IM Small Business Consulting AURE MA PDF

POLYTECHNIC
POLYTECHNICUNIVERSITY
UNIVERSITY OFOF
THE PHILIPPINES
THE PHILIPPINES
COLLEGE OF OF
COLLEGE BUSINESS
BUSINESSADMINISTRATION
ADMINISTRATION
Department ofOF
DEPARTMENT Entrepreneurship
ENTREPRENEURSHIP
INSTRUCTIONAL MATERIAL FOR

ENTR 40033:
SMALL BUSINESS CONSULTING
Compiled by:
MARY ANNE C. AURE, MBA
LEONARDO G. ADAP, Ed.D.
Name of Faculty
Course Overview
In this course, the students will look at a number of the key topics they need to know. Whether they
are consulting by themself, as a partnership, as a small team, or with a large company, this will provide
the students with all of the information they need to be a successful consultant. This includes
consulting in any industry regardless of their level of experience. This will also provide the students
the tools and understanding to develop strategy to deploy and be successful in their own consulting
business. From choosing a business model, to determining your pricing, to managing overhead costs,
then cover the more complex tasks like developing a great marketing strategy, developing the best
proposals, tips for consulting success, and implementing their recommendations. Best of all, this will
discuss consulting lessons learned and problems students can avoid; and end with consulting "Best
Practices".Small Business Consulting is a course designed to prepare students for professional
consulting work. Small Business Consulting or simply “Business Consulting” for small and medium
enterprises provides students with the necessary skills in understanding industry structures, the value
creation process in enterprises, innovative business modeling and formulating action programs based
on internal business processes. These internal business processes are classified under four
structures – operations management, customer management, innovation, and regulatory and social
involvement.Students are organized into consulting teams and are coached on their role as solutions
provider for specific enterprise consulting needs.
Instructional Material for Page 1 of 75

ENTR 40033: SMALL BUSINESS CONSULTING/mahca
Table of Contents
Course Overview ................................................................................................................................................1
Lesson 1: The Role of Consultant ..................................................................................................................5
Introduction: ........................................................................................................................................................5
Learning Objectives:..........................................................................................................................................5
Course Materials:................................................................................................................................................5
Role of the Consultant......................................................................................................................................6
How to become a Consultant?........................................................................................................................7
Traits and Skills that consultants typically possess: ....................................................................................8
Activities/Assessments: ...................................................................................................................................9
Lesson 2: Choosing a Business Model ......................................................................................................12
Introduction: ......................................................................................................................................................12
Learning Objectives:........................................................................................................................................12
Course Materials:..............................................................................................................................................12
What is a business model? ...........................................................................................................................12
The different kinds of business models .......................................................................................................13
Essential Components of a Business Model ..............................................................................................17
The basic business models to consider: .....................................................................................................18
Activities/Assessments: .................................................................................................................................19
Lesson 3: Understanding the Economic Realities of Independent Consulting ...............................22
Introduction: ......................................................................................................................................................22
Things to Consider Before You Become a Consultant .............................................................................22
Top 20 Consulting Businesses Thriving Today ..........................................................................................23
Why an Organization Wants to Hire You ....................................................................................................25
Consulting Tips................................................................................................................................................27
Typical Consulting Industries ........................................................................................................................27
MIDTERM Assessment: ....................................................................................................................................2
Lesson 4: How to Establish and Improve your Firm Presence ..............................................................7
Introduction: ........................................................................................................................................................7

The Only 4 Things Needed To Start A Consulting Business .....................................................................7
8 Effective Marketing Strategies for Consultant’s Firm .............................................................................10
Consulting Methodology ................................................................................................................................11
The Consulting Process .................................................................................................................................12
Developing your Draft ....................................................................................................................................14
Proposal tips ....................................................................................................................................................15
Proposal presentation ....................................................................................................................................16
How to Disengage ............................................................................................................................................1
Activities/Assessments: ...................................................................................................................................1
Lesson 5: The End Process of Consulting Success .................................................................................4
Introduction: ........................................................................................................................................................4
Ethics of the business ......................................................................................................................................4
Consulting success in terms of strategies.....................................................................................................6
Return on investment .......................................................................................................................................6
Payback and re-investment .............................................................................................................................7
Re-investment ...................................................................................................................................................8
Exit strategies ....................................................................................................................................................9
Types of Business Model to Consider as a Business Consultant ...........................................................10
Consulting firm employee ..............................................................................................................................12
Part-time consultant........................................................................................................................................13
Full-time consultant ........................................................................................................................................14
Lesson 6: Philosophies and Strategies on the Factors that Require Action ...................................21
Introduction: ......................................................................................................................................................21
Factors that consultants should focus on to implement Philosophies and Strategies: ........................22

Creating the most successful environment .................................................................................................26
Final Assessment/Output ...............................................................................................................................30
Course Grading System..................................................................................................................................31
References: ........................................................................................................................................................31

Lesson 1: The Role of Consultant
Introduction:
Business consulting is a growing sector of the employment and business industry. There has been no
better time to join the consulting industry, based on industry growth statistics. More importantly, as
businesses strive to develop their positions in the market place, improve efficiency, reduce costs, and
optimize operations, consultants are used on an increasingly larger basis. If you have the burning desire
think you have the necessary skills and the mindset to be a consultant this course will show you how.
Learning Objectives:
After successful completion of this module, you should be able to:

• To have an in-depth understanding of the role of the consultant describing what they do day-
to-day and long-term both operationally and strategically as a business owner; and
• A thorough understanding of what it means to be a consultant and what it means to own your
own consulting business
Course Materials:
Consultant Is a professional who provides expert advice in particular area such as business, education,
law, regulatory compliance, human resources, marketing, finance, health care, or any of many other
specialized fields. He has an extensive knowledge and experience in a specific professional field, and
shares their expertise in order to solve business-related issues or problems.
Here are some of the most common types of consultants:
Business consultant is involved in the planning, Implementation, and education of businesses.

They work directly with business owners on developing a business plan, identifying marketing needs
and developing the necessary skills for business ownership.
Sales consultant is responsible for finding customers who would purchase their company’s
products.

Marketing consultant is an outside advisor who works with companies to create and implement
marketing strategies. They help create a detailed marketing plan, determine a business’s marketing
message, and identify the appropriate marketing mix to get to get the message out to the target market.
Accounting consultant help you understand what the various reports mean, and how the data
you're seeing affects your company.
Technology consultant helps organizations be more productive and profitable. In the tech world,
there are a few types of consulting, including IT consulting, computer consulting, and more.
Legal consultant also called legal advisors, provide legal guidance to clients and businesses.
These professionals often have the same training as lawyers, except legal consultants generally only
provide advice outside of the courtroom.
Public relations consultant speaks to the public in a language they want to hear. They are public
speakers, writers, and anything else that is required by the company in dealing with the public. When
you hire a consultant, they become your company’s voice.
Role of the Consultant
A company may require a consultant to complete tasks that the internal staff cannot perform due to
a lack of expertise, existing commitments, government regulation, or a need for an unbiased opinion.
In such instances, consultants may work alone, team with other consultants, or partner with company
employees to accomplish a wide variety of functional and technical objectives. While, accomplishing
these objectives, the consultant might serve as an implementer, an adviser, a trainer or a publisher.
Implementer A company may hire a consultant on a short-term basis to provide a specific solution
to a particular need. In this case, the consultant implements a technical or functional solution that he or
another consultant has recommended in an advisory role. For example, a systems consultant may
initially recommend an accounting application, and then he or someone else installs the software and
integrates it with other systems at the client's site. The consultant might also train the end users of the
application, and create functional and technical documentation. The consultant might also contract to
provide ongoing maintenance and support.
Advisor Companies frequently hire a consultant to analyze an issue, and to give possible
recommendations and suggestions to address the issue. For example, a consultant may assist a
company in the evaluation of a potential product market, a social networking program, or the

performance of a production line. The company, rather than the consultant, selects one or more of the
consultant's recommendations to implement. For a variety of reasons, a company rarely implements all
of a consultant's recommendations. For instance, the company’s policies and procedures may preclude
certain recommendations. In addition, the company may have previously been unsuccessful in its
attempts to implement a similar solution, may lack the necessary resources, or may consider the
alternative to be too risky.
Trainer A particular group of employees may need specific knowledge or skills to perform their day-
to-day duties. In this case, a company may hire a consultant to assess employees' training needs, then
design and conduct training classes that educate the employees in the needed functional or technical
skill. For example, employees may receive teamwork, time-management and leadership training.
Consultants may also train workers in technical skills such as regulatory compliance or network
troubleshooting.
Publisher Companies often rely on consultants to develop information products, such as books,
software, checklists and reference guides, that provide information that is inefficient to present one-on-
one to employees. For example, a consultant might create a training manual or reference guide for
software and present it to multiple employees simultaneously. A consultant who serves as a publisher
frequently partners with other consultants who provide implementation, advising and training services.
How to become a Consultant?
When you become a consultant, you offer your skills to other people. When you become a
consultant, you’re saying you offer skills, knowledge and expertise that businesses or other people can
use. A consultant gives advice, solves problems, makes recommendations, or provide specialized work,
such as programming, editing, designing, writing, or business analysis. Someone who decides to
become a consultant is usually paid by the hour, day or project, on commission, or based on
performance. They are independent contractors and not employees of the hiring organization.
Do you have an area of expertise to advise on? Here are 8 steps to become a consultant. Follow
them closely and you'll build a strong foundation for future work, repeat clients, and expanding your
reach and reputation.
a. Identify your area of expertise

b. Set goals
c. Get certified

d. Choose a target market
e. Decide where you'll work
f. Network with people
g. Set your rates
h. Know when to say "no."
Traits and Skills that consultants typically possess:
Time management Efficient use of time is imperative, especially when the clock is ticking on a
deadline. It’s also vitally important for independent consultants who are juggling more than one client
at a time.
Problem-solving Consultants are hired to solve problems, so one of the most important traits
is an innate ability to look at the issues presented and come up with concrete solutions that address all
of the client’s concerns.
Analytical mind On any given project, consultants are faced with multiple components of an
issue or with multiple issues. They must be able to pull all these pieces together and analyze them both
individually and collectively, with an eye toward arriving at a holistic solution.
Communication and networking Consultants provide both written and oral presentations for
individual and organizational clients, and must do so in a way that their proposed solutions can be
understood by everyone, regardless of their background. In addition, networking is critical to successful
consulting – and the essence of networking is communication.
Reliability While reliability is key in any professional endeavor, for consultants – who often rely
on repeat contracts and referrals – it is of paramount importance. This characteristic is also high on any
contractor’s list, because the projects for which consultants are hired are almost invariably time-
sensitive and urgent. Therefore, consultants who do exactly what they say they will do, when they say
they will do it, are indispensable.
Attention to detail Consultants are always looking to build trust with clients. Producing error-free
deliverables is one of the ways to gain client confidence. Even the most minor grammar, spelling, or
calculation-related mistake is a reflection of the individual consultant and the consultant team
responsible for it.

Being the ‘go-to’ for something During their first few years of work, consultants generally float
between industries, areas, and clients. While versatility is an invaluable characteristic that is worth
maintaining, so too is a targeted skill that allows consultants to differentiate themselves from their peers.
Becoming that go-to consultant for a specific business sector or a particular type of project (for example,
inventory management, change management, or IT controls) is part of building a consultancy brand.
Critical thinking The best consultants know not only how to focus on assigned tasks, but how to
think critically about the work in front of them. For instance, a consultant who is asked by a client to find
cost savings in a supply chain should first try to understand why this is critical to the business. Are
profits declining? Are competitors lowering product prices? Is the general marketplace changing in
some specific way? This kind of thinking leads to better insights and ultimately to better client solutions.
Resourcefulness Invariably, consultants will encounter problems and challenges which they have
not faced before. And if they are to find appropriate solutions, their reaction cannot be frustration. It
must be resourcefulness. The smart consultant begins by asking questions like, Is there someone I
know who has done what I am trying to do, or something similar to what I am trying to do? Where can
I find an expert on the issue I am being asked to address? Might I need to consider outsourcing to
effectively tackle the problem at hand and accomplish my client’s objective?
Inquisitiveness In the consultancy world, asking questions is not a sign of inexperience or lack of
knowledge. It is, rather, at the core of how consultants work. They observe first; they start with what
they already know; they make a solid suggestion; and then they ask with confidence. Accomplished
consultants are never afraid to ask for clarification and they often restate what they have been told to
clarify their understanding and inspire client confidence.
Activities/Assessments:
Please answer the following reviewing concepts.

1. Who among the succeeding works directly with business owners on business plan, identifying
marketing needs and developing the necessary skills for business partnership?
A. Business Consultant C. Marketing Consultant
B. Consultant D. Sales Consultant
2. Which type of consultant deals with the clients' guidance and business legality and provides advice
outside of the courtroom?
A. Business Consultant C. Legal Consultant
B. Lawyer D. Public Relations Consultant
3. Which consultancy engagement is responsible for finding customers who would purchase their
company's products?
A. Accounting consultant C. Sales consultant
B. Marketing consultant D. Technology consultant
4. Which among the eight (8) steps in becoming a consultant, needs to determine passion?
A. Choose a target market C. Network with people
B. Identify your area of expertise D. Set goals
5. Who among the professionals provides expert advice in a particular area?
A. Consultant C. Legal consultant
B. Health consultant D. Public relations Consultant
6. In setting goals you have to be ______, to be clearly define what you want to accomplish.
A. Common C. Relevant
B. Measurable D. Specific
7. Which short-term consultant provides specific solution to a particular need?
A. Advisor C. Publisher
B. Implementer D. Trainer
8. Individuals with the ability to analyze information, identify problems and trends, and solve complex
problems, and they are also curious that leads asking “why” and they want to learn, how to do things
better, which improves the whole organization trait of the consultant that is faced with multiple
components of an issue or with multiple issues. The statement exemplifies which of the following?
A. Analytic mind C. Problem-solving
B. Critical thinking D. Reliability
9. A Trait which consultant observes first. They start with what they already know, make suggestion
and then ask with confidence.
A. Analytic-mind C. Inquisitiveness
B. Critical thinking D. Reliability
10. Refers to making information and literature available for the public to view which involves the
process of producing and distributing literature so that the public can have access to it, which also
develop information products that provide information that is inefficient to present it to multiple
employers simultaneously. The statement exhibits which among the subsequent?

11. As a consultant which of the options analyze an issue and give possible recommendations and
suggestion to address the issue?
12. A particular group of employees may need specific knowledge or skills to perform their day-to-day
duties.
13.Which of the following options usually considers expected expenses such as direct and indirect
overhead and one's target profit. One may also consider other factors, such as competitors' price?
A. Choose a target market C. Set your goals
B. Network people D. Set your rates
14. Refers to a group of potential customers to whom a company wants to sell its products and services,
where this group also includes specific customers to whom a company directs its marketing efforts
and is one part of the total market for a good or service. The argument depicts which step that needed
an identification of niche first?
A. Choose a target market C. Set your goals
B. Network people D. Set your rates
15. Success will be measured by increased client pipeline and percentage of client deals closed as
well as referrals for my business. The statement specifically refers to which of the options?
A. Attainable C. Relevant
B. Measurable D. Sustainable

Lesson 2: Choosing a Business Model
Introduction:
A business model is simply an exploration of what costs and expenses you have and how much you
can charge for your product or service. A successful business model just needs to collect more money
from customers than it costs to make the product. This is your profit—simple as that. New business
models can refine and improve any of these three components. Maybe you can lower costs during
design and manufacturing. Or, perhaps you can find more effective methods of marketing and sales.
Or, maybe you can figure out an innovative way for customers to pay.

• To understand the options in business structure this includes sole proprietorships, general
partnerships, and limited liability companies, in the context of legal liability, tax implications,
flexibility, and your own needs; and.
• To know the techniques in managing consulting business, including strategies for charging
consulting fees, pricing plans, time tracking, and invoicing. Also help to manage profit, labor
costs, and overhead.
Course Materials:
What is a business model?
At its core, your business model is a description of how your business makes money. It’s an explanation
of how you deliver value to your customers at an appropriate cost. According to Joan Magretta in “Why
Business Models Matter,” the term business model came into wide use with the advent of the personal
computer and the spreadsheet. These tools let entrepreneurs experiment, test, and, well, model
different ways that they could structure their costs and revenue streams. Spreadsheets let
entrepreneurs make quick, hypothetical changes to their business model and immediately see how the
change might impact their business now and in the future.
In their simplest forms, business models can be broken into three parts:

1. Everything it takes to make something: design, raw materials, manufacturing, labor, and so
on.
2. Everything it takes to sell that thing: marketing, distribution, delivering a service, and
processing the sale
3. How and what the customer pays: pricing strategy, payment methods, payment timing, and
so on.
Keep in mind, though, that you don’t have to come up with a new business model to have an effective
strategy. Instead, you could take an existing business model and offer it to different customers. For
example, restaurants mostly operate on a standard business model but focus their strategy by targeting
different kinds of customers.
The different kinds of business models
You don’t have to invent an entirely new business model to start a business. In fact, the vast majority
of businesses use existing business models and refine them to find a competitive edge. Here’s a list of
business models you can use to start your own business.
1. Advertising
The advertising business model has been around a long time and has become more sophisticated as
the world has transitioned from print to online. The fundamentals of the model revolve around creating
content that people want to read or watch and then displaying advertising to your readers or viewers.
In an advertising business model, you have to satisfy two customer groups: your readers or viewers,
and your advertisers. Your readers may or may not be paying you, but your advertisers certainly are.
An advertising business model is sometimes combined with a crowdsourcing model where you get your
content for free from users instead of paying content creators to develop content. Examples: CBS, The
New York Times, YouTube
2. Affiliate
The affiliate business model is related to the advertising business model but has some specific
differences. Most frequently found online, the affiliate model uses links embedded in content instead of
visual advertisements that are easily identifiable. For example, if you run a book review website, you
could embed affiliate links to Amazon within your reviews that allow people to buy the book you are

reviewing. Amazon will pay you a small commission for every sale that you refer to them. Examples:
TheWireCutter.com, TopTenReviews.com
3. Brokerage
Brokerage businesses connect buyers and sellers and help facilitate a transaction. They charge a fee
for each transaction to either the buyer or the seller and sometimes both.One of the most common
brokerage businesses is a real estate agency, but there are many other types of brokerages such as
freight brokers and brokers who help construction companies find buyers for dirt that they excavate
from new foundations. Examples: ReMax, RoadRunner Transportation Systems
4. Concierge/customization
Some businesses take existing products or services and add a custom element to the transaction that
makes every sale unique for the given customer.For example, think of custom travel agents who book
trips and experiences for wealthy clients. You can also find customization happening at a larger scale
with products like Nike’s custom sneakers. Examples: NIKE, Journey
5. Crowdsourcing
If you can bring together a large number of people to contribute content to your site, then you’re
crowdsourcing. Crowdsourcing business models are most frequently paired with advertising models to
generate revenue, but there are many other iterations of the model. Thread less, for example, lets
designers submit t-shirt designs and gives the designers a percentage of sales.
Companies that are trying to solve difficult problems often publish their problems openly for anyone to
try and solve. Successful solutions get rewards and the company can then grow their business. The
key to a successful crowdsourcing business is providing the right rewards to entice the “crowd” while
also enabling you to build a viable business.Examples: Thread less, YouTube, P&G Connect and
Develop,
6. Disintermediation
If you want to make and sell something in stores, you typically work through a series of middlemen to
get your product from the factory to the store shelf.Disintermediation is when you sidestep everyone in
the supply chain and sell directly to consumers, allowing you to potentially lower costs to your customers
and have a direct relationship them as well. Examples: Casper, Dell

7. Fractionalization
Instead of selling an entire product, you can sell just part of that product with a fractionalization business
model.One of the best examples of this business model is timeshares, where a group of people owns
only a portion of a vacation home, enabling them to use it for a certain number of weeks every year.
Examples: Disney Vacation Club, Net Jets
8. Franchise
Franchising is common in the restaurant industry, but you’ll also find it in all sorts of service industries
from cleaning businesses to staffing agencies. In a franchise business model, you are selling the recipe
for starting and running a successful business to someone else. You’re often also selling access to a
national brand and support services that help the new franchise owner get up and running. In effect,
you’re selling access to a successful business model that you’ve developed.Examples: Ace Hardware,
McDonald’s, Allstate
9. Freemium
With a freemium business model, you’re giving away part of your product or service for free and
charging for premium features or services.Freemium isn’t the same as a free trial where customers only
get access to a product or service for a limited period of time. Instead, freemium models allow for
unlimited use of basic features for free and only charge customers who want access to more advanced
functionality. For more on the freemium model (and other pricing models popular with SaaS
businesses), see this article. Examples: MailChimp, Evernote, LinkedIn
10. Leasing
Leasing might seem similar to fractionalization, but they are actually very different. In fractionalization,
you are selling perpetual access to part of something. Leasing, on the other hand, is like renting. At the
end of a lease agreement, a customer needs to return the product that they were renting from you.
Leasing is most commonly used for high-priced products where customers may not be able to afford a
full purchase but could instead afford to rent the product for a while. Examples: Cars, DirectCapital
11. Low-touch
With a low-touch business model, companies lower their prices by providing fewer services. Some of
the best examples of this type of business model are budget airlines and furniture sellers like IKEA. In
both of these cases, the low-touch business model means that customers need to either purchase

additional services or do some things themselves in order to keep costs down. Examples: IKEA, Ryan
Air
12. Marketplace
Marketplaces allow sellers to list items for sale and provide customers with easy tools for connecting to
sellers. The marketplace business model can generate revenue from a variety of sources including fees
to the buyer or the seller for a successful transaction, additional services for helping advertise seller’s
products, and insurance so buyers have peace of mind. The marketplace model has been used for both
products and services. Examples: eBay, Airbnb
13. Pay-as-you-go
Instead of pre-purchasing a certain amount of something, such as electricity or cell phone minutes,
customers get charged for actual usage at the end of a billing period. The pay-as-you-go model is most
common in home utilities, but it has been applied to things like printer ink.Examples: Water companies,
HP Instant Ink
14. Razor blade

The razor blade business model is named after the product that essentially invented the model: sell a
durable product below cost to increase volume sales of a high-margin, disposable component of that
product. This is why razor blade companies practically give away the razor handle, assuming that you’ll
continue to buy a large volume of blades over the long term. The goal is to tie a customer into a system,
ensuring that there are many additional, ongoing purchases over time. Examples: Gillette, Inkjet
printers, Xbox, Amazon’s Kindle
15. Reverse razor blade

Flipping the razor blade model around, you can offer a high-margin product and promote sales of a low-
margin companion product. Similar to the razor blade model, customers are often choosing to join an
ecosystem of products. But, unlike the razor blade model, the initial purchase is the big sale where a
company makes most of its money. The add-ons are just there to keep customers using the initially
expensive product. Examples: Apple’s iPod & iTunes, and now MacBooks& Pages, Numbers, and
Keynote
16. Reverse auction

A reverse auction business model turns auctions upside down and has sellers present their lowest
prices to buyers. Buyers then have the option to choose the lowest price presented to them. You can
see reverse auctions in action when contractors bid to do work on a construction project. You also see
reverse auctions anytime you shop for a mortgage or other type of loan. Examples: Priceline.com,
Lending Tree
17. Subscription
Subscription business models are becoming more and more common. In this business model,
consumers get charged a subscription fee to get access to a service. While magazine and newspaper
subscriptions have been around for a long time, the model has now spread to software and online
services and is even showing up in service industries. Examples: Netflix, Salesforce, Comcast
This is by no means an exhaustive list of all business models that exist—but, hopefully, it gets you
thinking about how you might structure your business. The key thing to remember is that you don’t need
to invent a new business model when you’re starting your business. Using existing models can help
lead you to success because the model has been proven to work. You’ll be innovating in smaller ways
within that existing business model to grow your business. A new business model could be extremely
lucrative but also brings with it higher risk. You don’t know if customers will accept the model or not. If
you think I should add another business model to this list, please find me on Twitter and let me know.
Essential Components of a Business Model
When it comes down to it, business models can vary in their form and function—as you can see from
our business model definition and brief example, however—they all consist of the same basic
components.Essential elements of a business model include a unique value proposition, a viable target
market, and a competitive advantage. Without them, you don’t have a way of generating revenue.
This being said, business models aren’t just about income—you also need to consider production costs
and other factors in order to see the full picture. So, what goes into creating a business model? Here
are the 10 components you’ll want to keep in mind:
Value proposition: A feature that makes your product attractive to your customers.
Target market: A specific group of consumers who would be interested in your product.
Competitive advantage: A unique feature of your product or service that can’t easily be copied
by competitors.

Cost structure: A list of the fixed and variable expenses your business requires to function, and
how they affect pricing.
Key metrics: The ways your company measures success.
Resources: The physical, financial, and intellectual assets of your company.
Problem and solution: Your target customers’ pain points, and how your company intends to
meet them.
Revenue model: A framework that identifies viable income sources to pursue.
Revenue streams: The multiple ways your company can generate income.
Profit margin: The amount your revenue exceeds your business costs.
These are the essentials that make up a business model, and they are likely to change as your
business matures. From the outset, you may not have a clear idea of what each of these components
will look like for your business.As you write your business plan, however, they will become more evident
and your model will provide a vision and direction for your business idea. To this point, although your
business model will inform your operations, it won’t solidify your business strategy in stone—as you
progress, you’ll be able to change and adapt your strategy based on your learnings.
The basic business models to consider:
Product/service – A business can make and sell its own products and services. This is probably
the most common approach. Evernote makes a great software product and distributes it through a free
to upgrade approach. A marketing consultant sells a consulting engagement for a monthly retainer fee.
Products and services can be packaged and distributed through a multitude of channels and
delivered in physical form, digital form and as one time purchases or ongoing subscriptions.
Reseller – Resellers don’t necessarily make or even warehouse what they sell. They find
products or represent brands and generally make profit based on the difference between the price they
sell a product for and the price they must pay to acquire or sell the product.
Affiliate marketers fall into this category as do what are commonly referred to as value added
resellers (VARs). Microsoft partners, for example, sell and install Microsoft products and add services,
such as customization and training, to enhance the basic product.

Many straight up e-Commerce companies, such as JustBats.com, fall into this category as do
many eBay and Amazon sellers. Most retail establishments also fit this model.
Broker – The broker essentially brings buyer and seller together and takes a transaction fee.
They may also provide services that make a transaction happen more smoothly, such as the case of a
real estate agent.
This category has exploded with the growth of online platforms that make bringing buyers and
sellers together from anywhere in the world much easier. In many cases this business model includes
the creation of a marketplace, handling transactions and ensuring security. Clarity.fm is a great example
of the new breed of broker as they bring experts and those seeking advice together.
PayPal is another example of brokering services between a buyer and seller. In this case, it’s
the actual exchange of money.
Aggregator – An aggregator builds a community and then charges for access to the community.
In many ways publications and news sites fit this model as they build a subscriber base and then charge
advertisers a fee to gain access, by way of a positioned ad, to their community.
Comparison shopping sites, like Shopzilla, and daily deal sites, like Woot are prime examples
of how the Internet has grown this category.
Please answer the following reviewing concepts.

1. Which of the following exhibits a description of how business makes money and is an
explanation of how does it deliver value to the customers at an appropriate cost?
A. Business Concept C. Business Idea
B. Business Framework D. Business Model
2. Which among the succeeding business models are most frequently paired with advertising models
to generate revenue, but there are many other iterations of the model?
A. Advertising C. Disintermediation
B. Crowdsourcing D. Franchise
3. This business model generates revenue from a variety of sources including fees to the buyer or the
seller for a successful transaction, additional services for helping advertise seller’s products:
A. Business Model C. Marketplace

B. Low-touch D. Pay-as-you-go
4. What is the basic business model that is essentially brings buyer and seller together and takes a
transaction fee, and which they may also provide services that make a transaction happen more
smoothly, such as the case of a real estate agent?
A. Aggregator C. Business
B. Broker D. Reseller
5. Which of the different kinds of business models that connect buyers and sellers and help facilitate a
transaction, examples of which are ReMax, Roadrunner Transportation Systems?
A. Advertising C. Brokerage
B. Affiliate D. Disintermediation
6. Which among the basic business model find products or represent brands and generally makes
profit based on the difference between the price they sell a product for and the price they must pay to
acquire or sell the product?
A. Broker C. Customization
B. Business Idea D. Reseller
7. Which business model is related to the advertising business model but has some specific differences.
Most frequently found online, the affiliate model uses links embedded in content instead of visual
advertisements that are easily identifiable?
A. Affiliate C. Crowdsourcing
B. Concierge/customization D. Fractionalization
8. It is the kind of business model that take existing products or services and add a custom element to
the transaction that makes every sale unique for the given customer?
A. Advertising Model C. Concierge/customization
B. Business Idea D. Disintermediation
9. It is referred as which of the most commonly used for high-priced products where customers may not
be able to afford a full purchase but could instead afford to rent the product for a while?
A. Advertising Model C. Leasing
B. Business Idea D. Low-touch
10. A new business model could be extremely lucrative but also brings with it higher risk. The
proposition derive on which business models that are becoming more and more common. In this
business model, consumers get charged a fee to get access to a service?
A. Advertise C. Leasing
B. Broker D. Subscription

11. One of the best examples of this business model is timeshares, where a group of people owns only
a portion of a vacation home, enabling them to use it for a certain number of weeks every year. The
statement exemplifies which kind of business models?
A. Affiliate C. Fractionalization
B. Crowdsourcing D. Freemium
12. Which business model, companies lower their prices by providing fewer services. Some of the best
examples of this type of business model are budget airlines like Cebu Pacific
A. Customization C. Low-touch
B. Leasing D. Razor blade
13. What kind of business model is named after the product that essentially invented the model, which
sells a durable product below cost to increase volume sales of a high-margin, disposable component
of that product?
A. Business Model C. Reverse Auction
B. Razor blade D. Reverse razor blade
14. This kind of business model is most common in home utilities, but it has been applied to things like
printer ink, instead of pre-purchasing a certain amount of something, such as electricity or cell phone
minutes, customers get charged for actual usage at the end of a billing period: Which of the choices is
the best explanation of the above statement?
A. Leasing C. Marketplace
15. This business model refers to when there is sidestep in the supply chain and sell directly to
consumers, allows to potentially lower costs among the customers and have a direct relationship in the
business:
A. Brokerage C. Crowdsourcing
B. Concierge D. Disintermediation

Lesson 3: Understanding the Economic Realities of Independent
Consulting
Introduction:
The dictionary defines a consultant as "an expert in a particular field who works as an advisor either
to a company or to another individual." A consultant's job is to consult. Nothing more, nothing less. It's
that simple. There's no magic formula or secret that makes one consultant more successful than
another one. But what separates a good consultant from a bad consultant is a passion and drive for
excellence. And--oh yes--a good consultant should be knowledgeable about the subject he or she is
consulting in. That does make a difference.

• To show the context of the consulting market and economic realities of becoming an
independent consultant.; and
• To know the overall tips for consulting, this includes knowledge requirements, experience that
adds value to your client, growing relationships, communicating, and developing a dynamic plan
for your consulting business.
Course Materials:
Things to Consider Before You Become a Consultant
• What certifications and special licensing will I need? Depending upon your profession, you
may need special certification or a special license before you can begin operating as a
consultant. For example, fund-raising consultants don't need special certification, although you
can become certified through the National Society of Fund-Raising Executives. And in some
states, you may need to register as a professional fund-raising consultant before starting your
business.
• Am I qualified to become a consultant? Before you hang out your shingle and hope that
clients begin beating your door down to hire you, make sure you have the qualifications
necessary to get the job done. If you want to be a computer consultant, for example, make sure

you are up to date in the knowledge department with all the trends and changes in the computer
industry.
• Am I organized enough to become a consultant? Do I like to plan my day? Am I an expert
when it comes to time management? You should have answered "yes" to all three of those
questions!
• Do I like to network? Networking is critical to the success of any type of consultant today. Begin
building your network of contacts immediately.
• Have I set long-term and short-term goals? And do they allow for me to become a consultant?
If your goals do not match up with the time and energy it takes to open and successfully build a
consulting business, then reconsider before making any move in this direction!
Top 20 Consulting Businesses Thriving Today
Although you can be a consultant in just about any field these days, the current top 20 consulting
businesses include:
1. Accounting: Accounting consulting professionals help clients with financial management, financial
forecasting and auditing.
2. Advertising: Advertising Consultant focuses on the way that businesses communicate with current
or prospective clientele and is the person who understands trends and target markets.
3. Auditing: Audit Consultant performs basic operational and financial audits, internal control reviews,
and consulting project.
4. Business: Business consultants, also known as management analysts, work in areas that include
marketing, human resources, management, and accounting.
5. Business writing: A business writer is someone who writes proposals and plans for a company, or
reports on the stock market, financing or other economic happenings for publications.
6. Career counselling: Career counsellors are professional consultants who look at an individual's
education level, work history, and interests to suggest potential career paths and set career goals for
their clients.

7. Communications: A communications consultant prepares internal and external media releases for
a company. Your job duties involve consulting on marketing strategies, communication protocols, and
other aspects of a company’s public image.
8. Computer programmer: Computer programmers write and test code that allows computer
applications and software programs to function properly.
9. Editorial services: An Editorial consultant is a non-staff, independent literary editor consulting editor
may be an independent, freelance editor, or a scholar providing expertise via consulting.
10. Executive search/head hunter firms: An executive search consultant seeks to place candidate
CEOs and upper-management executives with their client companies.
11. Gardening: The approach of a Garden Consultant is different. They may also be a garden designer
or landscaper, but when you ask them to resolve a problem you have with your garden, they are asking
different questions, looking from a different angle, as their brief is to resolve a particular issue which
you have. A Garden Consultant will look at your whole garden if that is within the brief, or if they feel it
will help them to more fully understand the problem you have. But their focus is on your gardening issue
rather than on your garden.
12. Grantsmanship: A grant writing consultant can offer many grant writing services: they can research
grant opportunities, write and submit grants, help with follow-up and grant reporting, and much more.
13. Human resources: human resources consultants work to ensure that the company is effectively
using its personnel to achieve its stated goals, while also ensuring the workforce is operating at a high
level of productivity and efficiency.
14. Insurance: Insurance consultant refers to a person who advises or offers to advise in the area of
life and health insurance or property and casualty insurance. Insurance consultant offers his/her service
for a particular fee. A person can be an insurance consultant only if s/he is licensed as an insurance
consultant. Insurance consultant is also known as insurance adviser. Several states statutes have
defined the term Insurance Consultant.
15. Marketing: A marketing consultant is a marketing professional with expertise in strategies to

engage customers and improve business opportunities, both through retaining existing clients and
attracting new patrons.

16. Payroll management: Payroll consultant job duties include identifying your clients’ business needs,
recommending improvements to payroll services or best practices, as well as computing payments,
deductions, and tax information.
17. Public relations: Public relations consultants act as communicators between organizations and
the public. They help disseminate information about the company to the public while relaying public
concerns and expectations back to the organization.
18. Publishing: A Publishing Consultant build strong working relationships with clients in order to
understand, manage and successfully deliver their business objectives.
19. Taxes: Tax consultants, also known as tax advisors, are experts in tax law, planning and
compliance. They serve businesses and individuals alike by staying current on new tax law and
positioning taxpayers for short and long term tax optimization.
20. Writing services: Consultants help writers think about how they might revise their writing.
This means that consultants read student papers, or have stu dents read them aloud.
Consultants ask questions about those papers to help students clarify their focus, organize their
writing, and support their ideas. Consultants assist students in identifying problem areas of
grammar and punctuation. Because consultants are not teachers or editors, they don't grade or
fix student papers. Rather, they ask questions and give feedback to students toward improving
their writing.
Why an Organization Wants to Hire You
According to a recent survey, here are the top 10 reasons organizations hire consultants:
1. A consultant may be hired because of his or her expertise. This is where it pays to not only be
really good in the field you have chosen to consult in, but to have some type of track record that speaks
for itself. For example, when I mentioned earlier that I had become an expert as a fund-raising
consultant, I knew that every client who hired me was doing so partly on the basis of my track record
alone. After all, if you are a non-profit organization that needs to raise $1 million, it makes sense to hire
someone who has already raised millions for other organizations.

2. A consultant may be hired to identify problems. Sometimes employees are too close to a problem
inside an organization to identify it. That's when a consultant rides in on his or her white horse to save
the day.
3. A consultant may be hired to supplement the staff. Sometimes a business discovers that it can
save thousands of dollars a week by hiring consultants when they are needed, rather than hiring full-
time employees. Businesses realize they save additional money by not having to pay benefits for
consultants they hire. Even though a consultant's fees are generally higher than an employee's salary,
over the long haul, it simply makes good economic sense to hire a consultant.
4. A consultant may be hired to act as a catalyst. Let's face it. No one likes change, especially
corporate America. But sometimes change is needed, and a consultant may be brought in to "get the
ball rolling." In other words, the consultant can do things without worrying about the corporate culture,
employee morale or other issues that get in the way when an organization is trying to institute change.
5. A consultant may be hired to provide much-needed objectivity. Who else is more qualified to
identify a problem than a consultant? A good consultant provides an objective, fresh viewpoint--without
worrying about what people in the organization might think about the results and how they were
achieved.
6. A consultant may be hired to teach. These days if you are a computer consultant who can show
employees how to master a new program, then your telephone probably hasn't stopped ringing for a
while. A consultant may be asked to teach employees any number of different skills. However, a
consultant must be willing to keep up with new discoveries in their field of expertise--and be ready to
teach new clients what they need to stay competitive.
7. A consultant may be hired to do the "dirty work." Let's face it: No one wants to be the person
who has to make cuts in the staff or to eliminate an entire division.
8. A consultant may be hired to bring new life to an organization. If you are good at coming up with
new ideas that work, then you won't have any trouble finding clients. At one time or another, most
businesses need someone to administer "first aid" to get things rolling again.
9. A consultant may be hired to create a new business. There are consultants who have become
experts in this field. Not everyone, though, has the ability to conceive an idea and develop a game plan.

10. A consultant may be hired to influence other people. Do you like to hang out with the rich and
famous in your town? If so, you may be hired to do a consulting job simply based on who you know.
Although most consultants in this field are working as lobbyists, there has been an increase in the
number of people entering the entertainment consulting business.
Consulting Tips
Consultants may work individually, or as one of many consultants for a consulting company. They
specialize in a particular area in which they have interest and expertise. Each consultant uses a similar
business framework, but they differ in their methodologies. Each industry has its own complexities and
similarities.
Typical Consulting Industries
• Strategy • Political • Information

• Healthcare • Social media technology
• Safety • Environmental • Taxes and
• Engineering • Telecommunications accounting
• Marketing • Banking • Human resources
• Management • Process • Construction
Here are some of the typical activities a consultant would do in their line of work:
• Research and compile information about the client's problem

• Interview employees and perform process observations
• Perform analyses of company data
• Develop a solution and alternatives
• Produce analytical reports, which include recommendations for process or procedural changes
• Make recommendations to the company's management through a written report or formal
presentation
• Follow up with management to ensure recommendations are implemented
Your job is to develop a specialized strategy to help the company be more competitive in the
marketplace. As you can see, consulting is a thriving industry. With a significant success rate and

continual growth, consulting looks like a win-win endeavor well into the future. Consulting is one of the
opportunities you can pursue on a part-time basis, while maintaining your full-time job.
Successful consulting occurs when you meet the needs of your clients because you have the right mix
of savvy and competence. To achieve this, you'll need the following:
• Knowledge base in your field

• Experience that adds value to your client
• The ability to foster and grow relationships
• Excellent communication
• A dynamic plan that continually improves
• The ability to network and properly market
• Correctly resolving the problem
• Providing clear expectations
• Developing attainable goals and objectives
• Providing attention to detail
• Charging reasonable fees
Consulting failure occurs when the results you produce do not correlate with the strategy of the
organization for which you are doing the consulting. Consulting failure may also occur where the
organization is unable to implement your recommendations, such as:
• Your clients have unrealistic expectations.

• The consulting experience had unattainable goals and objectives.
• The client demanded additional time or more services for the same fee.
• A lack of leadership in the client company.
• The client ignores or rejects your advice.
Design the solutions that best serve your client's needs, based on your abilities and competencies. As
you develop your portfolio, you explain your value to clients. You want to specify your general consulting
offerings, then list your custom services. For example, for typical or general consulting, you may list:
• Corporate needs assessments

• Value enhancement audits
• Government agency audits

• Due diligence audits
• Not-for-profit audits
• Business valuation
• Growth design
• Value enhancements
Then you may list some of your custom services, such as:
• Growth management
• Capital sourcing
• Corporate turnaround
• Organizational behavior
• Lean management
Consultants are typically selected, based on how their proposal scores and ranks in terms of the needs
of the project; the billing rate, based on the project budget; the availability of the consultant at the time
of need; the geographic location of the consultant; and finally, any special skills the consultant may
have that add value, above and beyond, the skills of any other consulting proposals. As a consultant,
once you determine your services, you want to standardize the products you offer so that the process,
evaluation, and report format have an individualized style that accentuates your abilities.
MIDTERM Assessment:
1. Achieves thoroughness and accuracy when accomplishing a task through concern for all the areas
involved. Which of the following describe the given statement?
A. Attention to detail C. Reliability
B. Being the 'go to' for something D. Resourcefulness
2. Professionals, who provide specific support, perform trouble-shooting functions and resolve
customer issues which become highly knowledgeable about the company's products or applications
so that they can assist users, employees, and clients with any issues they may have. A type of
consultant refers to which of the following?
A. Accounting consultant C. Marketing consultant
B. Legal consultant D. Technology consultant

3. Which of the following consultant is an outside advisor who works with companies to create and
implement strategies which helps create a strategic plan, determine a
business's communication message, and identify the appropriate mix to get the message out to the
target audience?
A. Accounting consultant C. Marketing consultant
B. Legal consultant D. Technology consultant
4. Defined as having general extensive knowledge and experience in as specific professional field and
share their experience in order to solve business-related issues or problems:
A. Accounting consultant C. Legal consultant
B. Consultant D. Marketing consultant
5. Which of the subsequent defines as the process of organizing and planning how to divide specific
activities that requires an important shift in focus from activities to results the same as being
effective.and efficient of using such?
A. Analytical mind C. Problem-solving
B. Inquisitiveness D. Time management
6. Which of the succeeding options often referred as an expert in a particular field who works as an
advisor either to a company or to another individual?
A. Appraiser C. C.E.O.
B. Consultant D. Researcher
7. Which of the following consultant is also known as management analysts, work in areas that include
marketing, human resources, management, and accounting?
A. Business consultant C. Public relation consultant
B. Editorial consultant D. Tax consultant
8. Which consultant act as communicators between organizations and the public?
A. Auditing consultant C. Human resource consultant
B. Communication consultant D. Public relation consultant
9. Which of the subsequent refers to a person who advises or offers to advice in the area of life and
health insurance or property and casualty insurance?
A. Accounting consultant C. Insurance consultant
B. Executive search consultant D. Publishing consultant
10. Which among the following consultant performs basic operational and financial audits, internal
control reviews, and consulting project?

A. Advertising consultant C. Business consultant
B. Auditing consultant D. Marketing consultant
11. This consultant focuses on the way that businesses communicate with current or prospective
clientele and is the person who understands trends and target markets. The statements perfectly
describe which of the following consultants?
C. Auditing consultant D. Marketing consultant
12. Which of the following choices defined were this consultant is a marketing professional with
expertise in strategies to engage customers and improve business opportunities, both through retaining
existing clients and attracting new patrons?
C. Auditing consultant D. Marketing consultant
13. Which of the following consultants help clients with financial management, financial forecasting and
auditing?
A. Accounting consultant C. Grant writing consultant
B. Communications consultant D. Tax consultant
14. Which of the following consultants can research grant opportunities, write and submit grants, help
with follow-up and grant reporting, and much more?
15. Which of the succeeding consultants serve businesses and individuals alike by staying current on
new tax law and positioning taxpayers for short and long term tax optimization?
16. One of the best examples of this business model is timeshares, where a group of people owns only
a portion of a vacation home, enabling them to use it for a certain number of weeks every year. The
statement exemplifies which kind of business models?
A. Affiliate C. Fractionalization
B. Crowdsourcing D. Freemium
17. Which business model, companies lower their prices by providing fewer services. Some of the best
examples of this type of business model are budget airlines like Cebu Pacific
A. Customization C. Low-touch
B. Leasing D. Razor blade

18. What kind of business model is named after the product that essentially invented the model, which
sells a durable product below cost to increase volume sales of a high-margin, disposable component
of that product?
A. Business Model C. Reverse Auction
B. Razor blade D. Reverse razor blade
19. This kind of business model is most common in home utilities, but it has been applied to things like
printer ink, instead of pre-purchasing a certain amount of something, such as electricity or cell phone
minutes, customers get charged for actual usage at the end of a billing period: Which of the choices is
the best explanation of the above statement?
A. Leasing C. Marketplace
20. This business model refers to when there is sidestep in the supply chain and sell directly to
consumers, allows to potentially lower costs among the customers and have a direct relationship in the
business:
A. Brokerage C. Crowdsourcing
B. Concierge D. Disintermediation
21 Which of the essential components of business model wherein a feature that makes the product
attractive to the customers that makes the product attractive to the buyers?
A. Competitive Advantage C. Target Market
B. Cost Structure D. Value Proposition
22. Which business model components that the amount of your revenue exceeds your business costs.
These are the essentials that make up a business model, and they are likely to change as your business
matures.
A. Profit margin C. Revenue Model
B. Problem and Solution D. Revenue Streams
23. A list of the fixed and variable expenses that business requires to function, and how they affect in
terms of pricing. The argument communicates on which of the subsequent options?
A. Competitive Advantage C. Key metrics
B. Cost structure D. Resources
24. Refers to a group of potential customers to whom a company wants to sell its products and services
and this group also includes specific customers to whom a company directs its marketing efforts.
A. Competitive Advantage C. Key metrics
B. Cost structure D. Target market

25. Which of the following referred to factors that allow a company to produce goods or services better
or more cheaply than its rivals, and the essential elements of a business model include unique feature
of your product or service that can’t easily be copied by competitors?
A. Competitive Advantage C. Profit margin
B. Cost structure D. Value Proposition
II. TRUE OR FALSE.

__________1. The typical activities a consultant would do in their line of work are to develop a solution
and alternatives.
__________2. Consultant’s job is to develop a specialized strategy to help the company be more
competitive in the marketplace.
__________3. The ability to network and properly market will make consulting succeed.
__________4. Consultants are typically selected, based on how their proposal scores and ranks in
terms of the needs of the project.
__________5. Consultants can list custom service such as capital sourcing.
__________6. Consulting failure may also occur where the organization is unable to implement
recommendations.
__________7. Some of the typical activities a consultant would do in their line of work are to manage
client’s business.
__________8. Each consultant uses a similar business framework and similar methodologies.
__________9. Consulting will possibly fail when the clients have unrealistic expectations.
__________10. Developing attainable goals and objectives needs to achieve of a consultant in order
to succeed in consulting.

Lesson 4: How to Establish and Improve your Firm Presence
Introduction:
There are a lot of misconceptions about consulting. People often think that to be a consultant, you need
special credentials, a fancy office, a posh suit, and a professional consulting business plan. They think
you need to have staff and the ability to make in-person appointments with big businesses.
Sometimes they think that consulting is only for enterprise businesses: stuff like supply chain
management, management, IT, HR and other really formal, stale business things. But none of this is
true. In reality, the definition of consulting is really simple. The Oxford dictionary defines it as “engaged
in the business of giving expert advice to people working in a specific field.”
That’s pretty simple. Expert advice + a specific field.
In other words, to build a consulting business, all you really need to do is focus on helping a specific
group of people solve the problems they are facing. That’s it. Everyone has a problem they want solved.
The more important the problem being solved, the more people are willing to pay to have it solved. And
the more money your target field has to spend, the more they will gladly pay to solve the problems they
are facing.

• To understand how to improve firm’s presence in the consulting arena to place your consulting
company in the best position for market domination; and
• To be able to show how to build the best proposal with low labor intensity, and win client contracts.
Course Materials:
The Only 4 Things Needed To Start A Consulting Business
You only need four things to start your consulting business and quickly grow it to six figures and beyond.
1. A compelling offer that provides value

2. A well-populated niche of potential clients
3. A repeatable system for attracting clients
4. A rewired mentality
Successful Consultants Have A Compelling Value Proposition

One of the most important lessons anyone can learn in business is how to create value. Until you
understand how to create value, you’ll never have anything worthwhile to sell. So how do we create
value as consultants? Right now, everyone on Earth has a current situation or state. They exist today
within a certain environment and with a certain set of circumstances, attributes, limitations, and
opportunities.
And no matter what that state of being looks like, part of being human is not being fully satisfied with
the present situation. Every human being on Earth desires to improve in some way... often in many
different ways, shapes and forms. What this ultimately means is that every human on Earth has a
current state of existence AND a desired state of existence, with a gap in between the two states. This
gap is the motivation behind all human behavior. People invest hours upon hours of their lives laboring
to earn money so they can then purchase things they believe will get them closer to their desired state.
This is how the global economy ticks. It’s the reason people do what they do.
As a consultant, your job is simply to help people bridge the gap. The value you bring to the table is the
ability to help someone move from their current state to their desired state.
And people will happily pay you for this for one of three reasons:
➢ They have been unsuccessful in getting there on their own.

➢ They want to get there faster.
➢ They want guidance from someone who has been there, done that.
Everybody wants to reach their desired state. If you can help them bridge the gap, whether it looks like
scaling a business, losing weight, or overcoming porn addiction, you can build a highly profitable
consulting business. Your goal is find a specific, significant challenge that people are ALREADY facing
and then become an expert at helping them overcome that challenge. And as long as there are people
wanting to solve that problem, there will be a lucrative demand for your services.
Often, the value you provide will come from personal experience. If you’ve “been there, done that”, it’s
very easy to help people follow in your footsteps. But it’s not mandatory that you have personally
encountered the challenge. In some cases, outside views are the most accurate. As long as you can
help real people overcome a challenge, you can get paid as a consultant regardless of how you develop
your method.
1. Successful Consulting Businesses Target A Specific Niche.
If your #1 goal for the next year was to lose 50 pounds, who would you rather have helping you?
✓ A personal trainer who specializes in helping people lose weight quickly

✓ A life coach who helps people reach their goals
It’s a no-brainer. We want the specialist. Why?

Because they have devoted their entire career to specializing in the ONE thing we most want help with.
The life coach may be fantastic. They might be really good at what they do. But there is zero chance
they are better at helping people lose weight than someone whose career is focused on that specific
area of expertise. That’s the power of niche expertise, and it’s something that virtually most successful
consulting businesses have in common. You will never become really good at helping everyone, but
you can become amazing at helping one specific type of person.
Successful consulting businesses target a specific niche.
And the big money in consulting, the REALLY big money, comes when you become known as THE
king or queen of your specific mountain. When you are at the top of your niche, generalist consultants
are no longer your competition. They don’t stand a chance. Prospects will literally beg you to work with
them at any price, and you get to pick and choose who you work with.
Instead of needing to deliver a time-consuming service, you will be paid simply to offer your advice, and
you will get paid significantly more than competing service providers, because YOU are the go-to expert
in your specific area.
2. Successful Consulting Businesses Have a Repeatable System For Attracting Clients
Now we need to go out, present our offer to potential clients, and close deals. A lot of new business
owners have no game plan for making this happen. They practice what they call “hope marketing”:
▪ They show up to the office every morning simply hoping the phone will ring.
▪ They attempt “random acts of marketing” based on the latest fads they hear about.
▪ They have no clue where their next client will come from.
▪ They feel like they are on a rollercoaster, never knowing when to expect feast or famine.
▪ Even When you run your business this way, you are essentially gambling your financial future
on worse odds than you’d get at a Vegas casino.
When you run your business this way, you are essentially gambling your financial future on worse odds
than you’d get at a Vegas casino.
If you want to run a successful consulting business, you must use a proven, rinse and repeat process
for attracting and converting clients.
3. Successful Consultants Rewire Their Mentality
Everything we just covered is worthless without the right mentality. Successfully building a consulting
company is hard, and knowing all the correct pieces won’t matter if you don’t have a mentality that
breeds success. The reason you haven’t achieved your goals is because you don’t have the mentality
required to achieve your goals. It’s that simple.
The only guaranteed way to succeed is to hack your brain and develop a mentality that naturally breeds
success. When you are able to see yourself, your business and the market through the right mental
lens, something crazy happens.

You stop fighting against yourself.
You stop fighting against your business.
You stop fighting against the market.
And suddenly, everything becomes much more efficient and even feels easier than it did before. This
is why we spend an entire week with our students focusing strictly on mentality BEFORE diving into the
practical mechanics of business building. Entrepreneurship is not for the faint of heart. Consulting is not
for the mentally fragile.
Consulting is problem solving, both for yourself and your clients, and the more resilient and persistent
your mentality, the more successful you will be.
8 Effective Marketing Strategies for Consultant’s Firm
How do you market your consulting business effectively? If you’re considering becoming an
independent consultant or if you’re already self-employed, you’ve likely asked yourself this question.
Branding is a difficult process for all small businesses, especially in a competitive environment. Things
are even more challenging when your business is “you.” Follow these tips for marketing your consulting
business, and with a bit of hard work, you’ll be on your way to cultivating a distinctive and respectable
brand.
1. Understand Personal Branding
When you start out as an independent consultant, it’s important to remember that you are now your
brand. There are many new, emerging ways to market yourself to ensure your small business is visible
not only on the Internet, but also in your community and among your colleagues. Remember, everything
you do, say, or publish online reflects on your business.
2. Create an Effective Sales Pitch
If you’ve done any research on starting a business, you’re likely familiar with the elevator pitch: a
concise, compelling statement describing your business. You should be able to give a potential client
your elevator speech in no more than 30 seconds. Although this technique may be more common in
traditional business, it will help highlight what’s important about your personal brand and share
information quickly with others.
3. Create a Personal Website
A credible website is the backbone of a good brand. Your website will likely be the first place potential
clients look when they’re researching your credentials, so make sure it is well written, up-to-date, and
professional. The quality of your website often speaks to the quality of your work, so be sure to employ
professional design help if needed, and ask for candid feedback from friends and colleagues.
4. Establish Thought Leadership

Establishing yourself as a thought leader is one of the most effective marketing tools for independent
contractors. Blogging via your own website or through a channel such as LinkedIn is a creative outlet
that allows you to share your expertise and reach an audience you may not connect with through
traditional marketing methods. Speaking opportunities are another way to promote your name and
voice. Reach out to professional organizations, conferences, and local media and offer to share your
expertise.
5. Grow Your Social Network
Social networking has become a marketing force to be reckoned with. What better way to speak directly
to people with similar interests and leverage word of mouth referrals to win new clients? To brand your
business online, start with LinkedIn and Twitter accounts. Your professional profiles should contain
important information clients may need and must be updated with current content. To maintain
professionalism, don’t spam your social network contacts at every opportunity. Work to find a balance
between sharing what’s interesting to you and what’s related to your business.
6. Bookmark Your Content
Social networking isn’t just about linking up with friends and colleagues. To be fully active online,
bookmark the content you create on your website or blog. By bookmarking, you can bring exposure to
your work through additional avenues. Creating backlinks to your site from several other sites can also
raise your Search Engine Optimization (SEO). To start your bookmarks, prioritize the big three sites:
Delicious, Dig, and Stumble Upon.
7. Embrace Video
If you are charismatic and have something powerful to share, then use your expertise to create a
podcast or video blog. Give listeners and viewers a sense of who you are as an expert and as a
professional. By sharing your personality, you can begin to build a circle of trust and drive new clients
to your business. For best results, get a friend or colleague to help set lighting and edit for introductions
and titles.
8. Network Offline
Networking in real life is one of the biggest secrets of consulting success. You are the best
representative for your brand, so become involved with your industry publicly by attending relevant
conferences, local meet-ups, or promotional events. Be sure to go armed with your elevator pitch,
business cards, and a fearless attitude.
Consulting Methodology
Every consultant develops their own consulting methodology. Your methodology is developed over time
as you develop your processes, methods, and templates for the work you produce doing consulting.
Over time, your proposals deliver the best results with low effort, because you have learned from

previous experiences -- what works and what doesn't, what clients truly need, what they don't like to
see in proposals, and key bits of information you add, which catches the eye of clients.
By definition, a methodology is a frame, structure, or set of tasks completed in a logical order. There
are several business improvement methodologies that are commonly used in the business world. In
addition to improvement methodologies, there are also commonly used bodies of knowledge, such as
the Business Analysis Body of Knowledge (BABOK) and the Project Management Body of Knowledge
(PMBOK).
There are a number of consulting bodies that offer framework for proposals and methodologies, as well
-- for example, the International Council of Management Consulting Institutes.
Let us do an overview of the consulting process first, and then we will explain how your methodology
allows you to make the necessary actions to provide your services as a consultant. Your methodology
includes templates you have developed for writing your proposals. By refining your templates over time,
you are able to get rapid results, with much less intensity of labor. Over time, your methodology
becomes more robust, so you are able to disengage from labor-intensive actions and focus more on
the quality of the consulting product you deliver.
The Consulting Process
During the consulting process, the consultant and the client engage in activities that are necessary for
achieving the desired result or solution. These activities are known as the consulting process. The
process begins when you have signed the contract and initiate your work and activities, and the process
ends once the client receives your consulting report and a plan for implementation. Your process may
vary somewhat, but these are the typical phases of the consulting process. Phase 1 includes the initial
contact with the client, preliminary diagnosis of the problem, planning of initial assignments, submitting
a proposal to the client, developing the consulting contract, and signing of the consulting contract.
Phase 2 includes the diagnosis phase, which includes defining and measuring the problem, researching
the problem, performing an analysis of the problem, then seeking client feedback on your proposed
actions. Phase 3 includes action planning, which includes developing solutions, developing alternatives,
presenting these to the client, and planning for implementation. Phase 4 includes implementation of
strategies requiring action, and performing training. Phase 5 includes closure and termination of your
consulting project. This consists of submission of the final report, briefing final plans for follow-up,
collecting payment, disengaging, and setting the stage for future consulting.

This diagram shows the phases of consulting and the activities that occur in each phase.
This is how the standard template format for a proposal would look:
Proposal Client You begin with listing the client's name, address, and pertinent information.
Consulting need You explain the issue or issues at hand, as to why the company needs your services.
You explain the insight and methods you will use.
Executive summary This contains brief information that states the problem the client is trying to
resolve. Make this section brief, but with enough information for the client to understand through your
proposal you understand the task at hand.
Objectives This includes information on what type of consulting assistance you intend to provide.
Examples include:
➢ Increasing operational efficiency within the manufacturing environment

➢ Bringing new techniques you have acquired through consulting with best-in-class companies
➢ Reducing cost, and adding value, through improving effectiveness of management
Success measures This section explains to the client what your consulting services will bring in terms
of success, if they hire you.
Examples include:
➢ Observation of data and time studies

➢ Prioritization of supervisory priorities
➢ Explanation of the time you think your recommendations will take to implement -- i.e. time line
➢ Use of feedback and employee measures to make improvements
Value summary This shows, in brief, bullet fashion, the overall value the consulting project will
bring to the client, including:
➢ Improve efficiency
➢ Reduction of cost
➢ Increase operational capacity

➢ Avoid productivity loss
➢ Improve market stature
Time lines This section tells how long you usually expect to complete your consulting work, and begin
implementation of actions.
Methodology options This section explains how you expect to go about interaction with the client. This
may be in an advisory capacity, a consultative capacity, or a collaborative approach.
Joint responsibilities This is used to convey understanding of activities where delineation of who
clearly does what portions -- such as who is responsible for access to employees, scheduling,
administrative support, and any confidential documents for nondisclosure agreements.
Terms and conditions These include fees related to expenses, travel, administrative, logistical, and
communication. Typically in this section, consultants list their fees and service options. For example,
option one, option two, or option three. This provides clients with the choice of consulting offers.
Acceptance This section has an area for signatures and calendar dates for the consultant and the
client.
Business environment and competition should be included if the aspects of what you are consulting
on include business competition or competitive market.
Scope of your consulting includes what you are proposing to do, and what you are not proposing to do.
Key terms section is used to describe any unusual terms used in your proposal.
Know the difference between consulting proposals and consulting reports. For clarity, the consulting
proposal is the initial document you submit to a client in anticipation of future business. The consulting
report is the final report of your analysis and actions of your consulting activity, which are developed
using your consulting methodology.
Developing your Draft
Remember, the client is hiring a consultant based on specific needs. Your job as a consultant is to craft
a short, yet concise, proposal that most closely fits their needs by describing the procedures you will

take, and outcomes you expect as a consultant. Envision yourself as the individual or team reviewing
proposals and what your expectation would be in the document. The client has to feel that you
understand their economic, technological, political, and social climate, and are the sole individual who
can take the current situation and produce the best outcome. This is the individual who can best show:
➢ They understand the client.

➢ They recognize their need.
➢ They best summarize the client's needs.
➢ They offer the best opportunity for success, based on the strategy they propose.
Key areas that will help differentiate your proposal from others is the manner in which you describe the
methods of intervention you will use, how you will isolate problems, your preliminary understanding of
the scope of problems in your understanding of the company's readiness for change. As clients review
your proposals, they are primarily looking for the person who best understands the forces that act on
their company within the marketplace, which include environmental, political, economic, legal,
technological, and social aspects. As they see you have an understanding of their environment, they
will compare your proposal to others in terms of your consulting competence, specialized technical
knowledge and skills, managerial skills, and interpersonal skills.
Proposal tips
Many consultants joke that, "The best proposal is a proposal you don't have to write." Often, if you are
working with clients who have a familiarity with you, it may not be required to develop a full formal
consulting proposal. In this case, you may only have to sign a confirmation letter. Quite often this is not
the case; then you must develop a proposal for your possible client. When you do have to develop a
proposal, use your proposal outline, and over time the proposal methodology you develop. Here are
some general tips that will help out in writing the perfect proposal:
➢ Create a powerful executive summary. Develop this document by being succinct and
creative. Remember, this is your opportunity to win business, so write big.
➢ Be brief, use brevity. Be brief, yet provide a high-quality document
➢ Quantify the expected results. Clients want to know more about what you're going to provide,
instead of how you going to get there.
➢ Share ideas. Don't be afraid to share with your client some of your ideas for improvement. This
will give them an idea of what you are thinking, and how you can be successful on their project.

➢ Client focused. Avoid discussion about the consulting firm and its history in your proposal, and
focus on how you will address their issues.
➢ Avoid business cliché overuse -- such as "best practice," "win-win," "agent of change," "gone
viral," etc.
➢ Accuracy should go without saying. Prior to submitting your proposal to a potential client,
double check all of your facts and information. Make sure to spell check, and print your proposal
on high-quality material. If possible, use someone else to make a review of your proposal. Use
care when you proofread, as spell check does not pick up "from" and "form," but your readers
will, and it reflects on your overall credibility.
➢ Ability is a characteristic you want to portray to potential clients. Be sure to showcase your
abilities and capabilities as a consultant.
As you frame your proposal, keep in mind the key ideas that clients have, and develop your
proposal accordingly. Clients have a difficult time determining whether they are getting the right value
for their money. Clients find it difficult to differentiate between consultants, based on the wide range of
services they offer, and the terminology they use. Clients typically find it difficult to make comparisons.
Proposal presentation
Once you have the perfect proposal developed, it is important to present it with a quality look and feel.
Use high-quality paper, presentation binders, and folders for your proposal. If you provide a copy in
digital format, ensure the quality label is affixed with your consulting company name, contact
information, and the title of the proposal. Typically, reports are covered with a card stock, which is used
to protect the document. The cover of your report should include the same information, including
consulting company name, contact information, and the title of the proposal. Online and local office
companies can help develop your corporate identity design
Following is a brief proposal checklist
➢ Value ➢ Methodology
➢ Situational awareness ➢ Joint accountability
➢ Timing ➢ Terms and conditions
➢ Cover letter ➢ Acceptance document
➢ Objectives
➢ Measures

Differentiation aspects - What makes your proposal different from the 10 others on leadership's desk?
Is your analysis better? Is your proposal crafted in a manner where the verbiage stands out and more
succinctly defines the actions you will take? Is your pricing reasonable and fair, based on the work you
will do? Is the visual appeal of your proposal the best in terms of quality and format?
In addition to your written proposal, you may need a formal presentation, such as PowerPoint or Prezi
to get your point across to clients. There are numerous attractive, elegant professional templates for
building your business case. Remember, presentation is very important as you submit your consulting
reports. There are numerous templates available for purchase and for free, if you are beginning a
startup.
As a consultant, you must display the ability to write the most appropriate proposal, with the best writing
techniques. Ensure that you have relevant data, easily displayed, and can convey to the client, in a brief
and concise fashion, the activities you will perform and the results they will accomplish. Following are
some examples of consultant analysis charts. They convey both the present state and future state of
the organization, so the client can see very easily the improvements they need to make, and the time
lines in which they will occur. It is important that they catch the client's eye.
Once you have passed the hurdle of the written proposal you more than likely will be required to provide
an oral presentation. Remember to adapt your style to the respective audience.
How to Disengage
Disengagement is the act of ensuring the client can continue without you as a consultant. To properly
disengage, you want to leave the client with a plan of action that includes specific tasks and activities
with associated time lines. As a consultant, you will monitor the actions to refine your own return on
investment, but also to convey to the client how you were able to resolve their issues. It is key that you
ensure client satisfaction through verbal means, but also through a customer satisfaction survey. This
will provide you with information that can help you on your methodologies, and also gives you the
opportunity as a consultant to potentially sell additional services.

At this point, you will use project management techniques to close the project. A significant part of this
engagement is the documentation of closure, where you relate the actions you have taken back to the
clients' expectations and evaluate the overall consulting experience.
1. This concept is a marketing practice in which a company creates a name, symbol or design that is
easily identifiable as belonging to the company. The said concept helps to identify a product and
distinguish it from other products and services and gleaned which of the succeeding option?
A. Branding C. Pricing
B. Managing D. Supporting
2. Which among the subsequent is an effective marketing strategy that will help highlight important
personal brand and share information quickly with others?
A. Bookmark Your Content C. Create an Effective Sales Pitch
B. Create a Personal Website D. Understand Personal Branding
3. Which among the practice of expanding the number of one's business and / or communal contacts
by making connections through individuals which has become a marketing force to be reckoned with.
A. Advertising C. Networking
B. Digital Marketing D. Social Networking
4. It is a socioeconomic business activity by which businesspeople and entrepreneurs meet to
form business relationships and to recognize, create, or act upon business opportunities, share
information and seek potential partners for ventures.
A. Advertising C. Networking
B. Digital Marketing D. Social Networking
5. Give listeners and viewers a sense of who you are as an expert and as a professional. The statement
expounds which of the succeeding options?
A. Bookmark Your Content C. Embrace Video
B. Create a Personal Website D. Establish Thought Leadership
6. Which of the option is typically done to enhance security where internet services aren't required?
B. Create a Personal Website D. Network Offline
7. You will never become really good at helping everyone, but you can become amazing at helping
one specific type of person. The communication is best describing which among the following?
A. A compelling offer that provides value.

B. A repeatable system for attracting clients.
C. A rewired mentality.
D. A well-populated niche of potential clients.
8. Social networking is not only linking up with friends and colleagues, and to be fully active online
creating website or blog is the best networking strategy. The statement derives which of the choices?
9. Which among the following is the better way to speak directly to people with similar interests and
leverage word of mouth referrals to win new clients?
A. Create a Personal Website C. Network Offline
B. Grow Your Social Network D. Understand Personal Branding
10. There are many new, emerging ways to market yourself to ensure your small business is visible not
only on the Internet, but also in your community and among your colleagues. The proposition described
which among the subsequent?
II. TRUE OR FALSE

__________1. Every consultant develops their own consulting methodology.
__________2. During the proposals, the consultant and the client engage in activities that are
necessary for achieving the desired result or solution.
__________3. Phase 4 includes closure and termination of your consulting project.
__________4. Objective includes information on what type of consulting assistance you intend to
provide.
__________5. Success measures section explains to the client what your consulting services will bring
in terms of success.
__________6. Consulting need section explains how you expect to go about interaction with the client
and this may be in an advisory capacity, a consultative capacity, or a collaborative approach.
__________7. Scope of your consulting includes what you are proposing to do, and what you are not
proposing to do.
__________8. Key terms section is used to describe any unusual terms used in your proposal.
__________9. Methodology options section explains how you expect to go about interaction with the
client and this may be in an advisory capacity, a consultative capacity, or a collaborative approach.

__________10. Phase 2 includes the diagnosis phase, which includes defining and measuring the
problem, researching the problem, performing an analysis of the problem, and then seeking client
feedback on your proposed actions.

Lesson 5: The End Process of Consulting Success
Introduction:
In this lesson, we will discuss issues that affect your consulting success. First we will cover ethical
issues you may encounter as a consultant, and how to approach them. Following the ethical discussion,
we will provide an overview of some of the business approaches you need to know as your business
progresses -- such as the amount of time it takes for you to see a payback on your investment, re-
investment strategies, and -- if necessary, or the time comes --an exit strategy.

• To be able to implement consulting methodologies with some of the best practices in interpersonal
relationships working with teams and groups that will encounter as a consultant;
• To know key tips for organizational development; and
• To understand the higher level consulting success tips including ethics and integrity, and tips for
when business is growing in terms of exit strategies, payback times and when to reinvest.
Course Materials:
Ethics of the business
There are many ways to define ethics. In general, ethics are the standards governing the conduct of
the members of a profession. Business ethics are those standards that we use to conduct business
operations, and as a consultant, high ethical standards are the expectation, where individuals conform
to sound moral principles. As businesses focus on earning a profit, there are often issues of misconduct
based on the individual conduct of business men and women. Unethical behavior consists of issues
such as harassment, fraud, conflict of interest, bribery, employee theft, or defective products. The key
reason there are difficulties with ethics in the business world is because many people have limited
experience in business management and find themselves making decisions about quality, pricing, and
hiring practices. There are inherent values learned from the employees' culture, family, religion, or
school that may not provide them a framework or guidelines for making complex business decisions.

As a consultant, you should have your own code of conduct and code of ethics. You may even desire
to have a statement of values. These are important interactions with your customers. It lets them know
that you are trustworthy and that you will only deal with clients who are equally trustworthy. The code
of conduct is a formal statement that describes what a company expects of its employees. A code of
ethics is a comprehensive list of general statements that serve as the principles and basis for the rules
of conduct. A code of ethics will specify methods for reporting violations of ethics, the discipline for
violation of ethics, and the structure of due process. This is a written document that specifies
unacceptable and acceptable types of behavior. The statement of values is a list of management's
values in terms of ethical operations. Codes of ethics address trustworthiness, fairness, citizenship,
responsibility, care, and respect.
It is important to train employees about your company's policies and expectations, general standards,
and applicable laws and regulations regarding ethics in your consulting business. Your priorities for
ethics must be communicated to employees. It is important, as a business owner of a consulting
company, that you and your employees understand, and can identify with, the ethical components of
business decision making. It is crucial that employees understand that there is a degree of inherent
ambiguity in ethical situations. How employees act in carrying out your business defines your company's
ethical posture. It is important for you and your employees to understand that unethical behavior is
never justifiable. A good mechanism to keep yourself in check, as a consultant, is to periodically perform
an ethics audit, which includes a regularly scheduled complete audit of the documented measurements
of compliance within your published policies and procedures.
As you develop the ethics framework for your consulting business, these are the key responsibilities
you have:
➢ Serve your clients interests with integrity and competence
➢ Maintain client results in confidentiality
➢ Develop recommendations that can truthfully be made
➢ Charge fees that are commensurate with the level of consulting you are providing
➢ Inform your client of any issues that may impair judgment in your interactions
➢ Develop no conflict of interest by hiring employees from your clients
➢ Never work for two competing clients without their consent
➢ Never accept fees for referrals
➢ Report unethical behavior by fellow consultants to the appropriate professional association.

There are several entities that are able to provide information on compliance and best practices, as well
as networking opportunities for improving the ethical poise of your business. The three main caveats to
ethics focus around respect for yourself and the others you interact with; honor, which includes being
an ambassador for doing the right thing, even when no one else is looking; and integrity, which is the
commitment to always do the right thing, using honest values.
Consulting success in terms of strategies
Exit strategies, return on investment, re-investment times, and exit strategies should all be contained
within your business plan. A plan can be reviewed over time to see what your initial intentions were for
the business. They can also be edited when the plan no longer meets the future direction of your
company. It is important that you plan ahead for several years. You should review your business plan
for modifications, which include incremental growth opportunities. Your business plan may be
necessary to provide lenders justification for providing you financial loans.
Return on investment
As a consultant you may want to develop your own return on investment calculations. It is recommended
that you develop this in a spreadsheet, with the built-in calculators. Measuring return on investment for
consulting projects is of value to both you and your clients. There is a tremendous interest in return on
investment (ROI) to determine the success of consulting projects. The return on investment shows the
monetary payoff of a project, and examines the cost benefit. ROI calculations are beneficial to
consultants over time, because they show costs and performance data to measure the success of your
projects. When you calculate the ROI, you are looking to capture any metrics you believe contribute to
your success and your client's success. These would be areas such as:
➢ Satisfaction with the consulting interaction
➢ Success after implementation of recommendations
➢ Level of learning competence with employees after interaction
➢ Employee satisfaction
➢ Customer satisfaction
➢ Implementation costs
You want to use quantitative and qualitative measures of the project to determine the effects. Using an
ROI or an ROI scorecard helps you and the client see the resulting value in the efforts. The expenditures

for consulting projects can be great, so this is an excellent way, as a consultant, to show your worth to
prospective future clients. You need to be able to tell clients what effect you had.
Payback and re-investment
As a consulting business owner, you will want to calculate when your business is actually making you
money. You can use a number of financial payback calculators to determine return on investment.
First, we will discuss the typical return on investment categories you would use to calculate your return
on investment. This is generally calculated by the projected cost savings of a project, or the income you
anticipate receiving.
Projected cost savings or income. Examples of these include:

➢ Improved reliability/reduced use of help desk support
➢ Reduced training time for administrative staff
➢ Calculated time saved in manually creating basic reports
➢ Reduction in the cost of annual maintenance
➢ Reduced use of consumables, and an increase in sustainability or recycling
Project expenditures as a cost. Examples of these include:

➢ Contract costs for employee labor
➢ Travel and expenses
➢ Software, hardware, database, or tools
➢ Research materials
➢ Mileage
➢ Supplies, such as binding, postage, signs, printed advertising
Project discount rate as a total of:

➢ The bank lending rate
➢ Inflation
➢ Risk
➢ The net discount rate

The return on investment (ROI) is a detailed analysis of all the variables that can impact the outcome.
The return on investment is the most common tool used by clients and business consultants to
determine the value of the product or service, by determining whether you're getting your money's
worth. You can determine whether to continue to purchase a product or service or not. This is the most
typical formula for calculation of the return on investment:
ROI = [(Payback - Investment)/Investment)]*100

This is the most typical formula, because this is a mathematical calculation for the return on investment.
Some companies and consultants go further in their explanation of return on investment, through
tangible and intangible measures. It is important that your return on investment is both qualitative and
quantitative. Intangible measures may not have a cost, but they have an extreme added value to the
organization. An example of added value is good will. The business may spend additional money in the
development or use of a product or service that provides an added benefit for society or customers. It
brings no monetary value to the product or service, but adds to the collective reason why consumers
value it.
As a consulting business owner, you want to look at the return on investment -- not only in terms of
resource costs, but also including the value of your own time. This gives you a true reflection of the
return on investment. Many consultants overlook the value of their own time, in terms of employee cost.
Make sure you include these in your calculation. This is an important part of making your business
profitable.
Payback determination
Determining how long it will take to receive payback from your investment in your consulting business
is calculated as the payback determination.
Re-investment
Re-investment is a personal decision based on risk, current financial status, and future aspirations as
a consulting business owner. How large do you want your company? That depends greatly on how long
it takes to actually turn a profit. You can see the payback time for your original loan of $40,000, but it
can take years for you to feel comfortable re-investing in your business such as purchasing land,
building, or adding additional employees. The general rule of thumb for business investment is that you
contract employees until you make a profit of at least $167,000 in a year. Re-investing your business

does have some risk, but also a great deal of reward. Investing in your business can add efficiency to
your productivity, such as hiring customer support or administrative help, which increases your
productivity, and therefore increases the number of consulting jobs you are able to take on at one time.
This increases your profits and potentially decreases some of your expenses. Before you reinvest in
your business you want to make sure you have enough cash flow on hand to cover any commitments
that you have to employees or clients for the next six months. You would calculate this, based on your
present income and cash flow but this gives you a baseline.
Exit strategies
Every successful business plan contains an exit strategy in case things don't go as planned or in case
they go better than you expected. Consultants take different routes after their consulting experiences,
some retire and pass on the business, some go back into technical fields, and some sell their
businesses to others.
Many consulting business owners choose to sell the business to others. As the business owner, you
have to determine where you want to be with your company, whether you are expanding or planning
your exit strategy. There are a number of reasons why business owners sell their companies, such as
fighting among the owners, struggles with borrowing cash, market shifts, or boredom. There is no set
strategy for exit; it is based on your own personal goals. Some of the most common exit strategies are:
➢ Sell all or part of the business
➢ Using a leveraged buyout, where a company is acquired by a person using the value of the
company's assets to finance the acquisition
➢ Pass the business to a family member
➢ Offer the company through an initial public offering
➢ Liquidation, which means stopping operation of the business, selling all the assets, and
paying off creditors and keeping the proceeds after taxes.
The important thing is for you to determine your exit strategy in advance, and determine if you want to
join the corporate world, start another business, or simply retire and give back to the community.
The following are the steps must be taken:

➢ Solidify your company processes on paper, such as client information, methodologies, sales,
and other information potential buyers may want.
➢ Develop some marketing materials about your business, such as the services you provide,
number of employees, and real estate assets.
➢ Determine prospective buyers.
➢ Potential buyers will perform due diligence
➢ You will sign the final proposal or negotiation
➢ You will set in place post-sale notifications for clients, and other transition plans, such as
insurance.
Types of Business Model to Consider as a Business Consultant
Several factors come into play as you decide the legal structure for your consulting business. Choosing
the correct business model helps you to mitigate risk and be better prepared. In this context, we will
explain the various business models, and you will make a choice, based on your own situation. The
majority of most beginning consultants and new business owners start out as an individual or a small
group of consultants, and the typical business structure choice is the limited liability company. We will
discuss business structures, business opportunities, and business plans.
Let's begin with a brief discussion of the common types of business structures available to business
owners. There are five main factors that will influence your decision on which structure to use. These
are:
➢ Legal liability. This is the amount of risk or potential your business has for liability.
➢ Tax implications. This includes your business goals and the structured desired to maximize
your growth and minimize your tax burden.
➢ The level of flexibility. This you desire in your ownership structure for both short- and long-
term goals
➢ Future needs for the growth of your company after the startup phase
➢ Administrative time required to ensure your liability protection.
Sole Proprietorships are the most basic business form. A sole proprietorship is a business
owned and operated by one owner, who is in total control. In this type of structure, the entrepreneur
goes into business alone, or with employees, but without any co-owners. There is only one owner in
this situation.

Pros: It is easy to establish; you have full control of business decisions, you own all the profits,
few legal restrictions, and no Worker's Compensation requirements.
Cons: You are personally liable for business debts; startup financing may be difficult; you have
no employment benefits; and you are responsible for business failure.
General Partnerships are a legal business form where two or more persons go into business
for profit as co-owners and share the profits and losses. A partnership is the association of two or more
co-owners carrying on business for profit. Partners have unlimited personal liability for partnership
debts. The partnership is managed, typically, though a partnership agreement. This form of business
has a pass-through tax treatment, where all income and expense items pass through to the individual
partners.
Pros: As a limited partner, your personal assets are not at risk from creditors; the limited
partnership is easy to establish; it is easier for the partnership to get financing; there is more than one
person to share startup expenses; and partners share all the profits and benefits.
Cons: The partnership may be difficult to end; a partnership is more expensive to set up initially;
the loss of a partner may dissolve the business; the general partner is exposed to unlimited liability for
the business.
Limited Liability Companies are a business structure that combines limited liability provided
by a corporation, with pass-through partnership tax treatment.
Pros: Owners can participate in the management of the business; the limited liability company
is easier to operate; profits and losses go through the company to the owners for tax purposes; personal
assets are protected; and there are no limits on the number of owners.
Cons: Limited liability companies are recognized differently in each state and require legal
assistance to set up and structure. Some professional organizations and consultants are prohibited
from registering as a limited liability companies, such as doctors, lawyers, and accountants.
Corporations are a business form driven by by-laws and shareholder agreements.

Corporations are the most formalized type of business structures. Corporation ownership is typically
founded on shares of stock. There is no limit to the number of stockholders, and each stockholder's
personal assets are protected by the corporation. The by-laws contain the specific procedures

concerning employment positions of the corporation, procedures for the shareholders, and how
meetings are held. The shareholder agreements are documents that contain information on the transfer
of ownership for shares, how to resolve issues between shareholders, how to establish the price of
stock shares, and how shares can be bought and sold.
Pros: Corporations have an endless lifespan; personal assets are protected from business
liabilities; ownership of a corporation can be changed without affecting the day-to-day operations; it is
easy to raise capital through the sale of stock.
Cons: Incorporation involves larger startup expenses; the corporate charter governs activities
of the corporation; corporations are subject to more federal laws and taxes; corporations have more
legal formalities.
The majority of new consulting businesses are structured under the limited liability company. The next
most commonly used structure is the partnership. If you have chosen the basic business structure, you
will next need to develop your own business model. This should be relatively straightforward if you are
the sole consultant for your business. Once you begin employing other consultants, you need to develop
a business model for how they will contribute to your company.
After you choose your business model, there are four ways you can start in consulting: as an employee
of a consulting firm, as a subcontractor for a consulting firm, is a part-time consultant or as a full-time
consultant.
➢ Consulting firm employee
➢ Consulting firm subcontractor
➢ Part-time consultant
➢ Full-time consultant
Consulting firm employee
There are many opportunities available with large and small consulting companies. These large
companies will channel your expertise, as an employee, to provide client services. This is a very
competitive business, as consulting companies focus on acquiring the best talent. Many of these large
consulting companies offer significant salary bases structured above $100,000, and employees are
eligible for bonuses on top of their salary. There are a number of Fortune 500 consulting companies
you can work for. The Big Four in the United States includes PricewaterhouseCoopers, Deloitte Touche
Tohmatsu, Ernst & Young, and KPMG. There is an increasing number of information technology

consulting firms. Many of these firms offer boutique services that specialize in a specific industry or
functional line, such as research or technical support.
The benefits of large consulting companies include:

➢ You can focus solely on providing consulting services
➢ Someone else takes care of accounting and tax issues
➢ You may have secretarial support
The downside of large consulting companies includes:

➢ Significant pressure
➢ Requirement to "sell" services
➢ Little flexibility in developing your own direction
➢ No experience in the independent consulting world
Consulting firm subcontractor

As a consulting firm contractor, you would work on a contract basis to fill in gaps where consultants are
needed. This may be a good opportunity for you.
The benefits of consulting as a subcontractor include:

➢ Flexibility with employment
➢ Exposure to a number of consulting experiences
➢ Developing an understanding of the consulting market
➢ Affording you time to work on your own consulting business
The downside of consulting as a subcontractor includes:

➢ Less job security
➢ Uncertainty of work opportunities
Part-time consultant
You may find it more attractive to work as a part-time consultant until you are able to get a full-time
consulting business off the ground.

The benefits of being a part-time consultant include:
➢ You can keep your day job until you're ready to take the plunge
➢ You can control your schedule
➢ You get an idea of what you're up against
The downside of consulting as a part-time consultant include:

➢ Lack of exposure to what it would be like in a full-time consulting career
➢ Less income
➢ Fewer experiences
Full-time consultant
You may find the most attractive option to be a full-time consultant, and only you can determine when
this time will be.
The benefits of consulting full time include:

➢ You make all the decisions
➢ You get all the recognition
➢ You're doing what you truly want to do
The downside of consulting full time includes:

➢ You assume all the risk
➢ You are responsible for all the expenses
➢ You have no one with whom to discuss ideas or concerns
There is no doubt the consulting industry is strong and growing stronger every day. As you choose the
business model, you need to think of what you want to gain personally, and what your goals are. Some
of the starting points when you choose your business model are to list on paper your current situation
and the advantages and disadvantages of a consulting business. Look at the items you have listed as
a disadvantage and see if there is a mitigation possible. This reduces your risk as a business owner.
Next, you want to define and describe exactly what you want to provide as a consultant. Determine
what your core services will be.

If you have chosen consulting as your next big adventure, there are numerous factors that go into this
decision, including a desire for greater independence; a desire to be your own boss; the enjoyment you
get from networking, and from solving clients' problems.
Once you have determined the legal structure and reviewed the options, you probably have some idea
of the size of business you want now, and in the future.
Consultants most commonly choose to work by themselves, or with a small group. You will want to
develop a business plan that outlines how your consulting firm will be managed. The business plan will
also be necessary if you are trying to obtain funding for your business. This is the general framework
you would develop for your business plan:
➢ The executive summary, which tells what type of consulting you will perform, and what
type of activities your consulting firm will do
➢ Your mission statement, including your goals, objectives, and values
➢ The business model or business strategy, which tells how your company operates, what
is different about your operations, and explains your services, staffing, and marketing
➢ Market analysis of your specific consulting niche and potential clients
➢ Opportunities, which goes hand-in-hand with your mission and values
➢ Marketing and sales plan, including how you will market your services and expand your
business
➢ Management of the business, which may include a section on your own experience,
education, and expertise
➢ Financing for your debt structure, explaining how you will financially support the business
As you develop your business plan, you will review the skills and experience you bring to your consulting
business, determine what legal structure to use, determine what type insurance coverage,
compensation, equipment and supplies you will need. It's almost like having another full-time job!
As a new consultant, you want to have a good feel about your identity as a consultant, and you need
specific content and process skills. Content skills means that you have the technical expertise clients
will pay for. Process skills are those needed to run a consulting business. You have to have the ability
to manage, market, and grow your business. Do you have these traits?

· Reliability · Creativity · Independence · Initiative
· Commitment · Vision · Competitiveness · Goal oriented
· High-energy · Persistent · Hard-working · Integrity
· Innovative · Problem-solving · Risk taker · Failure tolerant
Starting Small
One thing to consider is the necessity for errors and omissions insurance. Another is how many
employees you will have. Do you plan on beginning a consulting business for yourself, or are you going
to enlist the help of other colleagues who have complementary skills?
Here are some aspects to look at from an employment perspective:

➢ Will you hire full- or part-time employees to assist with consulting?
➢ Will you hire contract employees to assist with consulting?
➢ Will you hire additional employees to perform administrative functions, as well as marketing,
accounting, or legal services?
Here are some things to look at from an operations perspective:
➢ Will you work from your home, or will you require office space and office equipment?
➢ Will you need a business phone, website, business cards, letterhead, computers, printers,
faxes?
Here are some things to look at from a business initiation perspective:
➢ Do you have a marketing framework?
➢ Standard business forms?
➢ Templates for consulting contracts?
➢ Internet content?
➢ Marketing materials?
➢ How much consulting will you do initially?
➢ What services will you offer?
Determine the scope of the consulting services you will offer in the form of consulting packages. Clients
may hire you for a multitude of services. You may be asked to design a project. You may be asked to

serve as a catalyst for change. You may be asked to supplement their existing staff on a short-term
basis. Based on their needs and their "possible" needs, you should have some "pre-marketed" or "pre-
packaged" options to offer clients, such as:
Determining these types of offerings are part of choosing a business model. If your business model
includes working with a partner or a group of employees, here are some of the structures you could use
within your consulting business.
Analyst consultants are highly qualified individual contributors.

Associate consultants contribute individually at a high level and manage small projects.
Principal consultants serve as an industry, or functional, expert -- or as senior project directors.
Senior principle consultants have a high level of consulting experience, displaying at least 20 years
of industry experience in a diverse project management background.
1. Which of the following is defined as a set of principles of conduct within an organization that guide
decision making and behaviour, wherein the common purpose of the code is to provide members and
other interested persons with guidelines for making ethical choices in the conduct in general, and is a
comprehensive list of general statements that serve as the principles and basis for the rules of conduct?
A. Business Ethics C. Code of Ethics
B. Business Consulting D. Violations of Ethics
2. Which is an exception among the following developing ethics framework in consulting business, and
tagged as the key responsibilities must have?
A. Charge fees that are commensurate with the level of consulting you are providing
B. Develop no conflict of interest by hiring employees from your clients
C. Develop recommendations that can truthfully be made.
D. Satisfaction with the consulting interaction
3. Measures the gain or loss generated on an investment relative to the amount of money invested and
is usually expressed as a percentage and is typically used for personal financial decisions, to compare
a company's profitability or to compare the efficiency of different investments. Which of the following
propositions would best describe in the given statement?
A. Serve your clients interests with integrity and competence

Maintain client results in confidentiality
Develop recommendations that can truthfully be made
B. Satisfaction with the consulting interaction
Success after implementation of recommendations
Level of learning competence with employees after interaction
C. Reduction in the cost of annual maintenance
Reduced use of consumables, and an increase in sustainability or recycling
Reduced training time for administrative staff
D. Travel and expenses
Software, hardware, database, or tools
Research materials
4. Determining how long it will take to receive benefits and compensation from business investments in
consulting business are calculated as which of the following options?
A. Exit strategies C. Payback and re-investment
B. Payback determination D. Re-investment
5. Which of the subsequent often referred as personal decision based on risk, current financial status,
and future aspirations as a consulting business owner?
A. Exit strategies C. Payback
B. Payback determination D. Re-investment
6. There are a number of reasons why business owners sell their companies, such as fighting among
the owners, struggles with borrowing cash, market shifts, or boredom. There is no set strategy for exit;
it is based on own personal goals. Which of the succeeding are considered some of the most common
exit strategies?
A. Sell all or part of the business.
Pass the business to a family member.
Offer the company through an initial public offering.
B. Determine prospective buyers.
Potential buyers will perform due diligence.
You will sign the final proposal or negotiation.
C. Inflation
Risk
The net discount rate
D. Contract costs for employee labor

Travel and expenses
7. Every successful business plan contains an exit strategy wherein consultants take different routes
after consulting experiences, some retire and pass on the business, some go back into technical fields,
and some sell their businesses to others. Which of the following steps must be taken to determine your
exit strategy in advance?
A. Determine prospective buyers
Potential buyers will perform due diligence
You will sign the final proposal or negotiation
B. Contract costs for employee labor
Travel and expenses
C. Sell all or part of the business.
Pass the business to a family member.
Offer the company through an initial public offering.
D. Exit Strategies
Payback determination
Re-investment
8. Which of the subsequent is calculated by cost savings, cost, expenditures, and any loan rates for
starting your business?
A. Exit strategies C. Re-investment
B. Payback D. Return on investment
9. As businesses focus on earning a profit, and there are often issues of misconduct based on the
individual conduct of business for men and women, there are unethical behavior consists of issues such
as which of the options?
A. Harassment, fraud, conflict of interest, bribery, employee theft, or defective products.
B. Quality, pricing, and hiring practices
C. Culture, family, religion, or school
D. Trustworthiness, fairness, citizenship, responsibility, care, and respect
10. The statement of values is a list of management's values in terms of ethical operations. These
Codes of ethics addresses which of the items enumerated below?
A. Trustworthiness, fairness, citizenship, responsibility, care, and respect.
B. Harassment, fraud, conflict of interest, bribery, employee theft

C. Culture, family, religion, or school
D. Quality, pricing, and hiring practices
11. Which among the following is defined as the amount of risk or potential of the business?
A. Administrative Time C. Legal Liability
B. Future needs D. Tax implications
12. Which types of business structures is a business owned and operated by one owner, who is in total
control?
A. Corporation C. Limited Liability Companies
B. General Partnerships D. Sole Proprietorships
13. Which types of business structures are a legal business form where two or more persons go into
business for profit as co-owners and share the profits and losses?
14. Which types of business structures that combine limited liability provided by a corporation, with
pass-through partnership tax treatment?
15. Which types of business structures is a business form driven by by-laws and shareholder
agreements?

Lesson 6: Philosophies and Strategies on the Factors that Require Action
Introduction:
Each consultant develops their own processes to meet their clients' needs. There are a number of
strategies you can use to focus on issues that require action. Implementation is key to sustaining your
recommendations. This rests highly on the ability of the company you are consulting with to make the
necessary, successful organizational changes. In order for you to facilitate the adoption of specific
philosophies and strategies on the factors that require action you will need to assist in creating the
vision, motivating change, developing support, and managing and sustaining momentum.
This may require a number of systems-thinking techniques, and a shared vision. This will also require
a degree of training. An implementation plan, monitoring, and tracking mechanisms will help you ensure
that the factors that require action have actually been acted on.
• To implement strategies and actions that require implementation. Toknow tips and strategies
to make sure that clients get the best results;
• To be able to make sure that their client has the best experience possible, and they develop the
relationship for future business; and
• To show the client that they received the best results by using services as a consultant.
Course Materials:
Organizational change is the process where organizations transition from their present state, to some
form of desired future state, to increase their effectiveness. In order to make an impact on the factors
that require action, you must to help employees and business owners find new and improved ways of
using resources and capabilities to create value. The targets you should focus on include human
resources, functional resources, technological capabilities, and organizational capabilities. In order to
implement factors that require action, you assist the organization on the resistance to change at the

organizational level, the functional level, the group level, and individual level. Your actions will include
diagnosing the organization and its cultural needs, determining the future state, implementing actions,
and evaluating these actions.
In the consulting capacity, you help organizations understand how they create value and strategically
align the processes that create value. This value is a system of inputs and outputs that are placed into
your company's conversion process. It is how you manage these processes that provide you with
competitive advantage. This competitive advantage results from the core competencies of your
employees. You develop this competitive advantage by leveraging the core competencies into specific
short- and long-term goals for the company. These goals are facilitated by managing the environment
and exerting control over activities that create value for the organization.
Factors that consultants should focus on to implement Philosophies and Strategies:
Human resources The factors that you will help the client’ organization change include
investment in training and development activities, so that employees can perform their jobs better
through new skills, changing the organizational norms and values into a culture that motivates a diverse
workforce, adopting a promotion and reward system that helps drive the culture of performance
improvement, and implementation of recommendations, socializing employees to the organizational
changes in culture to impact organizational performance. And finally, to modify the top management
team to improve organizational decision making.
The following are core fields around which most human resource consultancies are based:
Employee engagement: measure employee engagement levels through surveys and
interviews, define and improve performance in employee engagement and retention. While this area of
HR consulting is necessarily broad, encapsulating total rewards strategy, employee performance
management, leadership transformation, and organization structure design, most companies do have
very specialized independent practices.
Compensation: design and manage compensation programs related to basic salary, bonuses,
and stock plans. Evaluation of positions and building of salary structures, bonus plans and stock plans
for clients are common. Specializations are often based on employee types (e.g. Executive
compensation consultants and sales compensation consultants.
Employee benefits: optimize benefit plan design and administration (inclusive of health-related
benefits) by assessing competitiveness and effectiveness of benefit plans (analytics and design), and
cost-effectiveness and quality of vendors (brokerage).

Actuarial and retirement: provide actuarial and administration services to manage cost and
effectiveness of retirement programs, including defined benefit and defined contribution plans.
Mergers and acquisitions: conduct human capital due diligence, coordinate and administer
cross-functional activities during execution, including payroll and HR technology. Align organizational
cultures and work styles during post-merger integration.
Talent mobility: Provides the insight and execution for full international expatriates (usually for
executives) or local plus (partial-package expatriates), from pre-move informative guide, to post-move
expat management program.
Functional resources The consultant helps each function of the organization develop
procedures that allow it to manage the environment it faces. Functional resource management means
that you transfer resources where the most value can be created. In this manner, non-utilized functions
decrease, while efforts are put into the critical functions to help them grow. Organizations improve their
value by changing their culture, structure, and implementing better technology.
Functional area of Business:
Management involves planning, organizing, staffing, directing, and controlling resources to
achieve organizational goals.
Operations transforms resources (labor, materials, money, and so on) into products.
Marketing works to identify and satisfy customers’ needs.
Finance involves planning for, obtaining, and managing company funds.
Accounting entails measuring, summarizing, and communicating financial and managerial
information.
Technological capabilities Consultants encourage the use of technological capabilities and
innovation. The ability for a company to develop a constant stream of new products and services helps
it attract new customers and develop the organization's core competencies. The consultant's job is to
help the organization improve the way goods and services are produced to increase quality and
reliability. This is truly the capability of the organization. The inability of an organization to transfer
technical capabilities into commercial opportunities stifles the organizational change process.
Organizational capabilities Consultants assist organizations by designing structures and
cultures to harness human and functional resources. This organizational change involves the
relationships of employees, and how they interact, to increase their ability to create value. It is necessary
for organizations to adapt to change to survive. In order to effectively adapt to the needed changes, a
business process re-engineering often must occur. Business process engineering should occur with
the product or service in mind, and the customer's desire in the forefront. Business process engineering

cuts across the functional boundaries to facilitate delivering goods and services better, at a higher
quality and a lower-cost. Restructuring is similar to re-engineering and occurs when managers change
tasks and authority relationships in the organizational structure to improve its effectiveness. They move
functions from one divisional structure to another, to alter the environment in a manner that appears
most effective.
As you assist the organization in determining the desired future state, you assist in determining
what changes need to be implemented. In order to implement action, you have to identify impediments
to change at the group, team, and individual levels. Once these are identified, you must have someone
within the organization who actually is responsible for making the changes and controlling the change
process. Companies have the option of employing internal or external change agents. Internal agents
are those who work within the organization and are knowledgeable about the issues. External agents
are those who are consultants brought in from the outside, and are experts in managing change. You
will assist in facilitating the two levels of change. These include:
The top-down approach, where changes are implemented by managers at a high level in the
organization. This approach often results in restructuring and re-engineering, and is a top-down change
where the results are expected to reverberate down through the organizational levels of divisions,
functions, and individuals.
The bottom-up approach is implemented by employees at lower levels of the organization,
and rises to the top, until it can be felt throughout the whole organization. In this type of change
implementation, employees are involved in the process and provide their input, lessening resistance to
change.
When you have factors that require action, the consultant is also responsible for designing the plan for
change, or providing input to company management.
➢ This is done by developing criteria to determine whether change is necessary to assist with
developing the ideal future state
➢ Developing a plan to reduce resistance and facilitate change.
➢ Developing a program of quality management to keep the organization's mindset of change
management.
There are a number of techniques consultants can use to reduce the resistance to change and better
facilitate action on implementation of factors that have not been addressed. These include:
Education and communication Education and communication help to reduce resistance by

letting employees know what is going to happen. You can use your internal and external change agents

to help employees understand how the change will affect them. Communication methods must be
explored, including how the messages will be conveyed -- such as email or information screens
throughout the facility. Communication helps to foster employees' cooperation and an understanding
that implementation factors need to occur.
Participation and empowerment When employees are invited to participate in the change
process, they feel a degree of empowerment that also allows them to be involved in the decision making
-- and ultimately provides them with greater autonomy. The result of this is improved organizational
performance. In this type of environment, workers are encouraged to share their skills and talent to
propel the organization. This is a good opportunity to include financial incentives for employees who
are producing above and beyond the necessary requirements. By allowing workers to make decisions,
it takes some of the responsibility off of middle managers within the organization. This provides an even
greater level of organizational efficiency and accountability.
Facilitation is when the consultant helps the company to establish new tasks in roles after
change takes place. This often becomes confusing after an organizational change, because employees
are required to perform new tasks that may be unfamiliar to them, and it has a stressful effect on their
operations. The facilitator helps explain process changes, and gives the employees a comfort level with
the new work process.
Bargaining and negotiation Bargaining and negotiation are important in overcoming
resistance to change, because change often causes conflict. Negotiation helps employees understand
how the change will affect other employees in the organization as a whole, and they are able to develop
a common perspective on the change, and why it is important.
As companies develop their philosophies and strategies to impact factors that require action,
they use the tools of strategy and structure. Strategy and structure provide the overall guidelines within
an organization to implement changes. If the strategy and structure are implemented, they are used to
leverage the organizational learning process, where employees' desire and ability to improve the
environment becomes a conscious continual decision.
As a consultant, you will also assist the company in recognizing the implications of managing
conflict, politics, and power. In this case, you should realize that politics are a fact of life within
organizations. As such, company management needs to help employees develop the skills to
understand how this affects organizational decision making. Employees also use their own personal
power base to influence decision making, by affecting the political mindset within the organization.

Creating the most successful environment
Creating the vision When creating the vision, the management of the company must clearly
articulate to the employees what they are trying to accomplish. They must let employees have input
into the vision they are trying to achieve. This vision must be realistic, and based on the strategic plan.
Employees grow tired of the rhetoric of the "improvement of the month" and must actually feel how this
change will make an improvement.
Motivating change This includes your approach to providing information to the employees
about the reality of the change, and how it may be accomplished. Employees need to have the
opportunity to have their concerns addressed, and have input and involvement.
Developing support Consultants and company management are responsible for developing
the support needed to move for the changes. Sometimes this is in the form of political support, where
power is used to determine where resources and influence will be used within the organization.
Individuals with the most power are those who have credibility, expertise, and integrity within the
organization. It is important to recognize these needs for support, because power shifts across
functional levels of the organization. In order to align the power with the change effort, you will determine
those who have the most political clout within the organization, and reach out to them for support and
guidance in moving forward with your change efforts.
Managing and sustaining momentum Sustainment for efforts is the most difficult part of
managing change in any organization. Similar to any other improvement effort there must be activities
put in place to spread, sustain, and control the improvement effort. A good way to sustain this
momentum is to offer employees performance management systems, including setting goals, rewarding
good behaviors, and sharing the accomplishment of goals with employees. This also gives you an
opportunity to address performance issues, as they occur, in a proactive manner, so that everyone is
moving in the right direction to make improvements.
1. This rests highly on the ability of the company you are consulting with to make the necessary,
successful organizational changes. The statement depicts of what key to sustaining your
recommendations?
A. Application C. Implementation
B. Execution D. Performance

2. The department within a business that is responsible for all things worker-related. That includes
recruiting, vetting, selecting, hiring, on boarding, training, promoting, paying, and firing employees and
independent contractors. The explanation exemplifies which factor the helps the client’s organization
change investment in training and development activities?
A. Functional resources C. Organizational capabilities
B. Human Resource D. Technological capabilities
3. What is the ability for a company to develop a constant stream of new products and services that
help attract new customers and develop the organization's core competencies?
4. Which of the options referred as the company's ability to manage resources, such as employees,
effectively to gain an advantage over competitors, were the company's must focus on the business's
ability to meet customer demand. The communication refers to what factor that consultants assist firm
by designing structures and cultures to harness human and functional resources?
5. Organizations improve their value by changing their culture, structure, and implementing better
technology. How do you call the transfer of resources where the most value can be created?
6. This approach often results in restructuring and re-engineering, and is a top-down change where the
results are expected to reverberate down through the organizational levels of divisions, functions, and
individuals. Which of the organizational approach where the changes are implemented by managers at
the high level in the organization?
A. Bottom-up approach C. Organizational change
B. Facilitation D. Top-down approach
7. Referred to the movement of an organization from one state of affairs to another which can take
many forms and it may involve reform in a company's structure, strategy, policies, procedures,
technology, or culture. What process where organizations transition from their present state, to some
form of desired future state, to increase their effectiveness?
B. Facilitation D. Top-down approach
8. What functional area of business, that works to identify and satisfy customers’ needs?

A. Finance C. Marketing
B. Management D. Operations
9. Communication helps to foster employees' cooperation and an understanding that implementation

factors need to occur. Which of the strategy help to reduce resistance by letting employees know what
is going to happen?
A. Bargaining and negotiation C. Facilitation
B. Education and communication D. Participation and empowerment
10. Which of the succeeding technique allows the employees to be involved in the decision making and
ultimately provides them with greater autonomy?
11. As companies develop their philosophies and strategies to impact factors that require action, they
use the tools of strategy and structure. The statement exhibits what importance in overcoming
resistance to change?
12. This often becomes confusing after an organizational change, because employees are required to
perform new tasks that may be unfamiliar to them, and it has a stressful effect on their operations
13. The management of the company must clearly articulate to the employees what they are trying to
accomplish. What action is referred in the said the statement?
A. Creating the vision C. Managing and sustaining momentum
B. Developing support D. Motivating change
14. Which of the subsequent action includes your approach in providing information to the employees
about the reality of the change, and how it may be accomplished?
15. In order to align the power with the change effort, you will determine those who have the most
political clout within the organization, and reach out to them for support and guidance in moving forward
with your change efforts. Which political support is needed to move changes?

16. This also gives an opportunity to address performance issues, as they occur, in a proactive manner,
so that everyone is moving in the right direction to make improvements. What action is the most difficult
part of managing change in any organization?
17. It is implemented by employees at lower levels of the organization, and rises to the top, until it can
be felt throughout the whole organization. In this type of change implementation, employees are
involved in the process and provide their input, lessening resistance to change. Which of the following
approach is implemented by employees at lower levels of the organization, and rises to the top, until it
can be felt throughout the whole organization?
B. Facilitation D. Top-up approach
18. Which of the subsequent field of Human Resource measures employee engagement levels through
surveys and interviews define and improve performance in employee engagement and retention?
A. Actuarial and retirement C. Employee Engagement
B. Employee benefits D. Mergers and acquisitions
19. Which core field conduct human capital due diligence, coordinate and administer cross-functional
activities during execution, including payroll and HR technology?
A. Compensation C. Employee Engagement
B. Employee benefits D. Mergers and acquisitions
20. Which of the field provides the insight and execution for full international expatriates or local plus,
from pre-move informative guide, to post-move expat management program?
A. Actuarial and retirement C. Employee Engagement
B. Employee benefits D. Talent Mobility

Final Assessment/Output
The class final output is to select companies cases to research following the prescribe
steps/outline below. Your choices company cases are:
• Under Armour’s Strategy in 2013- Good Enough to Win Market Share from Nike and Addidas
• Coach, Inc. in 2012: Its Strategy in the “Accessible” Luxury Goods Market
• Google’s Strategy in 2013
• Tata Motors: Can It Become a Global Contender in Automative industry?
• The Walt Disney Company: Its Diversification Strategy in 2013
Steps in Preparing a Comprehensive Written Analysis In preparing a written case analysis, you
could follow the steps outlined here, which correlates to the stages and ideas from this course
subject.
Step 1 Identify the firm’s existing vision, mission, objectives, and strategies.
Step 2 Develop vision and mission statements for the organization.
Step 3 Identify the organization’s external opportunities and threats.
Step 4 Construct a Competitive Profile Matrix (CPM).
Step 5 Construct an External Factor Evaluation (EFE) Matrix.
Step 6 Identify the organization’s internal strengths and weaknesses.
Step 7 Construct an Internal Factor Evaluation (IFE) Matrix.
Step 8 Prepare a Strengths-Weaknesses-Opportunities-Threats (SWOT) Matrix, Strategic
Position and Action Evaluation (SPACE) Matrix, Boston Consulting Group (BCG) Matrix, Internal-
External (IE) Matrix. Give advantages and disadvantages of alternative strategies.
Step 9 Recommend specific strategies such as Global Strategies, Strategy Alliances, Corporate
Governance, Mergers, Acquisitions and Divestitures and long-term objectives. Compare your
recommendations to actual strategies planned by the company.
Step 10 Specify how your recommendations can be implemented and what results you can
expect. Present a timetable or agenda for action.
Step 11 Recommend procedures for strategy review and evaluation (thru Strategic Leadership,
Managing Change and Innovation)

Course Grading System
Class Standing which includes: 70%
• Quizzes/Assessments
• Projects/Activities
Midterm / Final Examinations 30%

100%
Midterm Grade + Final Term Grade = FINAL GRADE

2
References:
Timothy R.V. Foster .101 Ways to Succeed as an Independent Consultant

Howard L. Shenson. 138 Quick Ideas to Get More Clients
Herman Holtz. The Business Plan Guide for Independent Consultants
Business Consultants Directory, American Business Directories Inc., 5711 S. 86th Cir., Omaha, NE
68127
The Professional Consultant Newsletter, 123 NW Second, #405, Portland, OR 97209, (803) 224-2656
Methodologies.” UniversalClass.com
www.universalclass.com/articles/business/understanding-and-the-process-of-implementing-
consulting-methodologies.htm.
“Tips on the Business of Consulting.” UniversalClass.com,
www.universalclass.com/articles/business/tips-on-the-business-of-consulting.htm.
“Consideration to Becoming a Business Consultant.” UniversalClass.com,
www.universalclass.com/articles/business/consideration-to-becoming-a-business-consultant.htm.
https://www.consultancy.uk/career/what-is-a-consultant
https://www.fundera.com/blog/what-is-a-business-model
https://articles.bplans.com/what-is-a-business-model-business-models-explained/


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POLYTECHNIC

INSTRUCTIONAL MATERIAL FOR

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After successful completion of this module, you should be able to:

Here are some of the most common types of consultants:

Business consultant is involved in the planning, Implementation, and education of businesses.

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Role of the Consultant

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How to become a Consultant?

a. Identify your area of expertise

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Traits and Skills that consultants typically possess:

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Please answer the following reviewing concepts.

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After successful completion of this module, you should be able to:

What is a business model?

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The different kinds of business models

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14. Razor blade

15. Reverse razor blade

16. Reverse auction

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Essential Components of a Business Model

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The basic business models to consider:

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Please answer the following reviewing concepts.

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After successful completion of this module, you should be able to:

Things to Consider Before You Become a Consultant

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Top 20 Consulting Businesses Thriving Today

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15. Marketing: A marketing consultant is a marketing professional with expertise in strategies to

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Why an Organization Wants to Hire You

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Typical Consulting Industries

• Strategy • Political • Information

• Research and compile information about the client's problem

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• Knowledge base in your field

• Your clients have unrealistic expectations.

• Corporate needs assessments

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