Building a Consulting Practice: How to Avoid the Cash Flow Roller Coaster Ride

About three months after I left my internal consultant job to start my full-time consulting practice, I remember meeting a consultant who had worked with our consulting/training department. For over three years, he served as a coach and mentor to our group.

As if it was just yesterday, I remember saying, "Jim, I've run into something really interesting. I'm either making a lot of money or I'm making no money. Have you ever run into this?"

He looked at me with a big Cheshire cat smile on his face and said, "Welcome to the world of independent consulting." He knew exactly what I was talking about.

If you're not out there earning money, then you're on the other side trying to find money. It's a roller coaster ride – a feast or famine situation.

How do you avoid this?

You must be visible.

For many of us, especially if you're a solo independent consultant or the only employee of a company, you have to figure out quickly or else it's a quick trip to bankruptcy.

When trying to boost your visibility, keep in mind these three factors:

1) Frequency:

Successful marketing is about reinforcing your expertise and earning the trust of your target audience over time. Rarely do clients hire consultants without some prior experience or referral from a close colleague. You may have opportunities to be in front of your ideal audience, but sustainable businesses are built through consistent contact.

Repeated contact in multiple formats – speeches, articles, blogs, seminars, etc. -- is the key here. Successful marketing is not just a one-time meet and greet or show-up situation. It's really about building a solid impression of the value you can create for your target audience.
As you look at your own business, ask yourself, “how do I build and reinforce my image, expertise, and value for my target audience?” Your answer will quickly and easily tell you whether or not you're destined for those ups and downs with your cash flow; and ultimately if your business will be successful or financially struggle.

2) Format:

We can make ourselves visible through different formats like speaking, writing, teleclasses, blogging, and joining professional associations. There are multiple ways that we can create visibility.

If you enjoy speaking, go to clubs, associations, and professional groups. By speaking or serving on professional boards or associations, you boost your visibility.
I have been on the local American Society for Training and Development board. It was great visibility. I also had my picture on the chapter's website which generated a lot of calls and emails. It's an excellent way to gain visibility and demonstrate your expertise.
What kind of visibility do you have?

3) Audience:

Who is your ideal audience? Once you identify this, your goal is to make yourself visible to them.

Your audience can be a group of professional people that you're speaking to, a prospect list that you're repeatedly coming back to, or potential clients that you're targeting through a specific format.

By clearly defining your audience, choosing appropriate formats to engage them with and keeping in consistent contact, you can put your marketing on auto pilot and avoid the feast or famine situation that so many independent consultants struggle with.