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7. Will you teach us to do this work for ourselves and become self-sufficient? How long will this take?
One common trap in using a consultant is becoming dependent on him or her. From
consultant's perspective, this may simply be good business assuring future work for himself, herself or themselves. From your perspective, it may be little better than
status you had before you had
consultant come in.
By making training part of
consultant's job, you can limit
chances of a prolonged engagement. Establish a schedule within which
consultant can accomplish his or her goals. Assign a staff person to work closely in this process-and learn everything he or she can.
8. Have you written anything-published or not-that deals with issues like
ones this company faces?
Consultants love to write about their experiences and their theories. Sometimes this can be pretty rough reading, but it will usually help you understand how
consultant sees markets and business factors that may affect you. Also, management or technical literature can be a good place to look for consultants. While
latest management guru writing for
Harvard Business Review may be beyond your needs and means, you might be able to find useful experts in trade or regional newspapers and journals.
9. How do you charge for services? Do your fees include travel time and other miscellaneous charges or are those billed separately?
There's no set standard for paying consultants: Some work on a straight-fee basis, others work for a fee plus performance bonus, a few work on a contingency basis- tied to sales increases or cost reductions. As with paying any outside contractor, your concerns should be assuring a high quality of work and containing costs within a predetermined bud get. With consultants, focusing their use as specifically as possible will help accomplish both of these ends. Also, make it clear from
beginning what incidental expenses you're willing to pay and how you'll pay them. Consultants who've worked at or for large corporations may be used to expense accounts that you aren't. Be very clear about how much you're willing to spend on
whole project or series of projects. Insist that
consultant warn you-in writing-if
project won't be completed on time and within budget.
10. What kind of documentation will you give us when
project is completed? Who will own that documentation?
Keeping a paper trail of
work a consultant does for you accomplishes several ends-all of them good. First, if
consultation has worked well, this will usually give you some forms and tools that you can use to improve some part of your performance. Second, it allows you to keep a record of
analyses made of your company and
responses you've taken. This kind of "scrap book" can be a big help when dealing with future problems or other consultants. Third, it makes clear what
consultant did-and didn't do-while working for you. If any disputes should emerge over payment or ownership or confidentiality, you'll have some support. In general, all work (including spreadsheets, computer programs, mechanical devices or literature) a consultant does for you is your property. Sometimes-especially in
cases of devices and literature-this becomes an issue. Make it clear from
beginning that you want to own everything that comes from
consultation.

Jan B. King is the former President & CEO of Merritt Publishing, a top 50 woman-owned and run business in Los Angeles and the author of Business Plans to Game Plans: A Practical System for Turning Strategies into Action (John Wiley & Sons, 2004). She has helped hundreds of businesses with her book and her ebooks, The Do-It-Yourself Business Plan Workbook, and The Do-It-Yourself Game Plan Workbook. See www.janbking.com for more information.