4. Financing Your Company With the Consultant's Money
As tempting as it might be to use a sub-consultant's money to finance payroll, rent, office improvements, bonuses etc. It is a path you don't want to go down. Consultant's money is a drug that masks the real cash flow problems in your firm. By using their money, you avoid making the tough decisions on a timely basis. Make it a policy to pay your consultants with 2 days of being paid by your client. The result will be more cooperative consultants and a cash flow that is closer to your actual profit and loss.