Sara Jones was my first nonprofit board mentor. She excels in helping those in the nonprofit sector think about the financial and strategic consequences of their decisions. When I told her I was investigating nonprofit consulting and thinking of doing some projects for free, she made her case for always charging something for professional services. The organization will treat you more professionally, and you will act in a more professional manner, she argued. But I'll let her speak for herself:
Okay so I was asked to be a guest blogger and to speak about theories around the value of contribution and what is an appropriate “billable rate.” At first I was stumped as to what to write and was then advised if all else failed, talk about how to rent a flat bed and drive a truck that goes psshhhh when you step on the brakes. Personally, if you ever get the opportunity to drive a big rig its worth it and I guarantee you will never quickly pull in front of any truck ever again in your life. Lets get back on track with the original idea: your personal billable rate and how do you derive that number.
When I was first struggling with how much do I charge as a consultant, I was advised to do some research in my field and then charge a “number that made me a little uncomfortable.” To this day I still employ this formula. I continue to test and refine my theory but I think it works for most situations. Now, I am not saying price yourself so outside of reasonable that you seem ridiculous. It’s personal. Probably, there is a number that is comfortable and well within your ability to get paid such a number. Then there is the number that is just a touch higher. For example, if you are used to getting say $60 an hour, your next client go for $75-$100. Lets me just say this—even if you are just starting out never ever ever charge nothing or a cut rate. It says something about how you value yourself and how you value your work. Sure, inexperience is one thing so charge a rate that is still a little uncomfortable but it always will be north of zero.
Charging a rate that makes you feel uncomfortable also sends a message not only to your client (that you have value, worth and deserve and expect to be paid well), but also reinforces a message to yourself. For most, this uncomfortable feeling is just the sort of motivating force we need to step into and act the part. In other words, it creates a door that once you walk through you align yourself and your work product with this rate. Once you put it out there it becomes true. And pretty soon that rate will feel comfortable and then I say take it up again.
Let me know how it works for you. From my limited sample set so far my theory seems to hold---what do I know? I’m learning too.
Have fun,Sara Jones
Guest blogger, general contractor, wannabe truck driver and business consultant
Thursday, June 25, 2009
Tuesday, June 23, 2009
My Crusade to Prevent People from Applying to Law School (And Why I Might Be Wrong)
While waiting in line for preschool registration, I heard one mom mention to another, "I had a dream last night that I applied to Stanford Law School." "Don't do it!" I interrupted before it registered that I didn't know these women and that they weren't talking to me.
When someone asks my advice about attending law school or even mentions the idea within earshot, I immediately start thinking about the people I know who intended to have interesting jobs (writers, politicians, activists) and joined corporate law firms instead.
The people I talk to about law school are usually young and intent on changing the world or at least making it a little better. It's too easy to take the path of least resistance and work for a law firm, I argue. The debt burden will pressure you to take the highest paying job, not the one you're most passionate about, I cajole. The horror of hours and hours of document review, I exclaim.
But, I think it might be time to revise my stance. First, the easy and seductive path to a law firm - sign up for an on-campus interview, fly to an exciting city for an interview, wine and dine all summer at the firm's expense, accept a job with a six-figure salary - is disappearing, if not gone. Second, my opinion of what lawyers do is overly influenced by my friends and my experience as junior and mid-level law firm associates. Many lawyer friends have moved on from the positions to interesting government work at Department of Justice, US Trade Representative, and the FCC, meaningful work in the nonprofit sector, and some are even reinventing the idea of law firms.
The other argument that I sometimes undervalue is the extent to which a law degree, especially from an elite institution, serves as a certification or stamp of approval. Everyone knows that Barack Obama went to Harvard Law School and served as President of the Harvard Law Review. Closer to home, I've seen this stamp of approval substitute for close scrutiny or at least create a positive presumption many times in my volunteer experience: That board candidate, she went to Harvard Business School - Say no more!; That mom making root beer floats, she went to Yale Law school - a collective gasp!; That job applicant that went to MIT - maybe we should look at her application more carefully.
If a person's goal is to change the world, maybe she should consider a law degree from an elite institution. The credibility implied from that degree (deserved or not) could open doors and provide opportunities. Careers are long and most career paths are not linear. Starting off at a law firm to reduce your debt doesn't mean that you'll be there for the next 20 years. At the very least, other parents might be a little more respectful as they ask for a second root beer float.
Wednesday, June 17, 2009
How Can Volunteers Create the Greatest Amount of Social Change?
Before I was a Mom and a community volunteer, I was a public policy major. As a public policy major, I spent lots of time assessing the costs and benefits of various actions and considering how to derive maximum impact from limited resources.
Recently, I've been thinking about applying a cost-benefit analysis to my volunteer activities. In other words, what volunteer activities will allow me to have the greatest possible effect? Don't get me wrong. I love community building events like neighborhood picnics and class socials. These events bring people together, create a sense of connection and community, and set the groundwork for future cooperation. But I'm thinking about activities that really move the needle forward on social issues.
Take the issue of K-12 education, for example. Public education in Washington State faces many challenges. Sometimes the problem seems too big for one person to make much of a difference. One solution is to concentrate on a small project. Our neighbor's school recently held a hoop-a-thon to raise money to fund a PE and nutrition teacher for next year.
Another solution is to advocate for change in larger systems and encourage others to do the same. The results aren't as immediate, but they could have a much larger effect. If I make cookies for a bake sale, the benefit (say, $1 per cookie) is seen almost immediately. Advocating for school reform before the school district or the state legislature takes longer to show results, if at all. Yet, a community mandate to make education funding a priority could result in millions of dollars in money for schools.
The idea of going to Olympia to talk to a legislator or even writing a letter to the editor can seem overwhelming to an individual. Are there ways to provide smaller opportunities to be involved a la MoveOn.org or MomsRising? The work of the League of Education Voters and Stand for Children is a good start.
Thursday, June 4, 2009
Fun Ideas for Bake Sales or Potlucks
Community volunteers, especially those who are parents, are constantly asked to provide food. With pressure to contribute items to bake sales, class picnics, teacher appreciation events, committee meetings, and board socials, it's enough to make a volunteer run to Costco and stock up on veggie trays and giant muffins.
I'm always on the look out for recipes that are fun, not too expensive and easy to make. I love the old-fashioned recipes from the midwestern synagogue cookbooks I've collected. (One favorite: Chocolate-on-a-Ritz. Spread peanut butter between two Ritz crackers. Dip in chocolate.)
Recently, I've been inspired by The Only Bake Sale Cookbook You'll Ever Need by Laurie Goldrich and Pam Abrams. The first chapter provides 23 variations on Rice Krispie Treats. I made the S'more Treats with Golden Grahams and chocolate chips for the Madrona Mayfair bake sale, and just made Cheery-Os (pictured above) with Cheerios and Nutella for an upcoming school picnic.
What are your bake sale/potluck survival strategies?
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