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In January, the Professional Consultant’s Association of Central New York has as its presenter Robert Rothman of Robert Rothman PC, a lawyer specializing in medical billing collections but handling collections of all types. He spoke to the organization about making sure consultants get paid for their work.

via Flickr

It’s an interesting topic when you think about it because most of us have had an instance where we’ve wondered if or when we’re going to get paid for our work. Even if we have a contract, sometimes it takes some effort to get paid, to the extent that we might have to go the legal route to get our money.

Rob had taken a look at the contracts of many of us to see if there were any glaring omissions and he didn’t find any. Then he made recommendations to the group, as well as asked a very intriguing question that everyone in the room had to give affirmation to. Here were 3 main points and the big question, which we’ll start with.

1. Would you rather you not be paid or your competition not be paid? So many consultants and small businesses are afraid to cut loose clients who don’t pay us timely or at all because we’re worried those folks might go to someone else. Rob’s question to us was why we feel those clients are worthy to continue working with us if we’re always fighting to get paid by them, and just how much are we losing if they go to someone else.

2. Make sure to get the legal entity on the contract. His point here is that many times you’re signing up to do business with an organization but either the wrong person is signing or the contract is set up for the person to sign as themselves when you’re actually working for someone’s corporation.

3. Make sure there’s always a drop dead date on your contract for payment. Many of us say things like “within a month” or might add interest after so many days but very few of us ever have a specific date that they must be paid by.

4. Make sure there’s a clause stating a guarantee of payment. This protects you whether or not someone liked the work you did, which is sometimes a platform someone you take to court tried to hold you to, even if you did good work. If you add a line saying the client only has to pay if they like your work often means you’ve given way too much leverage to a client. If you did the work and they didn’t like it, but it was quality work, you deserve to get paid regardless.
 

For our December meeting, we had a presentation from the local head of Peak Performance, a sales training organization affiliated with the Sandler Training System, Rick Olszewski. The Professional Consultant’s Association of Central New York gets some very good presentations every year, but this one was over the top.

Basically, Rick gave us lessons on being in business, not necessarily marketing or sales. I believe that everyone in the room walked away with some valuable information that they can use. I certainly walked away with some major lessons I knew I needed to incorporate into my business, although I also walked away feeling pretty secure that some of these lessons I already knew. What were some of those lessons? Luckily, I took notes. Here’s what I came away with:

1. Never defend, apologize or justify your price. Those who treat you as a professional will accept your price and your background. Those that don’t might not be serious about their business, and might not be your target market.
2. No mind reading. You never know what someone else is thinking when it comes to your business or your price when you market to them, so don’t beat yourself up before you’ve even tried.
3. Ask the client what their expectation is of what you can do for them. Sometimes what we know needs to occur and what the client thinks needs to occur don’t match up.
4. If you find yourself negotiating with yourself, go higher. Most people start lowering their price when they’re trying to get business. You have to be willing to value your own services more by potentially raising your rates.
5. Ask if the client has a budget first and then determine if you can work within that; get it out of the way early. Many of us go through the motions, think we have something lined up, only to discover once we tell the client the price that they can’t afford it.
6. Without the cost of the pain & personal impact you can’t sell. Not your pain but helping your potential client find their pain so that they’re salivating to work with you rather than your having to work hard to get their business.
7. You must always be willing to walk. Whether it a deal where you feel you’re wasting your time or a gig that’s giving you more trouble than it’s worth, you just might have to be the one to end things and move on to the next potential client.
8. Never become emotionally involved in a negotiation. If you seem too eager potential clients will feel it and you might lose your edge, ergo affect your potential income.
9. First concession must be the most difficult decision you make. Never reduce your price until you get to the point where you know it’s the only way you’re going to get the deal. Remember the line above about going higher on your price? This is why.
10. If you have to make a concession look to the future to know where the final price may be. Look for something on the back end you may be able to give up.
11. Always have a walk away price prepared. Don’t let anyone nickle and dime you down to the point where you’re going to either lose money on the deal or feel like you’ve been taken, because you won’t do the best work and you’ll resent both the client and yourself.
12. 80% of all concessions are given up in the last 20% of the deal. Basically this means that since price is often the last thing you and your potential client will talk about, this is when the client might start to try to negotiate your price and you’re trying to save it. Hence, the recommendation to try to get price out of the way earlier.
13. 90% of the time a potential client has already decided who they’re going to hire. In other words, don’t take rejection personal because it’s possible the deal’s already been done, in which case the decision has nothing to do with you. Once again, don’t take it personally.

 

Although not every meeting has a confirmed presenter, we’d like to share with you what’s upcoming for the rest of the year as much as possible, including our official meeting notice for our next meeting:

Controlling Your Expenses

A Roundtable Discussion

Friday, February 10, 2012, 8:00 A.M.
Centerstate CEO (Syracuse Chamber) Building
572 South Salina Street, Syracuse NY

Sometimes we get so focused on generating income that we lose sight of our expenses. However, as the old wisdom goes, “How much you make is not as important as how much you get to keep.”

During this discussion, we will share ideas on how to minimize expenses in order to maximize net income. Please be prepared to offer examples of your successes (and your failures, if you care to share them) and to adopt those best practices that will help you keep more of what you make.

The other planned meetings for the year are thus:

March – print advertising; presenter to be determined

April – Roundtable, Avoiding Scams

May – Business Ethics, Arnie Poltenson

June – How Does Broadcast Media Work? , John Hunt Cumulus Media

We hope to see you at one of our meetings.
 

We’ve all been to some kind of presentation that talks about trying to figure out what you’re worth to your clients. And yet, many of us still struggle with this issue for whatever reason.

Oh sure, the reasons are many. Am I worth this much? What are others that do what I do worth? Will I get any business if I charge this amount? Will I get too much business if I do this? Is what I want to make reasonable? Throw in your own beliefs, then let’s come to grips with our reality.

As an independent consultant, you came into this with many risks. The biggest risk was whether or not you could make a living at what you do. After all, you still have to live. But life isn’t only about surviving; it’s really about living. Once you’ve made enough to pay your bills, do you still have enough left to actually enjoy? Are you making enough money so you can go on vacation, buy a new car, go to the casino, the movies, or whatever it is you want to do? Are you beholden to having to work 16 to 20 hours a day just to stay on top of things, or do you deserve to take a break here and there, maybe even go to a conference?

I’m no different than anyone else when it comes to this topic, except for one main thing. I have decided that, indeed, I am worth it. Ah, but just what am I worth, and why?

I like to figure things out this way. Since I do so many things, I figure that the dollars I deserve should be calculated differently. There’s the hourly consulting rate, the project rate, and the presentations rate. I’ve determined that everything I do falls into those three categories. Within those categories, I get to think about how I got there, what I believe it’s worth based on what I had to do to get there, and what it’s worth to potential clients. I also get to throw in there what needs to be done, preparation, expectation, and of course the market; if the market doesn’t bear the price then my beliefs don’t matter at all.

All of us are skilled at what we do. We’ve all spend lots of hours learning how to do what we do, and we continue learning almost on a daily basis. How much money are other people making off of what we do? I always start with that one, and I think about it in terms of athletics. I’m not one who ever gets mad at what an athlete makes because I figure if someone feels they’re worth that amount, that someone is obviously making even more.

If I do some calculations and know that a client will be making millions after I’ve done a certain project, I have no qualms about asking for $20,000 to $25,000 as a fee. They might, but I don’t; I know I’m worth it, and I’ve proven it.

If I know that I’ve not only studied something, but now I’m rehearsing it so I can present it smoothly to many others, and I know they have the money to pay for it and will make more money if they follow what I teach them, I have no qualms about asking for a certain fee once again.

If I have knowledge that someone else doesn’t have, I have no worries about my fee. If someone else brings down the worth of my fee by undercharging, it’s on them, not on me. I figure I know my worth, even if I don’t hit that worth every time out; after all, modification is what we do. At least I shoot for my worth; how are you doing on that front?
 

At the PCA meeting this coming Friday, December 9th, the presenter will be Rick Olszewski of Peak Performance speaking to us on the topic of Artful Negotiation.

Many of us in PCA have known Rick for a long time. He gives a very energetic presentation, as he always has at Peak. This is a company that offers sales training classes for businesses of all size, and depending on the company will either do them on site or invite participants to their training room at the Dermody, Burke & Brown building on Franklin Street. The president of Peak Performance is Pete Morrissey, but DBB actually owns (partners, but we all know what that means) the organization, whose training is based on the Sandler system.

As always, if this is your first or second meeting the cost to you is only $20, and the meeting is at the Centerstate CEO building at 572 South Salina Street. We start at 8AM with some networking, then introductions and organizational business follows and Rick O, as he’s known by, will start around 8:30 and run until close to 10AM. Trust me, if you come to his presentation you’ll easily get your money’s worth, as his training usually costs a lot more than $20; that and you can ask questions.

Hope to see you there.

Sometimes the world of consulting is seen like the world of insurance salespeople, and that’s not meant to denigrate them. When someone asks you what you do for a living and you say “consultant”, they look at you like they believe your job is to go into businesses and tell them everything they already know. Either that or they see you as someone who will make bold promises that can’t be kept. Dilbert hasn’t been kind to consultants over the years, yet we all know the comic is fairly accurate much of the time.

I’ve been a consultant for 10 years now, and I have experienced a variety of emotional responses based on who I talk to and when I talk to them. The best experiences I’ve had are when I’ve been able to share something that not only works but is totally truthful, and representatives of the client being shocked that something actually worked. I’ve actually had people surprised when I said every once in a while “I don’t know”, thinking that’s the most honest thing they’ve ever heard.

The flip side of course is having those people who don’t want to even give you a chance because they’ve had other consultants who have failed them. Suddenly you’re grouped with those who violated the ethics of being a consultant because they weren’t properly prepared to do the job, and that’s a hard one to overcome.

I’ve known some of these other consultants. Probably the worst of the lot was the guy who kept telling upper management and the company I was consulting for that he could do pretty much everything. I’ve actually heard business coaches tell people to never admit to not being able to do something, but this was way over the top. Upper management ended up giving him some extra responsibilities that quickly turned out to be something he wasn’t qualified for. I know this because I was qualified to do the job and I kept telling him he was wrong. It never occurred to me to even mention that I could do it because I was doing a different aspect of the project and not trying to find ways to keep myself there, where we were all earning a pretty penny. When I finally went over his head and got the corrections that were needed to help the department he’d been put over work better, he actually tried to make me the heavy for making him look bad, and I had to tell him that it wasn’t about him; it was about doing the right thing for the client.

That’s really the big thing about being an ethical consultant. It’s not whether you look good or someone else looks good or whether someone else has to look bad or you have to look bad. It’s always supposed to be about the clients and their needs. Of course clients can be a pain in the behind as well, and one of those ethical things that I believe some consultants need to learn is how to fire clients. If you’re working with someone who keeps getting on your nerves you not going to give them the best you have to offer, and that’s going to make the world of consulting look bad as well.

The PCA has an actual page of ethics online. I don’t know if everyone’s taken a look at it but it’s the most visited page on our website. If you haven’t seen this, or haven’t seen it in awhile, go take a look; we’ll wait…

That’s some pretty heady stuff, don’t you think? How much does anyone believe this is true? Actually I believe all of it is true with the possible exception of the last one, and that’s only because I don’t know if the organization has ever been contacted by someone to complain about one of our listed consultants. That doesn’t mean we wouldn’t act on it, but if we’ve never had an opportunity to act on it the it either means that every member of PCA throughout history has been above board or there’s no one who knows that someone is a member of our organization to know the complain to us about them.

Still, not knowing about us or our statement doesn’t give allowance not to be ethical. There needs to be a moral compass for all of us as consultants that leads us to want to do the right thing. Personally, I believe that almost every single person I’ve ever met who’s been a member of this organization has been ethical. Were all out there trying to do the right thing, and at times will also point out something when we know it’s not the right thing.

Ethics are never totally black and white; if they were, Captain Kirk and Captain Picard never would have violated the prime directive as many times as they did. As long as we as individual consultants continue to try to do the best we can, and as long as we, the members of the Professional Consultants Association of Central New York continue promoting ethical standards for all consultants, it’s pretty much the best we can ask for. We help each other to be better; what can be more ethical than that?
 

A few days ago I was having a conversation with my wife about consulting. I told her how over this past year I’ve spoken to maybe seven or eight different people who wanted to get into consulting, including a couple who do some of the things I do in trying to make a living. I also said that when I first got into the business how I found it difficult to find people who would talk to me about consulting, even if I didn’t do what they did, because they kept seeing me as competition instead of as a comrade. She said what’s the point of being a consultant if you won’t even talk to people who ask questions no matter what they are.

One of the great things about belonging to an organization like the Professional Consultants Association is that people are willing to talk about many things that can help someone be successful as a consultant. At least I see that now. When I was first a member of the organization there were a couple of people who still wouldn’t talk to me, and one of those people doesn’t talk to me to this day. I would bet that he wouldn’t recognize the behavior in himself, but the reality is that when I first went out on my own I was able to obtain a directory that listed the names of the bunch of consultants and I tried to call all of them. This one guy in particular actually told me that I was competition to him and therefore he did not want to share any information with me. This guy is also a leadership trainer; what kind of leadership is that? Luckily one guy I talked to was a member of this organization and he invited me to come and meet everybody else and I’ve been a member now for about eight years.

To me, the art of consulting is the art of wanting to help others be better. It’s not supposed to be about you, although a part of it has to be you because you have to make a living. There’s nothing saying consultants have to give away the farm; trust me, I’ve been burned on that one couple of times and I’m a lot more hesitant these days.

Still, it never hurts to help someone else be better, even if they’re in the same profession as you, because you never know how things could work out for you later on. That person you decide to give some information to regarding marketing today might be the guy who hires you tomorrow or recommends you for work to someone else. It kind of goes off that old line which says that the people you meet on the way up will be the same people you meet on the way down. Make a positive impression and you never have to worry about falling too far before someone offers a helping hand.

Most people have a bad impression of consultants, and I almost hate to admit this but they’re probably right. So many consultants seem to be in it for themselves instead of for others. I don’t totally have a problem with that, as long as we remember that in the long run it’s not really about us. I keep thinking that’s probably why I have so many blogs, because I have all this information in me that I just want to get out to lots of people. The little bits and pieces I share might seem like I’m giving it all away, and sometimes I think I’m giving it all away, but so many people are benefiting from the things I share that I just can’t stop myself. True, I won’t make money off of a lot of it, but I am gaining a good name for myself. People know that there is always someone there to try to help them in some way. They also know that at a certain point I’m going to ask them for money, and they don’t have a problem with that for the most part either.

In a way, I view consulting like every other type of art. Sometimes you don’t know the real value of it until much later on. If we can afford to wait, we might see great benefits from the assistance we give. And I have also found that there is a lot to learn when you’re giving, and even consultants have to continue learning right?
 

This information is brought to us by one of our PCA members, Monica Johns:

The TACNY Sweet Lecture 2011-2012 Series is getting underway soon and we’re starting off with a bang!

The Technology Alliance of Central New York (TACNY) and the Tech Garden will host “Nanotechnology: Driving a 21st Century Educational and Economic Renaissance in NYS” on Tuesday, October 11, 2011 at 6 pm at the Whitney Applied Technology Center at OCC. The featured speaker is Dr. Alain Kaloyeros, Senior Vice President and CEO, College of Nanoscale Science and Engineering (CNSE) of the University at Albany-SUNY.

Dr. Kaloyeros is a key player in the development and implementation of New York’s high-tech strategy to become a global leader in the nanotechnology-driven economy of the 21st century. CNSE has generated over $7 billion in public and private investments, including more than $6 billion from the federal government and the international nanoelectronics industry.

Dr. Kaloyeros will provide an overview of nanotechnology and will describe regional initiatives, including CNSE’s partnership with Lockheed Martin and CenterState CEO to develop the Nanotechnology Innovation and Commercialization Excelerator (NICE).

Admission for this exciting presentation is free and the event is open to the public. Snacks and light refreshments will be provided. RSVPs are preferred and are requested by October 4. Walk-ins are also welcome. RSVP to sweet.lecture@tacny.org.

For more info, visit here.

On October 14th starting at 8AM, the Professional Consultant’s Association meeting will feature Mitch Mitchell of SEO Xcellence talking about Social Media for Business. This will be a truncated presentation from his presentation last summer titled “Making A Splash With Social Media Marketing”.

Mr. Mitchell is a member of PCA, and also manages their website, writes most of the articles for this blog, and writes their monthly newsletter. He will also be presenting at this year’s BizBuzz Social Media Conference on November 1st on the topic The Business of Blogging As A Social Media Platform.

If you’ve never been to a meeting of the PCA you should consider coming to this one, as it’s the first meeting of the year. A typical meeting goes like this. The group first goes around and has everyone introduce themselves and give what should be their 30-second elevator speech; sometimes that speech goes a little longer. Then we talk about events in the area and any news that anyone feels is pertinent to the group.

Some months we have what we call a Spotlight presentation where a member of the organization is encouraged to talk about their business. They are given 5 minutes to present whatever aspect of their business they wish to talk about, then 5 minutes to answer any questions.

After that it’s presentation time. We either have a speaker come to the presentation or we have what’s called a Roundtable, where we have a topic and a moderator, one of the members, and everyone gets to participate. After all, everyone in the room is a consultant, and some of the people have been consultants for a long time.

The first visit to a PCA meeting only costs $10, and our meetings are at the Centerstate CEO building, 572 South Salina Street, Syracuse NY, in one of their conference rooms. We meet the 2nd Friday of every month unless we have to move because the chamber needs both rooms. We’d love to have you join us.

My name is Mitch Mitchell and I’m on the board of the Professional Consultant’s Association. One of the things we regularly talk about are the programs we’re going to put on. More specifically, we talk about the topics and speakers we think will bring value to the group meetings.

One of the biggest things learned over the years is that all of us have our own interpretation of what we think is valuable for us to learn. I’m big on marketing and learning things that help us as consultant’s survive. I go that route because I know that’s my every day struggle; how to continually get new business and how I can save my time by outsourcing, or hiring others, to do small things so I can concentrate on my business.

Some of the other consultants take a more worldly view of things. For instance, many don’t understand all the nuances of social media or how to use the equipment they should be using, or even if they should be using any of this equipment at all. They want to talk to people in the know on local happenings that they feel could give them an opportunity to get more work, or even new technologies or processes in the world that they think could be invaluable to them at some later point.

The overriding thing we all agree on is that consultant’s need to continually learn and progress. Everyone might not need to learn how to use Twitter but everyone needs to have an understanding of why social media works for some people. Everyone doesn’t have to have the latest smartphone but everyone has to have some kind of idea of how people are communicating in different ways such as through things like Skype, Google+ hangouts, and blogging. We all need to know what types of things we can have others do for us such as hiring accountants or people to cut our grass that takes a lot of stress from our minds.

And of course we need to stay on top of what’s going on in our own industries. Giving someone antiquated advice doesn’t work all that well if one wants to continue to be relevant, yet sometimes the basics are exactly what’s needed by a client.

What do you see are things that consultants need to learn for their business?
 

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