I have always believed that Luck comes to the prepared.
Be focused. Do your homework, so when opportunity knock bangs on the door, you recognize the sound and run to the door and walk through it. Network, Network, Network. Over the years, I have had opportunities come out of what might look as happenstance. However, because I was focused and prepared I could see where the opportunity was hiding. As a consultant, I want to be the first phone call someone receives after they realize they have a problem.
It is Monday morning, do you know what last weeks utilization was?
- How many staff hours were un-billable?
- Is your month to date revenue on target with your projections?
- The partners meeting is in an hour, but none of the staff have not entered their time for last week. The information presented will be inaccurate and incomplete.
Sound familiar? Studies have shown that firms that do not have a culture of daily time posting have billable leakage that can be close to 10% of revenue.
Partners & Principals in Profitable Professional Service and Consulting firms know these rules and metrics:
- 2080 Baseline
- 3x+ multiple
- Utilization rate
- Realization rate
Every month these firms update the answers to the following questions:
- What is the revenue generating capacity of our current team?
- How do we know when we can add staff and maintain profit margin goals?
- How do we know when we should reduce staff to avoid losses?
Walking around in wholesale clubs( i.e. Costco, BJs) has taught me the power of the free sample. I have bought products that I would never have taken a chance on if I had not had the opportunity to try them for free. Back in the early days of the software biz, alpha/beta customers were gold. We all need reference accounts to sing our praises. Donate your product/service to charity auctions or offer a reduced feature set as a door prize at a professional group meeting.
Published on the TPE Blog “Simple Ways to Test a Product or an Idea”