cib.04 (creating a consulting business) selecting your consulting model - william eastman
We are getting to the nitty-gritty of the business. The way I arranged today's show makes it appear this is an either or proposition - it is not.
The main focus is on how to blend the best of Subject Matter Experts (Selling Time) with Assets (Productized Expertise) to create a better offer with a lower price but better margins that using either model exclusively.
Today I will share some the secret sauce that allow us to build a consulting firm from scratch with zero revenue to $10m USD in 3 years.
WHAT YOU NEED TO KNOW
The old business model for management consulting was straightforward, the model simple: loaning an industry or subject matter expert to solve problems a client cannot solve, or chooses not to tackle themselves.
The new consulting model moves from billable hours to business results. The benefit for clients is clear if they will take on the additional work. No longer can they offload the responsibility for implementation to the consultant or the consulting organization.
The reason that most consulting firms are reluctant to make the shift is exposing their proprietary “black box”. The old model allowed consulting firms to use the perception of voodoo or special sauce to justify high fees and long duration projects. Now their methods are transparent and subject to scrutiny and imitation.
The reason for the slow acceptance by clients is consulting projects are beyond their ability to staff it competently. They don’t have the brains (experts) or hands (resources) to do it, plus there will be nobody to blame when it fails or doesn’t produce the promised results.
This new approach means consultants and consulting companies will differentiate themselves with intellectual property and package (productize) it into technology. It requires less customization and human intervention than the traditional model meaning lower expenses. It is also customer-centric; not only are the customers able to enjoy lower prices but storing their data in the right platform makes it easier to maintain when the consultants leave. New technology and big data analytics will deliver value faster and cheaper than any consulting company ever could.
All of this provides the opportunity to finally bring large corporate expertise to small businesses, including startups. Are you ready for the challenge?
WHAT YOU NEED TO DO
"Business Solutions At Your Fingertips"
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