Does Your Consulting Business Have ‘Bounce-Back-Ability’?
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This past year has been a shock to the system on a global scale – and it has highlighted a specific vulnerability for a wide range of businesses: ‘bounce-back-ability’.
If something goes down in your sector or industry, with a particular client you work with, or even within your own business, you are extremely vulnerable if you only have one service or one product.
If one of your clients hits a bump in the road, for example, if they have a change of personnel among their C Suite executives, that could be potentially a risky situation for you. Is the future of your contracts with that company directly linked to who their CEO or their Chairperson is? It could be that this will not affect your work directly, but that the decision maker in the branch of the business you work with is now likely to change.
When you are reliant on one way of bringing clients into your business or one specific industry, your business is at risk if there is a change in the economy or the environment you work in. You are also vulnerable if all the work is reliant on you being present.
Businesses with more than one revenue stream have bounce-back-ability. If one revenue stream suffers, you have another service to fall back on. Your additional revenue stream will either serve your client base more fully, or allow you to broaden your reach, proofing your business from potential shocks.
The smartest way to add revenue streams is to make this a process of engaging and listening to your audience. For consultants this will normally involve speaking to your existing clients and finding out what will most help them.
What other services do they contract out? In what other ways could your services benefit their organisation?
And here is a really great question to get answers to: what key objectives are they looking to achieve, or are they under pressure to deliver, that you can help them with?
The vital thing in this process is not conveying your desire to expand your services, but your desire to understand their world and the situation they are in.
But equally, it might be speaking to the people who enquired about your services but who did not end up hiring you because you had scope clash.
Who is in your broader audience but is either not ready to work with you, or has progressed on a stage from your core service?
Don’t build anything until you’ve sought and received input from your audience. It is so easy to have a spark of an idea about something you’d like to offer, only to discover once it’s already created and you’ve laid down all the build costs, that your client base have no interest in buying it.
Always get input from your core audience before you commit to a new revenue stream.
It isn’t enough to imagine their excited reaction – you need their buy-in before you move forward. It’s like any project set-up: engage your stakeholders and test the water first. It’s a much better way to secure a positive outcome.
Do you go back to prospective clients who chose not to work with you and ask them what they would have liked to see from you? Let me know.
Free Report – The Six Elements of a Seven Figure Consulting Business
I’ve created a free PDF report called The Six Elements of a Seven Figure Business. It’s my most popular free resource and in it I outline the 6 areas of unscaled businesses that need to change in order to move past being ‘booked up and burned out’ and shifting into that higher gear that gets you cruising again.
It’s the framework that helps consultant women like you find their feet and get back to leading the business, rather than being buried in client work and back-end business operations.
Thanks for reading! I’d love to hear your feedback and future topics you’d like me to feature. You may also enjoy The Seven Figure Consultant Podcast, the show that takes you from booked up and burned out in your consulting business to THRIVING as the CEO of your 7 figure enterprise.