Ideas
Flavours
- Contracting: One project at a time. Mainly technical than personal.
- Consulting: Multiple costumers at a time. More about long-term relationship than a specific project.
How
- Technical skills are not the biggest asset. Maxim: Give the customer with the “warm fuzzy feeling”.
- Maxim: Trust is your best job security.
Job Security
None
Cash Flow
- net-10 terms i.e. payment due within 10 days of the invoice.
- Soft net-10; usually around 10-15 days.
- Asking for a stale invoice to be paid is fine, but it’s exceptionally bad business to give the customer any hint that you’re in a bad place.
Customer Relationship
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Have customers and not clients
- Maxim: You are primarily in the customer service business, not the technical business
- Be easy to find
Billing
Hourly billing
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Best for ill-defined or occasional work.
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Customer bears the brunt of the project run-off and is at the mercy of the consultant for being fair.
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Not preferred by clients due to project-creep and “churning”
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Never ever lie or fudge on an invoice.
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Provide time-billing transparency: List what you did and who asked you do it in detail.
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Give away some free time, but make it visible.
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Admit your mistakes.