| Are you an entrepreneur but don't like selling alone? | | | | |
| A consortium is a combination of different | | | | Okay, that is fairly straightforward. |
| industry-types of entrepreneurs working together to | | | | |
| attract business as a group. Even though each | | | | After the client receives their contractual services by |
| member maintains their individuality and operates as | | | | the member, the member then bills their time to the |
| the same as self-employed. | | | | consortium in "units" not dollars. Units work better |
| | | | than dollars because they equalize the various billing |
| They band to create a more valuable package to | | | | rates of the members. For example: a CPA may bill |
| fulfill bigger needs for clients and for increased | | | | four units per hour, a writer three, and a virtual |
| visibility and credibility. | | | | assistant one. The consortium keeps track of |
| | | | everyone's units and pay members on a regular basis |
| The positive side to being part of a consortium is | | | | as set up in the consortium's charter. |
| that you can work on larger projects. Larger than | | | | |
| any single entrepreneur can accomplish alone. | | | | When the consortium is properly tax-structured, the |
| Together they can enter into contracts that require | | | | revenue and expenses can balance themselves out. |
| multiple skills and still maintain the freedom of their | | | | It is important to see a tax professional for details on |
| entrepreneur-hood they so desire. They gain being | | | | structuring a consortium for tax efficiency. |
| part of a team and organization while still keeping | | | | |
| your independence. | | | | A challenge when starting a consortium is to make |
| | | | sure that when looking for members, prospects do |
| A consortium can provide the security of core | | | | not mistake the first meeting as a new networking |
| revenue that helps them breath, not chase prospects | | | | group starting up. People confuse the two and show |
| as hard, and usually take care of regular living | | | | up. This will give the organizers a misrepresentation |
| expenses. It is also a great way to transition from | | | | of the "real" number of interested parties. |
| employee to self-employment. The transition allows | | | | |
| the learning and growth at a slower steadier rate. | | | | Joining a consortium is not a short-term project. It is |
| Each member learns from other group members by | | | | important to know that joining or starting a |
| sharing their success and mishaps. This way the risk | | | | consortium is long-term. There is the initial investment |
| factor of being self-employed is less. | | | | of time and money from all members. The startup |
| | | | phrase doesn't occur in one meeting. An agreement |
| The consortium can also band products to create | | | | on many items needs addressing. Some established |
| higher priced, more valuably perceived, packages. | | | | consortiums require a minimum of three years, |
| Larger packages are easier to sell. A group package | | | | however, many startups can require five, ten or |
| of various authors is more attractive to buyers. | | | | twenty-five years commitment. |
| Everything that the buyer needs is then packaged | | | | |
| and available with one purchase. | | | | Oh, but when they work, they are make being in |
| | | | business so much nicer. |
| Being a part of group also removes the pressure of | | | | |
| trying to be an expert at everything. And allows each | | | | Usually the founding group elects three leaders to |
| individual to focus and be brilliant at what they | | | | handle the administration. One of the three may have |
| specialize. There are many types of group | | | | a higher voting right. Usually the one given the higher |
| configurations for consortiums. Let me give you a | | | | voting right is because of their investment of time or |
| few examples of some of them. These groups | | | | money, but not always. These leaders have the |
| formed a single purpose. | | | | responsibility of organizing meetings and splitting up |
| | | | the consortium responsibilities between members in a |
| An entrepreneur consortium can include: * CPA * A | | | | fair manner. |
| writer specialty in business plans and advertising copy | | | | |
| * A financial management consultant * a human | | | | Money is an important factor when entering into |
| resource consultant specializing in benefit programs | | | | these types of agreements. It is the main purpose of |
| and employee manuals * An Internet consultant * | | | | forming the consortium. Money is also one of the |
| Web master * Strategic planning consultant * A | | | | main reasons they breakup -- like most marriages. |
| secretarial service or virtual assistant * Graphic artist | | | | Because of this, it is important to have a buy-out |
| * Brand specialist * Public relations firm | | | | clause in the agreement that protects the members |
| | | | and the consortium. |
| A training consortium can include: * Writers | | | | |
| (copywriter, web writer, direction mail writer) * | | | | Respect, appreciation, and acknowledging of each |
| Editors (line editor, grammar editor) * Reference | | | | other's contribution is mandatory -- put a cap on the |
| checker * Graphic designer * Multimedia specialists * | | | | M to mandatory. The boundaries and scope of each |
| Videographers * Presentation trainer * Voice coach | | | | other's services must also be clear. It is not |
| | | | uncommon for some members to offer similar |
| A software consortium can include: * Programmers * | | | | services. Thus, the boundaries of who does what is |
| Multimedia specialists * Graphic designers * Marketing | | | | extremely important. |
| consultants * Packaging consultant * Retail consultant | | | | |
| * Product Development consultant * Accountant | | | | Being a consortium member doesn't ban them from |
| Bookkeeper * Virtual Assistant * Business coach | | | | obtaining outside clients for their particular speciality. |
| | | | However, working with other members to gain |
| A consortium can form that specializes in children | | | | contracts separate from the consortium breaks their |
| books or educational products. The group can consist | | | | membership in the consortium. And always have |
| of educational specialists, graphic designers, marketing | | | | consequences stipulated in the consortium charter. |
| consultants, self- publishing expert, agent, and various | | | | |
| types of writers. Artist guilds work off the same | | | | Communication and cooperation are challenges for |
| principle of consortiums. Some consortium, many | | | | groups of this size. Each member needs to make big |
| guilds in fact, purchase real estate together to display | | | | effort to work and be patience in these two areas. |
| and sell their art. | | | | The need for professionalism is important so that the |
| | | | group does not degenerate into personality conflicts |
| Let us follow the money trail of a consortium. | | | | or professional battles. Having an outside arbitrator |
| | | | for disagreements is a good idea. |
| The client enters into a contract with the consortium. | | | | |
| The consortium bills the client. Each consortium | | | | Even though there is a challenge in finding the right |
| member discounts his or her rate and bills the | | | | members and keeping the relationships working, |
| consortium. | | | | remember the advantages outweigh any and all cons. |
| | | | Consortiums have been in existence for several |
| The billing difference supports the business side of | | | | decades now and have proved their possibilities. |
| the consortium. It can pay for marketing or other | | | | |
| overhead expenses. | | | | For a list of additional resources, visit: Franz is a |
| | | | Marketing & Writing Coach, niches, product |
| After the client pays the consortium, the consortium | | | | development, Internet marketing, nonfiction writing |
| then pays the members who worked on that | | | | and training. |
| project. | | | | |