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Pricing a consultancy

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Guest user Created:   Apr 28, 2020 Last commented:   Apr 28, 2020

Pricing a consultancy

I am new at Consulting but have been a business continuity manager for a large international financial institution for over 15 years until they moved their operations to *** in 2017. I hold the CBCP and ARMP certifications from DRI.

I am in *** and the market is small. How would you go about pricing a consultancy to prepare a business continuity plan for a small trust company that has 8 employees?
I would prefer to do the costing as a project rather than an hourly rate. Would appreciate your guidance.

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ISO 27001 DOCUMENTATION TOOLKIT

Step-by-step implementation for smaller companies.

ISO 27001 DOCUMENTATION TOOLKIT

Step-by-step implementation for smaller companies.

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Rhand Leal Apr 28, 2020

To do costing as a project you need to have as much information about the business processes as possible, to avoid an undetailed project that may cause you to underprice your service. The main problem here is not the tasks to be performed and documents to be created, but the effort required to perform them, since as greater the number of processes involved, the greater the effort and the number of documents.

My suggestion is for you to make a mixed approach:

  • Elaborate a project with the information you have
  • In the tasks you are not sure about the total effort, state an assumption about the effort you expect to have (e.g., elaborate BC plans for 3 business process, interview 2 employees, etc.)
  • Define an hourly rate for additional hours considering all the hours you have for the planned project (normally this will be greater than the project's hourly rate)

This way, if your assumptions are right, your project is well priced. In case you do not have all the needed information, the higher hourly rate will compensate for your additional effort, and as a bonus, your customers will have more incentive to help you detail the project because additional hours will cost them more than if they are executed as part of the project.

To help you in your consulting career, I suggest you take a look at our ISO 27001 & ISO 22301 Consultant Toolkit at this link: https://advisera.com/27001academy/consultants/

These materials will provide you a further explanation about elaborating a project:

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Apr 28, 2020

Apr 28, 2020

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