Build a Profitable Consulting Practice

The technical work came naturally. The business side nearly destroyed me. I started managing consultants in my twenties. VP of Consulting at Software Techniques, Inc., then VP of Consulting at Beck Computer Systems. PDP-11 and VAX-11 systems, BASIC-Plus, COBOL, FORTRAN, C. My job was putting consultants in front of clients and making sure both sides came out of the engagement intact. Later I managed consultants at Trader Joe's alongside running IT operations for a $16 billion retail chain. Forty-plus years of watching consultants succeed and fail taught me something nobody in the industry talks about clearly: technical skill is not what determines outcomes. The consultants who struggled almost always struggled for the same reasons. They priced projects too low and resented the work before it started. They worked for clients who didn't respect professional boundaries and couldn't figure out how to fix it. They delivered excellent work and couldn't collect payment. They focused entirely on the technical side and treated the business side as something that would sort itself out. It doesn't sort itself out. I know because I made every one of those mistakes myself before I figured out how to fix them. That's what this book is for. Most talented consultants fail not because they lack technical skills but because they never learn the business fundamentals that determine consulting success. Pricing that generates profit instead of just winning projects. Payment structures that protect cash flow. Client management techniques that maintain professional boundaries while delivering results. Stakeholder relationships that work across organizational hierarchies and international cultures. This book covers all of it — from initial prospect meetings and contract negotiations through project delivery and completion. The first edition was adopted as required reading at Purdue University's Krannert School of Management. This revised edition adds new chapters on demanding professional respect, avoiding free work traps, managing testimonials and referrals, and building the online presence modern consulting requires.