Consultant, are you currently riding a wave? 🌊 🏄♀️ This is a very common trap in consulting, so if you’re not sure, read on. 👇
A wave is a period of sufficient cash flow provided by a single source or sometimes a stroke of luck.
Waves usually last for 2-3 years.
Examples of waves:
🏄♂️ A big client you landed that engages you for a long-term project
🏄♂️ A great relationship with an executive in a client org who keeps hiring you
🏄♂️ A sudden period of economic upswing that lands you clients easily
🏄♂️ A govt. incentive program that enables firms to hire consultants like you
🏄♂️ A marketing or sales channel that works very well for a short period of time
Now, waves are great for business, obviously. They help you shore up your cash reserves, invest in hiring the right people and keep stress at bay.
But the problem unique to consulting is that when the going is good, consultants are typically neck deep in client delivery and ignore building their pipeline or even thinking about their growth strategy. ⚠
So, what happens when the wave comes crashing down and your windfall ends? The big project’s over, your contact in the client org moves on or that sales channel doesn’t work as well anymore?
If you’re not ready for it, you’ll find yourself in a situation where you’re scrambling for the next wave. You’ll be dipping into your cash reserves to keep your business going or may need to let a few people go. Not the best place to be. ☠
So what can you do to avoid this?
If you know your wave’s going to end soon, then plan ahead.
❓ How long is your typical sales cycle (first contact to signed deal)?
❓ How long will it take you to create a sales plan?
Add the number of days it would take for both, then add 30 days more as a buffer and get going before your wave ends.
But what if you don’t know when your wave is going to end? If that’s you, then make marketing and sales a regular part of your business. Dedicate time every week, bring in the right resources to help you and create a plan that brings in new sales opportunities throughout the year.
That way, you keep your cash register ringing throughout the year. Wave or not. 💰
Are you riding a wave?
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Ready to add $100k-$500k revenue to your consulting business in 12 months or less without burning out? Schedule a call and let me show you how.
Image credit: Herbie Fletcher
