Four Key Shifts That Make Consulting a Real Opportunity: Part Three

Key Shift #3: The New Normal

The only constant is change. How many times have you heard that line? Maybe as a leader, you even told it to your team. It sure is easier to understand and embrace when the change is affecting someone else! When the change affects us, it seems less logical and much more emotional.

The Harvard Business Review (HBR) regularly highlights what they think is the next “big idea.” In May 2012, HBR published an article, “The Rise of the Supertemp.” This article used the term “supertemp,” and we use the term “solopreneur." HBR says supertemps (solopreneurs) are, “increasingly trusted by corporations to do mission-critical work that, in the past, would have been done by permanent employees or established firms.” The article goes on to state that these independent consultants, “are growing in number, and we think they’re on the verge of changing how businesses work.”

While there are certainly opportunities in the Fortune 500 for independent consultants, consulting is by no means just for large corporations. Since we started our firm, we have worked for several dozen Fortune 500 companies, but our “bread and butter” is in small- to medium-sized firms. These firms are anxious to acquire the knowledge and experience needed to formulate and execute strategic initiatives.

In the United States alone, there are nearly 200,000 middle-market businesses ($10 million – $1 billion in revenue) and over 24-million small businesses (under $10 million in revenue). This is a huge market for your services and experience as an independent consultant. There is also a large international market. By leveraging technology, you can service clients around the world almost as easily as those in North America.

Several years ago, Spencer Johnson wrote Who Moved My Cheese? It rose to the top of the bestseller lists in no time. It was a simple parable about two mice, Hem and Haw. Haw was the character who adapted quickly to change and Hem did not. If you have not read this book, I would highly recommend it. (It takes less than an hour to read.)

The question for you is quite simple. Which character are you? Are you adapting to change, or are you hesitating? Are you like I was in writing my first book and not reading the signs, or are you looking at the statistical facts and drawing strategic conclusions? Are you using the data to make informed career choices, or are you hoping the cheese will be where it always was?

There is a new normal in our workforce, competitive arena, technology and even management. Looking at this data in conjunction with the demographic and new-math points made above will help you realize that leveraging your knowledge and experience to become an independent consultant may be the most lucrative and enjoyable decision of your career (more on this in later chapters).

NEW NORMAL OPPORTUNITY #1:
START UPS


The latest available data shows that in 2009, business start ups reached their highest level since the tech boom of 1999, and this trend to entrepreneurship continues. Millions of folks believe the best answer to their career ambitions lies in their own efforts. As many as 20% of the population would like to be in their own businesses. Many folks are starting companies from scratch, and there have been a record number of people buying franchises. This poses two very distinct opportunities for independent consultants.

The first opportunity is the growing market for your knowledge and experience. As new entrepreneurs are getting started, they will need your insights along the way. These entrepreneurs will not be able to “afford” a resume like yours, but may be quite willing to invest in your ability as a consultant to drive results and to front-end their success. The “new math” will be of particular interest to this group.

These new entrepreneurs span all of the generations. There are Baby-Boomers who, by choice or need, have ventured out on their own, as well as individuals from Gen X and Gen Y. Each of these cohorts will have the need, for very different reasons, to connect with experienced professionals who can offer advice, counsel and additional bandwidth. Your knowledge capital will be highly desirable to these new business owners.

The second opportunity for you as an independent consultant is to become your own boss -- one of the new entrepreneurs, if you will -- without the major investment that most franchises and other businesses require. Our research shows that most viable franchises cost a good deal up front, and as much as $500–$22,000 a month in residual fees. A February 27, 2012 articlein Forbes magazine rated the best franchises for the money. The average cost to start a franchise was $135K (Snap-on), $293K (7-Eleven), $420K (Aaron’s), $1.447 million (Panera Bread), $156K (Servpro), $1.480 million (McDonald’s), $63K (Liberty Tax Service), $66K (Merry Maids), $106K (The Maids International) and $395K (Jimmy John’s). These investments are significant. Many of these franchises are counting on your work ethic and business acumen, combined with their processes and brand, to provide a winning formula. While I think I could run many of these franchises, they don’t look that good to me compared to consulting.

To become an independent consultant, the cost of entry is MUCH less. In fact, your investment to get started will be less than some franchises’ monthly residual fees. Your success is also based upon your work ethic and business acumen. The difference is what you need to get started, which is far less than any “brick-and-mortar” business.

This article is an excerpt from Buddy’s latest book, "Experience Matters: How to Succeed as a Consultant in Today’s World." To download your free copy of the full version, CLICK HERE.