LAOH, October 23, 1997

Ulla de Stricker, de Stricker Associates
Phone: (905) 820-4525  Fax: (905) 820-7805  E-mail: uds@xe.net

Ron Davies, Bibliomatics Inc.
Phone: (613) 523-7981  Fax: (613) 523-4417  E-mail: rdavies@bibliomatics.com

Part 1 Questions to ask about YOURSELF

1. What is my motivation in wanting to set up shop?

• Fed up with current job
• Not currently employed
• Enjoy project-oriented work
• Sense that lifestyle is attractive

2. What is my reason for believing I am suited to entrepreneurial work?

• Cope well with, or enjoy, lack of routine
• Well organized so can handle feast/famine work loads
• Able to keep many balls in the air at the same time
• Communicate well so can "sell"
• Can concentrate even with at-home distractions
• Disciplined

3. What factors suggest I will succeed in the business?

• "Base" of clients in place
• Long term project to act as springboard
• Evidence of need for my services (how evidence was obtained)
• Similar businesses have too much work
• Existing reputation/visibility

4. What personal circumstances SUPPORT my plans?

• Can withstand financial irregularity
• Spouse willing to get behind the venture
• Enough time to concentrate on business
• Don't mind not getting a vacation or evenings off

5. What personal circumstance may HINDER my plans?>

• Children, parents requiring attention on schedule
• Spouse unhappy with lack of attention
• Cannot withstand financial irregularity

6. Do I know the full story of what it's like?

• Working at home can be suffocating to some
• Isolation from office camaraderie is a problem for some
• Need to be proactive in maintaining professional/social contacts
• No such thing as "quitting time"
• No one to bounce ideas off or share work with
• Business travel is the least glamorous thing there is

7. Do I know what it's like to negotiate and deliver projects

• Strong sense of professional worth
• Can tell client "you may want X but you need Y"
• Good ability to estimate work involved

Part 2 Questions to ask about STARTING and GROWING your business

1. What will the focus of my business be?

• The difference between consultants and contractors
• Use your special skills or knowledge, unique experience
• Target specific information sectors (special, academic, public, or subject-specific)
• When opportunity knocks, do you take whatever you can get (at least to start) or do you keep focus?

2. Do I need a business plan?

• Strategic planning is very important
• Business plans are needed to raise capital; formal business plan may not be essential
• Help is available, if you really need it (Colleges, universities, business development services)

3. Should I incorporate or not?

• Not necessary; you can do business as a sole proprietorship or partnership
• Advantages include some liability protection, more professional image, more even income distribution
• Disadvantages include cost, increased need for lawyers and accountants, more record-keeping

4. What kind of record-keeping do I need to do?

• Paperwork. and more paperwork (more unpaid time!)
• Income tax, GST, health tax, invoices, bills
• Contracts or agreements with associates or sub-contractors
• Managing cash flow: delays before payment; tax and associate bills to pay

5. How do I set fees?

• Employment salary figures deceptive; normally add 30-35% for benefits
• Your expected salary, plus expenses you may or may not have expected
• The concept of the billable day

6. What about marketing?

• How can I identify clients if I don't know who they are?
• How do I know what their specific needs are?
• Taking time to talk to potential clients (unpaid but valuable time!)

7. How do I promote my business?

• Advertising and promotion may depend on your business: networking, referrals, cold calls, advertising
• Brochure describing services; directories and guides; consultant registries; Web sites; other tools
• Professional activities (papers, conferences, talks) build visibility, but takes time and pays nothing
• Best promotion is word of mouth from satisfied clients; best clients are repeat clients

8. How do I deal with large projects or conflicting schedules?

• Scheduling one of the hardest parts of consulting
• Working with other consultants as partners or as associates on a particular project
• Difficult (often) to make this financially worthwhile
• Difficult to identify and keep good people with appropriate skill sets

9. What do I need to know about working with governments?

• Requests for Proposal (RFP)
• Time invested without payment vs. chance of getting contract
• Forming group to respond, working with other consulting firms, subcontracting work
• Online Bidding System (OBS) and standing offer arrangements
• Consultant registries and databanks