Business Consultants

Archive for August, 2009

Know How To Bill and What to Charge

Without knowing how to bill and what to charge, you’re going to lose a lot of money that’s really yours. If you get your billing and pricing wrong as a computer consultant, you’ll send a bad message to people that you’re trying to quote for business.

You’ll be screaming that you’re a rank amateur rather than a skilled computer consultant. It could take you years to recover from this. A lot of times you would need to scrap existing clients and completely start over because certain clients you brought in at the wrong level.

Perform IT Audits

If you know how to do them right it’s an incredibly powerful technique. You get paid to write proposals and do needs assessment work. If you don’t know how to do this you’re going to wind up doing a lot of exploratory work for free. You can actually get paid for your initial consultation time for doing the technology assessments and the IT audits.

Build Local Partnerships

You’ll need partnerships as your computer consultant business evolves. These will get you some of your best clients along the way. If you don’t have good local partnerships, you can almost guarantee that you’ll lose clients along the way with this as well. You need to learn how to find these key players and how to negotiate with them.

Exceed Client Expectations

If you want to get paid the big bucks as a small business computer consultant, your clients will expect a lot from you. Your clients’ idea of perfection may be different from yours. You need to learn the magic words you need to know to avoid a lot of the stress and intense pressure. You want to come out smelling like a rose to exceed their expectations.

Maximize your Utilization Rate and Profitability

Making as much of your work-week billable as possible and eliminate a lot of the non billable, time-draining non revenue draining computer consultant activities. It’s all about delivering small business virtual IT services and how to build a stable business; how to get clients for life.

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The recent spate of accounting fraud scandals signals the end of an era. Disillusionment and disenchantment with American capitalism may yet lead to a tectonic ideological shift from laissez faire and self regulation to state intervention and regulation. This would be the reversal of a trend dating back to Thatcher in Britain and Reagan in the USA. It would also cast some fundamental – and way more ancient – tenets of free-marketry in grave doubt.

Markets are perceived as self-organizing, self-assembling, exchanges of information, goods, and services. Adam Smith’s “invisible hand” is the sum of all the mechanisms whose interaction gives rise to the optimal allocation of economic resources. The market’s great advantages over central planning are precisely its randomness and its lack of self-awareness.

Market participants go about their egoistic business, trying to maximize their utility, oblivious of the interests and action of all, bar those they interact with directly. Somehow, out of the chaos and clamor, a structure emerges of order and efficiency unmatched. Man is incapable of intentionally producing better outcomes. Thus, any intervention and interference are deemed to be detrimental to the proper functioning of the economy.

It is a minor step from this idealized worldview back to the Physiocrats, who preceded Adam Smith, and who propounded the doctrine of “laissez faire, laissez passer” – the hands-off battle cry. Theirs was a natural religion. The market, as an agglomeration of individuals, they thundered, was surely entitled to enjoy the rights and freedoms accorded to each and every person. John Stuart Mill weighed against the state’s involvement in the economy in his influential and exquisitely-timed “Principles of Political Economy”, published in 1848.

Undaunted by mounting evidence of market failures – for instance to provide affordable and plentiful public goods – this flawed theory returned with a vengeance in the last two decades of the past century. Privatization, deregulation, and self-regulation became faddish buzzwords and part of a global consensus propagated by both commercial banks and multilateral lenders.

As applied to the professions – to accountants, stock brokers, lawyers, bankers, insurers, and so on – self-regulation was premised on the belief in long-term self-preservation. Rational economic players and moral agents are supposed to maximize their utility in the long-run by observing the rules and regulations of a level playing field.

This noble propensity seemed, alas, to have been tampered by avarice and narcissism and by the immature inability to postpone gratification. Self-regulation failed so spectacularly to conquer human nature that its demise gave rise to the most intrusive statal stratagems ever devised. In both the UK and the USA, the government is much more heavily and pervasively involved in the minutia of accountancy, stock dealing, and banking than it was only two years ago.

But the ethos and myth of “order out of chaos” – with its proponents in the exact sciences as well – ran deeper than that. The very culture of commerce was thoroughly permeated and transformed. It is not surprising that the Internet – a chaotic network with an anarchic modus operandi – flourished at these times.

The dotcom revolution was less about technology than about new ways of doing business – mixing umpteen irreconcilable ingredients, stirring well, and hoping for the best. No one, for instance, offered a linear revenue model of how to translate “eyeballs” – i.e., the number of visitors to a Web site – to money (“monetizing”). It was dogmatically held to be true that, miraculously, traffic – a chaotic phenomenon – will translate to profit – hitherto the outcome of painstaking labour.

Privatization itself was such a leap of faith. State owned assets – including utilities and suppliers of public goods such as health and education – were transferred wholesale to the hands of profit maximizers. The implicit belief was that the price mechanism will provide the missing planning and regulation. In other words, higher prices were supposed to guarantee an uninterrupted service. Predictably, failure ensued – from electricity utilities in California to railway operators in Britain.

The simultaneous crumbling of these urban legends – the liberating power of the Net, the self-regulating markets, the unbridled merits of privatization – inevitably gave rise to a backlash.

The state has acquired monstrous proportions in the decades since the Second world War. It is about to grow further and to digest the few sectors hitherto left untouched. To say the least, these are not good news. But we libertarians – proponents of both individual freedom and individual responsibility – have brought it on ourselves by thwarting the work of that invisible regulator – the market.

As an entrepreneur, you’re hardwired to enjoy a greater level of risk than the average person. But do you enjoy the thrill of business and investing so much that you’re willing to risk:

-Being hounded by creditors?
-Declaring bankruptcy?
-Being denied a mortgage?
-Paying more than your fair share of interest on your loans?
-Losing your house?

If you answered “no” to one or more of these questions, this may be the most important report you’ve read in a long time.

Because, if you’re like most entrepreneurs, investors, and business owners I’ve met over the past 28 years, you’re in danger of facing all of these horrific problems.

And it’s all because of your business.

You see, entrepreneurs typically make one or more financially devastating mistakes when financing the launch, operation and/or growth of their businesses. In most cases, they don’t realize that they’re making a mistake.

And to tell the truth, even when they do realize they’re making a mistake … they lull themselves into thinking that the consequences will be a minor annoyance.

Until, one day, they can’t qualify for a mortgage. Or they can’t get the to-die-for financing offered on the new car they’re buying. Or they’re hounded by creditors and eventually have to declare bankruptcy.

And it is all because they use their personal finances to fund the launch or expansion of their business. They then use personal credit cards to pay for business expenses. If you are in business or thinking about starting a business, business credit is a must.

Let me explain, most business owner have no idea that they can establish business credit and even fewer know how to how to establish business credit. If owners would take the time necessary to educate themselves about establishing credit they would no longer have to use their personal funds for start up capital or working capital.

They would also be able to use business credit cards which don’t report to their personal credit reports, therefore, not lowering the personal credit scores.

The most important goal of business credit though is to obtain unsecured business lines of credit, which can be done once the business credit profile is set up properly. Once a business obtains unsecured business lines of credit, they then have the working capital they need to start a business or expand their business. The business owner has check book control to use the business lines of credit as they wish. And best of all, the business lines of credit don’t report to the business owner’s personal credit report.

If you have set up your business profile correctly there are a number of banks that will lend to brand new start up business. That is right, brand new start up business with no track record whatsoever. The banks will extend unsecured business lines of credit so they can have the start up capital they need to finance the business of their dreams.

Make no mistake about it; business credit is a MUST for every business owner. Don’t put your personal assets at risk finance or fund your business!