Welcome to the world of consulting, aka the Wild Wild West!
Here’s some general advice:
-Determining fees is not black and white by far. You have to factor in the type of work, hours it would take to complete, type and scale of the business you are proposing to, and most importantly in my opinion, the economic environment of the region you are working in. For example, here in DC firms can get away with charging over $100 an hour to professional firms, government subsidiaries, etc. In Pittsburgh for a small-to-mid range business…I’m not too sure. The best thing to do is to have a general idea in your head of a bottom-line fee that you will absolutely not go under, and then keep your mind open. This will make sure it is worth giving up some of that elusive free time. Give a free consultation, be pro-active, stress that you will be negotiable when it comes to rates. Get your foot in the door before spitting out a price.
Some other advice:
-Keep in mind that clients are paying for your time and knowledge.
-Clients love accountability, so give them something to show that you value it as well. What I use is an excel sheet that I set to collaborate from within Google Docs. My client can see exactly where their time is going, and can leave their own comments on items. Accountability and ways to keep in constant contact go a long way.
-Create a simple contract for the proposed work. You don’t have to go to a lawyer, but something with common sense so both parties are protected.
-Be prepared to compromise. I recently did a side project for an Apple server setup where I thought t hat it might be 6 hours, and I set my rate at $80/hr. My client balked at $480 and wanted to make it an even $400 lump sum payment. I felt confident that i could do the work without any issues in that time frame, and I wanted the experience, so I bit that bullet and compromised. Because I did that, and the client was happy with the work, I now have 2 more projects from the same client in the next few months. Build yourself a good reputation!
Now, as for drumming up business, I still struggle with that. My advice is to troll craigslist daily, of course, and search for contract jobs. Don’t be afraid to throw your hat in the ring! Once you get a few projects up here and there, then you can work the word of mouth angle.
Last piece of advice…since you will be coming to these clients cold (usually), get together a portfolio of sort. References, letters of recommendation, relevant projects you’ve worked on…it all helps.
I’m attaching a sample copy of that excel spreadsheet I mentioned. Also, check out the consulting group here on SW, some kind folks have put up examples of their contracts.
Good luck!
project_management_timeline_sample.xlsx (18.2 KB)