Budgeting for and pricing training services
These pointers are suggested in budgeting for and pricing training services:
Budget for training at the start of the fiscal year, averaging 10 percent of gross sales.
See training as an investment (short term and long term), not to be short-changed.
Every size of business needs training.
The company that makes the small investment on the front end (training) saves higher costs. Research shows that training investments foregone are multiplied six-fold in opportunity costs each year that action is put off. (This is another of my trademarked concepts, known as The High Cost of Doing Nothing.)
Questions to consider in evaluating training providers include:
Would you feel comfortable if they ran your company?
What is their longevity? Were they consultants 10 to 20 years ago? Consultants must have at least a 10-year track record to be at all viable as a judgment resource.
What is their maturity level? Could they appear before a board of directors?
How do they meet deadlines, initiate projects, and offer ideas beyond the obvious?
If one level of consultant sells the business, will this same professional service your account? Big firms usually bring in junior associates after the sale is made. Demand that consultants of seniority staff the project.
How consistent are they with specific industries, types of projects and clients?
How good a generalist are they? Trainers with too narrow a niche will not ultimately serve your best interests.