Consulting During Tough Times
Asked about the looming global recession and how some international Business Development Service providers might handle the tough times ahead, these are some of their answers to this question:
Ariane from The Veritas Group said:
I work primarily in the middle market ($10 to $300 million annual revs). I
get almost 100% of my clients through referral from other professionals. I
network heavily in networking groups. these groups consist of Attorneys (Labor
attorneys are a gold mine), accountants, marketing and PR people, and others
who might consider themselves most trusted advisors.
In terms of the recession, some things sell and some things don't: things
that will improve profits even if gross revenues fall will sell as long as you
can make a good business case for it. The larger companies will probably be
the most resistant. Start thinking about what a company might need in a
recession: higher productivity, greater employee commitment, executive alignment,
good decision making, vision and strategy, turning lemons into lemon pie,
etc. Another area that is important to look into is IT implementations. As times
get worse, companies find that they can save money by installing new ERPs
and the like. Align yourself with companies that do IT such as Tatum Partners,
or others that analyze and design systems. Finally, build relationships
wherever you can, and build your brand. Be seen, talk to groups like the Rotary
Club, offer some governance work to Boards of non-profits for free. I landed a
big brand client facilitating pro-bono a non-profit Board retreat on which
the CEO of the company sat.
And should the recession hit big time, stop and think of all the things you
are grateful for. Feel the gratitude, smile, and kiss your kids.
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An anonymous female consultant said:
Since the internet came into being, all sorts of people who have no idea of what BDS
is, and who have no expertise in training, call themselves consultants.
Although the internet has made it easier to market oneself, companies who need help
cannot distinguish one consultant from the other.
Two days ago I got this email from a woman in Asia who has her own "consulting"
web site:
"My name is ...., and I read your reply regarding workplace training. My client, (in agricultural industry sector) recently is sure that the
way to fix their performance problems is through on the job training. Do you have
any suggestion as to how I can learn more about this on the job training? How to
evaluate the gap, and how to design the training necessary to close it?"
I sent her a polite explanation on how there are two specialists:
1) Training specialist
2) Content specialist (usually a manager or supervisor in the company in question)
and told her that the training specialist has to sit with the content specialist by
the client and discuss the job position(s), and that they must draw a list together
of the desired work performance for that job position (or positions).
After this they must, also together, compile a list of the actual job performance,
and that the gap, which must be corrected through training, is the difference
between the one and the other.
She never even sent a thank you.
I wonder: How can she present herself as an BDS provider if she has to
scour the net to find other consultants who can explain to her how to determine
gaps?
I think that, for intelligent clients, it became more difficult to know who is
genuine and who is not.
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Vicky from www.executiveleadershipskills.com said:
I just answered this question for someone who
wants to go independent. Here is what I said:
1. Get financially sound BEFORE going
out on your own. The rule of thumb is for every
proposal sent about 20% to 30% are accepted.
2. Be prepared to pay others before
self. That means having capital to back your
projects and assignments for the long term.
3. Understand your competition. Are
you the only Veteran business in your competition
area or are there several? Same with woman owned, disadvantaged, and so forth.
4. Know your specialty and make sure
you have credentials and certifications in those areas.
5. We do not advertise. Most of our
work is word of mouth and referral. We take our
what would be an advertising budget and give it
back to the community in charitable
donations.
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Fred from www.skullworks.com said:
It has been my observation that my practice (also a one-man shop for many years) is counter-cyclical. In tough economic times, my business always picked up. I think that's because tough times in my client organizations led to the use of temps - and consultants are one form of temp.
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Jan from www.OrganizationsAlive.com said:
This is a topic very much on my mind lately. Some of the things that are sounding most
loudly and clearly are:
1. Be very clear whether you are a Jack-of-all-Trades in BDS, or whether you specialize in
a particular product, service, location, customer, etc. (or a combination of these). Your
generic business can pay the bills, but may not bring you much joy. Your specialty usually
comes from the heart - i.e. what you really love to do. People around you will see the
difference. (i.e. the fourth OA! interface - in case you want to check the book)
2. There is a difference between marketing and sales! Marketing is the message about your
work, hopefully focused on the interests of the customer/client and how you can help.
Sales are about making proposals; helping the customers get their hands on what you have
to offer; making it easy to take steps forward as they begin to trust you and what you
have to offer, etc. The former is a business expense (an investment). The latter is a
transaction! (i.e. the fifth and second OA! interfaces)
3. It is very important to know what your 'client's life cycle' is. "If we do 'this,' then
it opens the door to this or this or this." Of course, you don't always have to be the one
who takes the client to the next step. You can make a referral to a colleague, and take a
percentage for the referral (or not). Think about whether you want your customer to stop
in for a package of gum as they pass by your convenience store, or whether you would like
them to rely on you for milk, bread, a movie, a smile, etc. (i.e. the second OA!
interface)
4. Those black clouds you see? Don't go there. You have a choice. Go to the light.
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John from www.SchererCenter.com said:
I bought Michael Port's book and now get his online stuff regularly
(BookYourselfSolid.com), as well as Robert Middleton's
(http://www.actionplan.com/ ), and John Eggen's
(http://www.actionplan.com/bkpro.html), all of which I find useful. It's a
new world with the internet available to everyone all the time! Face-to-face
is giving way to online and conference calls. See TalkShoe.com
(daven@talkshoe.com) for a great program for hosting audio courses!
At first, I asked the question: 'Can I deliver what I do online?' That
(binary) question led to an answer: 'There is NO WAY that what I do can be
delivered online! I have to be face-to-face for three days. . .'
I finally realized that there was no cheese down that tunnel and re-framed
my question: 'How much of what I do COULD be delivered powerfully and with
integrity online?' THAT question led me into a complete re-thinking of my
'deliverables' and how to get them out there.
One principle that has proven very powerful is the question: How many
'deliverables' can be created from this (one) 'piece' of work? How many ways
can I take an article and put it out there? (Can I READ IT into a digital
audio program and offer it as a Podcast? Can I turn it into an online
COURSE, or a 4-6-session online Teleclass?) My objective is never to have a
'thing' I do only exist in a single format.
When I give a keynote now, I am asking myself--and the client--how many ways
I can generate impact (and revenue) from my presence and talk? Can I/we have
it video'd--which creates both a digital audio and video 'product?' Can I
have a table in back with information on other things we do?
One key to online marketing is to make sure you have an easy opt-in for
potential clients. Make it easy for them to click on SOMETHING from you: a
free article, for instance. Then invite them to do something a little
'larger' or more 'costly' in time or money. Etc, etc. Most people, even when
they are on your website looking for you specifically, are reluctant to buy
the 'big thing' you would LIKE them to buy online on the first visit.
Also make sure you ASK FOR SOMETHING. I was amazed to find out how often I
was doing a fine job of a keynote or workshop--and then NOT ASKING/INVITING
PEOPLE TO DO ANYTHING ELSE! 'If you liked this, you might find ___ useful.'
I am about to convert my free (semi-weekly) newsletter into a regular weekly
subscription-based year-long 'course' on 'how to work wiser with the human
factor, unleashing the human spirit at work.' We'll Personally, I think
$295 per year for a weekly resource like that is a steal. . . see how many
of my 5,000 email list people (each of you are on it!) will want to come
across. We'll also be offering occasional Podcasts, Webinars and access to
my body of work (audios and videos of keynotes, including PowerPoint
slides), articles on hot topics, and once-a-year teleclass.
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Deon from http://deonbinneman.wordpress.com/ said:
I am reminded by a quote from the book High-Income Consulting that the time
to market is when you are fat, dumb and happy!
I use a mix but am always interested in doing more. These are my current
methods, which I know is lacking in scope – For instance I am not doing
enough networking.
- I have a monthly newsletter called Powerlines which has about 8000
subscribers. I constantly try to add names to this database and actively
promote it via yahoo groups
- I use a blog. See address in signature
- I have included my profile in networks such as Linkedin
- I am vocal through articles, editorials, etc.
- I do occasional mailings about my workshops – At least every 3 months
- I have built networks /partnerships with other consultants so that we can
feed each other.
However I am always trying new methods and approaches. By the way I read a
lot about consulting and also subscribe to Robert Middleton’s newsletter
which is recommended - Robert Middleton [robmid@actionplan.com]. For the
past 9 years I have run a workshop called "Marketing your Consulting
Practice" here in South Africa.
So, I have a few suggestions for readers:
Number 1: Develop a written Business & Marketing Plan. The mere discipline
of writing things down is vital.
Number 2: Invest in a few resources. Empty gold into your mind and it will
empty gold into your hands. Try the book High-Income Consulting by Tom
Lambert and any of Alan Weiss's books. Currently I am reading “Book yourself
solid” by Michael Port.
You could also read my chapter called: "Consultancy Marketing" in the book
by Prof. Charles Fombrun's book called "The Advice Business - Essential
Tools and Models for Management Consulting" (Published by Prentice Hall)
Number 3; Do some research. Who do you want to reach? How will you get your
messages to them? What do you have to offer your target market? Define the
benefits, not features that you will provide.
Number 4: Increase your Revenue Streams. As consultants, speakers, and
authors, we need to constantly seek ways to expand the reach of our messages
and products. In today's information-rich world we must find ways to
reinforce our visibility, to "brand" our expertise, and continually keep
ourselves in front of potential customers.
An excellent way to do this is to understand the linkage between writing,
speaking, consulting and training and to realize the networking
opportunities that arise when you develop these different aspects of
packaging and delivering your expertise. Expanding your scope in this way
creates a synergy that increases the strength of your efforts-without having
to reinvent yourself or your message.
Ask yourself these questions: What is my focus? What are my strengths? Who
are my clients? What are my services? Study your markets and your clientele,
and examine the ways in which they overlap. Could your expertise in certain
issues become a book? Could the book be turned into a program?
Possible streams of income include: Speaking; Consulting; Training; Writing
(articles; ghost writing); Products (books; tapes; videos); Assessments.
Tony Robbins in his book "Unlimited Power" speaks of the concept of
modeling i.e." To become successful, you need to model yourself on the
knowledge, skills and attitudes of successful people. By role modeling them
you can shorten the very expensive learning curve and become successful far
quicker yourself.
Researchers in systems thinking speak about leverage points - those small,
well-focused actions that can, when used at the right time and in the right
place, produce significant, lasting benefits exponentially beyond the effort
required to take the action step itself.
Always be on the lookout for linkages, spin-offs, and other applications of
products and services. For more information on this read books such as The
Ultimate Consultant by Alan Weiss or High-Income Consulting by Tom Lambert.
Number 5: Build Strategic Alliances. One way of collaborating is to get to
know the consultants in your area. As independent consultants we must start
developing partnerships and alliances with other consultants. I have formed
five alliances with consultants who are experts in fields other than mine.
This allows all the alliances to recommend each other to their clients. It
really helps with the marketing problem. It opens up a whole new client
base. Most consultants are willing to recommend you after they get to know
and trust you. (Use technology such as Linkedin to help you)
I have formed alliances with organizations overseas. We try to grow each
other's businesses. Agreements are anything that makes it a win-win
situation for both parties.
I have found the best way to gain the trust you need to recommend a
consultant is ask them if you may co-facilitate or just sit in on a class.
This will give you an idea of their style and the content of their programs.
Get together for lunch and talk about what your goals are and if there are
ways you can help each other to reach those goals.
I can go on but try and get hold of that book by Tom Lambert - it makes for
good reading and a valuable input.
Please do not hesitate to put your comments here!