Consul'ng has its ups and downs. This presenta'on is meant to educate those interested in this career path. As well as re-‐enforce what seasoned consultants already know. This informa'on is presented on a high level and we offer an array of resources & references at the end of the presenta'on. NOTE: You are not a DUMMY. You are a GENIUS and this presenta;on is meant to educate and confirm your
understanding on technology consul;ng. Please feel free to ask any ques;on you want during our “Ques;ons & Answers” period. There are no dumb ques;ons!
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Technology Consul.ng for Dummies & Geniuses
The objec;ve of this interac;ve workshop is to review best prac;ces for selling your technical skills as a consultant. Will provide real world examples and industry trends. You have acquired a great amount of knowledge and exper'se in your career.
However you have hit that glass ceiling and corporate America is not what it used to be. Well why not capitalize on your worth and become a Technology Consultant? Worldwide IT spending is forecast to total $3.8 trillion in 2012, a 3.7 percent increase from 2011, according to the latest outlook by Gartner, Inc. In 2011, worldwide IT spending totaled $3.7 trillion, up 6.9 percent from 2010 levels. Learn how to get your share of this market through this presenta'on. We will cover common trends in consul'ng. Discuss the 3-‐'ers of consul'ng and how to avoid common traps plus mis-‐ concep'ons. In this presenta'on we will compensa'on (W-‐2, 1099, Corp-‐to-‐Corp) and Insurance Coverage topics on a high level. Lastly we will cover Trends and Best Prac'ces.
Five basic principles of IT consul'ng are:
Focus on the Rela.onship: Understanding the personality and expecta'ons of client, client organiza'on and all other stakeholders.
Clearly Defined Role: Defined roles and responsibili'es for both clients, other stakeholders and consul'ng team.
Visualize Success: Helping the client see the end at the beginning. You Advise, They Decide: Client is the best person to decide.
Be Oriented Towards Results: Ensuring that the solu'on addresses end user concerns, user training, implementa'on and maintenance constraints.
There are different reasons why consultants are called in: To gain external, more objec've advice and recommenda'ons. To gain access to the consultants' specialized exper'se. Simply as temporary help during a one-‐'me project, where the hiring of permanent employees is not required. To outsource all or part of the IT services.
If you have a skill set – who else has it? Are you one of many or just a few in your field of study? If you are an SME how do you qualify that to clients? Are there cer'fica'ons to explore?
What are the costs to pursue further educa'on and/or training? Is your industry dying or growing? Are you a specialist or generalist? Can you easily write up a Statement of Work for a client based on your skills set? Can you work 40 hours a week performing your field of study?
When thinking of your hard and soe skills think of the VALUE you provide to an employer. Can that value be measured in quan'fied in a service? If so would you bill that service on the hourly basis or fixed rate based on a set dura'on? Your core competency will be “XYZ” in a select field of study. Are you a jack of all trades or a subject maker expert. What is your job/role/business classifica'on as a consultant? The North American Industry Classifica'on System (www.census.gov/eos/www/ naics) has every business classified and categorized. This is a great starting point for your business. The North American Industry Classifica'on System (NAICS) is the standard used by Federal sta's'cal agencies in classifying business
establishments for the purpose of collec'ng, analyzing, and publishing sta's'cal data related to the U.S. business economy.
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The IT consul'ng industry can be viewed in another manner of a 3-‐'er system as follows:
Professional services firms which maintain large professional workforces and command high bill rates.
Staffing firms, which place technologists with businesses on a temporary basis, typically in response to employee absences, temporary skill shortages and technical projects.
Independent consultants, who are self-‐employed or who func'on as employees of staffing firms (for US tax purposes, employed on "W-‐2"), or as independent
contractors in their own right (for US tax purposes, on "1099").
If you are a business owner or contractor who provides services to other businesses, then you are generally considered self-‐employed. If you are a business owner hiring or contrac'ng with other individuals to provide services, you must determine whether the individuals providing services are employees or independent contractors. If an employer-‐employee rela'onship exists (regardless of what the rela'onship is called), you are not an independent contractor and your earnings are generally not subject to Self-‐Employment Tax. However, your earnings as an
employee may be subject to FICA (Social Security tax and Medicare) and income tax withholding. NOTE: Some may argue the defini'on of a “contractor” vs. “consultant”. Bokom line you define your rela'onship with the client in a contract which has financial and tax obliga'ons. Choose wisely the setup which best represents benefits you and minimize your liabili'es.
Industry Knowledge Counts. If you have serious experience working in a specific industry, be it u'li'es, paper, airlines, retail or financial services, there probably is a consul'ng firm looking for you. Firms want specialists with deep knowledge in specific industries who can understand the present and envision the future. Beyond being a subject maker expert you also can provide value with your business network. Who you have rela'onships with can add value to your clients and/or colleagues.
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The typical deal to start for an undergraduate is a posi'on as an Associate Consultant with a base salary of around $60,000 plus a signing bonus of $5,000 to $10,000. A typical MBA would enter a consul'ng firm at a mid-‐level with a base salary of $125,000 and a signing bonus of $20,000. Beyond the money aspect – you gain valuable knowledge through client engagements.
Technology consultants are usually specialist in a select field of study. The more popular firms usually align themselves with a hardware or soeware technologies. Others may diversify into an array of technologies, business sectors\industries and geographic areas. These companies understand to sell not only products but also services for configuring and servicing their products. Many offer cer'fica'ons in their hardware and/or soeware.
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The typical deal to start for an undergraduate is a posi'on as an Associate Consultant with a base salary of around $60,000 plus a signing bonus of $5,000 to $10,000. A typical MBA would enter a consul'ng firm at a mid-‐level with a base salary of $125,000 and a signing bonus of $20,000.
Consul'ng is an exci'ng but risky profession. The work is s'mula'ng and important, but not everyone lasts in this business. Consul'ng is the business of providing advice to firms in trouble; firms on the move and firms which are trying to do what they do beker, faster, and more cheaply. Consul'ng is about business. People who love business like consul'ng.
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Entrepreneurship is not for the meek. You need to do a self-‐assessment and weigh your op'ons. If you do what you love -‐ you will never work a day in your life. Remember you can always improve yourself in skills you lack in. SWOT Analysis – analyzing your Strengths, Weaknesses, Opportuni'es and Threats to your business. You can work on weaknesses and threats but first you must acknowledge them.
You will have to pay Federal and State taxes (usually quarterly). Also if you travel and work in various states for clients, you may have to file state returns based on the client loca'on. Your financial security should not be taken lightly. Seek professional counseling from a Cer'fied Public Accountant and/or a Tax Akorney. Learn about your tax obliga'ons in regards to your business setup (Sole Proprietorship, LLC, Partnership or Corpora'ons). REMEMBER TAX PENALTIES AND INTEREST ARE NOT FUN!
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W-‐9 should be kept in your files for four years for future reference in case of any ques'ons from the worker or the IRS. 1099-‐Misc is most commonly used by payers to report payments made in the course of a trade or business to others for services. Complete Form W-‐4 so that your employer can withhold the correct federal income tax from your pay. Many 3rd party consul'ng firms will give you an op'on for a 1099
vs. W-‐2. Usually they will lower your hourly rate if you choose the W-‐2. Then they offer your health benefits at a set cost. You may be able to itemized (write-‐off) some costs but not all. If you have a spouse who is employed full-‐'me you may be able to be covered on their benefit and insurance plans.
If you have only one form of business insurance, it is most likely Commercial General Liability. CGL policies cover claims in four basic categories of business liability: Bodily Injury ,Property Damage, Personal Injury (including slander or libel) and Adver'sing Injury. In addi'on to carrying appropriate insurance, you may have clients who refuse to work with you un'l your company is bonded. Simply put a bond (some'mes referred to as a surety bond) is a third party obliga'on promising to pay if a vendor does not fulfill its valid obliga'ons under a contract. A bond also guarantees that you will sa'sfactorily perform the work outlined in the contract within the contract. Bonding is based on services performed and provides a guarantee of payment for any issues that arise such as a contractor employee commiung thee or doing damage on the client’s property. A bond is NOT an insurance policy.
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A business plan is a structured document that is a sales pitch for your new or expanding business that you will use when akemp'ng to obtain formal financing. 99% of small or home-‐based businesses will not need a business plan since either financing is not required or is being obtained other than by bank loans, etc. The business plan is typically 10-‐50 pages in length and includes the following major sec'ons. The actual length will be a func'on of the complexity of your business and how much money you are looking to obtain. (Beker to have one and NOT needed it. Than to need it and NOT have it).
A copyright protects a "form of expression" such as wri'ngs, designs, and works of art. A copyright is automa'c in that anything you write, design, or otherwise
conceive, is protected by the copyright laws. This protec'on generally lasts for your life'me plus 50 years. A copyright may be registered with the Patent & Trademark Office. Having your copyright registered can help if and when you need to defend it use by others. A trademark is a word or series of words, a design or graphic that relates to your product, service, or company. A trademark must be registered with the Patent and Trademark Office and cost a few hundred dollars.
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Depending on the type of business you are star'ng, you may be required to obtain local, county, State or Federal licensing. It is important to determine which of these will be required before you start conduc'ng any business since heavy fines are usually associated with conduc'ng a business without proper licenses and permits. Most small and home-‐based businesses will only require a local business license or permit.
For more details on these sta's'cs go to www.bls.gov/ooh
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www.bls.gov/ooh www.census.gov/eos/www/naics www.onetcenter.org www.computingcareers.acm.org www.careers-in-business.com/consulting/mc.htm www.informationweek.com www.irs.gov www.isquare.com/faq.cfm IEEE Certification http://www.ieee.org/education_careers/education/professional_certification/index.html Six Sigma Certification
http://www.iassc.org ITIL Certification
http://www.itil-officialsite.com PRINCE2 Certification
http://www.prince-officialsite.com
Project Management Institute Certification http://www.pmi.org/
SCRUM Certification http://www.scrumalliance.org
Cisco Systems, Inc. CCNP Certification
http://www.cisco.com/web/learning/le3/le2/le37/le10/learning_certification_type_home.html Microsoft Corporation Certification
http://www.microsoft.com/learning/en/us/certification/cert-overview.aspx SAP Certification http://www.sap.com/services/education/certification/levels/index.epx Oracle Certification http://education.oracle.com Apple Certification http://training.apple.com/#creative CompTIA http://certification.comptia.org
CISSP - Certified Information Systems Security Professional www.isc2.org
CWNP (Certified Wireless Network Professional) www.cwnp.com
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