7 lessons-learned-from-running-a-consulting-company

1. 7 Lessons Learned
From Running a
Consulting Company
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quicksprout.com

2. Lesson #1: The day you sign a client is the day you start losing
them
● Here’s what you should do to ensure that clients stay as long as possible:
● Set expectations from day one- ​before you take on a client, you should let them
know what they should expect and when to expect it by. If they have unrealistic
expectations, let them know why.
● Have a kick-off call- ​send your client some cookies or snacks in the mail so that they
feel like they are with you during the kick-off call.
● Weekly calls- ​every week, you should have at least a 5-minute call with your client.
Tell them what you did for the week and see if they have any questions.
● Send industry updates- ​Sending industry related news to your clients not only shows
that you know the latest and the greatest, but it also makes them feel special.
● Monthly reports- ​at the end of each month, you should send your clients a detailed
report of everything you did.
● Monthly surveys- ​end of each month, send monthly surveys. Be careful of sending
generic questions like "are you happy?", but instead questions that help improve
work quality.
Lesson #2: Clients are always right, except when they are wrong:
● Tell your client what they want, they're paying you, they shouldn’t be telling you what
you should be doing.
● You were hired for a specific expertise, tell your client what is best for them.
● If you focus on doing what’s best for them, your work will provide better results for
their company.
● Prepare your data to show your client, that it's the best solution for them against all
roadblocks.

3. Lesson #3: You’re worth every penny, so show it:
● Show their ROI. Use main metrics like average revenue per transaction, conversion
rate, and search engine traffic to show how much additional revenue you brought in
through your efforts.
● Become a valuable asset by assuming you're actually providing results.
Lesson #4: You have to dress to impress:
● The better you dress, the higher of a consulting rate you can demand.
● You can charge upto $250 to four-figure range by dressing really nice.
● Nice wardrobe show potential clients that you are successful, and it also boost your
confidence. Plus, clients want to pay people who are successful as they hope they can
bring that same success to their company.
Lesson #5: The more you charge, the less they complain:
● The more money a client pays you, the less they will complain.
● Large clients usually have a lot of cash, so spending it isn't that big of a deal.
● Client knows, to grow a company it is required to spend money. Sometime things
work out, sometime don't.
● Smaller clients don't have the luxury to spend a lot of money. Make sure, you did not
mess up things, because they don't have luxury of hiring someone else.
● Start with smaller paying clients, but your goal should be to transition to the larger
paying clients ASAP.
Lesson #6: Fake it till you make it:
● If you don't have years of experience you can still lock in the big guys.
● Figure out what separates your consulting company from the larger ones consulting
companies.
● Show them you are better and then they'll give attention to you.

4. ● Work by yourself along with your junior consultants, clients loved the fact you're
working on their projects, bigger firms allows junior consultants do the job.
Lesson #7: When it rains, it pours:
A few ways you can conserve cash is:
● Have a cheap office-​But don’t let your client’s see it, by only doing in-person
meetings at their offices.
● Create a variable compensation plan- ​If your business was doing well give
employees compensation, when it wasn’t, just stop it.
● Keep a healthy reserve- ​Always save 6-month to a 1-year reserve in the bank.
● Don’t grow too fast- ​if you are constantly getting new client, don’t hire too quickly.
Consider outsourcing some of your work to a local firm.
● Always be closing- ​Never stop trying to bring in more clients as this will help your
business stay afloat.