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Do you work as an associate/ sun-contractor for larger firms?

4 replies

Legacy · 06/01/2009 11:23

I have my own consultancy business, but am also an associate and/or subcontractor for some larger consultancies, where I just provide part of the final project delivery (e.g. market research/ strategy development etc)

How do you handle things when companies want to get you involved/ include your credentials as part of a tender or pitch process? Do you get paid / charge your time inputting into the tender/pitch to the larger company?

In my own business I obviously 'absorb' it as a business development cost, but I'm reluctant to give my time for free to build someone elses business (even if I may get work out of it ultimately)?

Any experience?

OP posts:
mrsbaldwin · 07/01/2009 17:28

I work in a similar way to you, although maybe not doing quite the same element of final delivery.

I wouldn't expect to charge for my time to:
*submit my CV in a requested format
*attend a panel interview/pitch with other members of consultancy team

But if the larger consultancy wanted a significant business intelligence input from me (eg any insider info I had on the organisation we were pitching too, which would aid the approach) I would suggest to them they commissioned a report from me, which might take me a day to write, involving a day's fees etc. Alternatively they might want all team members to attend a pre-pitch brainstorm - again, if insider knowledge was to be called on as part of this (rather than just some general good ideas I might happen to have and could pitch anywhere) I'd discuss billing them for this before participating. Anyone in a consultancy who deals with subcontractors will be well-versed in the art of politely saying no, if there's no budget/they don't think the offer is worth the suggested fee etc. They may agree - it just depends how much they want you on the team/how interchangeable you are with others on their list.

In truth, this process is all about learning how much you're worth to the market you're in and how to best price what you sell. Despite useful forums like this one there's no substitute for learning the hard way, really - in my view you have to test the waters with pricing your services and see what happens. Some of the time you won't get the job. But some of the time you will.

And one other thing: If I had to travel to another city or country to attend the pitch (depends how 'international; the business you're in is) I'd expect the consultancy to cover travel and accommodation expenses.

Hope this is helpful.

notsoclever · 08/01/2009 13:36

Agree with much of what MrsB has written. I work in a similar way to you Legacy, and it has taken some time for me to work out which associate relationships are worth having.

I have a couple where there are a small number of associates, each of us offering niche services. I don't get paid for inputting to tenders, or early pitches, often not even travelling expenses (unless it is extreme), but these company are successful at getting work, they spend a lot on marketing and networking in areas which my own consultancy would not get a look in, and overall it make viable business sense for me.

Every year I explore a couple of opportunities (either with big consultancies or individuals) where we put together tender opportunities, perhaps taking a significant input, but with no reward. It can be a real pisser at the time but it's all part of keeping my business live and growing, and finding out what works for me

From experience I tend not to go for consultancies where there are large numbers of associates with no niche specialisms - there can be internal competition for contracts, and there can be rigorous and time consuming reporting arrangements - it's too much like being employed, but without the pension benefits!

auntyitaly · 27/01/2009 14:33

Yes of course - i would expect consultants to bill for their part of a pitch and, indeed, always fix the fee first (if it differs from their hourly rate.)

hatwoman · 30/01/2009 23:47

I work as an associate for a small company (2 directors, 4 staff, about 8 associates) and don't get paid for input to tenders. Having said that the two tenders I've worked on have been pretty quick - a big relief from the eternal rounds of consultation and approval in my previous NGO job. Off the top of my head I would put it at about 2 days work for a project that would give me 30-40 days work. I'm new to it all but - on no grounds other than my own gut instinct - I'm reasonably happy with that.

I quite like working this way. I'm learning about tendering from people with a longer track record than me; we have someone else to do finishing touches, nice formatting, polishing etc (both for bids and for final reports) - which I think is important but tedious; I am more than just me - lower risk for the contractor; I can bid for bigger things with bigger name clients.

The company I work with is in the process of developing associate agreements - which would include a small contribution to development (eg some funding for eg conference attendence); some commitment to provide support/advice to projects being undertaken by other associates (good for the cv imo).

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