Additional Consulting Income from the TAB Opportunity.
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Transcript of Additional Consulting Income from the TAB Opportunity.
Additional Consulting Income from the TAB
Opportunity
Current Reality
How many of you have non-coaching,
non-TAB, consulting business?
Today’s Session
Objective: Gain ideas for leveraging TAB opportunity
for strategic, lucrative engagements
Method: Case studies
Every TAB Coach Can Do It
In a unique position Minimum 2 contacts per month Builds on most trusted relationship Can spot and leverage opportunities
Benefits: You The Member The TAB Community
Every TAB Coach Can Do It
Consulting is coaching on steroids
Consulting occurs to some extent during coaching sessions
Members often not aware you are willing and can do this type of work
Patience is the key “Consulting services are purchased, never
sold”
Case Studies: Process
2 case studies
Review details of each case study
Tables discuss questions and write ideas on Feedback Form
Report back on approach and pricing
Review actual consulting agreement
Case Study #1: Messaging & Branding Consulting, Inc.
MBC Key Facts PR and Communications firm: Public relations |
Create design | Communications strategy | Messaging & brand development | Target market and audience research
$2.5 M Revenue: COGS 52% : G&A 46%: EBITDA 2%
Average Engagement: $6k per month
Employees: 11
TAB Business Vantage shows: relative alignment about poor performance against critical categories, especially in sales
Case Study #1: Messaging & Branding Consulting, Inc.
The Opportunity MBC value proposition currently diffused &
incoherent
MBC clients from friends, family and referrals
The President and The COO Relationship is excellent : In business together 10+ years Both come from political arena Recognize anemic Gross Margin & EBITDA is function of
transactional engagements that are bulk of their revenue Not doing the type of work they want to do
=> working with large company strategic issues at the C level
Want to normalize the pipeline & increase more strategic work
Case Study #1: Messaging & Branding Consulting, Inc.
Leveraging TAB Business Vantage to build the bottom line and increase cash flow:
1. Increase the volume of transactional work =more of same=
2. Shift the firm’s focus to more strategic engagements =addresses TAB Business Vantage weaknesses =
Value proposition / Development of a new pursuit strategy
Sales management process / Internal communications
Consultative selling techniques Employee development / Cash flow Strategic planning
Case Study #1: Messaging & Branding Consulting, Inc.
Any clarification questions?
Case Study #1: Messaging & Branding Consulting, Inc.
Group Discussion
10 minutes
Feedback Form with questions to guide discussion
One person scribe ideas on form
Report Back Less than 2 minutes Best approach How much you can charge
Case Study #1: Messaging & Branding Consulting, Inc.
Discussion Questions Sense of urgency issues
Income statement implications of both options
Elements to support the option selected
Gap analysis of vision versus reality
Capabilities needs to support option selected
What can we sell
How to sell it
Pricing considerations
Case Study #1: Messaging & Branding Consulting, Inc.
Report Back: < 2 Minutes
1. What’s your approach?
2. How much can you charge?
Case Study #1: Messaging & Branding Consulting, Inc.
Developing the Consulting Engagement
SBL used to clarify the disparity between the principals’ vision and ability to accomplish 2011 goals based on current relationship (4-hour board meetings and 1-hour coaching)
Led to discussion about a retainer-based engagement model
Led to $6,000 per month consulting contract for 24 additional hours per month
Case Study #1: Messaging & Branding Consulting, Inc.
The Consulting Proposal:Project Scope:
Sales Consulting Sales Forecast development Pursuit strategy development and
assessment Sales Process Development (Methodology
and Forms) Participation in meetings (external & internal) Travel, lodging and per diem will be billed in
addition to retainer with pre-approval
Case Study #1: Messaging & Branding Consulting, Inc.
The Consulting Proposal:Value Proposition for MBC Annual Objective: $600,000 in add. new consulting
Expect Gross Sales: $599,928Less COS: 52%Gross Profit: $287,965Increm. Cost: $ 72,000Net MBC Cash: $215,985
Consulting Retainer: $6,000/Month
Case Study #2: Gray Jenkins Contractors & Supply Inc.
GJCS Key Facts Commercial GC in 3 vertical markets Premier reputation for quality and execution 2ND generation family business $22 M Revenue [ 50+%] with EBITDA – 8 to10% Range of Project Values: $250k to $5M 175 core employees [400 +/- with subs] Hit by economic impact on construction business
Survived by moving quickly and not accepting projects with no possibility of success
Stress across company and industry severe
Case Study #2: Gray Jenkins Contractors & Supply Inc.
The GJCS Opportunity Company supports founder’s multiple generation
families and many top notch professionals
Communication strained during the down turn
CEO (TAB Member) enjoyed support & collaboration of TAB Board & Coach in stark contrast to company stress
TAB Coach served as a sounding board on many key decisions; interacted with or as a team member / peer within the company
At tough meeting on team’s unreal expectations, a division VP expressed a wish for the Coach to be available onsite for advise on a routine basis
Case Study #2: Gray Jenkins Contractors & Supply Inc.
Leveraging the TAB Process Building on VP’s comment, CEO and Coach
brainstormed possible “extra help” from the Coach:
Project-by-project contacts
Team building sessions
TABenos with Operating Committee [OpCom]
TAB Business Vantage with OpCom members
Finance for non-financial managers training
On call for OpCom members for development support
Work on multiple M&A bargain possibilities
Case Study #2: Gray Jenkins Contractors & Supply Inc.
Leveraging the TAB Process (continued) Potential fixing areas of weakness obvious
to CEO
Internal communications
Improvement of project management process
Improve business development
Employee development
Strategic planning
Any clarification questions?
Case Study #2: Gray Jenkins Contractors & Supply Inc.
Case Study #2: Gray Jenkins Contractors & Supply Inc.
Group Discussion
10 minutes
Feedback Form with questions to guide discussion
One person scribe ideas on form
Report Back Less than 2 minutes Best approach How much you can charge
Case Study #2: Gray Jenkins Contractors & Supply Inc.
Discussion Questions Prioritizations of issues – what needs fixing first?
What choices are there to be “more present” in their business?
Does the client understand the value of the elements?
What does a successful engagement look like to the client?
What capabilities are needed to support the option selected?
What can we sell? - How to sell it?
Pricing considerations?
Case Study #2: Gray Jenkins Contractors & Supply Inc.
Report Back: < 2 Minutes
1. What’s your approach?
2. How much can you charge?
Case Study #2: Gray Jenkins Contractors & Supply Inc.
Developing the Consulting Engagement
The conflict of needing extra help, the time commitment needed to reach long-term goals led to realization of needed investment of more executive time.
Led to discussion about a retainer-based “rented exec” (consultant) engagement model
Result: $4,000 per month consulting
Case Study #2: Gray Jenkins Contractors & Supply Inc.
Developing the Consulting Engagement One page proposal presented & signed =>
Engagement is holistic in nature across 2 stages
Stage 1 - 20 hours/month, billed in advance: General strategic business and organizational
consulting; participating in monthly OpCom meetings, and face or phone reviews of any OpCom member
Hour variations adjusted in next month’s billing
Stage 2: beyond Stage 1 - separate agreement(s)
Additional Consulting Income
Summary Members need and want this type of
help
More than 1 way to achieve your aim – Your approach is not cookie cutter
Sometimes you don’t know how to solve what’s going on, but you see the issueYour best resources are in the room with
you
SAC Request: Need more case studies
Session Wrap Up
Please:
Fill out evaluation
Put evaluation AND your table’s Group Discussion Forms in the box by the door