By Harold Lewis
There comes a time within the lifetime of small companies whilst open air suggestion is needed and proprietor managers have to name within the specialists. Lewis makes use of his adventure on each side of the company courting to supply a balanced view of the full technique. He describes the method of selecting and utilizing specialists to accomplish targets comprehensively. aimed toward small and medium-sized companies, the publication is helping proprietors establish the place and why they wish a expert and assists with sensible concerns, resembling drawing up contracts.
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Extra resources for Choosing & Using Consultants & Advisers: A Best Practice Guide to Making the Right Decisions and Getting Good Value
The fee calculation simply expresses the fact that the firm needs not just to cover its costs but also to gain a benefit from being in business. The fee level that results from the calculation has to be profitable for the firm, competitive in terms of the market for expertise and reasonable when compared to the funds available to a client. To stay in business for any length of time, a firm cannot afford either to overcharge or to underprice: the aim will be to set a price that reflects quality of performance and expertise, gives an appropriate financial return and matches a client’s budget.
The questions to ask yourself at this stage are: n What are the options or alternatives for structuring the work? There may be several possible approaches or solutions. What information will you need to be able to identify the one likely to be the most practical and cost-effective? n What are the resource implications of these options? n Which tasks will form the core of the work, in terms of the professional effort required? n Which tasks are likely to be the most critical to the success of the work?
BASIS OF CHARGES: A RANGE OF OPTIONS When a builder or electrician gives you an estimate for a job, it is normally based on labour charges and the costs of materials. Though materials are rarely a significant item in the charges made by consultants, the costs of labour are as important for them as for other types of businesses. There are a number of ways in which consultants may state the charges for their labour. The two you are likely to encounter most often are fixed prices related to a specific task or package of services, and charges based on the time spent on the work.
Choosing & Using Consultants & Advisers: A Best Practice Guide to Making the Right Decisions and Getting Good Value by Harold Lewis