Steve:
In adition to the valuable insights you have received so far from the other consultants, here are other questions to bear in mind when deciding what to do about the "small fish":
1. How busy are you at the moment of the request?
(If very busy, fitting in "small fish" may not be worthwhile or feasible for you.)
2. What are the expectations of the potential client in terms of deliverables gven the fixed, small budget?
(In my experience, it is often clients with such budgets who have unrealistic expectations about what can be done within the scope and constraints of that budget. For instance, if the project involves any data analysis, you need to allocate at least 3-5 hours to reviewing the background information supplied by the client, inspecting the data, e-mailing or calling the client back with any questions that might arise during this process. Doing the actual data analysis and the reporting will also take at a minimum 5-10 hours. This all adds up very quickly!) Can you educate your client on what it would take for you to complete their project successfully and help them prioritize their tasks so that the most important tasks get addressed first?
3. Given that you understand the client's expectations, are you able to determine from the get-go whether or not you could meet those expectations within the scope and constraints of the client's budget?
(If the answer is "No", then you can refer the client to a student consultant or consulting organization that may be better equipped to help them. If the answer is "Yes", you can take the client on, knowing that if any unforseen circumstances arise for this project - e.g., messy data, muddy research questions, - you will have no option but to fully absorb the costs involved in addressing those circumstances.)
4. Do you tend to accept fixed-price projects?
(Each consultant has his/her own rules around this, but some consultants only accept projects where they can charge by the hour for their work, after providing a preliminary quote to the client.)
5. What will the consequences be to you and/or the client if you accept the project but discover half-way through the project that the project is untenable (e.g., too time consuming, too involved) and decide to pull the plug?
(While you can mitigate this by regularly updating your client on the number of hours spent on the project, there is no escaping the fact that a hard decision will need to be made if the project budget is overwhelmed by the project scope.)
6.
Do you have expertise in the area where the client needs help? If not, perhaps it is better to refer the client to someone else (unless you are willing to invest additional, unbillable time in order to acquire this expertise.)
7. What does your "gut instinct" tell you about accepting/rejecting this consulting request? Are there any early warning systems that you should pay attention to (e.g., sloppy client e-mail, aggressive tone, inflexibility) prior to jumping ship?
8. How will taking on this project help you grow your business? Does taking this project on have the potential to lead to something bigger and better (e.g., additional consulting work, additional client referrals, additional pubications) or will it be a one-off type of thing? You can usually get a sense from your client if there is more work coming down the pipeline.
I hope answering some of these questions will help you make a good decision for both yourelf and your client!
Kind regards,
Isabella
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Isabella R. Ghement, Ph.D.
Ghement Statistical Consulting Company Ltd.
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Original Message:
Sent: 08-22-2012 11:16
From: Nayak Polissar
Subject: Fish that are so small that you throw them back
Interesting discussion.
This kind of request comes to us, too. I find that usually in the 1/2 to 1 hour "free" initial telephone discussion about the client's project (during which time the client usually "bonds" with us or, in a crude sense, gets "hooked"), it becomes apparent to the client what the real scale of the project is. Almost always they have underestimated the time needed, and if they are reasonable, they revise, and if they are not reasonable and just want to get something done and save money, we let them go. We always work hourly, but if it is a big project, we accept a fair cap.
Clients sometime do approach with a comment such as "this should only take a half hour or so of your time", but they are almost always wrong.
If we really want to work with the client regardless, or if they break our hearts with their story (e.g., desperate graduate student) and if we can't find another "cheaper" way for them to go, we may take them. We do a fair amount of pro bono work, because that seems good for us and for life. Lawyers do it, so why not statisticians? However, we do not do that if someone is just trying to get by on the cheap or is sort of a jerk.
Best wishes,
Nayak
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Nayak Polissar
Principal Statistician
The Mountain-Whisper-Light Statistics
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Original Message:
Sent: 08-22-2012 09:17
From: Charles Davis
Subject: Fish that are so small that you throw them back
Hi Steve,
If you are describing a project that would take more hours to complete than the amount they are willing to pay (based on your hourly rate), then I would strongly recommend saying "no". Scott Berry's comments about the client not valuing your skills are right on.
However, if the situation is that it's a small project that won't require much time, then the key issue is if they are willing to pay my hourly rate. One never knows how being willing to work on a small project, even when presented as being a one-time project, can lead to more work later on. Over the past 7 years of being self-employed as a fulltime consultant, the total amount charged to a client (over the entire time period of working with them) is <$1000 for nearly 10% of the clients I've worked for. And in any given month, approximately one-half of the invoices I send are for <$1000. So I definitely do not refuse small projects.
Another issue in your posting related to "fixed price" projects. I never agree to such arrangements, since I'm not very good at anticipating potential complications.
Chuck
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Charles Davis
CSD Biostatistics, Inc.
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