The other day I was discussing business expansion with a couple of our consulting-company clients. Like many consultants, their business efforts were focused 100% on getting new clients. But is that the only way to think about the consulting business? Is that model always sustainable, especially in constantly changing economic conditions? Are there other ways to think about Business IT Consulting growth?
Today’s article begins a multi-part series that looks at the many options to expand (or stabilize) an existing consulting business. We’ll be discussing how to do more with the clients you have and provide practical suggestions to help expand your Business IT Consulting business.
But first, let’s look at the “traditional” Business IT Consulting Model
## The “traditional” Business IT Consulting Model
1. _Start the business_
2. _Get a client, or several clients_ (Optimally, steps 1 and 2 are reversed. Always better to start a business with clients, then to go looking for them later.)
3. _Deliver service and bill as much as possible_
4. _Get paid_
5. _Do more projects with the current client and/or get new clients_
6. _Repeat over and over again_
A simplified list to be sure, but that is more or less what happens in the day-to-day life of many consulting firms. What happens if things are slow and it’s taking a long time to book new clients? What if your pipeline isn’t full with ready and waiting clients, checkbooks in hand? Or, what if your consulting business is struggling and just needs to stay afloat a bit longer while finalizing other opportunities?
## Enter “business expansion strategies”
A business expansion strategy is really anything that ultimately improves your bottom line, or keeps your bottom line from sinking lower in the case of troubled times. A short list of available expansion techniques includes
1. _Expanding existing client relationships_ (today’s topic)
2. _Expanding existing service offerings and adding new ones_
3. _Creating mobile apps, web apps or traditional software_
4. _Creating information products_ eBooks, physical books, online courseware, webinars, etc.)
5. _Creating membership sites_
6. _Other “traditional” business strategies, such as acquisition, partnerships, buying stakes in other companies and the like_
## Expanding existing client relationships
Of the many available expansion options, “expanding existing client relationships” is generally the easiest. Simply put, you’re getting more value from your existing client investments. New client acquisition and maintenance costs are a major portion of the consulting profession, so it makes sense to get the most out of your existing relationships. As with any business strategy, there are advantages and disadvantages:
## Advantages and disadvantages of expanding existing client relationships
### Disadvantages of expanding existing client relationships
Expanding existing relationships is generally very beneficial. But like anything, there are downsides. Here are a few:
* For personal or business reasons, the relationship may not e in your best interest, or the client’s. As a _BIG Results Consultant_, you always have to ask yourself “what’s best for the client?”
* Sticking with existing clients can tie up valuable limited resources. If your resources are tied up with existing projects, you might be forgoing (opportunity cost…) other more lucrative or interesting projects.
* You risk professional stagnation spending too long in the same environment. However, if the client is large and/or diverse enough in its environment, then working with some clients can be more dynamic than working with many smaller ones.
### Advantages of expanding existing client relationships
* _Mutual working relationship — both parties are well known to one another._
* _Paperwork is (usually) already in place._
* _Payment systems are (presumably) in place, and money is flowing from client to consultant._
* _Money continues to flow._ New clients have substantial setup costs and depending on your billing arrangement, may be 45 to 90 days or more into your work delivery, before receiving payments.
* _Mutual understanding and existing working relationship can speed up the value delivery._
* _The more work you do for existing clients means the less you have to try to do for untested, unknown clients_
* _It’s generally easier to identify new opportunities within existing client relationships._
## Tips for expanding existing client relationships
Here are a few tips for expanding existing client relationships:
1. _Deliver massive value._ That is the BIG Results Consulting way. Always, always, ALWAYS think about how you can deliver “just a little more” value to the work the client is already paying you to do. Yes, _some_ clients may take advantage of this — but if clients take too much advantage without reciprocation, do you want to be be expanding your relationship with them anyway?
2. _Ask lots of questions, including my favorite “have you thought about…”, or “have you considered…?” questions._
3. _Look for the win/win opportunities._ What are the obvious work streams that would benefit both you and your client? For example, if your client is considering datacenter consolidation, consider offering an impact analysis. Whether or not the client chooses you or your firm to participate in the project, the analysis provides additional work for your firm and is a genuine service to the client.
4. _Whenever possible, work on getting projects that involve multiple departments._ Most enterprise-grade IT project these days involve multiple departments, whole divisions or even multiple companies. You want to be well-known as the “go-to person” (or company) throughout the company. If one division of the company slows down, there are often others that have new project needs.
5. _Look for the low-hanging fruit._ Examples include things such as minor feature enhancements and creating automation scripts to further automate or optimize work you are already doing.
6. _Keep your ears open and “to the ground;”_ this is for two reasons:
* to identify new opportunities
* to act as an early warning system if there are any client-side issues which may affect your project or longevity…
7. _Answer any and all questions, quickly and in as much detail as possible._ If you don’t have the answer, volunteer to “get it as soon as possible” Put another way, you WANT to be that indispensable “go to person”
8. Follow all of the _BIG Results Consulting_ best practices for site conduct and project delivery (coming soon!) Set the bar high and reach for it each and every day.
## Summary and and next steps
In this article, we’ve discussed some of the challenges of being dependent solely on a steady stream of new clients. I’ve suggested some action steps to expand or stabilize your consulting business through your existing client base. In _Part 2_ of the series, we’ll discuss a new strategy for expanding your business — _expanding service offerings and developing new ones!_ Stay tuned for _Part 2._
What expansion strategies work for you or your firm? Be sure to comment on the thread below.
