Square One
Let's look at the process of launching and operating a consulting process step by step. First, you've got to define your service and the market for it. Because these two elements are interdependent, there must be a match. An idea for a consulting business that's too heavily weighted in what you can do but with little or no sign that there's a market will fail, as will the one for which there's an obvious market but a question about whether you can deliver. Therefore, testing should begin immediately.
While evaluating your own expertise, identify potential customers and ask them what they think. One especially useful vehicle for this process is the development of your initial marketing materials, whether they be as simple as a letter announcing your new enterprise, or as ambitious as a full scale brochure. Get feedback on what you're planning to say about your practice from people who'd be in a position to use you, or at least direct business your way.
After doing so, you may well be advised to narrow your niche. Says Gil Gordon, "A jack of all trades stance will confuse clients, dilute your energy and force you to compete with more consultants. Focus on what you love to do, what you do better than anyone else, what you can describe clearly in very few words and what people will pay cash for."
That last part what people will pay cash for is a killer! How do you find out? Asking helps, of course. If you have in mind a particular group of people and organizations you think are likely clients, look for other signals. What do their actions say about what's really important to them?
Next, when you've gotten a micro pulse on your market from a few key prospects, look at the bigger picture. Does the type of service you're considering have a favorable outlook?
Hot Fields in Consulting
Consultant Ron Tepper has attempted to put his finger on that one in "The 10 Hottest Consulting Practices" (New York: John Wiley, 1994). They are, according to Ron:
- Business strategy and strategic alliances.
- Communications and public relations.
- Executive search.
- Site services and meeting planning.
- Sales training.
- Sales and marketing effectiveness.
- Management consulting.
- Outplacement.
- Compensation.
- Organization and reorganization.
As you zero in on exactly what it is that you'll offer, consider the difference between process oriented consultants and those that are content driven. For content driven consultants, knowledge of a particular industry or market is key. What they know is at least as important, if not more so, than how they deliver their services. Process consultants, on the other hand, are focused on the process of consulting: activities that can be carried out in a variety of situations in order to generate results.
In The Complete Guide to Consulting Success (Chicago: Dearborn Financial Publishing, 1993) Messrs. Shenson and Nicholas cite the example of a hospital planner specializing in critical care units who decides to become a consultant. If she chooses a content oriented approach, she'll likely pursue as clients other hospitals seeking help in planning critical care units. But if she decides her skills at organizing and carrying out the planning process are even more valuable than her knowledge of hospital critical care units, then she could seek clients in a variety of industries as a planning process consultant.
"Obviously, your market is broader and your prospects brighter if you take a process oriented approach," Shenson and Nicholas say. But look before you leap into that broader market, because it may be more difficult to distinguish yourself as extraordinarily skilled in the consulting process. It requires experience as well as outstanding "people skills."
For me, success in my initial months as a consultant stems directly from content my special knowledge of the markets I follow. That's why clients call. They know I'm not an experienced consultant yet, but they know I know their business. And for now, I'm ignoring Shenson and Nicholas' suggestion that there's a bigger market for me if I focus on process. In my view, process will come with experience as a consultant, but since I've recently made the jump from journalist to consultant, I've decided to keep as a constant my industry specialization. Compare your own abilities and experience and you'll have a good idea of where to position yourself on the content process continuum.
Start Acting the Part
Though every business truly begins with its first customer, work must start even earlier backstage in preparing the product - you for your market research and initial sales calls.
First, make sure you've mastered the basics of business etiquette that will get you in the door and keep you inside long enough to get comfortable. Jan Yager, a Connecticut consultant on business behavior and communication, and author of Business Protocol: How to Survive and Succeed in Business (New York: John Wiley, 1991), offers these reminders to stick on your bathroom mirror:
- Stress confidentiality. A consultant should practice and convey the same level of discretion that we expect of lawyers, accountants, doctors and the clergy.
- Be honest about what you promise. Overdoing it can not only put you behind the 8 ball in carrying out the engagement, it can even get you into legal trouble.
- Be careful with criticism. Weigh it carefully, deliver it gently and precede it with praise.
- Never bad mouth a client. You never know how or when it might return to haunt you.
- Perfect your presence. Send a professional message by using high quality materials and solid grammar in all your correspondence. Keep your communication gear (voice, fax, e mail) running smoothly to acknowledge the time and effort spent by those contacting you. Return phone calls promptly. Dress appropriately. Be punctual, courteous, upbeat and positive. Always say "Thank You."
- Consider everyone a customer. You never know who will be in a position to influence the award of an engagement to you. Treating everyone with respect improves your likelihood of success from an unexpected direction.
