by Jay Niblick | Feb 7, 2019 | Blog, Managing Your Consulting Business
Our modern day school system would have us believe that if we’re weak in a subject (Math, English etc.) that we should study longer, harder and smarter in order to make our weakness stronger.
This can be a healthy thing for us early in life; we all need to spell, read, and count money to a minimum sustainable level. But why do we believe we need to develop a personal strength in business where none exists? Shouldn’t you fix those weaknesses? The answer is a resounding NO!
The strengths and weaknesses I’m talking about aren’t deficits in knowledge or experience. I’m speaking strictly to innate talents or traits that you cannot develop in a training program or by reading a book. There is a myth about these natural strengths and weaknesses, one that states we all naturally possess them.
In reality, we don’t…
What we do possess are natural talents and non-talents, but these are not the same as strengths and weaknesses. In reality, you only have potential strengths and potential weaknesses.
You can’t disguise a weakness as an opportunity for development. It’s ridiculous to think I can fix a weakness by developing it into a strength. If one of my clients is suffering from a weakness I tell them so; but, the key is that this weakness isn’t natural, it’s manufactured.
This can be challenging to understand…
Let me explain. When you allow your success to depend on your talents, you create strengths. When you allow your success to depend on your non-talents, you create weaknesses.
Think of talents and non-talents like two boxes. The first box contains a gift (talent) and comes all gift wrapped with a bow. The second box contains trouble (non-talent) and is marked Pandora’s box. Regardless of the contents, however, each box only contains potential. The first box is only potentially good, the latter only potentially bad. Nothing happens until you actually open the boxes.
Talents and non-talents work in very much the same way. If you never rely on your talents (open the gift box) than you never realize the strengths contained inside. Likewise, if you never rely on your non-talents (open Pandora’s box) then you never suffer the weaknesses contained inside.
“Your job is to make the strengths of your people more effective and their weaknesses irrelevant.” ~ Peter Drucker – Management Consultant and The Father of Modern Business Management
What controls this potential is how you apply yourself. If you have a non-talent for strategic thinking and create dependence on that non-talent by selling strategic planning consulting to your clients, you just manufactured a weakness. If you make sure your success doesn’t depend on you being a great strategic planner, however, then you don’t manufacture a weakness for yourself. That non-talent remains only a potential weakness.
When you make this shift in perspectives and realize that any weaknesses you have only exist because you manufactured them, you should also realize that you could correct it by removing that dependence.
The most successful consultants understand this. They know that they are the only ones responsible for whether they benefit from strengths or suffer from weaknesses. They don’t spend their time trying to fix their weaknesses. Instead they just make sure their success doesn’t depend on their non-talents.
To make sure you don’t manufacture any weaknesses, be sure to create a role for yourself that relies as much as possible on your natural strengths and as little as possible on your weaknesses. Give specific thought to what services you will provide and ask yourself if you’re manufacturing a weakness by doing so. Take a look at the duties you have inside your own business. Are there tasks or responsibilities for which you have a weakness, yet you’re the one who must do them? Could they be outsourced?
by Jay Niblick | Feb 4, 2019 | Blog, Managing Your Consulting Business, Starting Your Consulting Business
When you made your “big leap” as an independent business consultant, there were several defining reasons why you decided to stick your neck out and become a member of one of the world’s greatest professions.
As time passed however, you realized that the practice of consulting was very different from the act of selling your consulting services. You suffered the agony of having to convince prospects that you and your services were better and more effective than anyone else.
Unless you have a natural talent for sales, and most consultants don’t, this is an all too familiar description of the pain that consulting professionals go through from day to day in order to try and make a living from their traditional sales efforts.
The skills and talents required to perform consulting work are very different from the skills and talents required for your typical salesman. And that’s exactly why why you shouldn’t sell!
Selling is counterproductive to the way most consultants prefer to work and detrimental to the long-term success of their business. The only way not to sell to a prospect is to entice the client to come to you through
Multi-Leverage Marketing and solving their problem using the Diagnostic Sales Process.
Since we’re talking about sales in this post, we’ll start with the Diagnostic Sales Process and the 4 steps to a successful and happy client.
Even though I’ve been using the word “sales” to define the process, it’s exactly the opposite. Your objective is to listen to your prospect and ask questions, make a recommendation, provide a verified diagnosis, and lastly, solve their problem.
The 1st step requires a good ear to listen to your prospect in order to discover the problem they’re facing in their business. At this time the well-established 80/20 rule should apply. 80% listening 20% talking.
The 2nd step is where you get to do most of the talking. You need to let the client know that your expertise lies in helping many others just like themselves. This isn’t bragging but reassurance for the client.
In this step you’ll also be trying to identify the root of the problem. Making any reference to sales at this point is useless and a waste of your time. Remember, if you weren’t born to be a salesman then don’t act like one!
The 3rd step is to prove to yourself and to your soon-to-be client that your diagnosis to their initial problem is correct. There are several behavioral and motivational profiles you can use that will help you get the most out of the Diagnostic Sales Process.
The 4th step is to go back to the original pain point that they initially defined for you. Give them an action plan and a reminder of why this is important to do in order to resolve their problem. If the problem is big enough and your solution will remove the roadblock then the client will more than likely hire you.
Remember that you are best suited to educate and to train but NOT to SELL. As a professional consultant, the DSP allows you to work easily, more confidently, and faster throughout your business which increases your profit with each new client.
To read more about how to become a profitable consultant using the Diagnostic Sales Process, Go here.
by Jay Niblick | Apr 26, 2018 | Blog, Managing Your Consulting Business
Too many new consultants fail to establish a sound business plan right up front. As important an aspect as having a sound business plan is, however, I will not be diving too deeply into this topic as we could easily get lost. I will, however, recommend an action that will allow you to save time, yet still allow you to create a very well-constructed plan. And that’s the rub, managing to create a very solid business plan that actually delivers value, but not spend months doing it.
Also, a good plan is a process, not a static event. One of the biggest mistakes any business owner makes is to create a strategic business plan in the beginning of their company, then leave it in a drawer forgotten and useless. A good plan is dynamic, meaning it is built to be changed or modified as the business grows. Its structure is one that is flexible, and to me the most important part is that such flexibility is quick and painless, since if it sucks to change it, it usually doesn’t get changed.
For years now I’ve personally benefited from being able to develop a very strong business plan for my own businesses, yet not having to invest countless hours to get it done. I’ve done that by using the “One-Page Business Plan,” based on a book of the same name written by Jim Horan. Since the two most important parts of such a plan are content and speed, this has been my solution of choice.
If you’re an expert in building business plans, and that’s one of the things you will be providing to your consulting clients, then by all means listen to your own expertise. However, if this isn’t something you’re an expert in, I highly recommend you not spend hours research-ing, learning, and inventing your own wheel. Instead just invest $39 and purchase the One-Page Business Plan (Professional Consultant’s Edition) from their website.
That website: www.onepagebusinessplan.com
Once you get a plan—wherever you get it—just be sure to use and follow it, as it is definitely something that will greatly add to your chances of success.
by Jay Niblick | Apr 12, 2018 | Blog, Managing Your Consulting Business
For the purposes of this book I will speak to the United States business market. Every country has its own set of policies and regulations, so I advise you to seek the counsel of a licensed attorney in your own market to make sure you decide on the best business structure for your specific business.
There are really only four types of business structure most consultants choose from. Each has its own unique set of strengths and weaknesses.
- Sole Proprietors (taxed as 1040, Schedule C) are unincorporated businesses. They are also called independent contractors, consul-tants, or freelancers. There are no forms you need to fill out to start this type of business. The only thing you need to do is report your business income and expenses on your Form 1040 Schedule C. This is the easiest form of business to set up, and the easiest to dissolve, but it provides the least protection.
- C Corporations (taxed as 1120) are incorporated businesses. Every form of business besides the sole proprietor is considered a separate entity, and this often provides a measure of legal and financial protection for the shareholders. The shareholders of corporations have limited liability protection, and corporations have full discre-tion over the amount of profits they can distribute or retain. Corporations are presumed to be for-profit entities, and as such they can have an unlimited number of years with losses (ask your accountant why that can be a good thing). Corporations must have at least one shareholder.
- S Corporations (taxed as 1120S) have features similar to a part-nership. An S Corporation must have at least one shareholder. If any shareholder provides services to the business, the S-Corp must pay that shareholder a reasonable salary. This salary is a separate payment from distributions of profits or losses. S Corporations have the same basic advantages and disadvantages of general or close corporations. When a standard corporation makes a profit, it pays a federal corporate income tax on the profit. If the company declares a dividend, the shareholders must report the dividend as personal income and pay more taxes. S Corporations avoid this double taxation (once at the corporate level and again at the personal level) because all income or loss is reported only once on the personal tax returns of the shareholders. However, like standard corporations (and unlike some partnerships), the S Corporation shareholders are exempt from personal liability for business debt.
- Limited Liability Partnerships or LLCs (taxed as 1065) are unincorporated businesses. Like corporations, partnerships are sep-arate entities from the shareholders. Unlike corporations, partner-ships must have at lease one General Partner who assumes unlimited liability for the business. Partnerships must also have at least two shareholders. Partnerships distribute all profits and losses to their shareholders without regard for any profits retained by the business for cash flow purposes. Many business professionals believe LLCs present a superior alternative to corporations and partnerships because LLCs combine many of the advantages of both. With an LLC, the owners can have the corporate liability protection for their personal assets from business debt as well as the tax advantages of partnerships or S Corporations.
There are also trusts and non-profit structures, but I’m not aware of any consultants who have ever chosen either of these. If you have any questions about which structure is right for you, it is best to consult with your attorney or accountant. Taxation and liability issues are the two strongest determining factors for deciding to seek their counsel.
by Jay Niblick | Jan 20, 2015 | Blog, Managing Your Consulting Business, Starting Your Consulting Business
The New year is almost upon us and most business consultants have their eyes set on big goals – bigger clients, bigger profits, and overall bigger success.
I’m not here to tell you not to stretch for that gold ring. What I propose is that you take small steps forward while still keeping your eyes on the goal.
Many experts say to go big right out the door which is great. However, if you don’t hit that large target goal, some people have a tendency to retreat all the way back to where you started.
Instead, try to keep moving forward by pivoting and taking smaller steps. Weather the storm and don’t try to eat that elephant in one bite!
It’s a lot easier to keep going with a small bit of momentum instead of trying to restart the engine at the bottom of the hill.
Here is a list of the top 10 consulting business posts to keep that engine moving towards your goal.
The Risks and Rewards of Starting A Consulting Practice
The freedom and control you have as an independent business consultant may be the reason why you decided to go out on your own. Just remember that with every positive aspect of consulting life, there are as many pitfalls; Isolation, low self discipline, and the do-everything-myself curse are but a few things to consider before going solo. http://consulting.about.com/od/Starting-A-Consulting-Business/fl/The-Risks-and-Rewards-of-Starting-a-Consulting-Business.htm
5 Factors to Consider When Becoming a Consultant
As a new consultant there are several factors that will get you started with a solid foundation for your beginning consulting practice. A consultant is a valuable asset to a business because of their ability be an expert in a given field and provide an otherwise missing perspective or knowledge to a given project or problem. http://consulting.about.com/od/gettingstarted/fl/What-Do-Consultants-Do.htm
8 Steps Towards Branding Your Consulting Practice
When people see your consulting business, the first thing they see is your name. Deciding on a name can be a daunting task, but doesn’t have to be complicated. While branding companies will often play up the stress and fear associated with naming in order to charge enormous fees, the naming process shouldn’t cause sleepless nights. http://consulting.about.com/od/Starting-A-Consulting-Business/fl/8-Steps-to-Branding-Your-Consulting-Practice.htm
A Consultants Guide to Podcasting
If you’re not too familiar with podcasts, it’s basically audio broadcasted over the internet that can be downloaded and listened to on any mp3 player or on websites to be listened to from your computer. As an independent business consultant you have an ideal opportunity to market your practice using podcast audio recorded in a radio styled format. http://consulting.about.com/od/Starting-A-Consulting-Business/fl/A-Consultants-Guide-to-Podcasting.htm
Top 3 Consulting Fee Methods Used to Your Increase Sales
In any business venture where you set the prices, you’ll need to find a balance between charging a rate that allows you to operate vs. what’s seen as a reasonable and attractive fee for your clients. A huge struggle for most budding consultants comes when not only determining what this middle ground will be, but also figuring out how to go about the process as a whole. http://consulting.about.com/od/Consulting-Fees/fl/Top-3-Consulting-Fee-Methods-to-Maximize-Your-Profit.htm
7 Psychological Reasons Why People Buy Your Stuff
In my last article, I provided a general overview of what I meant by the difference in buying motives versus buying styles, and how they can be used together to help you communicate the most effectively. http://consulting.about.com/od/Starting-A-Consulting-Business/fl/7-Psychological-Reasons-Why-People-Buy-Your-Stuff.htm
Top 10 Marketing Tips for Business Consultants
Here some of the most effective ways that you, as an independent business consultant, can promote your consulting business towards gaining more prospects and clients for the new year. http://consulting.about.com/od/Marketing-Your-Consulting-Practice/fl/Top-10-Marketing-Tips-for-Independent-Business-Consultants.htm
How Email Marketing Saved My Consulting Business
Email. Despite your love-hate relationship with the now decades old form of communication, why is 2015 the perfect time to craft and perfect an email marketing campaign for your consulting business? http://consulting.about.com/od/Marketing-Your-Consulting-Practice/fl/How-Email-Marketing-Saved-My-Consulting-Business.htm
Why Every Consultant Should Write a Book
As an independent consultant, you have an ideal opportunity to put your years of knowledge and expertise on paper or e-ink as an established and respected author. http://consulting.about.com/od/Marketing-Your-Consulting-Practice/fl/Why-Every-Consultant-Should-Write-a-Book.htm
Create Effective Website Marketing for Consultants
Turning your website from a brochure site to a business generating tool, requires you to make sure that the site is easily found and interactive. http://consulting.about.com/od/Starting-A-Consulting-Business/fl/Do-Consultants-Need-a-Website-Part-2.htm
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