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Five key tips to encourage new growth in your HR business

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Thanks to https://unsplash.com/@artic_studios for this image

 

By David Leahy, Director, Great People Inside Australia

In my recent conversations with HR consultants, encouraging new revenue growth, scaling their business and managing business downturn between Melbourne Cup and Australia Day are the challenges that loom large for 2021. However, especially in this uncertain world we live in, there are some unique challenges and barriers for consultants which can stop growth in its tracks.

As an Irish migrant in the 90’s, I was always fascinated when business owners and salespeople told me that “not much” happens business-wise in Australia between Melbourne Cup and Australia Day. When I socialised this generalisation at BBQs, contributing factors such as school holidays, time with family, and great weather were mentioned, nevertheless many heads nodded in agreement.

Forewarned is forearmed, they say, and each year I paid close attention to this period in my planning and introduced various strategies to overcome this decline in “normal” business activity.

A genuine business or a consultancy?

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 lower 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 income streams that 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 a consultancy, you’re not alone. Many HR businesses will never evolve beyond that. But if your aspirations are to own a genuine business, it is possible to evolve.

So how can you evolve your consultancy into a sustainable and thriving business in 2021?

Scrutinise your costs

Managing your costs effectively will help you claw back profitability. That may include negotiating a reduction in your rent, sourcing more competitive suppliers, or outsourcing lower-level work to a more junior rather than a senior staff member.

Become more time-efficient

Consultants need to understand how their time is spent and reduce that time where possible. If you or your team are spending too much time on a job, it can blow out costs and make that job unprofitable. Consider ways to bring the time down: improving your systems, processes, and technology are good places to start. Look at whether there are any tasks you can automate or outsource at a lower cost to help you focus more on your clients improving their customer experience with your business.

Price strategically

I’ve written before about how trading time for money is a trap.  Consultants often find their earning potential is limited because they are paid for their time, and there are only so many hours in a day.

The answer is to price based on value or outcome instead of time. Create service packages at a fixed cost, which you know will be profitable. This also makes it easier to raise your prices. Don’t get stuck in a race to the bottom on price. By charging what you’re worth, you can earn more while working less and attract a better client.

Target the right clients

Do you know which clients are your most profitable clients and a good fit for your business? By better understanding this, you can focus your energy on those clients, upsell or cross-sell to them, and seek other potential clients with similar profiles. Having fewer more profitable clients is worth more to your business than having more clients who are less profitable.

Diversify your offering

Diversifying what you offer is an excellent way to grow both your top and bottom line. Are there additional revenue streams that fit well with your existing offering? A great option is to offer a product in addition to your usual services, such as an assessment, survey, or report. These offerings require less of your time, can be sold at a higher volume and with a more reliable profit margin.

There are many online tools out there. You may even have a product already in your portfolio but is it a “me too”? Does it differentiate you from your competitors? Is it the latest technology? How does it support your ability to earn revenue without constant active involvement by you?

Are you looking for ways to differentiate your business?

Great People Inside services are offered in over 20 countries globally. We recently launched in Australia, and we’re in the process of growing and extending our channel and referral partner network.

The Cloud-based GPI People Intelligence Platform is a next-generation platform that provides you with the ability to provide key strategic HR insights and analytics to your clients. Its flexibility is unique as it’s the only fully-customisable psychometric profiling and 360° feedback platform in the world.

For example, are you interested in helping your clients:

  • Identify people who will be productive in a work from home environment?
  • Analyse employees’ alignment with organisational values?
  • Develop a robust selection, onboarding, and development process?
  • Understand the business impacts their top performers contribute?
  • Manage all the generations effectively?

Tick, Tick, Tick, Tick and Tick the GPI platform can do this and more.

 

These days everyone wants choice, and that is precisely what we deliver with GPI. The unique ability to easily customise assessments means you are not restricted to offering assessment tools that measure or analyse what the test provider 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. Our unique pricing models mean you can develop client-focused valid customised assessments regardless of the role position or status in the business. At GPI, we believe everyone in the organisation should be happy in their job 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 GPI People Intelligence Platform – to anyone working with people: Ready-to-use, customisable to meet every need, and affordable to everyone.”

If you’re interested in implementing a strategy that will drive revenue to your business – regardless of the Melbourne Cup or Australia Day – please click here to contact us or email [email protected]

 

www.greatpeopleinside.com/australia

 

The number one challenge for HR consultants: How will you grow your business next year?

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By David Leahy, Director, Great People Inside Australia

As this year quickly draws to a close, no doubt you’re reflecting on the year ahead. What are the opportunities? What are the challenges? What do you want to achieve?

In my recent conversations with HR consultants, one objective and challenge looms large for 2020 – how to scale their businesses. However, there are some unique challenges and barriers to growth for consultants which can stop growth in its tracks.

Consider this scenario. You’re an HR consultant working on your own. You’re able to earn decent money per hour and your costs remain relatively low. As you build up goodwill and a portfolio of work, word spreads and you gain a steady stream of referrals. Business is good. 

Eventually you can’t handle the workload on your own anymore. You hire a consultant to share the work. And then another. The three of you move into an office. On the surface things appear to be going well. There’s a steady flow of work. You’re all run off your feet. However, cash flow is tight. Making ends meet is becoming increasingly difficult, even though the business is bringing in more money than ever before. What’s going on?

When you examine your numbers more closely, you realise that the margins on the work your consultants are performing are very thin. Once you pay them, as well as pay the costs of office space and other resources, there isn’t much left over. As the business becomes more complex, you’re spending less time on billable work and more time on management and admin. By the end of that financial year your topline has grown significantly but your bottom line hasn’t budged. It’s been a whole lot of work for very little reward.

Sound familiar? Unfortunately this situation is extremely common for consultants. No wonder so many are burnt out and not seeing the financial return for their efforts. So how can you grow both your business’ top and bottom line sustainability in 2020?

Scrutinise your costs

Managing your costs effectively will help you claw back profitability. That may include negotiating a reduction in your rent, sourcing more competitive suppliers or outsourcing lower level work to a junior rather than a senior staff member.

Become more time efficient

For consultants, it is essential to understand how your time is spent and reduce that time when possible. If you or your team are spending too much time on a job it can make that job unprofitable. Consider ways to bring time down. Improving your systems, processes and technology are good places to start. Look at whether there are any tasks you can automate or outsource more cheaply.

Price strategically 

I’ve written before about how trading time for money is a trap. Consultants often find their earning potential is limited because they are paid for their time and there are only so many hours in a day.

The answer is to not price based on time but on value or outcome. Create service packages at a fixed cost which you know will be profitable. This also makes it easier to raise your prices. Don’t get stuck in a race to the bottom on price. By charging what you’re worth you can earn more while working less and attract a better client.

Target the right clients

Do you know which clients are your most profitable clients? By better understanding this you can focus your energy on those clients, upsell or cross sell to them and seek out other potential clients with a similar profile. Having less clients which are more profitable is worth more to your business then having more clients which are less profitable.

Diversify your offering

Diversifying what you offer is an excellent way to grow both your top and bottom line. Are there additional revenue streams which fit well with your existing offering? A great option is to offer a product in addition to your usual services such as an assessment, survey or report. These offerings require less of your time, can be sold at a higher volume and with a more reliable profit margin.  

The important thing to consider is which product is worth reflecting on before you jump in. There are lots of online tools out there, you may even have a product already in your portfolio, but is it differentiating you from your competitors? Is it the latest technology? How does it support you to earn revenue without constant active involvement by you?

Are you looking for ways to differentiate your business?

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 platform that provides you with the ability to provide key strategic HR insights and analytics to your clients. Its flexibility is unique as its the only fully-customisable, psychometric profiling and 360° feedback, platform in the world!  

For example: Want to help your clients analyse their people’s level of alignment to the organisations’ values? Want to help your clients analyse what precisely drives the performance of their top customer service or sales team members? Want to help your clients understand the impact of their top performers? Tick, Tick and Tick – The gr8piplatform can do this and more!

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 or analyse 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 and our unique pricing models mean you can develop client focused customised tools regardless of their role position or status in the business. 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].

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].