My journey as a consultant and coach has struggled and I made quite mistakes. I am sharing this post so that you walk away with my experiences and grow your consultancy business faster dodging these blunders.
By making some mistakes, I got a fair idea of which practices to do away with or which approach not to take. But to protect your consulting business from committing major ones, stay away from these business blunders.
Mistake #1 Big Client Syndrome
I had one big client, and more than 50% of my revenues came from this one client. I was spending all my time, energy and efforts, which headed for a meltdown. I made silly concessions to keep this business and made special adjustments to handle their requirements. And I was so busy servicing that one big account that I failed to develop existing client relations, new opportunities and ways to increase my revenue streams.
Mistake #2 Initial Pricing
I have also learnt that a low-price player in their market can’t help me make huge profits. I was reluctant to charge high fees in fear of losing clients as I needed to take on every client at whatever price. My learning is, I am an expert in my niche and must not undersell services even if I don’t have established business. The goal here should be moderation in pricing strategy and figuring all the incremental costs for setting up consulting services. I changed my focus from taking on every client to building a strong sales pipeline.
Mistake #3 Focusing Beyond Niche
Like most businesses, I was hungry for monetary benefits and thinking more is always better by dwelling in markets beyond their niche. Saying yes to projects beyond my coaching and consulting niche limited my attention to the areas I mastered. So, focusing on a core niche, enhancing services, researching market competitors helped me boost my business exponentially.
No business is perfect, and it is hard to avoid mistakes while building an empire. It’s crucial to dodge these mistakes for every consulting firm just starting out or even otherwise, as these crumble the founding pillars of business structure.