Building a business or a consultancy: which one’s for you?

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By David Leahy, Director, Great People Inside Australia

When you take a step back and look at your HR business, is it a consultancy or a genuine business?

In a consultancy you are paid for your expertise and your time. You may work alone, or you may employ one or two people. Even when you have a constant stream of clients, profitability is a constant struggle. Why? Because there are only so many hours in a day that you and your team can work. There will always be a cap on what you can earn.

There are also diminishing returns. As your workload expands and you employ people, you earn less per hour than just doing the work yourself. It’s a catch 22. You’re either doing too much work yourself to remain profitable or earning a slim margin on your team’s work.

A genuine and sustainable business, on the other hand, is different. Your revenue isn’t limited by your time. There may be multiple revenue streams which cushion the business from the ups and downs of winning and losing business. It’s possible to grow without chipping away at profitability. Best of all, as a business owner you can work less while earning more.

If your business is still just a consultancy, you’re not alone. Many HR businesses will never evolve beyond that. But if your aspirations are higher than that, it is possible to evolve.

So how can you evolve your consultancy into a sustainable and thriving business?

Refine your offering

If you’re a generalist doing a bit of everything for everyone, you’re probably losing out financially. Those businesses which only focus on a few things and do them really well have a stronger proposition to take to the market and therefore find it easier to win business, are able to deliver the product or service in the most efficient way possible, and are able to offer a really high quality offering. 

Avoid the trap of trading time for money

The biggest challenge for consultants is that we are paid for our time. Not only does this limit our earning ability, it also undervalues our contribution. Your value isn’t in the time you dedicate to a client, it’s in the outcome you achieve – and that may be worth a lot more to the client than a defined amount per hour.

Consider how you can you package up your services at different price points to best demonstrate value and maximise profitability. In many cases consultants can and should charge more for their offerings then they have been previously. You can even get creative with pricing. If you’re working with a client to help them reduce employee absenteeism, consider offering an alternate price structure representing a fee paid based on a percentage of the potential savings to the business. The same could apply for staff retention, productivity or employee satisfaction.

Create time efficiencies

Once you have defined the key services and/or products your business will focus on and the appropriate profitable price structure, identify methods you can deploy to deliver them in as little time as possible at the highest quality. It makes sense to track how much time each offering takes to achieve on average. If you can bring this time down, your margin on that offering goes up. Ways to bring time down may involve improving systems and processes, leveraging technology or automation, or outsourcing or delegating any lower level work to someone whose time is cheaper.

Source additional revenue streams

Additional revenue streams that aren’t tied to your time and which complement your offerings are an easy way to grow your bottom line. As a starting point, why not consider offering a product that fits with and enhances your business strategy. Products such as assessments, profiles, surveys, software or systems, skills tests, basic audits or reports are a great way to develop an alternative revenue stream. This an excellent way to quickly scale your business sustainably that doesn’t require much more time on your part.

Are you looking for an additional revenue stream?

We recently launched Great People Inside in Australia and we’re in the process of growing and extending our channel and referral partner network. 

The Cloud-based GR8PI People Intelligence Platform (GPI) is a next generation profiling platform that enables you to assist your clients to select the best talent available and develop it to its fullest potential. It is the only fully-customisable, psychometric profiling and 360° feedback, platform in the world. 

Clients can be trained to use the highly intuitive platform independently so they can select, manage and develop their people, look after their employee’s wellbeing, and ensure alignment of organisation values. 

These days everyone wants choice and that is what we deliver with GPI. The unique ability to easily customise assessments means you are not restricted to offering tools that measure what the developer/manufacturer wants you to measure….you can help your clients measure precisely what’s important to THEM!

With GPI you’re not restricted by the status of the role either, our assessment dimension range is so vast you can develop client focused customised tools to profile everyone in your client’s organisation regardless of whether they are selecting, developing or redeploying a person for an unskilled role or a senior executive role! we believe everyone in the organisation should be happy and have the same opportunities to ensure they “fit” and they love their work! In fact our mission is “To develop and offer the future’s talent and assessment solution – the Cloud-based GR8PI People Intelligence Platform – to anyone working with people: Ready-to-use, customisable to meet every need, and affordable to everyone.”

About David Leahy

David Leahy is the Director of Great People Inside Australia (GPI). GPI Australia provides state-of-the-art and fully customisable assessment and development solutions to help select, match, onboard, manage, develop, engage and retain top talent. Recently launched in Australia, GPI is seeking a limited number of Australian Channel Partners, so this is your opportunity to get in on the ground floor. If you’re interested in being part of our mission, why not enquire and learn about our unique and exciting Channel & Referral Partner program. Contact David at [email protected].

www.greatpeopleinside.com/australia 

“Like finding a pot of gold”: Identifying great ground floor opportunities for your business

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By David Leahy, Director, Great People Inside Australia

Did you know that if you had invested $20,000 into Apple shares when the company went public in 1980, you’d be over $200,000 richer today?

Getting in on the “ground floor” of an opportunity is like finding a pot of gold. For business owners and investors, pursuing an opportunity early before others flock to it is a sure fire way to reap significant rewards.

So, how do you make sure the opportunity isn’t too good to be true? Getting in on the ground floor is a phrase that understandably evokes suspicion. Many worry that the supposed potential of the opportunity may never materialise and aren’t comfortable taking that risk. But what about the risks of not taking action? When a ground floor opportunity pays off it means a much healthier bottom line, freedom from financial stress, and more time and flexibility. Who wants to miss out on that?

Most HR business owners I talk to are already seeking opportunities to access additional revenue streams through software, systems, audits, reports, skills tests, assessments, profiles or surveys. Getting in on the ground floor of an opportunity is an excellent way to access additional revenue for only a small financial investment.

Here’s how you can identify great ground floor opportunities for your business.

Do your due diligence

Conduct research into all aspects of the opportunity. Is it a viable product? Is there a demand for the product? Will that demand increase or reduce over time? Is the company credible? How long has the company been in business? Is the company financially secure? Is the company set up well to scale? Are customer or partner reviews and testimonials positive? Ask as many questions from as many relevant people as possible. Your goal is to learn as much as you can.

Be an early adopter in a new market

If the opportunity has been successful in other markets, for example overseas, it will give you a good indication of what you can expect. In a way, you can have your cake and eat it too – you’re still getting in on the ground floor of the opportunity, but it has been proven to be successful elsewhere. That reduces the risk significantly.

Assess the financials

Look at the financial investment and potential financial returns. Be systematic about your forecast and scrutinise all costs, including your time. You need to ensure you’re getting a return on your investment. Make sure to examine the opportunity cost as well. If you don’t invest in the opportunity what will you potentially miss out on? What are the costs of continuing to do what you’ve always done? Sometimes a missed opportunity is a far greater financial risk than an opportunity which doesn’t pan out.

Are you looking for a great ground floor opportunity?

Recently launched in Australia, Great People Inside is seeking a limited number of Australian Channel Partners. Great People Inside (GPI) Australia provides state-of-the-art and fully customisable assessment and development solutions to help select, match, onboard, manage, develop, engage and retain top talent.

The next generation GPI platform measures whether potential and current employees have the necessary traits to fit with the company culture or whether they are performing to their potential. Clients can be trained to use the platform independently so they can select, manage and develop their people, look after their employee’s wellbeing, and ensure alignment of organisation values.

What’s unique about GPI is that the assessments are fully customisable, in fact it’s the world’s first fully customisable validated assessment platform. Using a list of 61 fully validated psychometric dimensions, and 38 dimensions for our 360, GPI creates totally customised assessments that are specific to the competencies, values, requirements or objectives of any role, organisation or department – anywhere in the world. And should we not currently offer a dimension that suits your client’s needs, in consultation with you, we will develop a new validated dimension especially for your client’s business – we call this full customisation.

Contact David at [email protected] to find out more.

About David Leahy

David Leahy is the Director of Great People Inside Australia (GPI). GPI Australia provides state-of-the-art and fully customisable assessment and development solutions to help select, match, onboard, manage, develop, engage and retain top talent. Recently launched in Australia, GPI is seeking a limited number of Australian Channel Partners, so this is your opportunity to get in on the ground floor. To learn about our unique and exciting Channel Partner program please contact David at [email protected].

Trading time for money: It’s a rat trap! How to scale your HR business or consultancy

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By David Leahy, Director, Great People Inside Australia

If you’re a one or two man band in HR or consulting no doubt this sounds familiar.

You’re working more and more, without seeing any real difference to your bottom line. You’d like to work less and earn more but aren’t sure how. Hiring staff simply increases your costs, earning you less per hour. There doesn’t appear to be a clear way to scale your business which will actually make you more money or save you more time.

It’s the inevitable challenge that consultants face in all industries. Trading your time for money is inherently limiting. It places a cap on what you can earn. You inevitably end up working more hours than you’d like to, without seeing any significant increase in profitability.

The good news is that it is possible to scale your HR business without increasing your workload or chipping away at your profitability. It requires tossing out the old way of doing things and starting fresh. Here’s how to do it.

Price according to value, not time

When you charge based on your time, not only are you limiting your earning potential, you’re also inevitably undervaluing what you do. If you’re able to work smarter, faster and more efficiently, why should you be penalised for it? If you get a great outcome for a client such as improved employee engagement or reduced turnover, shouldn’t that have a bearing on what you earn? And likewise, if you don’t perform, is it fair on the client that they need to pay you the same? If you really think about it, it’s a lose-lose situation for you and your client.

So, what’s the solution? Instead of trading time for money, you need to trade value for money. Think about the value you provide to your clients. What is the value of your contribution to your client’s business? How much money have you made or saved them? What is unique about your expertise or offering? What is it that you do that is hard to find elsewhere? If you think about your contribution in these terms, then suddenly the dollar value of what you offer has the potential to increase significantly. If you price accordingly, you will immediately increase your top and bottom line without giving up any more time or adding any additional costs.

Position yourself as an expert

You are an expert in what you do, so why not position yourself this way? If you’re known as an expert then your value will be immediately understood and you can be remunerated fairly. Speak at events, write articles, post on LinkedIn – the goal is to share your expertise and showcase thought leadership. This will attract new business, enable you to charge based on your value and grow your business.

Refine your unique selling point

If you don’t know your point of difference, then your clients and potential clients won’t either. Drilling down into what makes you unique and competitive is essential. This is where you add the most value and this is what will win you business.

Sell products as well as services

Do you sell products as well as services? A product requires minimal time on your part and can be replicated at higher volumes. It is an excellent way to scale your business through adding an additional revenue stream without needing to add staff or time. Products may include software or systems, basic audits or reports, skills tests, assessments, profiles or surveys.

For example, the next generation Great People Inside (GPI) platform measures whether potential and current employees have the necessary traits to fit with the company culture or whether they are performing to their potential. Clients can be trained to use the platform independently so they can select, manage and develop their people, look after their employee’s wellbeing, and ensure alignment of organisation values. You gain recurring revenue not dependent on your time. It’s a win-win!

About David Leahy

David Leahy is the Director of Great People Inside Australia (GPI). GPI Australia provides state-of-the-art and fully customisable assessment and development solutions to help select, match, onboard, manage, develop, engage and retain top talent. Recently launched in Australia, GPI is seeking a limited number of Australian Channel Partners, so this is your opportunity to get in on the ground floor. To learn about our unique and exciting Channel Partner program please contact David at [email protected].