Consulting

Evaluating Consulting Opportunities

New consultants may be tempted to jump at any business opportunity that comes along. A new consultant should, however, gather information about the client in order to make an informed decision about pursuing a consulting opportunity. This process, called qualifying the client, involves considering the nature, scope, and urgency of the project, as well as the client's budget. It is also helpful to find out about the client's desired outcomes and decision-making process. In addition, it may be useful to know whether the client has had successful experiences with consultants in the past, and what they feel the major obstacles to success would be for the project under consideration. A face-to-face interview and a formal request for proposal are the two main tools companies use in selecting consultants. Consultants can use these tools as a way to find out more about their clients, as well.

Proposals and Contracts

Proposals are an important part of the consulting business. Sometimes proposals serve to introduce consultants and their services to prospective clients, while other times proposals serve to finalize the arrangements between a consultant and a client. Prospective clients may request a formal proposal in order to compare several possible consultants, make decisions related to budgets or scheduling, or simply to collect ideas about how to solve a particular problem using in-house resources. Though companies sometimes ask for proposals and then do not end up hiring a consultant, companies that make a habit of such behavior are simply looking for "free consulting." Most experienced consultants try to discern the motives of potential clients ahead of time in order to avoid committing excessive time and resources to "free consulting."

Prior to submitting a proposal, a consultant needs to gather information about the company and its problem from interviews and outside sources. When writing a proposal, it is important for a consultant to demonstrate a strong understanding of the client's needs, describe his or her own ability to meet those needs, and detail a plan of action toward that end. Many successful consulting proposals are divided into three sections: the introduction, the methodology section, and the timing and cost section. The introduction provides an overview of the proposal, and should be used to demonstrate the consultant's understanding of the client's needs and desired outcomes. The methodology section is the main part of the proposal, and specifies the actions the consultant plans to take in order to provide a focused solution to the client's problem. It may also be helpful for the consultant to mention any unique services or expertise he or she can offer, in order to differentiate the proposal from those submitted by other consultants. The timing and cost section provides a realistic and specific fee structure and schedule for completion of the project. In addition, the consultant may wish to outline what effect, if any, the consulting process will have on the client's internal resources.

Proposals should be written in a conversational tone, without excessive use of technical jargon, and with the prospective client's needs in mind. The consultant may benefit from keeping in touch with the client while writing the proposal, as this helps avoid misunderstandings or incomplete information. If the consultant receives the assignment, the proposal then serves as the basis for a formal contract. Although some clients may simply sign the proposal to authorize the consultant to begin work, many consultants prefer to clarify the arrangements in a separate document. At a minimum, the contract should outline the scope of the project, the consultant's fees, and the proposed time frame. There are several other issues that the consultant may wish to address, including conflicts of interest, subcontractors, insurance/liability, expenses, confidentiality, and cancellation.

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