How to Minimize the Costs of Professional Services for a Small Business

Step-by-Step Guide

1. 1

   Step 1: Know as much as you can about what you expect to get out the professional services.

   Although you might not be trained in their skills, you should know your own business inside out and also it pays to do basic research in the financial/legal/architectural etc., matters that they're advising you about so that you can ask relevant and lucid questions, as well as prove that you're not a pushover.
   
   Don't assume that they either understand your business well, or that they are even necessarily providing you with the right advice; be prepared to ask a lot of questions.
   
   Questions keep people honest and researching.
2. 2

   Step 2: Know how much you're prepared to pay for their advice before you seek it.

   While it is likely that your budget will be far less than the one they're going to suggest to you, it starts the discussion point, it alerts them to the fact that you're not an endless pocket and that you're savvy about the value of the services.
   
   It also enables you start negotiating a compromise set of fees. , Whether by formal contract or by exchange of letters, this is your rock solid alibi if things go badly astray. , If you don't receive these updates, ring up or call in and ask to see the latest tallies on a frequent basis.
   
   This is much less worrying for you and will ensure that you don't receive surprise amounts in bills. , If you'd rather pay in ongoing installments to reduce a hefty end fee, arrange this.
   
   Never stop negotiating about the fees as the services progress; always ask for discounts where things go wrong in their advice and ask them to rethink strategies in the provision of their advice that will reduce the costs to you.
   
   For example, instead of using a senior lawyer on your legal matter, ask for a junior lawyer who is still well versed in the topic. , Go through all your invoices with an eye to detail.
   
   If you see anything that doesn't match your understanding of the services to be provided and the costs, bring it to their attention and challenge the need to pay for the discrepancy.
   
   Even if it wasn't wrong, sloppy invoicing can in itself result in a reduction of a professional's fees – their professional reputation is at stake after all.
3. 3

   Step 3: Get your understanding of the services to be rendered and any variations to this understanding in writing

4. 4

   Step 4: signed by both sides.

5. 5

   Step 5: Ask for regular updates on billing costs.

6. 6

   Step 6: Negotiate payment stages with the professionals.

7. 7

   Step 7: Challenge any suspected overcharging.

Detailed Guide

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