The most nail-biting cash flow challenges and overall project frustration I’ve experienced as a sole proprietor have resulted from my engagements with the two largest instrumentation companies here in the Bay Area. Turns out that providing a service to large organizations takes a specialized approach, but I was using the same one that I had developed over the years of working with my original client base, which is composed of startups and other smaller companies.
Seth Godin nails it:
In my experience, 40% of the fee goes for the work and 60% goes to pay for the do-overs, staffing, project management and hassle that comes from working from big organizations and committees. A lot of small businesses get burned when they charge just the 40% and the client expects that the other 60% comes for free. It doesn’t.
The art and skill of working with bureaucrats at Seth’s Blog
Comments on this entry are closed.