| If winning new clients were easy, gurus wouldn't | | | | constraints that put a decision on a longer timeline, |
| be giving $1,000 seminars on the topic, and you | | | | he could walk away. |
| wouldn't see "Dummies" guides to closing a | | | | 5. Provide an incentiveMany contractors add |
| contract deal.Let's face it-winning a contract can | | | | some financial wiggle room to their bids to protect |
| be one of the most bewildering parts of running | | | | themselves from unforeseen costs. If your rates |
| your consulting business. It doesn't have to be | | | | are fair, you're comfortable with a smaller |
| such a tremendous dilemma. I've worked with | | | | "disaster" cushion, and this client will likely be a |
| hundreds of very successful consultants through | | | | good source of contracts in future, you can |
| the years (and been one myself), and I've found | | | | sometimes cement the sale by offering a small |
| that those who flourish take these 8 steps:1. | | | | discount on this contract or contracts in future. |
| Prepare to make a great first impressionYou | | | | |
| never get a second chance to make a first | | | | ** Not sure if you're charging the going rate? |
| impression, and you make a great first impression | | | | Check out our free rate comparison tool ** |
| by being prepared. Research the company and | | | | 6. Avoid auctionsCompetitive bidding situations |
| subject matter, using any available means, | | | | are usually a losing proposition for contractors. |
| including your contacts at the company. Study the | | | | You either lose the contract or you lose money |
| company's history, key personnel, current | | | | by steeply discounting your rate. |
| technologies, existing and foreseeable problems | | | | You can avoid a competitive bidding situation by |
| and solutions. Preparation bolsters your | | | | letting the prospect know-nicely-that you don't bid |
| confidence, and lets you initiate meaningful | | | | against other companies or individuals. Instead, |
| discussions about the client's needs and goals.2. | | | | stress your value. More experienced consultants |
| Focus on the client Remember, an interview with | | | | are simply more efficient and thus less expensive |
| a prospective client isn't about you-it's about the | | | | in the long run.If your prospect has another, much |
| client's desire to solve their problem | | | | lower bid, make sure the bid is for an equal level |
| cost-effectively. | | | | of service, and that the company is a peer in |
| Avoid rambling explanations about your expertise. | | | | expertise and experience. Ask your prospect to |
| Be concise. Prepare and practice a 10-second | | | | check with references for both sides. Reference |
| synopsis of your expertise and value.Come | | | | checking-which surprisingly few companies do-can |
| prepared with a series of thoughtful questions | | | | often turn around a sale.7. Keep in touchAlways |
| aimed at better understanding the client's needs. | | | | ask for the contract at the end of the meeting, |
| Listen carefully to the client's responses to your | | | | but don't expect to get it right then. Instead, ask |
| questions, and respond with your own summary | | | | when the company expects to make a decision. |
| of what you've just heard. Ask if this is correct, a | | | | Plan to stay in touch with the prospect with a |
| technique known as "active listening." Don't try to | | | | polite e-mail expressing your eagerness. Then call |
| solve the problem now; just make sure you both | | | | back weekly until you get a yes or a no. Never |
| agree on the issues. Once you do, now's the time | | | | take a lack of response as a personal affront or |
| to discuss your past accomplishments and begin | | | | a lack of respect. I've seen many contractors |
| discussing solutions. Since you've prepared ahead | | | | make this mistake, firing off nasty missives that |
| of time, you'll have no trouble describing two or | | | | burn bridges.8. Know when to walk awayAs with |
| three examples of your successes that match | | | | any successful negotiation, have an acceptable |
| your client's needs.3. Anticipate objections | | | | fallback or compromise position. For your own |
| Prepare a compelling response for each potential | | | | long-term happiness and reputation, it's better to |
| objection the client may have for hiring you. Such | | | | walk away from an unfair deal than to accept a |
| objections may include:Attractive options | | | | gig you perceive as unfair. Ill feelings damage the |
| proposed by the competition Your rates | | | | quality of work and poison your job satisfaction. |
| Estimated turn-around time Internal bureaucracy | | | | If the prospect is unreasonable in the negotiation |
| resistance Anticipating objections will help you | | | | process, the chances are they'll be unreasonable |
| transform a "no" into a "yes"."4. Create a sense | | | | to work with, too. Sometimes it's better to move |
| of urgencyMost companies know that excellence | | | | on to more promising opportunitiesBy Doug Berg, |
| is in high demand. If the prospect seems on the | | | | HotGigs CEODoug has a long history in the |
| fence about a decision, you can point out | | | | recruiting and staffing industry. He started in IT as |
| that--while you're excited and eager to work on | | | | the Director of IT for the Minneapolis Institute of |
| his project-your other clients are asking for your | | | | Arts. Doug then started his own IT consulting & |
| time, and you'll need to reserve space for him | | | | staffing firm (Quantum Consulting) which he grew |
| soon. (Assuming this is true) | | | | to over 75 consultants. In 1995 Doug sold his firm |
| Make sure you first understand why the | | | | and founded which received over $100 million in |
| prospect is hesitating. If he has undisclosed | | | | venture capital. |