This consulting post is a bit overdue. The majority of my readers tend to be other consultants. Questions about the subject abound, and there’s no one right way for everyone. Therefore, I have gathered here some tips and questions on closing a deal that works for you. I am grateful to the people who I have also asked for help and advice, and who shared their wisdom with me on the topic.
At a minimum, you need to qualify the entity that wishes to engage you. IBM is known for creating the BANT system, which asks you to consider Budget, Authority, Needs, and Time. You can Google that term to learn more.
When it comes to my business, or for people who ask for advice, these are the things we discuss, depending on their situation. YMMV; not all of these questions are relevant for everyone. Take what you need, and comment on what else you’ve learned or if you find these tips useful.
Ready? Here we go.
Metrics
What what will your client consider as success? Do you have a different definition of success? Trust me. You don’t want to be unclear about this part of your consulting engagement, because it will make or break you, even if everything else appears to be ok. I repeat: get crystal clear on how your work will be judged. After the fact is too late.
Flexibility
How will you work? Do you want to control what works for YOU? Are you just another employee by a different title? Are you temporary help, CTH (contract to hire)? Are you an independent worker, or are you running a business that offers services?
Consulting Scope and Non-Negotiables
What do they want you to do, versus what you want to do? Where is there daylight between the two of you? Are you going to be an individual contributor, a leader, or a trainer? Are you there to keep the lights on? Are you there to build from scratch (greenfield), fix broken things (brownfield) or to optimize, thereby bringing them to the next level? Don’t forget your non-negotiables! Be sure you can tolerate theirs, and that they will accept yours as well.
Delivery Time
What do you need to deliver? How often? Are there any hard dates?
Billing
What will be your invoicing method? How will you address timeliness of payment? Will you impose a penalty if not paid on time, or pass along any fees (i.e. credit card payment processing fees, bank wire fees)?
How often do you want to be paid? Weekly, bi-weekly? On terms of 30/45/60 days? Would you establish some other staggered schedule if you haven’t done business with them before?
Incidentally, all or most of these questions can be taken care of by using a product like FreshBooks.
Expenses
If you are not 100% remote, must they pay or reimburse all travel-related expenses, or will you offer an all-inclusive rate? Note that travel perks and prices fluctuate due to peak travel seasons, destinations, whether the car rental places are having a slow week, holidays, and more.
Conclusion
Hopefully, a good number of these questions will help guide your future conversations the next time someone calls you for consulting work. They can help you determine whether it’s an opportunity that’s in line with what you want.
This article is spot on and gives valuable insight. With a consulting opportunity currently on the table, this article couldn’t have been more timely for me. I’m wondering about the metrics you described. How do you make sure there aren’t any hidden assignments that might “pop up” later on that aren’t captured in the rate you’ve negotiated? And what do you need to think about when deciding on how you will structure the schedule (or number of hours) you work?
Thank you, glad you found the post useful.
Scope creep can happen; you can say something to the effect that you can be flexible down the line, but according to their budget. Don’t close a door, if you don’t know it may eventually benefit you. Your objective is to limit any downside. On the other hand, if you don’t want to go beyond the original scope, tell them that the deliverables you’re agreeing upon now are all you will entertain.
Work hours can be negotiated to a point; be reasonable, and perhaps identify the hours you do *not* want to work. Flexibility is a 2-way street.
Thanks for the feedback. “Scope creep” is probably my main concern. But I hear you on being flexible and keeping the door open. I’m looking forward to this opportunity and praying for success! I’ll definitely keep your advice close as I go through the negotiations.