Steps For Establishment.doc

an accountant – they can help with tax issues etc. and can file your documents for incorporation – if they are any good you should be able to become incorporated within a week. * Incorporate as a LLC – limited liability company, or a Sub Chapter S corporation – both of these tax your profits as ordinary income – you don’t have to pay Social Security or Medicare tax on profits. But talk to your accountant about what you need to take out as Salary. Also,In the event of any lawsuit your personal assets are protected. * Open a checking account in the corporate name and keep all money separate from your personal checking and savings – you can loan the company money but keep records of the loan. If you comingle the two accounts you could have your personal assets brought into a lawsuit. * Training is where you will have the biggest opportunity to make the highest income. Secure the best materials you can – like most of us you probably have a computer full of information from many sources, but you could easily commit copyright infringement. My company recently made complete training materials available for an extremely low fee. But I will not get into that here since this is not appropriate for this forum. * If you can possibly avoid it do not hire employees until you are doing more than roughly $400,000 per year – hire contractors – make a contract up for each contractor for each of your clients that protects you from them doing work with your client and not telling you about it thus cutting your profits out of the equation. * Billing – you want the best turnaround time on your bills so how you handle expenses can be very important. We did something very unusual in the industry – we don’t bill directly for expenses we add a flat amount into our payment to contractors for expenses and charge the customer a flat amount per day or per training class – the consultants love it because they can use frequent flyer points and hotel points. The clients love it because they get a simple bill and can count on exactly what a particular engagement will cost them – and we love it because we don’t have to wait for expense information or hire people to examine the expenses before a bill goes out – win-win-win.. * Proposals – make sure you produce a quality proposal that addresses every aspect of the RFP. Do not bid on projects that you do not have the capability to do. When you start out your company does not have references, however you do – use yours and your contractors experience as your references and make sure you talk with the people you are referring the client to. Well I am interested in some great tips from all of you.More Help at http://six-sigmaimplementation.com Bob 16 days ago • Like   

Follow Bob Bob Ricker • Should you pay a per diem or pay expenses - the problem with paying expenses is the turn-around both with consultants and with customers - the number one complaint from customers is concerning what they view as "excessive expenses" this is a CTQ issue when dealing with customers. Your sub-contractors also become irritated after they have submitted expenses and then having them challenged. All of this results in an increase it the time it takes between billing the customer and recieving payment. So - how can you lean out this process? We have been doing it for the past twelve years. Hear is how it works. Travel costs are not charged to the client. The costs are all inclusive for each workshop regardless of Location. Consulting issay at $2000/day, if consultants are brought in for less than 4 days then a travel adjustment applies at a rate of $300 for each day less than 4 days. For example if you bring in a consultant for 2 days then the rate would be 2000 x 2 days=4,000 + $600 (travel adjustment) = $4,600.(Flat Rate) We pay the consultants $600 per day less than the client pays. The Travel Adjustment for this is to cover airfare which is the only expense that is not a daily rate. Sub-contractors really like this because they can cut their expenses and put the money in their pocket - they can use frequent flyer miles and hotel points. What does everyone say about expense accounts "spend it like it is your own money" GUESS WHAT IT IS !! Clients love this because they dont have to review a weeks worth of receipts and they know exactly what they are going to be billed. http://six-sigma-implementation.com