{"id":1618,"date":"2019-12-02T16:11:23","date_gmt":"2019-12-02T05:11:23","guid":{"rendered":"https:\/\/greatpeopleinside.com\/australia\/?p=1618"},"modified":"2021-02-05T16:07:48","modified_gmt":"2021-02-05T05:07:48","slug":"the-number-one-challenge-for-hr-consultants-how-will-you-grow-your-business-next-year","status":"publish","type":"post","link":"https:\/\/greatpeopleinside.com\/australia\/the-number-one-challenge-for-hr-consultants-how-will-you-grow-your-business-next-year\/","title":{"rendered":"The number one challenge for HR consultants: How will you grow your business next year?"},"content":{"rendered":"<p><b>By David Leahy, Director, Great People Inside Australia<\/b><\/p>\n<p><span style=\"font-weight: 400;\">As this year quickly draws to a close, no doubt you\u2019re reflecting on the year ahead. What are the opportunities? What are the challenges? What do you want to achieve?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In my recent conversations with HR consultants, one objective and challenge looms large for 2020 &#8211; how to scale their businesses. However, there are some unique challenges and barriers to growth for consultants which can stop growth in its tracks.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Consider this scenario. You\u2019re an HR consultant working on your own. You\u2019re 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.<\/span><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Eventually you can\u2019t 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\u2019s a steady flow of work. You\u2019re 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\u2019s going on?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">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\u2019t much left over. As the business becomes more complex, you\u2019re 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\u2019t budged. It\u2019s been a whole lot of work for very little reward.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">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\u2019 top and bottom line sustainability in 2020?<\/span><\/p>\n<h3>Scrutinise your costs<\/h3>\n<p><span style=\"font-weight: 400;\">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.<\/span><\/p>\n<h3>Become more time efficient<\/h3>\n<p><span style=\"font-weight: 400;\">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.<\/span><\/p>\n<h3>Price strategically<span style=\"font-weight: 400;\">\u00a0<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">I\u2019ve written before about<\/span><a href=\"https:\/\/greatpeopleinside.com\/australia\/2019\/10\/28\/trading-time-for-money-its-a-rat-trap-how-to-scale-your-hr-business-or-consultancy\/\"> <span style=\"font-weight: 400;\">how trading time for money is a trap<\/span><\/a><span style=\"font-weight: 400;\">. 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.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">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\u2019t get stuck in a race to the bottom on price. By charging what you\u2019re worth you can earn more while working less and attract a better client.<\/span><\/p>\n<h3>Target the right clients<\/h3>\n<p><span style=\"font-weight: 400;\">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.<\/span><\/p>\n<h3>Diversify your offering<\/h3>\n<p><span style=\"font-weight: 400;\">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.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">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?<\/span><\/p>\n<h4>Are you looking for ways to differentiate your business?<\/h4>\n<p><span style=\"font-weight: 400;\">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><\/p>\n<p><span style=\"font-weight: 400;\">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\u00b0 feedback, platform in the world!\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For example: Want to help your clients analyse their people\u2019s level of alignment to the organisations\u2019 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 &#8211; The gr8piplatform can do this and more!<\/span><\/p>\n<p><span style=\"font-weight: 400;\">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\u2026.you can help your clients measure precisely what\u2019s important to THEM!<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With GPI you\u2019re 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 \u201cfit\u201d and they love their work! In fact, our mission is \u201c<\/span><i><span style=\"font-weight: 400;\">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<h4>About David Leahy<\/h4>\n<p><span style=\"font-weight: 400;\">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<\/span> <a href=\"https:\/\/greatpeopleinside.com\/australia\/partners\/#toggle-id-1\"><span style=\"font-weight: 400;\">Channel &amp; Referral Partner program<\/span><\/a><span style=\"font-weight: 400;\">. Contact David at <\/span><span style=\"font-weight: 400;\">David.Leahy@greatpeopleinside.com<\/span><span style=\"font-weight: 400;\">.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By David Leahy, Director, Great People Inside Australia As this year quickly draws to a close, no doubt you\u2019re 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 &#8211; how [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":1619,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[28,14],"tags":[31,29,30,66],"class_list":["post-1618","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-advice","category-news","tag-advice","tag-business-growth","tag-consulting","tag-great-people-inside-platform"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The number one challenge for HR consultants: How will you grow your business next year? - Great People Inside Australia<\/title>\n<meta name=\"description\" content=\"Tips on how to grow your HR consultant business for the year ahead.\" \/>\n<meta name=\"robots\" content=\"index, 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