Independent Consulting
The consulting industry has enjoyed significant growth during the last decade
, averaging between 20% and 25% growth depending upon market sector. The reasons for this are easy to understand. The competition generated by the new global economy has resulted in many companies downsizing in terms of internal employees. This has meant that their need for professional external skills has increased, as and when deemed necessary. The information age has also changed the way that Company Directors and Managers think and operate. Instead of only having to consider change or strategy perhaps once every year or even five years, they now have to consider change and strategy daily. This means that their dependence upon external sources of information, guidance, training and service implementation has increased substantially and this trend is set to continue, even during the recession. As unemployment increases, it becomes a more cost-effective option for organizations to hire in specific skills on an independent basis as and when they need them. Employees constitute a fixed cost, whereas consultants are considered to be variable.All major proactive companies and indeed governments now depend upon external independent consultants for an objective view or an independent service. It is without doubt, probably the most exciting industry to be involved in at the moment and is certainly one of the most lucrative. A good management consultant should be able to develop an independent practice earning annual fees between $250k USD to $1,000k USD. As management consultants become more capable with professional training and experience, they are likely to play a leading role in the development of the new world economy during the online age. This is just as true at ground roots level with SMEs as it is with blue-chip organisations. The future is very bright for the proactive management consultant.
So, it is a growing and exciting industry to be involved in, but what makes the difference between a good consultant and a bad one? Often when individuals consider becoming consultants, they think of the logistical steps for getting started, such as developing business cards, setting up an office, buying a computer, or quickly achieving business opportunities. They have good qualifications, good experience, surely this will be enough! However, you need to consider why a client should employ you, when there are likely to be thousands of other consultants and established firms providing similar services. What makes you any different or any better than the rest?
Many consultants make the mistake of trying to develop a general service and would develop a brochure, for example, in the same way that they would develop their CV, incorporating as much as they possible can, believing that the more skills they appear to have, the more interest they will generate. In reality, these consultants will simply generate more competitors for themselves.
The first stage in establishing a profitable consulting practice is to be specific about your business direction by defining your vision for the future of your consulting business, identifying your unique service proposition, and developing the core consulting service from which your whole practice will be developed around. A good consultancy is no different to a good manufacturing company or a good service provider. The consultancy is only as good as the products or services that it offers. If there are no products or services on offer, then there are simply no sales. The success of your practice will depend, almost entirely upon the quality of your service, your ability to present and implement it and your client's ability to understand it. Indeed trying to develop consultancy business without developing a consulting service first is rather like trying to sell a book before you have written it.
The list that follows here features the key critical skills which many people feel are important for a consultant to possess, if they are going to succeed in the management consulting industry.
1. General skills and experience (a Jack of all trades).
In practice consultants with general skills will always have more competitors and will find it increasingly difficult to explain to clients what exactly they would be buying. Consultants with a clearly defined and specific service are much more likely to succeed.
2. Good sales skills.
If the service is good enough, the benefits should be easy for clients to recognise, without the need for a hard sell. If the service needs to be sold, then there is either something wrong with the service, or there is simply too much competition for it.
3. The ability to think on your feet.
In reality, it is obvious to a client when a consultant is making things up as they go along. Clients will always be attracted to services which are more structured and well planned.
4. The belief that you have more knowledge than your clients.
The fact is that we will never know more about a client's business than its management team, or its employees. It is just as well that we recognise this.
5. The ability to reinvent yourself to suit a client's needs.
If you have a service that you know is beneficial, then it is always better to stick to this. As soon as you start to reinvent yourself, you will begin to lose direction and credibility.
6. To be able to identify problems.
The world is full of reporters and critics and it is actually very easy to find fault with any business or company. Do not be fooled into thinking that this is a skill or a service that you can offer as a consultant. A client will be much more interested in what you feel is successful about their business and what solutions you could provide that might contribute towards improving their success.
The list that follows here features the key critical skills which the Academy of Business Strategy feel are important for a consultant to possess if they are going to succeed within the consulting industry.
CRITICAL CONSULTING SKILLS
1. Specific skills and experience and the ability to develop a tangible service.
2. A methodical approach to planning and preparation.
3. The ability to be proactive rather than reactive.
4. To facilitate, or to enable clients to do things for themselves, rather than to do things for them.
5. To develop a tangible service first, before trying to achieve business.
6. To be able to add value, rather than create doubt.
by: Dr. L. Goodstein DPC CPC DBA MBA BA The Academy Of Business Strategy - Reactive Career Management The Academy Of Business Strategy - How Consultancy Can Be Developed As A Product Consultancy Jobs Assignments And Projects - Supply And Demand Associates Of The Academy Of Business Strategy (aabs) Earn While You Learn - The Associate Service Vemma Mlm Business - Your 3 Step Guide To Success With Your Vemma Business Using Public Relations To Market Your Business Startup Affiliate Marketing - Step One Learn To Get Free Targeted Traffic From The Top Search Engines Plow Business Advertising Plow Business Promotion Promoting A Plow Business How To Advertise A Plow Business Unethical Behaviour Drivers From Emilio Botin Santander Abbey Stephen Hester Luqman Arnold