San Francisco Bay Area $146k Average
Consultant Revenues
By Renee Maler
Wednesday, July 6, 2005; 4:30pm EST
Women in
Consulting Survey Shows Continuing Economic Recovery in SF Bay Area.
Average 2005 consultant revenues of $146,000 up 28% since 2002.
San Mateo, CA, - June 27, 2005 - Women in Consulting (WIC), a San
Francisco Bay Area umbrella organization of seasoned professional
consultants, announced today results from its latest annual survey
that indicate a continuing rise in business for Bay Area
consultants. The findings also suggest strategies for consultants to
maximize their revenues and promote their business in this stage of
economic recovery.
Survey results of both WIC and non-WIC members included the
following conclusions:
-
60% saw an
increase in revenue over the previous year
-
73% expect
revenue to increase in the next year
-
Average total
revenue increased steadily from 2002 to 2005 � from $104k,
$115k, $139k to $146k, respectively
-
However,
average hourly rates and project fees remained flat this year,
pointing to an increase in workload
With such findings,
WIC�s survey demonstrates that women are thriving as independent
consultants, with 88% of respondents stating that consulting is a
significant source of income, as opposed to merely a supplement to a
primary job. In fact, 60% are further contributing to the economy�s
momentum by hiring subcontractors, and these respondents report
higher average incomes than consultants without subcontractors.
In exploring challenges experienced by consultants, the WIC
survey also points to best-practices to improve their business and
revenues, such as:
-
Revenue is
higher for consultants who charge project fees versus hourly
fees
-
Be willing to
walk from an unprofitable deal � bidding low causes price
erosion and decreases the perception of your value
-
Have different
rate structures � hourly, project, retainer � to match client
needs
-
Research market
rates and adjust for seniority, competitive niche, target
customer, size of company
-
Don�t
underestimate project times, which is a common pitfall � build
in a buffer, add rates for changes and extra services, such as
�rush� projects
-
Outsource to
subcontractors with lower fees, where appropriate
-
When projects
change and need to be renegotiated, review client objectives and
discuss what is going over the scope of the agreement; give
choices for what can be done within the fee and provide
estimates for additional work
�It�s clear that
women continue to emerge as a dedicated and successful segment in
consulting,� said Deborah Henken, President of WIC.. �Our survey
shows that WIC members enjoy greater success than consultants
working without professional support, particularly since consulting
is still viewed as a non-traditional field for women and
intimidating to some. We are happy to share these findings to help
women succeed on an independent path and to benefit the entire
consulting community, including corporate clients.�
About the Author
Women in Consulting is a dynamic organization of seasoned
professional consultants in more than 30 specialties, ranging from
engineering to financial advising and marketing. WIC�s dual mission
is to provide companies seeking consultant talent with access to a
premier resource of top tier consultants and to provide a forum for
consultants to share information and to effectively manage and grow
their consulting practices. A non-profit corporation, WIC was
established in 1998 as a collaborative community to foster
successful consulting practices for its members. For more
information, visit www.womeninconsulting.org.
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