[TriLUG] How to get consulting work...

[M. Mueller (bhu5nji)]

On Saturday 16 March 2002 01:05 am, you wrote:

>
> I hope this helps some folks.  I'm interested to hear others adventures in
> consulting as well.
>
> Jon Carnes

What Jon has written here could have been sold itself in the form of 
consulting coaching.  Instead he provided open source consulting.

THis gesture highlights, in general, how the information exchange on this 
list is providing financial benefits to participants.  Anytime you learn how 
to do something better, quicker, safer, easier, more flexibly, etc., you may 
be reaping a financial reward.  

Because I run a for-profit business, I can easily appreciate these rewards by 
considering the alternatives (go without or pay real $$).  The day is already 
here that I cannot afford to maintain my LAN well.  I don't have time to 
learn or set up CVS.  The list is getting longer.  I am too busy making 
Linux-based products (now I'm on topic for the list).  When sales increase, I 
will turn to the consultant market for help. Why? Just look at the list of 
things Jon delivers in addition to his core service: statement of work, terms 
and conditions, schedules, commitment, and pride in wormanship, motivation to 
win another contract, reduced paper-work, and project management to name a 
few.

Some new economic forces coming from OS and groups like TriLUG that promote 
it.  I was watching from the sidelines as an employee last year.  Now I'm 
self-employed and participating.  I plan to use a combination of product 
development and consulting service providing to generate revenue.  My product 
is under development now but I'm in the process of delivering my first sale.  
Later on, the product development cycle may reach a point where it is in a 
resting place meaning it performs functions A, B, and C and there are no new 
functions to develop.  There may be a period of no sales :-( of the product.  
Since I have near $0 inventory costs and organization maintenance costs, the 
business can hibernate.  During this hibernation, I will try to work as a 
consultant and put Jon's plan to the test.  If the business activity flares 
up, I will call on the consultant market to aborb the work (installation, 
customization, new development) and I'll use Jon's list to grade the bids. 
I'm experimenting with another strategy to increase market value.  I've 
engaged another person to develop a complementary product for which I take no 
profit on its sale. The new product increases overall capability and a 
product co-dependency is created.  This is an example of shared risk and 
shared reward.

THis is my business plan in a nutshell.  I'm making it up as I go. Everytime 
I write it down it changes and this time is no exception.  Getting help on it 
is frustrating because the old business models get paraded out and they don't 
apply (borrow $$, develop product, sell product, payback $$ all in 12 
months). Conventional business reasoning argues that I should not be doing 
this business because the payback is too far out and I can't predict how many 
units I will sell.  I see things differently.  I have skills whose value has 
collapsed.  I am using those skills and OS/Linux to create a new price point 
in a  product class where demand for similar higher-priced products has 
shrunk. I sell at a profit below the costs of all my competitors because I am 
willing to work for a whole lot less than I was 1 year ago.  Yesterday an 
established competitor call me to ask what I was doing.  I told him 
everything right down to the costs and prices.  He told me he couldn't 
compete in the space and he didn't think I could stay in business.  That's 
the third time I've been told that by a competitor. "Avast ye swabs, I'm 
a-coming aboard. And so's the rest of me maties".  I've read that pirates in 
the 1800's ran organizations that were made up of independent contractors.

I hope it is clear that I expect to depend on consultants.  I encourage those 
inclined or without other alternatives to try out the plan in Jon's email.  
What's the downside?  You get a proposal rejected?  Anybody in the job market 
right now should be familiar with that.  If you learn to handle the rejection 
and keep going than you are doing the job of the headhunter.  Now you can 
fire the headhunter and A) keep his share of the contract, or B) be more 
competive and win more bids. I think there might be a sudden shift to OS in 
the business community.  OS consultants will be in demand and rates will go 
up.

Mike M.