6 Secrets That Rapidly Help Generate Consulting Income
It’s been 22 years since I walked out of the door of my safe corporate job to become an independent consultant. Now my own consulting practice provides technology services for large corporations and governments. So for instance, my clients include Toyota, the Ford Motor Company, Siemens and the Government just to name but a few. But they’re not all big names; I’ve also won contracts with a variety of small businesses all the way down to one man start-ups.
However, it hasn’t always been easy, you see, I found it very difficult to get my first client. I wasn’t a salesman and the prospect of cold calling filled me with abject fear! After 9 months the only client that I had won was some mopping up tasks with my old employer. Friends with established practices were no help at all. They’d smugly tell you that their business all comes from existing clients and client referrals, but that doesn’t help you get started!
You see, it’s not easy getting that first client, it requires huge trust on the client’s part, and your service is going to be expensive. After all, it’s your time and unless they’re trivial problems its going take time for you to solve their problems. And there’s nothing they can inspect beforehand to determine if your service is going to work for them or not. So you have to focus on building a relationship with the client rather than trying to sell a service.
You’re probably already an expert in a sought-after field and now wish to leverage your expertise to generate consulting income. Consulting can be a highly lucrative path, elevating your profile, expanding your network, and opening new horizons. But how do you get started? More importantly, where will you get clients from? Based on my consulting experience, here are six hard-won secrets for driving your consulting success.
Secret #1: How to Get Clients
When you need clients fast, working your network is the quickest way. Start by sorting your contact file into two lists: those you know well and those you don’t. Identify contacts in influential positions and research their companies, technologies, products, and markets. Familiarize yourself with their competitors and any relevant market events.
Once your research is complete, reach out to your well-known contacts. Explain your circumstances, discuss the issues you’ve researched, and impress them with your insights. Arrange a meeting to explore mutual opportunities.
For contacts you don’t know well, consider these approaches:
Referral: Find a mutual acquaintance to make an introduction. Referrals are powerful because they come with an implicit endorsement from someone the prospect trusts, increasing your credibility from the start.
Direct Letter: Write a personalized letter describing their situation and how your skills match their needs. Always state that you will call them to arrange a meeting, keeping the initiative in your hands. A well-crafted letter demonstrates your understanding of their challenges and shows that you have taken the time to consider how you can help.
This method can work even with complete strangers if executed thoughtfully. Remember, persistence and personalization are key.
Secret #2: Getting Clients to Come to You
Position your consulting practice so clients seek you out, enhancing your negotiating position and perceived value. Achieve this by planting “sign posts” in positions where your market already frequents:
Articles on Content Sites: Publish insightful articles that address common industry challenges and showcase your expertise.
Papers in Journals and Conferences: Contribute to respected journals and present at conferences to establish yourself as a thought leader.
Editorials in Trade Journals: Write editorials that highlight emerging trends and offer solutions to industry problems.
Books Showcasing Your Approach: Author a book or an eBook that provides value and establishes your authority.
Joint Ventures with Other Consultancies: Partner with other consultancies to expand your reach and leverage their networks.
White Papers on Your Website: Offer white papers that delve into specific issues and demonstrate your deep understanding of the field.
Ensure each sign post demonstrates your thought leadership. Include a resource box at the end of each piece, guiding readers to your contact details or further resources.
Additionally, develop a web system to create and promote content, capturing a lead list through tools like WordPress and Aweber. Offer valuable resources in exchange for contact details and attend networking events to reinforce your presence. Consider implementing a blog on your website where you regularly share insights, case studies, and updates on industry trends.
Secret #3: Managing the Client Pitch
Congratulations, you’ve secured an appointment with a decision-maker! Now, focus on understanding their problems rather than selling yourself. Use the S.P.O.O.C.S acronym to structure the engagement:
Situation: Research their current status and open the discussion with relevant news. Start the conversation with questions that show your knowledge about their organization and industry.
Problems: Understand their issues in detail. Ask probing questions to uncover the root causes of their challenges.
Objectives: Identify what goals their problems hinder. Discuss their short-term and long-term objectives to understand their priorities.
Outcomes: Determine measurable outcomes they aim to achieve. Clarify how success will be measured and what metrics are important to them.
Constraints: Recognize any limitations affecting potential solutions. Be aware of budget constraints, resource limitations, and any internal or external restrictions.
Solutions: Propose a broad approach and explore alternatives. Discuss potential solutions in a collaborative manner, encouraging the client to provide input and feedback.
Don’t dive into the solution until you’ve properly framed the problem. Capture the ideas that the decision maker already has front of mind. Keep digging, only offering your own ideas to help weed out more insight.
Build credibility through insightful contributions rather than credentials. Demonstrate that you understand their world and can offer practical solutions to their problems.
When things start to dry up, I ask the decision maker, if we did all these ideas, do you think the problem would go away. If they say no, then tease out what’s missing. Finally, you’re ready for the collaborative close. Would you like me to pull this together into a plan?
A yes means you can proceed to the next stage.
Secret #4: Don’t Leave the Client Meeting Without Following This Tip
Before leaving any client meeting, ensure you understand their timescales, budgets, and desired level of your involvement. Discuss the urgency of their issues, the financial value of your solution, and whether they prefer a guiding hand or a full-service approach. Always seek permission to submit a proposal, armed with these details.
Timescales
Determine when they need a solution in place and what deadlines are critical. Understanding their timelines allows you to tailor your proposal and ensure that you can meet their expectations.
Budgets
Discuss their budget openly. This should not only relate to your time but also depend on the value of your solution. How much is it worth to them to meet or exceed their targets? As a rule, your consulting assignment should offer financial benefits of at least 100 times your costs.
Involvement
Clarify the extent of your involvement. Do they want you to take full control of the project, or do they prefer a collaborative approach where you guide their team? Understanding their preferences will help you define the scope of work in your proposal.
Secret #5: Writing the Proposal
Once you have permission to pull together a plan, format it as a personal letter rather than a formal report. A letter invites feedback and revisions, increasing the likelihood of acceptance. Use the S.P.O.O.C.S structure to narrate a compelling story from the client’s perspective, maintaining rapport and emphasizing the necessity of addressing their issues.
Proposal Structure
Introduction: Begin with a brief introduction that references your previous discussions and reiterates your understanding of their situation.
Situation: Describe their current situation, highlighting any relevant background information.
Problems: Outline the problems they are facing, emphasizing the urgency and impact of these issues.
Objectives: Detail the objectives that your proposed solution aims to achieve.
Outcomes: Specify the measurable outcomes and how success will be determined.
Constraints: Address any constraints that need to be considered in your solution.
Solutions: Present your proposed solution, including an overview of the approach, key activities, and expected results.
Next Steps: Conclude with a call to action, suggesting a follow-up call to discuss the proposal in detail and address any questions.
Secret #6: Tell a Story
In your proposal, weave the collected information into a narrative. Start by acknowledging their situation and expressing empathy. Transition to discussing their problems tactfully, creating a sense of urgency for resolution. Outline your proposed solutions and seek permission to follow up with a call.
Storytelling Tips
Empathy: Show that you understand their challenges and are genuinely interested in helping them succeed.
Clarity: Use clear and concise language to explain your proposal. Avoid jargon and ensure that your message is easily understood.
Engagement: Engage the client by asking questions and encouraging them to share their thoughts and feedback.
Visuals: Use charts, graphs, and other visuals to illustrate key points and make your proposal more engaging.
What Next?
You now have the basics of approaching clients, attracting them, managing meetings, and following up effectively. These insights should jumpstart your consulting career. The key is to get a client onboard quickly and deliver exceptional value, ensuring repeat business and referrals.
For long-term success, create a web-based lead generation machine.
Continuous Learning and Improvement
Consulting is a dynamic field that requires continuous learning and adaptation. Stay updated with industry trends, invest in your professional development, and constantly seek ways to improve your services. Attend workshops, join professional associations, and network with other consultants to expand your knowledge and stay competitive.
Building Strong Client Relationships
Strong client relationships are the foundation of a successful consulting practice. Focus on delivering exceptional value, maintaining open communication, and building trust with your clients. Happy clients are more likely to return for future projects and refer you to others in their network.
Leveraging Technology
Leverage technology to streamline your consulting practice and improve efficiency. Use project management tools, customer relationship management (CRM) software, and marketing automation platforms to manage your workload and stay organized. A well-organized and efficient practice allows you to focus more on delivering value to your clients.
Personal Branding
Develop a strong personal brand that reflects your expertise, values, and unique selling proposition. A strong brand helps differentiate you from competitors and attracts clients who resonate with your approach. Use social media, blogging, and speaking engagements to build your brand and establish yourself as an authority in your field.
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