The Expert Edge

The Accidental Consultant

Setting out to create my own destiny

Like many consultants, I started by accident.  Back in 1984, I was lured away from the relative safety of a Fortune 100 company to join a small Silicon Valley startup.  “Create your own destiny” was the pitch that got me.  I went from a cubicle in a vast engineering department to being 25% of the whole engineering team.  Little did I know, destiny  would only last one year.  However,  because of my experience, I was able to get a contract with a company in the same industry to design a similar product.  The rest, as they say, is history.  One thing and one contract led to another and I never did get another “real” job.  I became a consultant.

Join a group of like-minded consultants

One of those “things” that happened along the way was finding out about PATCA – the Professional and Technical Consultants Association.  I wasn’t even sure at the time that what I was doing was really a profession.  I was just trying to make ends meet and learn as much as possible along the way.  Then I discovered this whole organization devoted to Professional Consulting.  Other people were already doing the same thing.  Surely they had run into similar issues, W2 vs. 1099, health insurance, contract negotiations, where to find the next client…  All that stuff was detracting from the real work I wanted to do.  So when someone told me I could join a group of like-minded consultants who already had experience in making consulting into a profession, I didn’t hesitate.  I was now legitimate.  I figured that the relatively small annual fee was well worth the opportunity to gain knowledge, create associations, and meet new people in the profession.  That was in 1991 and I’ve been a member ever since.

It comes down to People

Twenty years ago, the word “networking” had not yet come into vogue, at least not as far as I knew.   Since then, the notion of networking has been dissected and disseminated.  It’s been defined, refined, analyzed and taught in college courses.  I wouldn’t be surprised if you could get a degree of some sort in Networking.  But what it really comes down to is:  people.  And PATCA is full of people representing engineering, marketing, human resources, business development, and a variety of other professions., regardless of our backgrounds, we are all consultants, with different skills, different experiences, and different contacts at different companies.  With each new conversation with a fellow PATCA member, I discover something new.  I have definitely met people with skill sets that I would have never come across in my normal routine.  And since I have become an active volunteer within PATCA, the networking opportunities for me have grown exponentially.

Exposure, exposure, exposure

They say that in real estate it’s all about:  location, location, location.  Well, in consulting, I’d have to say it’s all about:  exposure, exposure, exposure.  The more people who know you and what you do, the better off you are.  The more websites that list you and your skills, the better off you are.  People can’t hire you if they can’t find you.  In addition to networking, PATCA offers a keyword-filled online directory listing which you can edit, control and keep up to date on your own.  Potential clients can contact members directly or they can enter their request in an online referral system which gets sent to all members.

PATCA offers a variety of venues in which to network and learn.  There is an informal monthly lunch meeting as well as a more formal monthly dinner meeting, in which speakers are invited to give talks on subjects of interest to the consulting community.   Members can also share their own expertise by becoming a speaker themselves, thereby gaining exposure.  A member-to-member list server is also maintained, which members can use to communicate with each other.  I am often amazed by the quick and insightful answers that I see to questions that members pose.  They no doubt lead to many more private and in-depth conversations.

Need more convincing?  The dues are tax-deductible, the cost of dinner and other meetings are at least partially deductible, and travel to PATCA events can be written off as vehicle expenses.  PATCA recently reduced the annual dues to only $149/year.  Can you afford NOT to join?

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Why Can’t You Pick a Consultant’s Brain for Free?

Guest author: Carole C. Edman, SPHR, of HR Manager To Go Consultants.

In her Forbes.com blog post, consultant Adreinne Graham describes the complex issues consultants face when friends, family, potential clients, and business colleagues ask about business issues during informal conversations. These are often requests for professional advice, which we all give at times. Yet we are paid for our expertise and knowledge, which we tailor to specific client projects and situations. Graham’s response is a resounding, “No, You Can’t Pick My Brain. It Costs Too Much!”

Does this sound familiar? Their “…mission is to pick my brain to gather as much free intel and knowledge they need to make their jobs easier.” Graham says, “Not gonna happen, sorry. My brain costs money to maintain. There’s training, classes to attend, reading (I have to buy books), gaining certifications, costs of memberships so I can network, attending conferences and mastering my skills that all cost me money.”

Physicians hate to be cornered at cocktail parties or family dinners! We understand that doctors, at a minimum, need to review patient history to give proper medical advice. In HR, employees often ask about a personal issue or want to talk off-the-record, but we can't violate client policies. Even though we may want to help, we can't.

Every professional must decide what is appropriate and when to give free advice without the proper context and without payment. Prospective clients sometimes push the boundaries, too, by:

• Picking the consultants brain as a test of knowledge, like taking a new car on a long test drive.
• Spending too much time discussing details before approving a consulting agreement.
• Asking for lengthy proposals that explain exactly how the client's problem would be solved.

Assessments require an up-front consulting agreement and fees, with confidentiality terms to protect both parties. Otherwise, the proposal can be shopped around for a better price, leaving the consultant uncompensated for a good faith effort.

It isn't easy to say no, but establishing clarity at the first contact makes navigating tricky issues much simpler.

© 2011 Carole Edman & Associates

Senate Repeals New Requirement for 1099s

Today's guest author, Jim Lansing, of San Francisco Management Group, shares some timely information about a legislative repeal that is especially important to independent consultants and therefore to PATCA members.

First, some background. All independent consultants who have clients have had to deal with the 1099 MISC issued by their clients after year end if they have been paid over $600 over the course of that calendar year for their services. So, that is no surprise and an easy tax requirement to live with for clients engaging independent consultants as well as consultants themselves. 

However, when the Healthcare Bill was passed by Congress last year, it contained a provision requiring all businesses, including landlords, to submit a Form 1099 MISC to the Internal Revenue Service for every vendor from which they purchased $600 or more worth of goods or services during the course of the calendar year, starting in 2012. The idea was that such a requirement for  third-party reporting of income would make businesses less likely to try to hide income from the IRS. What a bureaucratic paperwork headache!

The effect of this new 1099 requirement on clients in having to file hundreds of 1099 forms during the year instead of just a few would likely have been to put a selective damper on the use of vendors. Since the 1099 requirement would not have applied to corporations, the pull on clients to use corporate consultants instead of independent consultants would have been strong.  

Now both the House and Senate have passed legislation to repeal this reporting provision of the Healthcare Law and the President is expected to sign it.

Most of PATCA's members are independent consultants, not corporate consultants, so it is with great relief that this latest threat to obtaining future business clients has been repealed.

Read more on:

Yahoo News

Washington Business Journal

Techniques for Converting Potential Clients

Two blog posts caught our attention this week, and coincidentally, they both offer similar insights. Interesting reading for consultants, and a good reminder for 2011.

The first is a very simple idea from Daniel Rose's Blog entitled, "There is No "They," Only "We." Basic idea: get on the same page with your client from the start. Be on the same team. Become part of the group that gets things done.

The second is Carter McNamara's more detailed list of questions to ask a potential client, with the end result being the same. It includes 13 questions to ask that will perfectly establish the consultant as someone who understands the client's needs and desires. This also helps determine if the consultant should become part of a team of stakeholders, or if the consultant should be expected to work independently.

Good insight to have at the start of a new relationship.

How to Treat Your Best Clients

Think all clients should be created equally? Not so, says Michael Zipursky, who writes for Business Consulting Buzz. Here are a few ways to take care of the clients who are loyal to you and give you your best business opportunities.

• Respond to their emails and calls more quickly
• Make more room in your schedule to see them at their convenience
• Go the extra mile for them, not just once or twice, but every time
• Offering to help them in any way you can anytime the opportunity arises
• Send them gifts and notes of appreciation, not only on the major holidays but also at unexpected times.
• Refer them additional business.
• Constantly look for new opportunities to help them grow their business.

Read more.

Thoughts on Thought Leadership

There was an interesting article by Dorie Clark recently on the Harvard Business Review blog, called How to Become a Thought Leader in Six Steps. It has particular importance for consultants, since our value lies in our depth of knowledge. We all strive to be known as leading-edge thinkers in our field of expertise, and consultants often struggle with how to "be known."

The article offers some excellent tips for building a following and standing out from the crowd, but the comments from readers were even more thought provoking.

"The first step in being a thought leader is to BE a thought leader. Being smart is not enough - there are lots of smart people who are not thought leaders." - Fred

"If you really want to be a thought leader you need to be thinking less about leverage and more about listening. Once you've listened for a few years, you may begin to see areas where you can lead." - Timothy Ogden

"...there's a role for everyone in an organization to galvanize and inspire others by their logic or their example." - Dorie Clark

... and many more insightful comments.

So, the first step is to develop an online presence and be part of the conversation. What do you think it takes to become a thought leader today, especially for consultants? Add your comments here on the PATCA blog, or on the HBR blog, or both.