Trading places from client to consultant.

As early retirement becomes the norm and leaner organisations thin the ranks of middle management, more and more in-house communicators are taking the leap from corporate security, real or imagined, into the risky area of the individual entrepreneur.

What will they find there? How will they cope? Two years ago, John Aspery, ABC, made the transition from public relations manager, H.J. Heinz Company, to set up Aspery Associates. Now he offers advice from the other side of the fence.

Moving into consultancy? Need a little help? You'll find a rocky road ahead. There are no short cuts, no easy answers, no simple solutions. But there are guidelines. Plenty of advice is available, not least from literally hundreds of practitioners who have changed hats in the last year or two.

It's certainly fashionable to put up your own brass plate. More and more people are trading places from in-house communicator to outside consultant.

Most would agree that the competition is fierce -- but don't be discouraged. Those who have made it will tell you that an uncompromising commitment to quality standards -- and a slice or two of luck -- will separate you from the crowd. You will make mistakes, of course, but once you're off and running you are unlikely to want to return to an in-house job.

First, though, ask yourself whether this kind of work is right for you. Would you enjoy being a consultant? Would the lifestyle suit you? These are key questions which are not always easy to answer.

If you've lost your job and there's no alternative employment, it could be argued that the time is right, that you don't have too much to lose. But if there are options, consider whether consultancy work is really your scene. We're not all cut out for this way of life.

Would you be happy? What about the financial risks? Could you handle the stress? Would your health suffer? Talk it through with family and friends. And, of course, with established consultants -- most of whom have experienced the same teething troubles that you will almost certainly encounter.

Once you've given yourself the green light, it's largely a matter of common sense. No hard and fast rules exist, but your peers will tell you that you'll need a business plan; that you should define your niche in the market; and get bread and butter accounts in place before setting up shop.

If you're leaving an in-house job, try to take an assignment or two with you. And work hard at leaving your employer on good terms--you never know when you'll be working with each other again.

If you're moving out of an agency, it may be well to consult a lawyer. Most account executives have a 'no-solicitation' clause in their contract, which means you cannot normally approach the agency's clients for 12 months before, or after, your departure. But there's no reason why you cannot tell key contacts that you're setting up on your own. There's nothing to stop the client approaching you.

Scores of practical questions need to be asked. For example:

What is my niche?

Play to your strengths by identifying the areas in which you can out-perform the opposition. Never hesitate to highlight special skills and experience. If you're a specialist, say so.

Will I need an office?

It's cheaper to work from home, but would that arrangement suit you? Many consultants work well in their suburban studies; others need the discipline of actually going to work. It's a question of what suits your style of operation. Mind you, one London-based practitioner insists offices are obsolete. All you need, he argues, is a fax machine and a car phone.

You also need to think about office equipment. But don't run up big bills for sophisticated systems bought on Day One. You won't necessarily have identified your precise needs until your business has been in operation for several months. Until then, consider hiring a word processor. Better still, borrow one.

Come to that, it's not a bad idea to get the show on the road by renting a desk in the corner of someone else's office. Find out what they are doing wrong. Make your mistakes on their premises.

Should I hire an assistant?

For some, an assistant is essential. Others choose to go it alone, comfortable in the knowledge that they can call on a network of fellow communicators if and when the need arises.

Is an additional person affordable? Would his or her standards match those to which you are aspiring? It's worth remembering that your enterprise is as good as its weakest link. Bear in mind, too, that once you recruit someone, you automatically move into personnel management. Again, it's a personal choice. You will know what's right for you.

Ought I go into partnership?

In corporate communication circles, many partnerships are formed by people who know each other well. But that's not enough. You must respect your prospective partner as a practitioner as well as a person. Ground rules need to be established from the outset; there must be give and take.

Things work better if the partnership is inter-dependent. It helps if respective skills and styles are complementary. If one is a strategist, one should be a street fighter. If one operates with a broad brush, the other should be strong on detail. And so on ...

How much should I charge?

As a fledgling consultant, you can hardly expect to be paid as much as an established agency. Nevertheless, it's important to set a realistic value on your time. Not everyone would agree, but it's as well to be flexible with daily or hourly rates. This may mean negotiating from assignment to assignment; project costs need to reflect clients' budgets.

Having said that, never undercut yourself to the point where you are considered cheap. This would reflect on your professional integrity -- and on your bank balance. Flexibility is the key. As your range of assignments increases, your reputation will be enhanced and your fee structure will become more stable.

Now let's assume you're in business. The phone rings. A letter arrives. You've landed your first assignment. But a word of caution: Satisfy yourself that the prospective client is serious, and not just on a fishing trip for free information. Determine that the enquirer has the authority to hire consultants. Ascertain that there is a budget for the project.

Develop, in writing, the task the client wants performed; this is most important during the early stages of a relationship. Your proposal should set out the project phases, with timings and costs. Reach agreement, but don't tell the client how to solve his or her problem. Don't propose yourself out of an assignment.

Establish a payment schedule. And be sure to research the client's ability to pay.

Make sure you fully understand the problem or the task which lies ahead. Often, a client will call in a consultant and say, "We need a brochure" or "We need a video" or "We need a mail shot." But don't make the mistake of blindly following the client's ideas. Plot your own course of action by putting forward alternative proposals. And if you're given the assignment, be sure to meet all your commitments. On time.

In the corporate world we take it for granted that someone will take care of the bills for travel and postage, phone, fax and photocopying. But as a consultant you can't afford to overlook these items. Set up a system through which each cost can legitimately be charged out.

You will soon realise that, unless you are engaged on an agreed assignment, nobody is paying you for your time. So keep an eye on cash flow and watch those costs.

Work hard at building sound relationships with all members of the client's team. Aim to become an integral and fully trusted member of that team. You're more likely to achieve these goals if you're attentive and enthusiastic, candid and responsive. Above all, learn to be a good listener.

Always treat your client's business in confidence. Avoid getting involved in company politics. And never take on an assignment for which you are not qualified, no matter how attractive it may appear.

It has already been stressed that you should play to your strengths. Conversely, it's no bad thing to admit to your weaknesses. It adds to your credibility to turn down an assignment for which you are not cut out. Don't hesitate to say "That's not one of my skills, but I know just the people you should be talking to." That way, you're building helpful relationships with other consultants. Referrals can be beneficial. They work both ways.

When pitching, or presenting, too many consultants trundle out information about their own successes and resources. Few realize the importance of demonstrating their understanding of the client's business. Keep presentations simple ... and effective.

A few agency eyebrows were raised when the newly launched Lexis Public Relations landed the account for Superdrug, second largest health and beauty chain store in the UK. When Bill Jones and his partner Tim Adams were asked to pitch, they told the prospective client:

"Look, it's very flattering, but we ought to tell you that we don't have business cards yet, let alone an office from which to work.

"Well, pitch anyway," said Superdrug. "We want to see what a small agency can do for us."

Clearly, Bill and Tim impressed the prospective client when they asked if they could work as overnight shelf-stackers in a High Street store and as porters in a Superdrug warehouse ... just to get a feel of the operation.

So be inventive, be imaginative. It paid off for Lexis. It could pay off for you. Go for it -- and good luck.

ADVICE FROM THE SHARP END

We asked some workers at the rock face of consultancy to draw a fistful of nuggets of encouragement, instruction or warning from their spoils bags.

Norman Woodhouse

Once National Coal, now Direct Communications, Banstead, Surrey.

* Building up my consultancy, which focuses on corporate strategy, has proved to be more long-term than I expected.

* Contacts are a key factor ... it's rewarding to work with associates who keep ideas flowing and set achievable high standards.

* Ongoing involvement in crisis management certainly takes the surprise out of the unexpected -- which for me will always be one of the exciting attractions of the communication business.

Ian Hawkins, ABC

Once BP Oil, now Hawk Communications, Maldon, Essex.

* Try not to leave the comparative comfort of corporate life until you have at least one bread and butter account in place. Don't get locked into a one-client relationship -- it's too risky.

* Get yourself the right accountant. And always find time to keep your books in order.

* Be available. If a client wants to see you within an hour, be there (unless, of course, you are committed to the needs of another client).

John Winters

Once Kodak and EMI, now John Winters Editorial Services, Leighton Buzzard, Bedfordshire.

* Keep your head out of the clouds and your feet firmly on the floor. You may be confident that your professional acumen can achieve your goals and meet your clients' needs, but it is business sense and ability which count in the end.

* Seek as much advice as you can from others who have gone before, and don't rush in where angels fear to tread.

* Start off with a reasonably sound financial base. Try to keep the overhead down and don't run before you can walk.

* Some well-worn cliches here -- but still worth their weight in gold.

Jo Billingham

Once American Express, now Jo Billingham Communications, Saltdean, East Sussex.

* Many people believe that freelancers have more control of their lives than those who work in-house because they can choose when they work. Not true! As Shaw remarked: "When you set up your shop you will be everybody's servant instead of somebody's servant."

* You have to learn to accept the peaks and the troughs. When you're busy, it's no good feeling resentful because deadlines demand that you spend a sunny weekend working. And when things go quiet -- as they certainly will -- then you need to be able to take a few days off mid-week without feeling guilty.

* When I was considering becoming freelance I discussed my plans with every self-employed person I met. I received a muddle of advice and a truism from a London taxi driver: "When you work for yourself, you'll find you've got a tough boss."

Pat Masters

Once R-B Public Relations, now Westgate International Marketing, Wilmslow, Cheshire.

* Make a mailing list of all your business contacts and mail them immediately when you begin operations.

* Beware of those clients wanting something for nothing.

* Try to insist that your invoices are paid on time. As soon as payment becomes overdue by three or four days, telephone the accounts department and ask for payment. If this does not result in the much-needed cheque then telephone your client contact. A pleasant or light-hearted approach will usually do the trick.

* Don't be too proud to turn work down if it is outside your normal areas of work. During the first years of business the name of the game is "survival" and as an independent public relations consultant, I recall dressing a Christmas window for a car retailer and providing advertising copy and design for local retailers.

Finally, we turn to Bob Dilenschneider

Once Hill & Knowlton, now the Dilenschneider Group, New York.

* Focus -- make sure that everything you do relates to the success of your business.

* Identify -- mark out a niche that is yours and yours alone, then fill it with substance and performance.

* Realism -- understand that there is only so much you can and should do. Try to stretch no further.

John Aspery, ABC, is principal, Aspery Associates, Waterford, U.K.