"The goal here is to align revenue with employees compensation in the beginning as your consultancy grows," says Hermens.
"Once your business becomes large enough, put key people on a salary, with performance bonuses.
Specialize so narrowly that it is easier to increase your stature.
"The challenge with a guarantee is that larger firms don't normally purchase on that basis and smaller firms generally take a service guarantee as a tacit admittance of being mistake prone," says Hermens.
Leverage allows your consultancy to flourish as your company takes on more projects." The key, then, is to think about how you align revenue arrangements with employee compensation and how to pay employees to ensure they are available when you need them by asking yourself questions like: Do you pay a salary and risk a lull in projects?
Or, perhaps you pay employees on a project basis, only when they work, risking their availability when you get a new contract?If you've found yourself holding a pink slip from your corporate employer or perhaps are just tired of the old 9 to 5 grind, one of the best ways to get back on your feet might be turning your experience and skills into a consulting gig since just about anyone who possesses specialized skills can hang out a shingle of their own.But before you do, you might want to consider taking the time to create a business plan for your new venture, which will not only help you map out the opportunities before you, but also the threats."Rather than the desperate approach of taking any client that comes along, be selective and create a clear road map of where you want to go," she says."Several years from now, your client roster should be fairly close to the plan that you make now."What do you do that thousands of other people don't?"The keys to building a solid value proposition are to give decision makers solace that they made the right decision, he says, which can be done in three ways: 1. Build and take prospects through a well-defined methodology, or 3.Another option can be to partner with other companies that might offer complementary services to your own, a tact that may also help you build experience in new areas.But, at some point, you must develop your own client relationships independently if you want to keep your company growing. Employees Answer these questions: If you have employees, what is the best way to deploy them, given the reality of project work?Do you plan to pay them hourly, by confirmed project, or salaried?"The issue here is how do you leverage yourself to grow revenue? "Consultants who develop their brand can write books and charge an hourly rate, but they still cannot serve two clients simultaneously.