{"id":1599,"date":"2019-11-14T15:00:57","date_gmt":"2019-11-14T04:00:57","guid":{"rendered":"https:\/\/greatpeopleinside.com\/australia\/?p=1599"},"modified":"2021-02-07T20:03:37","modified_gmt":"2021-02-07T09:03:37","slug":"building-a-business-or-a-consultancy-which-ones-for-you","status":"publish","type":"post","link":"https:\/\/greatpeopleinside.com\/australia\/building-a-business-or-a-consultancy-which-ones-for-you\/","title":{"rendered":"Building a business or a consultancy: which one\u2019s for you?"},"content":{"rendered":"

By David Leahy, Director, Great People Inside Australia<\/b><\/p>\n

When you take a step back and look at your HR business, is it a consultancy or a genuine business?<\/span><\/p>\n

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.<\/span><\/p>\n

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\u2019s a catch 22. You\u2019re either doing too much work yourself to remain profitable or earning a slim margin on your team\u2019s work.<\/span><\/p>\n

A genuine and sustainable business, on the other hand, is different. Your revenue isn\u2019t 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\u2019s possible to grow without chipping away at profitability. Best of all, as a business owner you can work less while earning more.<\/span><\/p>\n

If your business is still just a consultancy, you\u2019re not alone. Many HR businesses will never evolve beyond that. But if your aspirations are higher than that, it is possible to evolve.<\/span><\/p>\n

So how can you evolve your consultancy into a sustainable and thriving business?<\/span><\/p>\n

Refine your offering<\/h3>\n

If you\u2019re a generalist doing a bit of everything for everyone, you\u2019re 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.<\/span>\u00a0<\/b><\/p>\n

Avoid the trap of trading time for money<\/h3>\n

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\u2019t in the time you dedicate to a client, it\u2019s in the outcome you achieve – and that may be worth a lot more to the client than a defined amount per hour.<\/span><\/p>\n

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\u2019re 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.<\/span><\/p>\n

Create time efficiencies<\/h3>\n

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.<\/span><\/p>\n

Source additional revenue streams<\/h3>\n

Additional revenue streams that aren\u2019t 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\u2019t require much more time on your part.<\/span><\/p>\n

Are you looking for an additional revenue stream?<\/h4>\n

We recently launched Great People Inside in Australia and we\u2019re in the process of growing and extending our channel and referral partner network.<\/span>\u00a0<\/span><\/p>\n

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\u00b0 feedback, platform in the world.<\/span>\u00a0<\/span><\/p>\n

Clients can be trained to use the highly intuitive platform independently so they can select, manage and develop their people, look after their employee\u2019s wellbeing, and ensure alignment of organisation values.<\/span>\u00a0<\/span><\/p>\n

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\u2026.you can help your clients measure precisely what\u2019s important to THEM!<\/span><\/p>\n

With GPI you\u2019re 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\u2019s 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 \u201cfit\u201d and they love their work! In fact our mission is \u201c<\/span>To develop and offer the future\u2019s talent and assessment solution \u2013 the Cloud-based GR8PI People Intelligence Platform \u2013 to anyone working with people: Ready-to-use, customisable to meet every need, and affordable to everyone.\u201d<\/span><\/i><\/p>\n

About David Leahy<\/h4>\n

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\u2019re interested in being part of our mission, why not enquire and learn about our unique and exciting\u00a0<\/span>Channel & Referral Partner program<\/span><\/a>. Contact David at <\/span>David.Leahy@greatpeopleinside.com<\/span><\/a>.<\/span><\/p>\n

www.greatpeopleinside.com\/australia<\/span><\/a>\u00a0<\/b><\/p>\n","protected":false},"excerpt":{"rendered":"

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. 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