Have,You,Ever,Thought,Joining, business, insurance Have You Ever Thought of Joining or Forming a Consortium&

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Are you an entrepreneur but don't like selling alone?A consortium is a combination of different industry-types ofentrepreneurs working together to attract business as agroup. Even though each member maintains theirindividuality and operates as the same as self-employed.They band to create a more valuable package to fulfillbigger needs for clients and for increased visibility andcredibility.The positive side to being part of a consortium is that youcan work on larger projects. Larger than any singleentrepreneur can accomplish alone. Together they can enterinto contracts that require multiple skills and stillmaintain the freedom of their entrepreneur-hood they sodesire. They gain being part of a team and organizationwhile still keeping your independence.A consortium can provide the security of core revenue thathelps them breath, not chase prospects as hard, and usuallytake care of regular living expenses. It is also a greatway to transition from employee to self-employment. Thetransition allows the learning and growth at a slowersteadier rate. Each member learns from other group membersby sharing their success and mishaps. This way the riskfactor of being self-employed is less.The consortium can also band products to create higherpriced, more valuably perceived, packages. Larger packagesare easier to sell. A group package of various authors ismore attractive to buyers. Everything that the buyer needsis then packaged and available with one purchase.Being a part of group also removes the pressure of trying tobe an expert at everything. And allows each individual tofocus and be brilliant at what they specialize.There are many types of group configurations forconsortiums. Let me give you a few examples of some ofthem. These groups formed a single purpose.An entrepreneur consortium can include:* CPA* A writer specialty in business plans and advertising copy* A financial management consultant* a human resource consultant specializing in benefitprograms and employee manuals* An Internet consultant* Web master* Strategic planning consultant* A secretarial service or virtual assistant* Graphic artist* Brand specialist* Public relations firmA training consortium can include:* Writers (copywriter, web writer, direction mail writer)* Editors (line editor, grammar editor)* Reference checker* Graphic designer* Multimedia specialists* Videographers* Presentation trainer* Voice coachA software consortium can include:* Programmers* Multimedia specialists* Graphic designers* Marketing consultants* Packaging consultant* Retail consultant* Product Development consultant* Accountant/Bookkeeper* Virtual Assistant* Business coachA consortium can form that specializes in children books oreducational products. The group can consist of educationalspecialists, graphic designers, marketing consultants, self-publishing expert, agent, and various types of writers.Artist guilds work off the same principle of consortiums.Some consortium, many guilds in fact, purchase real estatetogether to display and sell their art.Let us follow the money trail of a consortium.The client enters into a contract with the consortium. Theconsortium bills the client. Each consortium memberdiscounts his or her rate and bills the consortium.The billing difference supports the business side of theconsortium. It can pay for marketing or other overheadexpenses.After the client pays the consortium, the consortium thenpays the members who worked on that project.Okay, that is fairly straightforward.After the client receives their contractual services by themember, the member then bills their time to the consortiumin "units" not dollars. Units work better than dollarsbecause they equalize the various billing rates of themembers. For example: a CPA may bill four units per hour,a writer three, and a virtual assistant one. The consortiumkeeps track of everyone’s units and pay members on a regularbasis as set up in the consortium’s charter.When the consortium is properly tax-structured, the revenueand expenses can balance themselves out. It is important tosee a tax professional for details on structuring aconsortium for tax efficiency.A challenge when starting a consortium is to make sure thatwhen looking for members, prospects do not mistake the firstmeeting as a new networking group starting up. Peopleconfuse the two and show up. This will give the organizersa misrepresentation of the "real" number of interestedparties.Joining a consortium is not a short-term project. It isimportant to know that joining or starting a consortium islong-term. There is the initial investment of time andmoney from all members. The startup phrase doesn't occur inone meeting. An agreement on many items needs addressing.Some established consortiums require a minimum of threeyears, however, many startups can require five, ten ortwenty-five years commitment.Oh, but when they work, they are make being in business somuch nicer.Usually the founding group elects three leaders to handlethe administration. One of the three may have a highervoting right. Usually the one given the higher voting rightis because of their investment of time or money, but notalways. These leaders have the responsibility of organizingmeetings and splitting up the consortium responsibilitiesbetween members in a fair manner.Money is an important factor when entering into these typesof agreements. It is the main purpose of forming theconsortium. Money is also one of the main reasons theybreakup -- like most marriages. Because of this, it isimportant to have a buy-out clause in the agreement thatprotects the members and the consortium.Respect, appreciation, and acknowledging of each other’scontribution is mandatory -- put a cap on the M tomandatory. The boundaries and scope of each other’sservices must also be clear. It is not uncommon for somemembers to offer similar services. Thus, the boundaries ofwho does what is extremely important.Being a consortium member doesn't ban them from obtainingoutside clients for their particular speciality. However,working with other members to gain contracts separate fromthe consortium breaks their membership in the consortium.And always have consequences stipulated in the consortiumcharter.Communication and cooperation are challenges for groups ofthis size. Each member needs to make big effort to work andbe patience in these two areas. The need forprofessionalism is important so that the group does notdegenerate into personality conflicts or professionalbattles. Having an outside arbitrator for disagreements isa good idea.Even though there is a challenge in finding the rightmembers and keeping the relationships working, remember theadvantages outweigh any and all cons. Consortiums have beenin existence for several decades now and have proved theirpossibilities.For a list of additional resources, visit:http://www.abundancecenter.com/articles/consortiums.htm