How Consultants Succeed In All Economies
by Julia Taylor

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!