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What is the best business model for consultants?
In this episode of the Consulting Corner Michael Zipursky shares what you should know about choosing the right business model for your consulting business.
In this episode, let’s talk about business models. What is the right type of business model for you to use in your own consulting business?
These days, I see advertisements all over the web and even in workshops and in seminars, of people talking about the “best” business model.
That you should be selling high ticket offers or you should be doing products or setting up passive income streams, or jumping on webinars or podcasts or Instagram or Pinterest.
All these latest ideas and models that people are presenting to you can get a consultant quite confused.
You can feel overwhelmed wondering, “Is this the right business model for me?” And because they often do such a good job of marketing the idea to you, you get excited about it.
I want to offer you the idea that you should just take a minute and step back. Cool off.
Find Your Model
It’s really important that you ensure that the model that you are using is the right model for you and your business.
What type of business do you want to have?
What size company do you want to create?
Do you want to be a solo consultant or an independent consultant?
Do you want to have a consulting firm that has two, three, four, five employees, or do you want a firm that has 10 or 20 or 50 or 100 employees?
Depending on what size of consulting business you want to have, that will inform what type of model offers price points you will want to use.
What about your income?
What level of income do you want to achieve?
Are you happy generating a quarter of a million dollars a year, or do you want to reach half a million dollars, or a million dollars?
Do you want to see revenues of $5 million, $10 million, $50 million?
Depending on what your income and revenue goals are, that will influence what type of model, strategy, approach and tactics you use.
The Impact You Make
Also, give some thought to the impact that you want to make.
Because if you want to make a greater impact, that can often require you to work on a more personal basis with your clients.
As an example, writing a book or selling an ebook or some audios or a course usually won’t allow you to make the same level of impact as you can if you’re providing direct consulting or coaching or ‘done for you’ services for your clients.
That’s just the fact of it, because you’re able to work in a closer and more personal way where you can have greater involvement and because of that have a greater impact on your clients.
Complex or Simple
What about complexity? Do you want a business that has a lot more moving parts, where you require more infrastructure, more employees, more systems?
Or are you satisfied and would you prefer to have a business that is much simpler where you provide one type of product or service or offering?
Maybe you prefer a model that doesn’t require you to work with other clients as directly? You want to be more hands-off.
Would you prefer to spend time creating products or offerings but not as much time working directly with clients?
Each of these factors will influence the model that you choose.
I’d like to respectfully and humbly offer you the idea that you shouldn’t just jump on one type of model because it seems like it’s the latest thing.
Just because someone is marketing it to you effectively online doesn’t mean that it’s the right thing for your business.
The BEST Business Model for YOU
The reality, my friend, is that there is no right or wrong business model.
Selling $50,000 or $500,000 projects to corporate clients is a great model, but so too is offering $2500 or $5000 packages.
For others, selling $7, $100, or $500 products can be extremely rewarding and profitable.
There is no right or wrong. There is no best model.
Consider what the right model is for you, for your business, for your situation and for your goals.
Once you’ve made some decisions around that, then you can explore what model is the right and “best” fit for you.