Consultant, what Key Performance Indicators (KPIs) do you track to know you’re doing well?
10+ years running my consulting business and I’ve realized what the TWO most important KPIs are.
The first, as my friends in finance, would say, is 𝗳𝗿𝗲𝗲 𝗰𝗮𝘀𝗵 𝗳𝗹𝗼𝘄 (𝗙𝗖𝗙), i.e. cash available over and above your expenses.
The second is 𝘁𝗶𝗺𝗲 𝗳𝗿𝗲𝗲𝗱𝗼𝗺. Makes no sense if you’re making good money but running around like a headless chicken.
Time freedom allows you to invest in your health, relationships, and personal growth.
Contrary to what many people think, you can hit both metrics out of the park…provided you make the right decisions.
Check out the summary below in which I’ve listed my top 5 insights after flying solo for 10+ years…
…insights that will enable you to increase free cash flow and time freedom.
The two KPIs that matter the most.
For short videos on each insight, go to #ReflectionsOfASoloConsultant
01. Make your Health your #1 Priority
Early in my new consulting business (2009), I landed clients but my health fell by the wayside.
I had no money to hire a fitness coach, so I did a barter deal with a personal trainer who wanted business advice. One of the best decisions of my life.
Consulting is a long road. You need good health and endurance, so take care of those things first.
02. “Non-sexy” Niches have Abundant Opportunities
Many new consultants want to find a sexy and glamorous niche (“VC-funded tech startups or Fortune 500 companies).
Sexy niches are generally over-crowded. There are thousands of non-sexy, underserved segments with tons of money that nobody talks about. Find them.
03. Use Retainers to Increase Profitability
A 5% increase in customer retention increases profitability by 25-95% – BCG study.
Create an offer that allows you to progressively serve your clients over a period of time… one that eventually leads to a retainer relationship.
04. Retainers Also have a Dark Side that can Sink your Business
Closely working with your client makes you lose the “outside” perspective in some cases.
Understand what makes you tick as a consultant and design your business model based on those values.
05. You Can’t Control being Fired or Let Go…
It may not be your fault, but clients can terminate the consulting relationship as they please.
Building a sales pipeline diligently is the best insurance against losing business without warning.
Click #ReflectionsOfASoloConsultant for short, actionable videos on each insight.
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Ready to Land $100k+ clients consistently without burning out? Schedule a call and let me show you how.
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