It’s been a while since I thought much about the process I employ to generate new business. Even though I’ve been managing my business for over twenty years, I don’t think about the processes I use to generate more business. I have an effective system in place which I execute diligently. Building relationships with prospective clients has become second nature, almost intuitive. Recently, I have been thinking a lot about my business development systems and processes, however. Since making a commitment to deliver a presentation on selling consulting services, I’ve been compelled to reconsider the matter. As you would expect, the subject has been on my mind quite a bit lately.
Friday, I discussed my progress on the presentation with my friend Faith. During our discussion, I mentioned that I hadn’t chosen a topic for this week’s blog post. I said that I would like to continue the theme of the last few weeks, building relationships. She suggested that I write about building professional relationships that generate new business. I liked her idea and I’m pleased to continue exploring this subject.
As I think about it, my work is all about building and strengthening relationships. People come to me seeking new jobs and career advice. I like to do what I can for them. Although I may not be able to help them immediately, I believe it’s important to understand their needs and aspirations. At some point, I will learn of an opportunity to provide assistance. By doing so, I am creating a foundation for a long-term relationship.
Mary’s situation is a good example. Mary is in the process of closing the family business and moving her residence to Atlanta. She came to me looking for help transitioning from her position as COO for an industrial company to become an employee for another company. Currently, she is not able to devote 100% of her time to job search, so starting the process has been prolonged. I immediately connected her with two networking groups to begin her transition.
Two weeks ago, we scheduled a call to discuss her situation. I had promised to review her resume and owed her my feedback. After providing my thoughts, she asked if I would take her on as a coaching client. I agreed, of course, and we scheduled a follow-on, face-to-face meeting. Reflecting on our interaction, we developed a relationship that resulted in new business for me. She came to trust me because I demonstrated a sincere interest in her career aspirations. I connected her with others who could be helpful and provided suggestions to improve her resume. Stated another way, I showed a genuine interest in helping her and demonstrated my capabilities. Interestingly, I never pitched her on the idea of becoming a client.
Selling consulting services is about selling an intangible product. One cannot touch, hold, see, smell, or hear the product. It is something that can only be imagined. Those buying consulting services are taking a leap of faith. In many ways, the process is the same as completing a successful series of job interviews. The candidate’s primary objective is to establish rapport with the hiring manager. After all, we want to work with people we like and who like us. To achieve a successful outcome, one must establish a personal connection. So, building rapport requires effective interpersonal skills. Those skills include the following:
- Empathy – needs assessment
- A Positive Mental Attitude
- Appreciation/Gratitude
- Mutual Respect
- Accountability
- Offer something of value – a gift.
- Professionalism
- Honesty and forthrightness
As with any job interview, you are being evaluated on every step of the selection process including an offer of employment. As you work to gain the prospect’s confidence, your working style and ethics are on display. The prospect is becoming comfortable, or not, with the idea of working with you. A well-executed process is critical! I cannot overemphasize the importance of this phase of the sales cycle.
Selling consulting services is a process governed by the fact that you are selling an intangible product, the prospect’s desired outcome. As a consultant, your job is to make the product tangible and mitigate the prospect’s doubt. You are the product! The attributes of the product you’re selling are your attributes: competence, professionalism, empathy, and ethics among others. You will demonstrate these attributes by developing a working relationship with the prospect. By developing solid relationships, you will ensure the success of your business.
Thank you for visiting our blog.
I hope you enjoyed our point of view and would like to receive regular posts directly to your email inbox. Toward this end, put your contact information on my mailing list.
Your feedback helps me continue to publish articles that you want to read. Your input is very important to me so; please leave a comment.
Jim Weber, Managing Partner
ITB PARTNERS
North Fulton Business RadioX Interview, September 26, 2019
Author of: Fighting Alligators, Job Search Strategy For The New Normal
As you would expect, I spend a lot of my time promoting ITB Partners to prospective clients who may need our consulting services. Additionally, I talk with many people who want to affiliate with our company to leverage their resources and create a sustainable independent consulting practice. This week was typical in that respect.
Last week, one of my clients filed for Chapter 11 Reorganization. Now, two of my clients are in Chapter 11, working to find a path back to solvency. In April, I was engaged by a new client to help them find a way out of Chapter 11. In the case of the two former clients, I can honestly say that I wasn’t responsible for the circumstances leading to their demise. In other words, I didn’t place any executives who caused these problems, and I haven’t been involved in consulting projects that resulted in adverse consequences. To the contrary, I placed an executive to help one client navigate through Chapter 11. Regarding the other client, I placed an executive to help them avoid business failure. Regrettably, Senior Executives sometimes fail to heed sound advice. In each of these situations, failure was predictable. Management failed to adequately penetrate their home markets before moving into new territory.
I’ve witnessed the results of many crazy decisions during my career. Some noteworthy situations include an ice cream brand selling franchises beyond their distribution capabilities. Or a California-based brand that tried to move into the Southeast with a single location. I’ve seen Southeastern brands sell franchises on the West Coast, thousands of miles beyond their management reach and distribution network. A Northern barbecue chain leap-frogged into Georgia with a few restaurants placed across the state. That decision was funny, in a sad way, as barbecue has a distinct regional appeal. Another brand added drive-throughs to dogs with the hope of turning them into profitable restaurants. Sadly, they created dogs with a drive-through. From my perspective, the most egregious yet consistent mistake is the urge for start-ups to enter new markets before adequately penetrating their home base. To be sure, many of those mistakes were made by rookies, entrepreneurs lacking experience or solid advice. However, these mistakes continue to be made by experienced leaders who should know better.
I can speak with authority on this subject as I spent most of my career working on retail expansion. I began my career as a financial analyst assigned to the new store development group. In this role, I performed analytical work on capital expenditures for new stores and other investments. I learned how to evaluate the prospects for a new store, and the penetration required to optimize the return from a larger market, i.e. city, SMSA, or region. I became a strategic analyst and planner shaping retail store development strategy for several national brands. Finally, I held general management positions where I was accountable for return on investment. In fact, one of my first assignments as a senior executive was to identify and prioritize markets for focused development. As a result, I am confident in my ability to build a retail brand, especially, food-service brands. I appreciate the value of achieving significant market share before developing new markets. Believe me, engaging in the development of a new market, before adequately developing a home market can be fatal to a business, especially so for a start-up.
So, if significant penetration of a home market is fundamental for success, why does management continue to violate this well-established rule? Over the years, I have asked this question of countless CEOs, CFOs, and Chief Development Officers. The only consistent response is “sometimes, management becomes so enamored of expansion that sound business practices are ignored.” Imagine, human emotions getting the better of Senior Executives. Who knew? The only solution is to hire accomplished retail development executives, among others, who won’t hesitate to tell the “Emperor that he has no clothes.”