Calling out a "competitor" is bad form, however in the interest of protecting the finances of contractors everywhere, I'm going to. At least I'm going to share their operating pattern so that you can recognize these companies when they put the screws to you in their sales call.

Two large management consulting firms, who market very aggressively to contractors, MUST BE AVOIDED at all costs. If allowed in your door, they will heartlessly ring up a $40,000 consulting fee so fast it will make your head spin.

I'm not jealous of their ability to generate huge fees. No, I'm just mad at them.

Mad because they feel no obligation to provide assistance that brings contractors closer to their dreams.

Mad because they use unskilled, wet-behind-the-ears advisors.

Mad because $40,000 is a ridiculous fee for:

1. Documents you can find on the internet - for FREE.

2. A budget that is last year's income statement with a 10% sales increase, and

3. Job descriptions created by your own staff.

I'm mad because they take advantage of contractors who want help and in doing so poison the well for the rest of us coaches and consultants who care about contractors and bust our rear ends to help them succeed.

Their former clients are mad too! I've yet to hear one contractor sing their praises. Almost all bemoan the money they invested, the time their staff lost, and the high pressure sales techniques they were attacked with.

Do you think I'm being overly critical? Hold that thought until you meet someone who has been taken in by them and read the following story.

Mary and her husband Gene ran a commercial drywall business. They were on the brink of bankruptcy when they called me. They told me about their business' horrible, potentially fatal, experience with one of these two consulting firms (the one with the BETTER reputation).

When I visited with them, Mary and Gene were waiting on the arrival of three large receivables, were out of money, and facing a serious threat to their personal wealth. At the time they met the consultant, they were on thin ice but the consultant's unprofessional behavior pounded the stake through their business' heart.

The firm's consultant assured Mary he could get the business a $300,000 line of credit. He demanded payment up front for his efforts and suggested she to pay his fees with credit cards. The consultant implied he had connections to financial institutions that had previously proven to be quite cooperative with contractors facing similar problems.

The consultant rearranged the company's financial statements started calling around to see if anyone would provide the needed credit line. He couldn't find any takers. Of course, he didn't give up until he had run up a huge bill. Mary and Gene's credit cards went from a balance of zero to $55,000.00 without $1 worth of credit line being awarded. The consultant's justification was "We did what we could."

I hear two to three stories a month about contractors who have been approached or abused by the two consulting companies. It's quite sickening.

Stay away from them. If you need help with your business, by all means find a qualified coach or advisor.

Almost any business adviser you choose will provide valuable help. You will certainly mesh better with some than others. Some will be specialists in your business, others will not. Almost all will be professional, ethical, and helpful if you follow their advice.

Then there are these two companies. Here's how they operate so you will recognize them when they come a calling:

Their sales person talks you into allowing one of their analysts to spend a day at your company, free of charge - to look into your situation.

Their analyst digs through your financials, glances at your job descriptions, performance evaluations, and bonus plans, and concludes your business is in great trouble and needs immediate help to save it from certain failure.

Seriously, this is how they talk. "YOU'RE IN GREAT DANGER"

Their analyst recommends sending in two IPA consultants the following Monday to right your ship.

The two analysts show up, start whipping up a budget, interviewing your workers to find out what they do, start pulling together job descriptions, performance evaluations, and bonus plans all the while telling you that these items will save your business and generate great wealth.

And the entire time those two consultants are there, they are racking up a $4,000.00 a day in fees. What you get in the end is a set of documents that will have minimal impact on your business. You could get the same level of quality from most consultants for less than $2,000.

I am sharing this with you for two reasons:

1. If one of these two consultants is on the phone, don't be nice. Hang up.

2. Pick your adviser wisely. Good ones are GREAT investments.

Until we next chat - best of luck with your business,

Ron Roberts