops stuff. How to use aws. I've even used ML recently with aws/rekognition and python/nltk-rake. I'm horrible at selling myself but I can't take another < 60k year - when I know I'm worth more than 100k.

Re: How to Find Consulting Clients

#89
Very good article! The only point that I don't agree with is about not freelancing websites.

When I started consulting/contacting 1.5 years ago I did start with a freelance site and at this time about 90% of my jobs still come from there. I would much rather have clients from outside of the platform but I don't find it easy to close them.

I need to point out that I'm in a very niche field (at least on Upwork); On average month I see about 3-5 quality jobs I can apply to and quite often I see them getting less than 5 proposals. I expect this wouldn't be a case for web development projects.

Re: How to Find Consulting Clients

#90

Earlier quoted context omitted.

I strongly disagree. Nobody hires somebody to tell them what to do, ever. "Consulting" is always ultimately a euphemism for just contracting or freelancing. It's a figment of the imagination of McKinseyites and other people in suits who don't like to think of themselves as excel monkeys or powerpoint monkeys in the same vain as there are code monkeys.

> Nobody hires somebody to tell them what to do, ever. Uh, that's literally what my clients hire me to do. I don't do any of the work for them - I analyze the current situation, and give them a checklist of what to do in order to solve their problems. I don't do the work.

Your clients hire you and tell you to find their sql performance problems. How is that not them telling you what to do, and you doing it?
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