CASH FLOW POTENTIAL:
-------------------
Before I bid a project, I consider how to reserve the rights for the maximum cash flow potential, if it exists.

If a client has a job they want me to do, I consider how universal his problem is and how standardized its solution could be. I'm looking for the possibility of taking what I learn in the process and creating a product or solution that I can sell to others. Of course there are contractual issues involved.

THE ONE-TIME JOB:
(I'll focus on this type of job)

If the problem is unique or if the problem is universal but the solutions would all be unique, I realize I have to get ALL my profit out of the contract. If there is no potential to sell this to others or that others would require so many alterations to make every potential customer like starting over again... then there is no hidden cash flows to tap after the contract. Its a simple exchange.

Obviously you must bid to cover your expenses and hopefully to make a profit. Timid bidding can run you out of business. Profit making is not always possible as you may need the contract to cover your costs of business operations, salary etc until the next big contract comes around. This can depend upon local business environment or your success in finding clients. Sometimes doing a few low-margin contracts can ewstablish your company in the local industry. I don't advise this approach - I'd rather take more time to think up solutions that clients will be willing to pay more for.

Now its time for risk accessment.

(next message)