Posted By Merv Newman
Donna,

we had a thread on this last week.

Business plans are totally imaginary and are only designed to impress wife/husband, kids and the bank manager.

I keep giving this same advice. Please, only count on a maximum of 100 paid days per year.

Don't just count on getting back your old salary. As an independent you will have fewer perks and a lot more expenses. (who pays for your computer, letterhead and business cards ? You do.)

So, aim, within your 100 days to be paid twice your old salary.

So, you were on fourpence a year. Get people to pay you 8 pence.

The above said, being independent is the next best thing to being a billionaire. Shush. We paid off the mortgage within three years of me going independent.

I've done it for the last 15 years. You have the financial worries. You have the gardening weeks. (actually, we should be pretty good for allia this year)

But when people really listen to you because you are a "consultant" it don't half give the ego a boost.

Not better than sex with the missus. But close.

Anyway, make up any business plan you like. There are books and websites on how to do it.

Just remember it's all lies and/or wishful thinking.

And remember too that the outgoing will be more than you planned for and the incoming is going to be a lot less.

Unless you are reallyreally brilliant. Like wot I am.

Go for it.

merv

I'm a consultant. Trust me

Posted By Merv Newman
Ian,

you are so right. Two business plans. One for the bank so that they will back you. Another for yourself so you know where you are going.

But I still maintain that a business plan is just wishful thinking. You HOPE that by spending £X on advertising you will draw in £Xx2 of business. you KNOW that you have fixed costs you can't avoid and variables you have to pay up front. And it's usually the variables that build up the overdraft and the fixeds that will kill you.

Come 12 months time how much of that plan will really have resulted in cheques in the bank ?

You know and I know that we just manage to keep going from one client to the next. And hope that they come back for more. Or tell their friends.


Toppish UK consultant rates are about £800 per day. Times 100 days gives you about £80 000. Knock off the expenses and you could finish up with maybe £40 000. No weekends at home, maybe a 16 hour day or two but a very long summer holiday. (nobody seems to need consultants in June/July/August Nor Christmas, Easter or Good Friday) And don't forget that you HAVE to be home for the birthdays and the wedding anniversary.

Right Donna. Take that last paragraph and develop your business plan around it.

Cheers. I'm off to do some weeding.

Merv

Posted By Chris Packham
Two books you might find helpful:

High Income Consulting by Tom Lambert (Nicholas Breasley Publishing, ISBN 1-85788-035-8)

101 Ways to succeed as an independent consultant by Timothy R V Foster
(Kogan Page, ISBN 0-7494-0500-7)

To add to Merv's comments:- When I was trained in marketing the lecturer's comment on sales forecasts was that: If your sales met the forecast, then you were fiddling the figures! A forecast is just that - and, despite all their computers etc., how many weather forecasters get it right all - or even some - of the time?

Your business plan is based on two forecasts. What you expect as income and what you expect as outgoings. Since you are never going to get either absolutely right, I agree with Merv. However, the bank manager will expect one and you need something yourself to judge how you are doing. Just remember that the business plan is based on forecasts and that these need regular updating as new information comes to light. So don't regard your business plan as anything other than flexible and requiring modification on an on-going basis.

Chris