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Consulting for Startup Companies
The majority of startups fail after the first year. So, any measures that can be taken to mitigate this risk can improve a company’s likelihood of success.
A startup consultant uses their experience to give business owners insight and recommendations that will help them avoid costly mistakes and maximize profitability.
What Startup Consultants Do
Startup consultants are often hired for their expertise in a certain area, for instance selling a particular product or service.
Regardless of their specialization, the consultant will fulfill their advisory responsibilities by carrying out all of or a combination of the following:
- Coaching Staff – Training and motivating employees to perform well and execute their duties.
- Market Research – Conducting research into the business’s marketplace and completing and presenting reports on their findings.
- Process Optimization – Auditing the company and creating an optimized architecture for its operations.
- Project Management – Analyzing a project’s needs and providing recommendations for the project’s management and financing.
- Strategy Development – Creating a detailed business plan for the company’s progression and success.
Sample
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STARTUP CONSULTANT AGREEMENT
This Consultant Agreement (“Agreement”) is by and between [CONSULTANT’S NAME], hereafter referred to as the “Consultant,” and [CLIENT’S NAME], hereafter referred to as the “Client.”
1. SERVICES. The Consultant agrees to provide the following services to the Client: [DESCRIBE DEVELOPER’S SERVICES] (“Services”).
2. COMPENSATION. In consideration for the Services to be provided, the Client agrees to pay the Consultant $[AMOUNT] per hour.
3. PAYMENT METHOD. The Consultant shall be paid, in accordance with section 4, upon the Client receiving an Invoice from the Consultant.
4. TERM. The Services shall commence on [MM/DD/YYYY] and end on [MM/DD/YYYY].
5. RETAINER. As an advance on future Services to be provided, the Client is required to pay the Consultant a retainer in the amount of $[AMOUNT] every ☐ week ☐ month ☐ quarter, beginning on [DATE] (“Retainer”). The Retainer is non-refundable.
6. NON-DISCLOSURE. The Consultant agrees not to disclose or misuse the Client’s proprietary or confidential information without prior written consent, except as needed to perform the Services, recognizing that such actions would cause irreparable harm to the Client.
7. EXPENSES. The Client shall only be responsible for the following expenses: [LIST EXPENSES TO BE PAID BY CLIENT].
8. INDEPENDENT CONTRACTOR STATUS. The Consultant is an independent contractor, and neither the Consultant nor their employees or contract personnel are or shall be deemed the Client’s employees.
9. TERMINATION. Either party may terminate this Contract upon [#] days’ written notice.
IN WITNESS WHEREOF, the parties have executed this Agreement on [MM/DD/YYYY].
Consultant’s Signature: ____________________
[CONSULTANT PRINTED NAME]
Client’s Signature: ____________________
[CLIENT PRINTED NAME]