What I do first in consulting
These days, I am getting couple of consulting offers from medium size company, not only NZ, but also Japan too as I was originally marketing myself to Japanese market and can do consulting in Japanese.
Anyway, when I take up these job and start my consulting, what I do first is always the same
respond to the need of client
Sounds very simple and normal, nothing surprising? Okay then, maybe you are now thinking that the primary goal that I need to achieve for clients is to generate leads, bring more customers to their business. That is half correct and half wrong.
Let me explain a little bit further.
What I have found out so far from my previous consulting experience is that what all business wants in essence is actually not the customers.
Are you crazy? Well, I had better tell you my answer first then. What they care is how much cash they can keep in their hand. Does it make sense?
Then we need to use this formula to increase the cash in hand. There are three ways to do that.
1, increase sales
2, decrease expense
3, minimize tax
When I do overall consulting, I strongly encourage my clients to be aware of those three points.
Actually, 3 is easy to achieve because I just need to introduce better accountant if they don’t have one. If they already have good accountant, then I don’t even need to dig deep on this point.
Second thing I will touch on will be 2. I know many business consultant goes 1 because they believe their job is to bring more customers to increase sales and leave more profit. I agree to some extent that I will work on this point later stage but not the first thing to work on.
Easy to change
When I start consulting, I ask them first about their expense. I understand some of the expenses cannot change because of the contract they lock for one year and no space for negotiation. Yet, some expense such as advertising fee are possible one to change.
Again, the reason I work on decreasing expense as first job of my consulting is because it is very easy to change, something that is under their control, not taking much time to change and immediately see the result too. If our job is to leave more cash in our clients hand, then this should be the first thing to work on.
Once the business could decrease the expense, we can see more cash available and these money can be used for increasing sales.
They would not be happy to spend for more ad if their budget is quite stretchy but they might end up becoming more positive if they see more cash available in their hands due to the decrease in expense.
Easy to work together
So I can put my clients in the position to accept my advice easier. I don’t want to make situation difficult for myself and my clients too.
However, it is often difficult for themselves to decide which expense they can cut because we often take for granted that some expenses needs to be spent because that is how it has been for a long time and never ever question about whether it actually can be cut or not.
That is the reason why we are here and if you are unsure about how you can cut expense and increase sale and as a result leave more cash, please feel free to contact us.