The consultant is a professional who follows a process. The consultant is a problem-solver and wants to always be prepared to achieve, avoid or preserve something for the client.

The more pressing the problem or immediate the need, the faster the client will hire a consultant. This is especially true if the consultant can clearly demonstrate the money the client will make or save as a result of his/her work and involvement.

Step One: Contact

Calling, meeting or being referred to the client initially. This is where you introduce yourself, your company and your services to the prospective client. This is also a good time to qualify them as to their need for your services.

Step Two: Interview

This is a first interview which has three main objectives: 1) establish rapport, trust and credibility; 2) to determine if there is an opportunity to improve profitability with your intervention and 3) to begin the process of probing and questioning to gather the information necessary to diagnose the needs, goals, objectives, problems, opportunities.

Step Three: Diagnosis

Use GAP Analysis to define the problems and challenges facing the client. The major gaps that usually exist are: 1) actual sales vs. desired sales or potential sales; 2) actual cost vs. projected costs; 3) actual profit or R.O.I. vs. desired profit or R.O.I.

Once you have diagnosed the gaps and identified areas of opportunity, your job is to convince the client that you can bridge the gaps and realize greater potential in a cost-effective way. Your ability to define the problem and it's solution in bottom line terms (R.O.I.) is central to the entire consulting process.

Step Four: Proposal

The proposal is the "prescription", the presentation vehicle by which you demonstrate your understanding of the client's situation. It is a description of the problems, needs and opportunities that you have uncovered during your interview and diagnosis.

It offers recommendations, solutions and a suggested plan of action for the client to follow. It also should provide a breakdown of costs and projected benefits in terms of bottom line profits (R.O.I.). It can be a simple one or two page outline or a thorough and lengthy document, with the conditions of agreement and the terms of payment.

Step Five: Delivery

This is where you begin to perform the engagement. Here is where you demonstrate competence and earn the respect and confidence of your client. This stage involves implementation and follow-through of your recommendations and plan of action.

Step Six: Follow-Up

You will be responsible to measure results, monitor progress and make adjustments as required. This is a crucial step in the consulting process. This is where your client will determine your ultimate value to the organization. More business is lost due to lack of attention during this part of the consulting process than any other.

If you are on a contingency or performance-based arrangement, this step is critical if you are to realize your own financial rewards for your consulting efforts.

Step Seven: Referrals

Ask your client to give you the names of other business owners who could benefit from your advice and guidance. Ask for a letter of testimonial and, if possible, an endorsed letter.

Remember, your client will only recommend you to other people if you produce the results you promised. All you need to do is satisfy one or two clients who can act as "centers of influence" and they can lead you to a wealth of business that could make you successful.

There is no set formula for setting fees. The best approach to use is to determine your worth in the marketplace for what you do. A simple method is to decide how much you would earn as an annual salary if you worked for a company in a similar role. Use this as a base.

You have support costs and business overhead expenses associated with a consulting practice that must be added in (100% is a safe estimate). Finally, you want to add a mark up or profit to the calculation.

Example: How to charge to earn $100,000

$100,000 income divided by 200 days = $ 500 per day base rate

$500 per day base + $500 per day for overhead = $1,000 per day

$1,000 per day + 25% add-on for profit = $ 250 per day

Daily Consulting Rate = $1,250 per day

Note: When starting out, it might pay to price your fees at the lowest rate the market will bear until you fill your calendar 50%. Then consider raising your fees for each added 25% of business you get. This way, you are building a base and increasing your value all at the same time.

If you are performance-based, get a retainer for initial time spent. That gets the client's attention. No money on the table, you are treading on thin ice. Get what you can up front, never less than 25%, and 50% is better. Give an incentive for full payment up front (10% discount, or 10% added product is even better).

Click Here to Order, "Six Figure Consulting" Audio Tape Course

Click Here for Consultant's Role

Click Here for Table of Contents, "How to Build a Six Figure Consulting Income!"