Question for business owners/managers

[Tony Quiring]

You are in a crowd of experts so good source.

We are not consultant but have been involved with the processes at Corp level.

Our 2 cents worth.

Many companies will look inward for ideas but that is often the problem as they need fresh outside ideas to get change.

Sometimes they have great sources inside but too stubborn to realize it.

A local it company advertises about network intrusion for evaluation and you could take similar approach.

You develop a process where you visit the client and observe some operation and provide a simple observation report that shows the good , bad and the ugly regarding that operation and include your suggestions for improvement.

This is all done as a sales introduction and for free.

You do this as part of the shop walk where you can easily spot the obvious.

Build a presentation that can be handed out and visit local places.

If your suggestions s work they may call you back.

Then you may get traction and word of mouth may help.

Sent from my SAMSUNG-SGH-I337Z using Tapatalk

 

[PeteM]

Google wasn't much help in finding out what MEP stands for . . .

Likely "Manufacturing Execution Planning." Strange name, I'd agree. Do we let software pick who gets shot next?

Vendors keep changing acronyms in an attempt to differentiate themselves. And they almost always have the ring of a TLA (three letter acronym -- there's something about trinities that appeals to us). We've gone through MRP, MRPII, ERP, PDM, PLM - with all sorts of additional specialties for tool tracking, QC, warranty, project management, Bayesian project management, SKU management, etc. etc.

One of the big battles in larger companies is trying to decide if you want one integrated system (which usually turns out to be a ball of code, hard to maintain, etc. -- but with some synergies) or dozens of special purpose systems with data transfers between. Back when I was heading up conferences, one of our speakers was Jerry Gregoire, who was Dell Computer's CIO and (at that time) famous for helping Dell build computers to order -- very lean -- at a time when IBM and others had months of increasingly obsolete PC inventory. I recall his comment about SAP -- at the time the largest vendor promising an integrated manufacturing "solution." He said he loved it when he heard competitors were installing SAP. It's like cement, he said. Hard to work with when you put it in . . .. and near impossible to move around once it's set.

 

[michiganbuck]

If you walk in the door.. or your advertising shows up ..or somebody recommends you what then..For X dollars I can cut your costs , lower your scrap rate,improve your productivity, cut your taxes,improve your quality, get you larger market share.

Oh yah that's great..Nobody would turn that down...Now show me some evidence you can do that..

QT Toolroomguy post #20:[Google wasn't much help in finding out what MEP stands for:]

Problem #1 communication...1165 words in your post #1 and we don't know what you are talking about.

and now at post 25 we still don't know...

look at QAD website mentioned in my post (#2) and see that they tell what they intend to fix or improve.
also they show companies they helped..

Back down the road someone said "keep it simple"

 

[DanielG]

1. Under what circumstances have you hired, considered hiring, or would consider hiring (please clarify that in your answer) a consultant, engineer, or other type of professional service? I’m not referring to “typically non- optional” services such as financial or legal, but more “optional” type of services (e.g. marketing, programming, etc.). I already know that many of you would reply “over my dead body”, so please resist the urge to reply as such.
2. If someone that you really trusted said “I’ve got/know this guy”, and he really know how to make a process efficient/make your business more profitable/improve service, quality and delivery, etc. (something that perks your interest), would you ask for contact info and potentially contact that person? Regardless of whether your business was currently profitable?
3. If you have (or might) search for someone that performs services in my arena (which I’ll explain), what would you look for?
4. If you do read through the material below, I’d appreciate any suggestions on what specific types of services you think I could “package” that business would be interested in.
5. If I put together a “mailer” (email or postal), of my services, would that potentially prompt you to contact me? I do know the low success rates of these types of advertising.

1) Yes, hired one of the MEP* guys to help me develop my AS9100 system. He also helps with the internal audit every year. The first year, since he helped design the system and couldn't then audit it, we brought in someone he knew from Mass to do the internal audit. The contract was run through MEP.

2) Probably call them. Nothing might come of it, but I'll at least find out what they do and keep it in the back of my head should a need ever come up.

3) That someone I know vouches for them.

5) Not at all, it will go straight into the recycling bin next to the mailboxes; it won't even make it back to my desk. If anything, I'll think less of you for wasting your money on a mailer.

While I don't primarily do consulting, I do a little bit. These have come through either random meetings/conversations, word of mouth, or through MEP. They had a client with a need that fit my expertise and didn't have anyone in house, so they did a pass-through contract to me. The pass-through didn't raise the client's price any, but allowed MEP to claim that on their "here's how much we accomplished this year" report.

I would view word-of-mouth as your primary advertising. The website exists to support that. Once someone gets your name, they'll look at your website. You'll want to give concrete examples of what you did, and don't promise the moon.

I would imagine that your relationship with MEP could be very valuable as a source of leads if your expertise is complementary to their staff's.

* For those of you who aren't familiar with it, MEP is the Manufacturing Extension Partnership. Each state has one or more, with some funding from NIST. They do quality, lean, etc. They also end up with training grants, so if you don't know your local MEP person, you should; they can give you free money.

 

[michiganbuck]

QT DanieIG :[MEP is the Manufacturing Extension Partnership. Each state has one or more, with some funding from NIST.]

Thanks DanielG ....Guess we knew it would take a guy from Maine to clear that up.

Now what is NIST....perhaps the National Institute of Standards and Technology

 

[DanielG]

Now what is NIST....perhaps the National Institute of Standards and Technology

that's correct

 

[DouglasJRizzo]

My take on this is when outside brain power is called, it's for one of two situations:
1) The customer is in so deep he's gonna drown and take everyone with him.
2) The customer underbid on a project way over his head.

In any event, be careful.
Protect yourself with paperwork.

 

[Wild West]

No offense, but the services you offer are often looked down upon. Many people have hired people like you and had terrible experiences and wasted a lot of money.

This is true and in most cases and in most cases it's the company owner/managements fault.

Most owners hire a consultant without really thinking thru what their expectations are. Yeah, they will say, "I just want this shop to make more money". That's fine but they are not ready for what it takes. Usually a consultant (and I have hired them) recognizes changes that need to be made that a small shop owner does not understand. It usually revolves around better organization, definition of employees responsibilities, doing pay evaluations with other shops etc. etc.. These are changes that take the owners full involvement and buying into it and they take time to implement and time to show meaningful progress.

I would say that just about all small shop owners expect a "magic bullet" and quick results and don't really want to take the time and effort to make it work. Another problem is that the small shop owner doesn't really want to change when it comes right down to it because change can be difficult and put them outside their comfort zone. They want to keep doing the same thing but by hiring a consultant want different results. That is what is known as insanity.

The problem with most consultants is they don't sit down prior to signing the contract and explain exactly what they do and what is going to be required of the management in order for it to be successful. management needs to be told that if they are not ready to totally get behind it then they are wasting their time and money.

 

[The Dude]

Hey guys,

Got back a bit early from vacation (lucky hunter!) and read through all the posts. I do want to thank everyone for their responses and I will PM a couple of you for follow-up. I did receive some useful information but I think in general there was some misunderstanding but the feedback is still useful. I wasn't really asking "Would you hire me?", mostly as I think it's inappropriate to get into enough detail when I'm not a PM sponsor. So that's why I didn't fully get into who I am (be assured, "The Dude" is nowhere to be found on my website) and what I do. If you read the questions (which, to be clear, many of you did address), they are more about marketing and your experience with consultants. A few other things:

Sorry about not clarifying MEP (yes, Manufacturing Ext. Partnership, from NIST). I've seen this mentioned enough on PM that I thought just about everyone knew what it was, my bad.

I definitely have in my mind to market to larger companies, but probably through different channels. I won't get into detail, but there are multiple reasons why I'd rather work with small-medium companies. Thankfully, I do have some area of expertise that even a larger company could use.

Lastly, I'd like to show that I'm "giving back", at least hoping that some of you can use this. The work I'm doing now is not much different that when I was in the MEP system. The sales process is very similar and I'll say this: I was SHOCKED at how many times the customer didn't ask for references or how little they asked before "signing up". This is YOUR business guys and there are scammers out there (which makes an honest guy's work more difficult). Here's what you really need to consider: What are the chances that someone who "calls you up" just so happens to be the person you need to fix your business? Even if you think they can help, start at the beginning (like you've never heard from this person before) and ask yourself "What do I need to fix in my business?" and "Is this the best person to help me fix that?". Think about it just like a good deal on a machine that you happen to stumble upon. If you were already looking for that machine and you know it's a steal, then buy it. But if you weren't looking for that machine, you need to ask yourself "Is this the best use of my money?". I fully understand that this applies to me but that's why I have good references and testimonials along with fully understanding that any prospective customer should fully investigate me before hiring me.

If anyone has anything to add, great, please do but also "Thanks!" to all.
The Dude

 

[hermetic]

I always ask "consultants" the same question. "Are you willing to work for a percentage of the extra amount you make or save for me, paid at the end of the contract?" Usually see the door flapping in the breeze......................

 

[motion guru]

I always ask "consultants" the same question. "Are you willing to work for a percentage of the extra amount you make or save for me, paid at the end of the contract?" Usually see the door flapping in the breeze......................

I WISH customers would offer me this . . .

 

[PeteM]

I always ask "consultants" the same question. "Are you willing to work for a percentage of the extra amount you make or save for me, paid at the end of the contract?" Usually see the door flapping in the breeze......................

Not quite the same, but when I began work with a publicly traded company, I'd buy 100 shares of their stock.

 

[Wild West]

I always ask "consultants" the same question. "Are you willing to work for a percentage of the extra amount you make or save for me, paid at the end of the contract?" Usually see the door flapping in the breeze......................

I don't think you are the type who understands how to hire a consultant. Read my post #30. If you think a consultant comes in and instantly starts the shop making more money then you should have never had hired one.

 

[The Dude]

I always ask "consultants" the same question. "Are you willing to work for a percentage of the extra amount you make or save for me, paid at the end of the contract?" Usually see the door flapping in the breeze......................

As a matter of fact, I'm basically trying to offer that. I have a program (not heavily advertised as I can't make this my main "gig") for really small (1-2 person companies) where I offer limited services, mostly "as available" like when I'm in the area or can answer questions, and then get paid based on what they feel my services have been worth. I do this very open-ended with no expectations on either side. I'm currently working with the guy who built my boat (just got it last spring). I perked his interest when I told him I wanted to supply the switch/gauge panel (I'm particular on how I wanted it laid out) and, after dropping it off and telling him it only cost about $30 to have it laser cut, I could tell his mind was starting to go like "whoa, what the hell I doing with band and hole saws!". This is a guy with a heart of gold but works himself way too hard when his real money is "torch on" time.

We'll see how it goes. I'm not throwing any cash into this type of work (outside of gas money, which is a tax deduction) and I'm not going to continue it if it doesn't work out. Outside of that, if a potential customer asked me about "gain sharing" (which is what I call this type of work), I would most definitely consider it if the circumstances were good. For the most part, my work is saving customers "cash" and I can make good & conservative projections on that. I am also very careful with "time" (i.e. labor) savings as having people stand around more in an operation that isn't a bottle-neck doesn't do people much good. If you can't re- balance the work to give those people more to do, then there's usually other areas to fix that are more important.

The Dude

 

[The Dude]

I don't think you are the type who understands how to hire a consultant. Read my post #30. If you think a consultant comes in and instantly starts the shop making more money then you should have never had hired one.

I don't know what your definition of "instantly" is but I can often get a shop saving money within days or a week or two. If a shop is bleeding, then the first priority is to try and stop the bleeding. Maybe they "sacred cow" suppliers (got stupid and become good friends with some of their vendors and don't want to hurt their feelings or they like free fishing trips a bit too much). I always ask them, would your customers keep you if it meant closing the doors? Don't get me wrong, I understand relationships but also keep in mind, ultimately this is business. That's just one example. Maybe they can "farm in" something that they're currently purchasing/having processed outside. Even if you think it's not worth the effort, consider this: if you can do the work without hiring additional people, it can be a good way to help stop bleeding. Might not be the best from an opportunity standpoint (i.e. highest and best use of time), but it can help with the cash flow.

The Dude

 

[hermetic]

I don't think you are the type who understands how to hire a consultant. Read my post #30. If you think a consultant comes in and instantly starts the shop making more money then you should have never had hired one.

To be frank, if there is anyone on the planet who knows how to run your business better than you, you should let him run it. The fact is that person is one in a million. I have been self employed in many different businesses of my own since I was 19, I am now 65, and I think I can say without bragging that I am independently wealthy, not a millionaire, but sufficiently well off, and with a good income before my pension is even considered. If you set up a business of any type with the primary consideration of making money, you will fail. The primary objective of any business in any field, is to exactly satisfy the needs of it's customers. If you do this every time you will find that you can charge pretty much the top of what the market will stand,If demand is low and competition is high, TRY ANOTHER MARKET! Any damn fool can cut his prices in order to buy work, and get involved in the race to the bottom. If you don't know all aspects of your business inside out and back to front, you should do some research, or get out of it. There are times, albeit very few and far between where a consultant who has vast experience of the problem you are facing can help out but if you need a consultant to advise you on pricing or efficiency, you are pretty much lost There is a lot more to running a business than just being very good with the core skills.You are right, I am definitely NOT they type of person who would hire a consultant unless I was convinced they would make me at least double what they cost.

 

[hermetic]

Dude, I like the sound of your consultancy! seems very fair to me, you will meet the odd crook no doubt, but good luck with it!! BTW, I am not retiring, having far too much fun, and I only work hard at what I totally love and enjoy, that is another rule for business, the day you stop LOVING it, get out!

 

[The Dude]

Dude, I like the sound of your consultancy! seems very fair to me, you will meet the odd crook no doubt, but good luck with it!! BTW, I am not retiring, having far too much fun, and I only work hard at what I totally love and enjoy, that is another rule for business, the day you stop LOVING it, get out!

Thanks! I have told several people that I have to make this work as I enjoy it too much! I've also said that I really don't want to retire (fully anyway). Life is too short to be doing things that you don't enjoy.

To be frank, if there is anyone on the planet who knows how to run your business better than you, you should let him run it. The fact is that person is one in a million.

I agree with everything you wrote (in the entire post) except the odds. Here's what I've found, having worked with enough business owners to come to some conclusions. Many business owners seem to enjoy the creative part of the business more than the operational part. I don't see anything wrong with saying, I'm just going to do process work, product design, the artwork, etc. - whatever part of the work it is that you enjoy. Then hire the management out. It's not all that difficult to separate the two (more difficult to find the right person) and it can lead to not only greater job satisfaction but greater financial reward. I wasn't really able to "exercise" that advice when I was in the MEP system but I will be able to now. At the very least, I think it's a good "gut check" to ask yourself that question.

Thanks,
The Dude