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How to start and run consulting firm fast and efficiently

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In this presentation I will show you how to start and run consulting company fast and efficiently. The course is based on my 12 years of experience as a consultant in top consulting companies and owner of small consulting company (the last 7 years). I have been also CEO, Board Member responsible for strategy, improvement and turn-arounds in biggest companies from FMCG, SMG, and B2B in Poland so I know the subject from all sides including the customer of consulting firms.
My intention is that thanks to this presentation you will know:
1. Where to find ideas for consulting business, consulting firm?
2. How to analyze in Excel whether the business makes sense or not?
3. How to get first customers?
4. What to concentrate on if you are 1-man show, a freelancer?
5. What kind of tools you should have?
6. How and in what way you can set-up pricing for your services?
7. How to prepare for scaling, expanding?
8. What kind of business you can build on the basis of consulting firm?

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How to start and run consulting firm fast and efficiently

  1. 1. 1 How to start and run a successful consulting business? Practical guide
  2. 2. 2 In this presentation I will show you how to start and run consulting business. You will find here a lot of practical tips
  3. 3. 3 Source of ideas for consulting business We will start by showing were you can find ideas for consulting business
  4. 4. 4 Source of ideas for consulting business Getting your first customers Pricing Tools Later we will discuss ways in which you can get new customers, what tools you can use and how you should set up the pricing
  5. 5. 5 Source of ideas for consulting business Getting your first customers Pricing Tools Scaling of the business Add-on business Once you are done with the basics I will show you how to scale the business and what add-ons you can have
  6. 6. 6 Source of ideas for consulting business Getting your first customers Pricing Tools Scaling of the business Add-on business 1-man show freelancer As a separate part we will discuss the small consulting practices (1-man show / freelancers)
  7. 7. 7 What I will show in part of extensive on-line course where you can get all additional resources including Excels Click to check my course How to start and run a successful consulting business? $190 $50
  8. 8. 8 Introduction
  9. 9. 9 The essence of consulting
  10. 10. 10 What is consulting?
  11. 11. 11 With consulting you can reach things that were out of your reach Consulting  Professional help in achieving certain goal  Way to fill-in the gaps =
  12. 12. 12 You maybe surprised but actually there are plenty of good reasons why companies hire “overpaid” consultants They want to get better / faster / more efficient They do not have certain competence /skill They lack capacity to do something Sudden unrealistic deadlines Required by owner or regulator Turn arounds They need independent view One-off events
  13. 13. 13 Consultants help you move faster in the right direction
  14. 14. 14 Around what you can build consulting?
  15. 15. 15 You can build your consulting around specific customer segment Around segment Examples
  16. 16. 16 ….or around service / product Around segment Examples Around service / product
  17. 17. 17 Some companies use a mix of those 2 tactics Around segment Examples Around service / product
  18. 18. 18 Where you can get idea for your consulting businesses?
  19. 19. 19 Satisfy your own need
  20. 20. 20 If you have already some business existing, you can create consulting to help you solve your problem. First you create internal department to take care of your need Old business New department
  21. 21. 21 Once you get the proper quality of service and profitability you grow it and separate into stand alone business Old business Consulting business
  22. 22. 22 There are plenty of nice examples of such companies Old business Consulting business Examples of such businesses  Consulting on Adwords / facebook / SEO / content marketing that you needed to master and there was no decent provider  Consulting to support the sales of software, (including SaaS) that you have produced  Consulting to support good usage, maintenance of your B2B product (machine, production line)
  23. 23. 23 For this method to work you need to have certain things occurring  You are one of the best / first users  You have easy access to the underlying good  You have some cost advantage because you buy in bulk  The specific underlying good / service is complicated to master or changes fast  Customer do not want to make out of the knowledge you are providing competitive advantage
  24. 24. 24 Carving out
  25. 25. 25 You can also create consulting business by carving out a department from existing company Current departments
  26. 26. 26 You have to identify the department that you will transform into stand alone business and start running it as a separate business unit Old departments Carved out part that will be changed into consulting
  27. 27. 27 Once it is big enough you can make it into separate entity Old departments Carved out part that will be changed into consulting
  28. 28. 28 There are plenty of nice examples of applying this strategy Examples of such businesses  Marketing departments  Sales department  Analytics / Market Research / Pricing departments  R&D departments  Technical support  Shared Service Center  Project Management Old departments Carved out part that will be changed into consulting
  29. 29. 29 For this method to work you need to have certain things occur  People in the specific departments have very volatile utilization  Running the department requires huge investment into people, trainings and software  Department has become relatively big and the company does not have skills in running a consulting company  The demand of the company for the service offered by the department is irregular
  30. 30. 30 Cloning
  31. 31. 31 One of the ways to clone is to clone 1:1 the whole business Examples of such businesses  Consulting on Adwords / facebook / SEO / content marketing that you needed to master and there was no decent provider  Consulting to support the sales of software, (including SaaS) that you have produced  Consulting to support good usage, maintenance of your B2B product (machine, production line)
  32. 32. 32 For this method to work there are number of factors that may improve the odds  Market is mature and ready for specific consulting services  There are foreign companies that are used to this type of service  The group you are targeting is sufficiently big to support a business  There are no cultural barriers to using consulting  Fees are acceptable  Low level of government in the economy
  33. 33. 33 You can also clone the idea and adjust it to a different segment / group of customers
  34. 34. 34 For this method to work there are number of factors that may improve the odds  Market is mature and ready for specific consulting services  The group / market to which you are switching has to be big enough to support a business  The consulting companies you are coping for some reason have low incentive to enter specific market (low size, their strategy that assumes focus etc.)  There is a niche that is not served well by current consulting companies
  35. 35. 35 Walk away and become independent
  36. 36. 36 In same cases the consulting business is created by a bit forceful division Other departments in your old company Your departments
  37. 37. 37 You either join another big corporation or you build your own business Other departments in your old company Your departments Other departments in the new company
  38. 38. 38 There are plenty of good examples for both cases Examples of such businesses  Department in banks  Group of people / department in consulting – usually serving specific group of customers or 1 type of service  Department from training company  Department from software company Other departments in your old company Your departments Other departments in the new company
  39. 39. 39 If you have some business you can creating consulting to help you solve your problem Examples of such businesses  Department in banks  Group of people / department in consulting – usually serving specific group of customers or 1 type of service  Department from training company  Department from software company Other departments in your old company Your departments Other departments in the new company
  40. 40. 40 For this method to work there are number of factors that may improve the odds  The customer will follow you  You take all the competence from your previous company  The company you join has almost none of your competence  The company you join has customer to whom you can sell your product  You can take the references  Low threat of second-wave division  You have sufficient money gathered to survive the dry season and projects sliding
  41. 41. 41 Product / service to consulting
  42. 42. 42 You can create a consulting on the basis of existing product or service Agency Implementation consulting company Implementation consulting (set-up, purchase, run)
  43. 43. 43 For this method to work there are number of factors that may improve the odds  Product or service is complicated and changes a lot  The customer has no resources to master it  It is a one-off  You have better access to the producer of the product / service  You have the support of the producer
  44. 44. 44 For more go to our extensive on-line course where you can get all additional resources including Excels Click to check my course How to start and run a successful consulting business? $190 $50
  45. 45. 45 Business model of a service company
  46. 46. 46 Introduction to service companies
  47. 47. 47 Service companies in general are all about converting your workers time into money Man-hours
  48. 48. 48 There are some general rules that you should follow Measure man-hours Measure tasks Stay productive and efficient Make sure supply matches demand Forecast and create demand Manage supply ahead of time Make sure that margins are OK
  49. 49. 49 Business model of a consulting company in Excel
  50. 50. 50 The typical model of a service model can be presented using this logic  % Utilization# hours available # of billable hours Revenues Gross Margin Operational Profit Net Profit  Hourly fee  HQ costs  Bonuses  Interest  % Gross Margin  Wages
  51. 51. 51 Getting first customers
  52. 52. 52 Steal customers
  53. 53. 53 The easiest way to get the customer is to steal them from your competitors
  54. 54. 54 As a first step you have to show the customer somehow your offer, especially when the relation between the customer and current consulting company is about to end
  55. 55. 55 If you are successful in your move you will get a launching / reference customer
  56. 56. 56 There are number of situation when you can pull it off successfully When you can pull it off  Carve out  Walk away with customers  Buy out the customer  Bribe the customer  Use external pressure on competitor or the customer
  57. 57. 57 Take over director / partner from a competitive company
  58. 58. 58 You can try to establish a consulting company by convincing a senior personal with a good relation with customers to join you When you can pull it off  There is internal reason for the departure (i.e. the director does not fill happy in the company)  He can walk away with customers  There are no legal problems with implementing the switch of customers  There is no barrier related to the brand of the company you are breaking apart  The partner you taken over has to be able to generate new customers as well  There may be legal reasons for this move to be favored by the consulting company (i.e. they cannot keep certain business by law) Other departments in your old company The department / director you want to join you
  59. 59. 59 Use marketplaces
  60. 60. 60 For some consulting services you can start with marketplaces Step 1  Find the right marketplace for you Step 2  Do great job for a small task Step 3  Try to move away from marketplace and expand the contract
  61. 61. 61 You can try number of different type of markteplaces Graphics Startups related Lawyers General for freelancer
  62. 62. 62 Marketplaces are a good solution in a number of situations You are offering simple service You are targeting smaller customers You need some reference You are not that much into making big money Services where you have thousands of customers There is potential for longer cooperation outside the marketplace
  63. 63. 63 Content Marketing
  64. 64. 64 For some consulting services you can get customers by proper content marketing Step 1 – Generate Traffic  Create content  Generate traffic to your blog Step 2 – Get their emails  Convert it to email list Step 3 – Convert them  Convert the list directly to sales via short funnel or long funnel
  65. 65. 65 Content marketing is not easy and requires some things to be successful Your target group has to actively look for info how to improve Your target group should be present in one of the social media Your target group should be identifiable by search terms or some criteria You have to create high value content and unique Content marketing takes time Content marketing not always leads to direct conversion
  66. 66. 66 There are plenty of tools that you can use for content marketing Creation of content Traffic generationMarket research
  67. 67. 67 Here is an example of content marketing used for one of our brands Post on the blog Distribution Recycling of content Request for proposal Sales
  68. 68. 68 Event Marketing
  69. 69. 69 For more stubborn you have to go for events marketing Step 1 – Create opportunity  Organize or join events  Create content that will establish you as an expert Step 2 – Take advantage of opportunity  Network during the events  Set fixed targets in number of business cards that you have to acquire Step 3 – Fast conversion  Do the follow-up in the next weeks: send them your content, meet with them, call them  Hustle
  70. 70. 70 For this method to work there are number of factors that may improve the odds  The ticket (value of potential contract) has to big enough  You have to have a high density of potential customer in the event  You have to be active - listen and provide value and only after that try to sell (if he can become to his benefit your customer)  Test the short and the long funnel to see what works better
  71. 71. 71 Trainings Marketing
  72. 72. 72 Similar yet more subtle to event methods is to go for trainings Step 1 - Attract  Organize free open training for your target group  The training has to have unique content to establish you as an expert  You have to actively reach them Step 2 - Soft conversion  Convert them to paid trainings – advanced version of the free trainings Step 3 - Hard conversion  Convert them to consulting services
  73. 73. 73 Cold Calling
  74. 74. 74 Unavoidable is trying cold calling Step 1- Preparation  Find source of leads  Prepare – choose the right sequence and the target group you want to reach  This is a first hypotheses that you will change during your tries  Prepare all necessary tools: script, ready made emails and materials, CRM Step 2-Cold calling  Execute and modify till you get to predictable stable model of sales Step 3 - Conversion  Convert meetings into request for proposals (RFP)  Convert RFP to projects
  75. 75. 75 In cod calling you have to have a sequence of events that you will follow Cold visit Mail / Cold email Warm call Meeting Sales Cold email Cold call Warm email Warm call Meeting Sales Example 1 Example 2
  76. 76. 76 Cold email with a piece of your content and CTA Cold email with a piece of your content and CTA Cold email with a piece of your content and CTA Cold email with and invitation to a first meeting Meeting Invitation to free training Convert to paid training Convert to consulting services In cod calling you have to have a sequence of events that you will follow
  77. 77. 77 For more go to our extensive on-line course where you can get all additional resources including real examples from our practice Click to check my course How to start and run a successful consulting business? $190 $50
  78. 78. 78 1 – man show
  79. 79. 79 As in every service you try to turn time into money
  80. 80. 80 If you are a 1-man show you have to carefully use your time as it limited Number of available hours % Utilization Fee per hour Additional revenues 170 30% 200 3 000
  81. 81. 81 There are number of ways in which you can increase the available hours Liczba dostępnych godzin lalka Stawka Godzinna Dodatkowe przychody  You hire new employees, partners, co-workers New employees Description When can be used  Good solution when the growth is permanent  There are new customers or product added  In the case of entry-level recruitment there has to be some career path for  The employees should be less expensive than you or bring new customers  You have to have training system  You subcontract part of the work to other freelancers or a company Subcontractors  Good choice when the jump in projects is just temporary  Good choice when you do not have the skills and knowledge and you do not want to specialize in it  You divide the work to be done into parts.  The easier part, more repetitive you give to virtual assistants Virtual Assistants  Very good when the assistant is much cheaper than you  Good choice when the assistant can create things that you can sell  Good choice both for temporary as well permanent growth
  82. 82. 82 Overall Labour Efficiency how much work there is in the work ? Workday Time that you can devote Time left for real workLack of work 100% 54% OLE = 100 % 54 % x x 98% Work 98% 37% No work due to organizational issues Movement 70% Work well done 70 % Liczba dostępnych godzin lalka Stawka Godzinna Dodatkowe przychody
  83. 83. 83 The biggest return you will get from improving your utility Liczba dostępnych godzin lalka Stawka Godzinna Dodatkowe przychody  Automate whatever you can so you have more time to sell Automation Description Examples  Emailing /Newsletters – Mail Chimp / GetResponse / FreshMail  Automation of small tasks i.e. twitting, putting some data into table etc – Zapier, IFTTT  Social Media – Buffer / Hubspot  Calculators on your webpages  Marketing Automation - Mail Chimp / GetResponse / FreshMail / SalesManago / InfusionSoft / Hubspot  Resousres on your webpage / YouTubie / Slidesharze / Dropboxie Improve the efficiency of team work and the cooperation with customers  Improve the efficiency of teamwork and also the way in which you communicate and exchange info with customers  Getting Things Done  CRM – Google Sheet / Insightly / Close.io  Task management tools: Trello / Nozbe / Leankit / Asana / Smartsheet  Avoid email communication– Google Sheet / Slack / asana  Working on virtual space– Google Drive / Dropbox / 1- Drive
  84. 84. 84 The biggest return you will get from improving utility Liczba dostępnych godzin lalka Stawka Godzinna Dodatkowe przychody  You have to minimize the time you spend travelling Fewer movements and travels and better organization Description Example  Remote calls and conferences– Hangout s/ Skype  Webinars  Working on virtual space– Google Drive / Dropbox / 1-Drive  Round trips across the country to visit customers Outsourcing / specialization  Find somebody to whom you can outsource the repetitive part of you work especially if he is better at it  Interns  Assistants  Virtual Assistance  Subcontractors Standards, templates and modules  Create you work on the basis of modules, template and standards.  In this way you will be able to reuse them  Specialize in one product  Templates and standards i.e. Excel analysis, sales presentation, proposal etc.  Turn non-standard presentation into modules in which 80% are standard modules
  85. 85. 85 Think also how to increase your price Liczba dostępnych godzin lalka Stawka Godzinna Dodatkowe przychody  You change the pricing depending on your situation, availability resources and demand Dynamic Pricing Description When to use  Use it when there is a big seasonality in demand  Use it to sell in advance of time – similar to first minutes  Useful when you want to hide difference in the price of similar service among customers – then you have a price list and a bunch of different discounts that blur the vision  You can start earning depending on the performance / success  You can have installments  You can have a complicated system of different fees for different things Change the price formula  Useful when you do not want to show the fee per consultant that incidentally may be higher than the Board Members’ salaries  Introduce subscription Switch to subscription model  When you want to increase the demand for your service  When you have to compete with the in-house departments  When there are a lot of small task that you do not want to negotiate separately
  86. 86. 86 Last but not least create additional products Liczba dostępnych godzin lalka Stawka Godzinna Dodatkowe przychody Books / e-books / reports On-line courses Off-line courses Webinar PodcastFilms on youtube Audiobook Affiliation E-commerce Physical products – i.e. games Sponsoring
  87. 87. 87 It is worth to have 1 main KPI that will let you say whether you are heading in the right direction Total time devote to it Total net income from all sources 200 h 50 000 USD 250 USD / h
  88. 88. 88 Tools you need in a consulting company
  89. 89. 89 Introduction to tools
  90. 90. 90 List of the most important tools for consultant Analyze Present Sales & Marketing Knowledge Management Market research Team management
  91. 91. 91 Standardize everything
  92. 92. 92 Why it makes sense to standardize? Easy to go through what you have done so far You can reuse your products Less versions to manage Brain works faster with standards You can find faster what you need
  93. 93. 93 How to decide whether to standardize Used by manyOften used Last for longer time Standardize
  94. 94. 94 Below you will find examples of things standardized in consulting and a typical company Folder structure Consulting Naming of files Proposals to customers Typical company Agreements Deliverables Analyses Main processes Internal documents External documents Main process Dress code Language of communication
  95. 95. 95 There are some rules for standardizing that you should follow Use few standards Internal standards higher than external Round up to closes standard Communicate standards Teach standards
  96. 96. 96 Create templates
  97. 97. 97 Templates can save you a lot of time. They are area almost ready made pieces of work that need some changes to be used. It is great for repetitive work
  98. 98. 98 How to decide whether to make templates Often UsedCan be reused Time-consuming Template
  99. 99. 99 Define what you should create templates for. In consulting we use a lot of templates to make the repetitive work less time consuming Sales presentation Consulting Emails Data request Project Time sheets Proposal Agreement Folder structure Deliverable presentation Dimensions  For every product, branch  All standard emails: about meetings, data request, workshop, sales emails, thank you email  For every product (project type) and branch – Word  For every product (project type) – Word  For every product (project type) – Word  For every product (project type) and branch in Excel  Library of standard slides with typical analyses to choose from  For every product (project type) and branch – Excel
  100. 100. 100 Create modules
  101. 101. 101 Modules is something that helps you go beyond templates and used them in a situation that seem not easy to be standardized
  102. 102. 102 Creating modules enables you to turn even things that Sales presentation About the company (history, experience, offices) Problem description Proposed solution Pricing Team Contact Details Rather standard Unique
  103. 103. 103 Power Point presentations
  104. 104. 104 What rules should be used for Power Point Presentations Use the template 1 slide = 1 message Agenda Executive summary Excel analysis for every slide Sources Dates Backup Next version rule Show money
  105. 105. 105 The kids market will be slowly growing as a result of GDP growth 3 247 3 480 3 473 3 503 3 537 3 583 3 626 3 689 3 750 3 806 3 857 3 911 3 965 4 011 4 055 4 104 4 144 2 804 2 862 2 855 2 880 2 908 2 946 2 981 3 033 3 084 3 130 3 171 3 216 3 260 3 298 3 334 3 374 3 407 1 328 1 392 1 389 1 401 1 415 1 433 1 450 1 476 1 500 1 523 1 543 1 565 1 586 1 605 1 622 1 641 1 658 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 8 058 8 198 8 334 8 459 8 570 8 692 8 811 8 914 9 012 9 119 9 2097 9637 8597 7857 7177 7347 380Total Source: Euromonitor Toys Hardware Fashion Market size In milions of EUR
  106. 106. 106 Market size In millions of EUR 3 247 3 480 3 473 3 503 3 537 3 583 3 626 3 689 3 750 3 806 3 857 3 911 3 965 4 011 4 055 4 104 4 144 2 804 2 862 2 855 2 880 2 908 2 946 2 981 3 033 3 084 3 130 3 171 3 216 3 260 3 298 3 334 3 374 3 407 1 328 1 392 1 389 1 401 1 415 1 433 1 450 1 476 1 500 1 523 1 543 1 565 1 586 1 605 1 622 1 641 1 658 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 8 058 8 198 8 334 8 459 8 570 8 692 8 811 8 914 9 012 9 119 9 2097 9637 8597 7857 7177 7347 380 Total Source: Euromonitor Toys Hardware Fashion  The kids market will develop in will be slowly growing as a result of GDP growth
  107. 107. 107 Market size In millions of EUR 3 247 3 480 3 473 3 503 3 537 3 583 3 626 3 689 3 750 3 806 3 857 3 911 3 965 4 011 4 055 4 104 4 144 2 804 2 862 2 855 2 880 2 908 2 946 2 981 3 033 3 084 3 130 3 171 3 216 3 260 3 298 3 334 3 374 3 407 1 328 1 392 1 389 1 401 1 415 1 433 1 450 1 476 1 500 1 523 1 543 1 565 1 586 1 605 1 622 1 641 1 658 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 8 058 8 198 8 334 8 459 8 570 8 692 8 811 8 914 9 012 9 119 9 2097 9637 8597 7857 7177 7347 380 Total Source: Euromonitor Toys Hardware Fashion  The kids market will develop in will be slowly growing as a result of GDP growth The kids market will develop in will be slowly growing as a result of GDP growth
  108. 108. 108 Rules for Excel
  109. 109. 109 What rules should be used when building analysis in Excel Usage of colors Consistency between sheets Pyramid principle 1-source rule Repetition of variables Shortcuts No mouse Description Data source Master sheet
  110. 110. 110 The most useful functions Basic functions Financial / Mathematical Others  SUMIF / SUMIFS  COUNTIF / COUNTIFS  HLOOKUP  VLOOKUP  MATCH  SUMPRODUCT  IF  AND / OR  IFERROR  AVERAGEIF  LEFT / RIGHT / MID  FIND  CONCATENATE  YEAR / MONTH / DAY  ROUND / ROUNDUP / ROUNDDOWN  TODAY  VALUE  WEEKDAY  RAND / RANDBETWEEN  MOD  NPV  IRR  ABS  MAX / MIN  CORREL  Pivot  Slicer  Relative addresses  Formats  Hyperlink  Remove Duplicates  Filters  Sorting  Data Validation  Trace Dependents / Precedent  Analysis Tool Pack
  111. 111. 111 Create universal structure of folders
  112. 112. 112 In most cases in consulting you will be doing a lot of different project and you may loose a track of what you have done Supply chain General audit Cost cutting Sales Force Management Marketing improvement Cost cutting Supply chain Supply chain Sales Force Management Sales Force Management Marketing improvement General audit Supply chain  After a few project you will be lost – you will not remember what was done on what project  Consulting and many services are bout managing knowledge  If you organize the knowledge properly you can reuse it on other projects  Therefore create universal structure of folders
  113. 113. 113 Below an example of structure used for consulting project Customer folder Project A folder Admin Legal PBC Area A Area B Deliverables
  114. 114. 114 For more go to our extensive on-line course where you can get all additional resources including real examples from our practice Click to check my course How to start and run a successful consulting business? $190 $50
  115. 115. 115 Pricing
  116. 116. 116 How you can price consulting projects
  117. 117. 117 The most useful pricing models are…. Fixed fee  Difficult to define scope  Non-standard project  Scope evolvingTimes & Materials  Simple projects  Projects with big buffers  Projects where you want to hide the fees Success / performance fee  When performance can be measured by external KPIs  To supplement previous methods Limits  To limit certain spending's esp. in the case of time and materials limits (floors an caps are used) Per usage  This is used in many technical industries where you cannot control the immediate result of the consulting so link it with the usage / availability of certain resource DescriptionExample  $ 100 K Markups  Markups can be a part of fixed fee structure and times and materials  Markup is put on purchases done by consulting company for the project  $ 200/h  Traveling costs  Food costs  % of Target achieved  $ 100 K for achieving certain goal  $ 200/h but no more than $ 100 K  $ 10/flight hour  $ 20 K/plane  15% on costs incurred
  118. 118. 118 Dynamic pricing
  119. 119. 119 In dynamic pricing you identify the low seasons and try to sell them at lower price or at higher price 25% 50% 75% 100% 88% 63% 13% 43% 88% 83% 63% 50% 1 2 3 4 5 6 7 8 9 10 11 12 Low season
  120. 120. 120 There are 2 conflicted approached to treat low seasons Emergency approach  You keep the people during low seasons waiting for desperate customers that needs the project now  Since you have the resources you can help him yet the price goes up significantly  Such a structure can be a part of your regular contract – at certain time during the year, month, week you charge the client with higher price or above certain number of man-hours; for shorter reaction time The logic behind Price in low season with respect to high season  150%-200% Fire sale approach  In this approach you sale with discount because the resources will be lost if not used  50-80%
  121. 121. 121 Managing consulting company
  122. 122. 122 Organizational structure and responsibilities
  123. 123. 123 Partner Director Project Manager BA A Project Manager A BA BA Director Project Manager BA BA Project Manager A BA BA Consulting companies operate using pretty flat structure….. Market Research Department Visual Department Knowledge Base Department
  124. 124. 124 Partner Director Project Manager Project Manager Director Project Manager Project Manager Some of them even the Business Analyst and Associate keep in a pool without fixed assignment to specific director or PM Market Research Department Visual Department Knowledge Base Department Business Analyst and Associate Pool
  125. 125. 125 Partner Executive Director Director Project Manager BA Senior BA Assistant BA Project Manager BA BA BA Director Project Manager BA BA Project Manager BA BA BA Obviously bigger company tend to overcomplicate the structure
  126. 126. 126 What is the role of business analyst? Business Analyst Associate Senior Associate (PM) Director Partner Consulting companies McKinsey Business Analyst Senior Business Analyst Associate Senior Associate (PM) Engagement Manager Associate Principal PrincipalDirector
  127. 127. 127 Typical structure of a project
  128. 128. 128 Below you will find some example of project duration for projects done in management consulting Business Analyst Associate Senior Associate (PM) Director Partner  Operational Audit Type of project Duration in months  3-5 1-3  1-2  1  0.2  Performance improvement – 1 area  2-3 1-3  1  1  Strategy project  3-5 3-6  1  1  0.2  Turn around  5-10 9-24  2-3  1  0.4  0.2
  129. 129. 129 Rotation
  130. 130. 130 Rotation is one of the nightmares of a consulting company. It will differ on every position Business Analyst Associate Senior Associate (PM) Director Partner  How long you stay in years? Category  2-3  2-4  3-6  3-6  % of people that leave at certain stage  ?  10-20%  20-30%  30-60%  10-30%  20%
  131. 131. 131 Preparation for scaling
  132. 132. 132 Introduction
  133. 133. 133 At some point you will want to cross the bridge from your small kingdom and rule the world
  134. 134. 134 Recruitment
  135. 135. 135 In the beginning you will be competing for the best candidates from the best universities Universities Established consulting brands You
  136. 136. 136 Most management consulting workers are recruited from business schools or exact science departments Business Schools and Department of Economics % of all candidates  70% % of all workers  50% Exact science (math, physics, computer science  15%  30% Medicine  5%  10% Others  10%  10%
  137. 137. 137 You can use number of methods to recruit Comments % of candidates recruited Direct recruitment to specific position  You have to build the whole recruitment process  Usually it consists of logical – analytical test (GMAT level) + interviews with your employees – 3-9  Usually you recruit for entry-level positions  50-70% Internships  They have to go through at least the part of the normal recruitment – tests and 1-2 interviews  Helps you test in real life the candidates  You have to give them real work and not making coffee  10-30% Closer cooperation with students and student organizations  You can either recruit directly to specific position or to internship  It can be an event, ambassador program, cases solved with students  10-30% Closer cooperation with the universities  You can either recruit directly to specific position or to internship  It can be event, lecture, joint conference, projects done together.  10-30%
  138. 138. 138 What improves your odds of getting good candidates for entry level position?  Let them do real work  Train them better and faster than other  Make sure that after working for you they got great jobs  Stay in touch with your alumni  Take advantage of stronger brands of your customers  Put them to work for your customers  Work hand-in-hand with student organization to actively search for the best candidates  Go to universities with lower rankings
  139. 139. 139 Trainings
  140. 140. 140 To create proper training you have to take care of number of issues Targeted end-profile of a employee on every level Time  Option 1: 1-2 months a year  Option 2: 1 day a week Forms of training  Lectures  Practical exercises esp. oriented at mastering certain consulting skills: Excel, communicating with slides etc.  Workshops devote to certain area, skill, industry, trend  Case studies  Lesson learnt Resources  Money  Coaches / Mentors Sales Marketing Operations Programming  Current level  Target level
  141. 141. 141 For more go to our extensive on-line course where you can get all additional resources including real examples from our practice Click to check my course How to start and run a successful consulting business? $190 $50
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  146. 146. 146 Subscribe to our channels: www
  147. 147. 147 For more go to our extensive on-line course where you can get all additional resources including real examples from our practice Click to check my course How to start and run a successful consulting business? $190 $50

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