Tag Archives: Consultants and small business

Analysis, Anxiety, Action

Yacht“He seemed to understand my business, but…”

I was sitting with a CEO of a $4 million business several months ago. Call him Jay. Like many small business owners looking for continued growth, Jay was wrestling with a thorny decision. He had contracted with Kevin (not his real name), a marketing consultant, to develop a comprehensive marketing plan for the business. At the time of our discussion, Kevin had just presented a plan that consisted mainly of an analysis of the business’s current situation: markets served and unserved, competitive strengths and weaknesses, market position, and so forth. Jay found the data informative, but kept pushing Kevin for detailed recommendations – suggestions for reasonable sales growth goals and action steps both short- and long-term to achieve those goals. Kevin seemed to be dodging that question, instead hinting that Jay could contract with him on a retainer basis to guide the implementation of the plan over the upcoming months. Jay was wary.

This situation is not unusual. It’s not really a communication problem as much as a perception problem. Both Jay and Kevin are focused on “results”. However, Jay’s mindset is that of an entrepreneur; Kevin’s is that of an analyst. For Jay, achieving consistent growth is the result. For Kevin, defining the market and competitive situation is the result.

Stated simply, Jay wants to be reasonably confident that “If I do this, then I’ll achieve that.”

This difference in perspective is why consultants have such a challenge selling small-to-midsize businesses on their services. When they fail to secure a contract, they chalk it up to the assumption that the entrepreneur didn’t really have the money to spend anyway. But they are often mistaken, and they’re missing an opportunity to participate in this market.

In Jay’s most optimistic view, Kevin has opened the gate to the lock that can elevate his yacht to the next level. Now Jay wants Kevin in the boat, as his “marketing first mate”, for the next part of the journey.

A key to unlocking the door to a win-win consulting agreement is the willingness of the consultant to be paid on a sliding scale, proportional to the successful achievement of longer term goals.

Agree or disagree?