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Why Be A Consultant? People become consultants for many different reasons. Some literally fall into consultant work when they have no other options – others retire from the corporate world, but don't really want to retire from work..and still others decide to become a consultant on purpose. |
How Consultants Succeed In All Economies Economic trends are constantly changing, yet one market remains sufficiently flexible to keep a step ahead; the consulting industry. Whether the economy is strong or weak, the best consultants seem to find a market for their services...and those services will evolve and adapt through time. What is the difference between consulting and other professional fields? How can consultants survive and even thrive in all economies? While many consultants seem to thrive in all economies, they do not operate the same in differing economic conditions. Take Brian Lipstein of Henry A. Davidsen as an example. His consulting firm has two focuses. The first focus is on traditional image consulting, and the second is custom clothing. When the economy is strong, Mr. Lipstein’s clients can afford to invest more in their wardrobes. “This is when we try to push higher end lines and get our clients to invest in longer lasting pieces. Luxury is important in a strong economy,” stated Mr. Lipstein. When the economy is weak, Mr. Lipstein changes focus. “This is when we focus on image consulting. Our clients need the help of a professional to beat the competition. We assist by adding credibility to their image which helps them land the job faster.” Dr. Ralph Parton of Business Information Group, Inc., shared a similar experience. His firm, which focuses on information technology consulting, also changes focus for different economies. He said, “When the economy is strong we go back to offering the basic services, such as network security, upgrades, and replacing obsolete equipment.” When asked what the firm focuses on when the economy is weak, he stated, “We start to look at efficiency. What can we develop to enable our clients to continue their mission but reduce operating costs? What can we automate?” Lisa Nirell of EnergizeGrowth took a slightly different view. EnergizeGrowth focuses on helping privately held professional services and technology companies that want to dramatically grow or ultimately sell their businesses. She said that her team did not change focus when economies changed, but rather her clients did. “In a booming economy we find that a lot of companies are more proactive about trying to do better and improve areas of waste to boost profitability and boost valuation to command a good sale when they do sell.” “In a recession we find that it’s much easier and faster to separate the paranoid buyers from the recession-proof or growth-oriented clients.” Ms. Nirell went on to say that during a recession, “my team is better able to discern between the ‘stuck in the mud’ people and separating them from those who see the value in what we can offer and are willing to invest in what we offer.” Ms. Nirell is the author of an upcoming book entitled EnergizeGrowth NOW: The Marketing Guide to a Wealthy Company and a Healthy Life.Barry Maher of Barry Maher and Associates indicated that a shift in the economy meant a shift in marketing focus for his firm. He said that when the economy is poor, “we work harder. When things are going really well the fact that I am a speaker generates enough business to keep the calendar full. When the economy is not going well, we need to do more publicity and approach our regular clients more frequently. We simply keep my name in front of them.” These experts all expressed one similar thought. While economic problems do not mean failure for a well-run consulting firm, they do indicate a need to emphasize certain services and tune up the firm’s marketing plan. Whether the focus changes from one service to another or from one type of marketing to another, economic changes have a direct effect on the day-to-day business operations of the best consulting firms. Just as consultants encourage client flexibility and an open mind, successful firms will embrace these same characteristics and use them to grow and develop their businesses. In other words, the only constant in the consulting business is change! |
Marketing Your Consulting Services Becoming a consultant can be a very rewarding experience. But – it takes gaining new sales and building a wide customer base to become successful over the long term. And this means you must be able to effectively market your services. |
Some Thoughts For New Consultants If you’re planning your debut as a consultant, this is a very exciting time. Chances are, the process will be exhilarating and probably a little exhausting! So many questions must be answered…what services are you qualified to provide, what will be the business name and legal form (sole proprietor, LLC, corporation, etc.), development of a website, the location of the office, staffing requirements, and how will your services be marketed. In short, you need a business plan. Your plan will be a detailed road map for your safe navigation through this process and will define all pertinent aspects of your firm. It’s the “who, what, when, where and how” of your business. When complete, it will form a coherent definition of your consultancy and how it will succeed. Of course, essential to your success is the ability to be honest with yourself about what services you can competently provide your clients. One promising note for new consultants, you don't need to work in the field for many years in order to succeed. According to Brad Starr of the firm Partners in Leadership, "It's somewhat of a fallacy to think that 10, 12, or 15 years of experience brings value. Value is the ability to make expectations." He adds a few more consulting fundamentals, "You have to have some sort of snapshot or framework before going onsite in order to understand the desired results. Find out what is getting in the client's way. Have a clear set of expectations from the beginning and talk about milestones." It’s important to evaluate the situation at hand and tailor your services based on what you observe. If, by necessity, you’re getting involved in an area in which you have less experience, but can help, be honest. In this case, Starr says, "It is wise to state up front that you're not an expert and that you're not going to pretend to be. Observe and state what you see." When consulting, you are technically speaking from your own experience and knowledge, but you must have a willingness to listen to be a good leader. Adrienne Sigman, who is also employed with Partners in Leadership, says "You must be willing to be coachable. Be willing to receive feedback." Starr adds, "Effective leaders are those who continue to learn." As for the perks, Starr says, "It is the relationships. There's a nice element of the consultant/client relationship that’s fun to explore. You walk away from a consulting assignment and call that person a friend, a contact, a referral." Also, Starr feels that flexible scheduling is a benefit and that the lifestyle is rather rewarding because you have the opportunity to meet new people and see the world. Then there is also the pay factor. The compensation can be very good, but Starr implores new consultants to make sure you’re paid what you are worth. After preparing your business plan and physically setting up your firm, you’re ready to start marketing to potential clients. You should consider joining and participating in professional organizations like the IMCUSA and others, write articles, and network as much as possible. This will get you on the right track and put you in the best possible position to succeed! |
Traits Of The Successful Consultant Ask ten successful consultants what made them successful and likely as not you’ll get ten different answers. But – delve a little further and you’ll find that one thing stands as the foundation of success: Loving What You Do. |
Consulting Firms: One Size Does Not Fit All Every consulting firm is unique, and one important way in which they differ is size. Firms range from one consultant and a few support staff to large teams or divisions of professionals working together to reach the company’s goals. How do you determine how large your consulting firm should be? Does bigger always mean better in the world of consulting? Some consulting firms have few team members. Barry Maher of Barry Maher and Associates is a soloist. He runs his successful business with him and his assistant alone. When asked if he would ever anticipate hiring more consultants in the future, he answered, “It’s possible. There are times when we generate more income than we should, so it gets pretty crazy.” On the other hand, Maher says, “Almost anything I might hire someone to do, I can do, so it may not be necessary.” Lisa Nirell, author of the upcoming book EnergizeGrowth NOW: The Marketing Guide to a Wealthy Company and a Healthy Life and owner of EnergizeGrowth, (www.energizegrowth.com) had a different hiring philosophy. She currently has three consultants and a team of professionals working with her, including an assistant and a web designer. When asked how her company evolved I size, Ms. Nirell said, “I am a big fan of collaboration. I know that I don’t have all of the answers, and working on my own can be very isolating and lonely, so having people that I can trust and bounce ideas off of is priceless. I am very clear that there are things that I am not good at, so I look for people that make up for all of my deficiencies.” She also indicated that she was always open to hiring more team members if they helped her compensate for her weaknesses and make her business stronger. Sometimes a limited team approach works best for consulting firms. Brian Lipstein of Henry A. Davidsen works with just one other consultant, the co-founder of his company. Mr. Lipstein stated “we started the company and can handle it on our own right now. We both have the same entrepreneurial mindset.” When asked if he would hire again in the future, he stated that it was entirely possible, but “finding someone who is the right fit is important. That, and finding the right person when we have the time to invest to train them in our business style and practices.” Of course, there are larger consulting firms out there as well. Dr. Ralph Parton of Business Information Group, Inc., runs a firm that currently has 16 professionals on staff, and that includes the two owners. When asked why he has that number working with him, Dr. Parton said, “We’ve grown over 10 years. As needs grow, we add employees.” Interestingly, the firm has downsized, but not due to a lack of business. “We had 24,” said Dr. Parton, “but we automated our business and don’t need more than 16 staff members now.” When asked if he would hire more staff in the future, Dr. Parton indicated that it would depend on the sales level of their newest product, a digital pen that professionals can use to capture written words as electronic documents. “If that happened, we may possibly hire another engineer and another software programmer.” So one size does not fit all when it comes to consulting firms. The size of the firm often depends on its focus as well as anticipated growth. One thing is clear. These professionals insist on hiring people who understand their business philosophy and share their vision for the future. |
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