OpenSourceConsultant

Internal Pointers

contractor
- hired for specific project
- told what to do and how
- closely managed
- valued for tech skills
consultant
- ongoing relationship with client
- finds and suggests new ways for client to be successful
- responsible for high-level deliverables and budget
- valued for business knowledge and tech skills

consultants benefit from using open source
- more solutions possible with less $$$
- independents compete with bigger firms
- being part of an open source project can lead to consulting
open source projects benefit from consultants
- contribute back
- projects more relevant as developers use them in real world applications
- some committers use consulting to fund special interest in open source
caution
- be sure you have ownership before contributing - IP
- Avoid using GPL or other viral licenses without buy-in from client

all projects must either:
- build revenues
- reduce costs
- provide specific hard-to-measure benefits
typically it's irrelevant what technology gets them there
tell your customer explicitly what value you are providing!!!
whenever possible, aim for direct revenue increase

learn about the business
use "we" and "our" to refer to business problems
ask questions - not stupid ones
demonstrate understanding by summarizing the business issues in conversations and proposals
use real examples in jargon and sample applications
be professional in dress and demeanor
deliver what you say you will deliver - every deadline matters!

preferred generating new business - existing clients, client recommendations, prospects seek you out
collect written testimonial letters from every highly satisfied

client
post high-quality content on a website or blog
be involved in open source projects
speak at conferences
write a book

manage your time carefully
avoid "ead hours" - time spent on miscellaneous taks that provide no benefit and are not billable
provide transparency to the client on invoicing - track time by hour on a daily basis listing tasks accomplished
avoid refactoring for the sake of refactoring. make sure that everything you do moves the project toward meeting the client needs.

big benefet to independent consulting - costs can be extremely low
typical costs - office, telephone, marketing, labor, technology
working out of home has substantial cost benefits
technology is the most effective investment as it is directly tied to productivity

selling a "complex solution"
- "unqualified" prospects - learn about client's needs and budget
- qualified projects - write specific proposal for specific project
- proposed project - negotiate and close
- ongoing project - look for repeat business
selling is a multi-step process. you need multiple projects in different parts of the pipeline
personal and informal works when there is mutual trust
request for proposal (RFP)s are a killer. Avoid unless you are "Column A" (first choice)
Always be worried about where your next project is coming from!

cultivate your contacts - manager, worker, technology, business
weekly informal contact during project - email or drop in
catch-up meetings every couple of months between projects
- demonstrate something new
- discuss ideas for future work
stay in touch during difficult times or the situation can get worse! have the courage to face up and say if it's not going well.

avoid problems by having a highly satisfied client. They'll always give you the benefit of the doubt.
spelling out critical issues in a contract is helpful but not enough. all that matters is who the client thinks is right.
typical resolution process. explain the problem (without being defensive) and how you'll prevent it in the future. give free hours (not discount) directly aimed at solving the problem.
never ever give the client doubt on critical trust issues.

cost side
- expected annual salary and hours worked per year.
- personal insurance, office, other costs
- utilization percent - in your line of business, what reasonable percentage of time are you looking for work vs billing?
value side
- whats the value of the project to the business
- are you a contractor or consultant?
- what do others charge for this type of work?
- what have you charged in the past?
- never discount! you won't be able to later charge at the higher rate!
- offer extra hours with discretion, but make the time visible to the client.

never start work without a signed contract or preferably a succinct "Letter of Engagement". Less for legal reasons and more to make expectations clear up front.
primary objective
manpower, max hours, deliverables
contractor rate / billing terms
company expectations - in order for this project to be successful, company must...
contractor is independent contractor not employee
ownership of intellectual property
confidentiality

being a one person shop has disadvantages
- projects tend to be too spread out or overlap
- hard to maintain an even work schedule
- work is limited by availability
options
- subcontract - pay others to do specific tasks, e.g. graphic design. You bill the client, supervise the subcontractor, and retain overall responsibility.
- hand-off - introduce client to new consultant. New consultant takes over account (typically paying you commission)
- Hire - hire a permanent employee. Much more profitable if business is steady but requires more committment.
the economics of your business change considerably when you bring others in
- profit per hour is a fraction of when you do the work
- beware hidden costs (recruiting, QA, fixing problems, admin)

consulting work provides fixed revenue for every hour of work. risk is low with guarantee of steady income, but income is capped by available consulting time
different pricing structures and product offerings can increase your revenue, e.g. subscription. upfront investment is required, returns are uncertain.
possibilities
- sell consulting "solution" for fixed prices instead of by hour (becomes more profitable as you gain experience)
- subscription-based product (e.g. access to website or database) provides steady stream of income without per-transaction cost
- develop application for client but instead fof charting for development effort, split future revenues.

http://www.unixwiz.net/techtips/be-consultant.html
www.jlamp.com
Beyond Software Architecture - creating and sustaining winning solutions - Addison Wesley - Professional 2003

Updated Sun Jul 23, 2006 12:12 PM