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Are there any installation costs Who bears them Is what the supplier provides proprietary, or is it interchangeable with industry-standard parts and software
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The business is doing okay, which often is an understated way of saying, We re starting to make serious money At the end of the month, the suppliers have been paid So has the staff, the landlord, the taxes, insurance, maintenance, the whole lot And there s money left over! What now Consider the options: 1 Invest it in the business to grow it buy advertising, do marketing, hire more staff, renovate, expand or move, modernize facilities, create new products and services, enter new markets, invest in methodology (key contributors to growth) 2 Acquire another firm as an alternative to growth If you choose carefully, you may get a solid and profitable client list, perhaps even a physical location and an infrastructure in an area in which your firm had not been established before You may buy out a competitor Growth through acquisition is a powerful way to invest a consulting firm s savings and its borrowing capacity 3 Distribute the savings to the partners, owners, and staff in the form of partner income, shareholder income, profit sharing, or bonuses In a year when the firm s profits may be due to some luck and hard work, plus good economic times, sharing it with the people who created the value may be a good idea 4 Invest the savings for a future time The nest egg of savings may tide the firm over in rough economic waters, and perhaps avoid layoffs or pay cuts What to invest in It would be a topic for a separate book, and the specifics depend on your firm s and your partners tolerance for risk If you think you will need the money, you may want to retain liquidity: bonds, money market funds, term deposits, and the like If you think you can live without the money for a while, you can try common or preferred shares With the reward, of course, come the risks
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In this chapter, we have used the expression virtual staff to describe a person, perhaps from a supplier organization, who does important work for your firm and makes a difference in your client relationship One such virtual staff member is your firm s lawyer Proportionately, there are about as many lawyers who have deep and intuitive IT skills as there are IT people whose legal acumen ranks with their software skills There is no judgment made or implied on any reader of this book with both an IT certification and a law degree Legal support is a must-have in IT consulting What IT consultants do affects too many things in the client s environment for you to deal with the client without the occasional benefit of good legal advice And a lawyer needs to get to know your firm, what you do, and what type of clients you serve Once you ve got your lawyer up to speed, he or she will be able to operate on a flatter learning curve when an issue arises Your lawyer should always read any nonstandard (to you) agreement of any consequence before you sign it When developing an agreement in the context of beginning a client engagement, your lawyer needs to see what commitments you may be making and assess what other risks, commitments, or obligations these imply Given the interdependency of office systems, your legal liability may be governed more by recent precedent than by what is in the actual agreement Software licenses not so much the packaged kind as the custom-developed variety require legal support to determine who owns the code, who can use it, for how long, under what conditions, and who is responsible for maintaining that code Once you ve got your lawyer up to speed on these issues, the cost to switch lawyers becomes very high, so you ll probably choose your legal support very carefully If you operate in multiple jurisdictions, especially if a different set of laws governs your activity in those jurisdictions, you will need a lawyer with local knowledge It is a good idea to take the time to ask questions and consult the wandering minstrels of the local industry to see who has the best expertise in the IT consulting that you do Quality legal advice is worth looking carefully for and worth paying a fair rate for
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